NY State Senate Bill 2015-S1297A

Senate Bill S1297A

2015-2016 Legislative Session

Provides for an annual increase in the aggregate annual amount of empire state film production credits taken, based upon inflation

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 12, 2016	print number 1297a
Jan 12, 2016	amend and recommit to investigations and government operations
Jan 06, 2016	referred to investigations and government operations
Jan 09, 2015	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2015-S1297 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §24, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7023
2013-2014: S115
2017-2018: S430

2015-S1297 - Summary

Provides for an annual increase in the aggregate annual amount of empire state film production credits taken, based upon inflation.

2015-S1297 - Sponsor Memo

                                BILL NUMBER:S1297

TITLE OF BILL:

An act to amend the tax law, in relation to the aggregate annual
amount of the empire state film production credit against state taxes

PURPOSE:

Provides for an annual increase in the aggregate annual amount of
empire state film production credits taken, based upon inflation

SUMMARY OF PROVISIONS:

Section 1 of the bill amends paragraph 4 of subdivision e of section
24 of the tax law relating to the empire state film production credit,
as added by chapter 268 of the laws of 2012, to provide for an annual
aggregate amount of the Empire State Film Credits that may be taken
against state taxes in 2015 and beyond, based on an inflation adjusted
calculation of the amount provided in the final funded year of 2014.

Section 2 establishes the effective date.

JUSTIFICATION:

The Empire State Film Production Tax Credit has been an unqualified

success for the State of New York, both culturally and financially.
Despite the fact that New York's tax credit is significantly less
generous than the credits offered by competing states (including
Connecticut and Massachusetts), it continues to be a premier
destination for films and television shows, shining light on the
State's rightful status as a world capital for the arts. The tax
credit program has also proven to have a consistently beneficial
impact on the State's bottom line. In 2009, an Ernst & Young study
estimated that the program had cost the state $690 million while
generating $2.6 billion in tax revenue. Even more importantly, the
program has helped create tens of thousands of new jobs in this state.

While the 2010-2011 state budget extended the program by five years in
2010, it failed to address a major institutional problem which
dissuades television shows from setting up roots in the state. Unlike
movie productions, television productions are "quasi-permanent"
institutions that ordinarily must run for at least four years to reach
syndication length and become truly profitable. This means that as
soon as the second year of a five-year tax credit extension,
television production companies considering putting down roots in the
state can no longer be assured that the credit will still be in place
when their shows reach sufficient length. Consequently, in order to
consistently attract the most promising television series, it is
critical that production companies be given the peace of mind that, if
their shows are successful, they will not be forced to uproot
production and move elsewhere in a few short years.

This bill gives television producers that peace of mind by providing
inflation adjusted annual funding for the Empire State Film Tax Credit
program. A simple funding extension would only delay the problem
instead of providing the genuine solution that is called for.  This


bill does not increase the percentage of production costs eligible for
a tax credit, and it only increases the aggregate total insofar as is
necessary to keep pace with inflation. Consequently, the State would
remain largely insulated from risk while seeing increased benefits.

Between 2002 and 2009 the number of states offering film-production
tax credits rose from 5 to 44. The vast majority of those states offer
more substantial credits to individual productions than New York, and
many are considering increasing the percentage of costs that can be
credited still further. Fortunately, New York does not need to take
part in this film tax credit arms race. Television production
companies want to come here, even if it costs more. They simply want
to be assured that funding for the program will still be in place when
their shows become profitable. If we are to continue to attract
top-shelf television productions we must make certain that our own
program follows the basic dictates of common sense. This bill provides
that common sense solution.

LEGISLATIVE HISTORY:

2013-2014 - S.115
2011-12: S.7023

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.

2015-S1297 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1297

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 9, 2015
                               ___________

Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to the aggregate annual  amount
  of the empire state film production credit against state taxes

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Paragraph 4 of subdivision (e) of section 24  of  the  tax
law,  as  amended  by  section  3 of part B of chapter 59 of the laws of
2013, is amended to read as follows:
  (4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional four
hundred twenty million dollars in each year starting in two thousand ten
through two thousand [nineteen] FIFTEEN, EXCEPT THAT IN TAX YEARS  AFTER
TWO  THOUSAND  FIFTEEN,  SUCH  AMOUNT  SHALL BE ADJUSTED ANNUALLY ON THE
FIRST OF JANUARY FOR INFLATION ACCORDING TO THE CONSUMER PRICE INDEX FOR
ALL CONSUMERS, ALL ITEMS, NORTHEAST REGION, NOT SEASONALLY ADJUSTED,  OF
THE  PREVIOUS  YEAR, BUT IN NO EVENT SHALL SUCH AMOUNT BE LESS THAN FOUR
HUNDRED TWENTY MILLION DOLLARS; provided however, seven million  dollars
of  the  annual  allocation shall be available for the empire state film
post production credit pursuant to section thirty-one of this article in
two thousand thirteen and two thousand fourteen and twenty-five  million
dollars of the annual allocation shall be available for the empire state
film post production credit pursuant to section thirty-one of this arti-
cle  in  each year starting in two thousand fifteen through two thousand
nineteen. This amount shall be allocated by the  governor's  office  for
motion  picture and television development among taxpayers in accordance
with subdivision (a) of this section. If the  commissioner  of  economic
development  determines  that the aggregate amount of tax credits avail-
able from additional pool 2 for the empire  state  film  production  tax
credit  have  been previously allocated, and determines that the pending

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00350-01-5

S. 1297                             2

applications from eligible applicants for the  empire  state  film  post
production  tax credit pursuant to section thirty-one of this article is
insufficient to utilize the balance of  unallocated  empire  state  film
post  production  tax  credits from such pool, the remainder, after such
pending applications are considered, shall be made available  for  allo-
cation  in  the  empire  state film tax credit pursuant to this section,
subdivision thirty-six of section two hundred ten and subsection (gg) of
section six hundred six of this chapter. Also, if  the  commissioner  of
economic development determines that the aggregate amount of tax credits
available  from  additional  pool  2  for  the  empire  state  film post
production tax credit have been  previously  allocated,  and  determines
that  the  pending  applications from eligible applicants for the empire
state film production tax credit pursuant to this  section  is  insuffi-
cient  to utilize the balance of unallocated film production tax credits
from such pool, then all or part of the remainder,  after  such  pending
applications  are considered, shall be made available for allocation for
the empire state film post production credit pursuant to  this  section,
subdivision  forty-one of section two hundred ten and subsection (gg) of
section six hundred six of  this  chapter.  The  governor's  office  for
motion picture and television development must notify taxpayers of their
allocation  year  and  include the allocation year on the certificate of
tax credit. Taxpayers eligible to claim a credit must report  the  allo-
cation  year  directly  on their empire state film production credit tax
form for each year a credit is claimed and include a copy of the certif-
icate with their tax return. In  the  case  of  a  qualified  film  that
receives  funds  from additional pool 2, no empire state film production
credit shall be claimed  before  the  later  of  the  taxable  year  the
production  of the qualified film is complete, or the taxable year imme-
diately following the allocation year for which the film has been  allo-
cated  credit by the governor's office for motion picture and television
development.
  S 2. This act shall take effect immediately.

2015-S1297A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §24, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7023
2013-2014: S115
2017-2018: S430

2015-S1297A (ACTIVE) - Summary

Provides for an annual increase in the aggregate annual amount of empire state film production credits taken, based upon inflation.

2015-S1297A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1297A

 TITLE OF BILL :  An act to amend the tax law, in relation to the
aggregate annual amount of the empire state film production credit
against state taxes

 PURPOSE :

Provides for an annual increase in the aggregate annual amount of
empire state film production credits taken, based upon inflation

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends paragraph 4 of subdivision e of section
24 of the tax law relating to the empire state film production credit,
as added by chapter 268 of the laws of 2012, to provide for an annual
aggregate amount of the Empire State Film Credits that may be taken
against state taxes in 2016 and beyond, based on an inflation adjusted
calculation of the amount provided in the final funded year of 2014.

Section 2 establishes the effective date.

 JUSTIFICATION :

The Empire State Film Production Tax Credit has been an unqualified
success for the State of New York, both culturally and financially.

Despite the fact that New York's tax credit is significantly less
generous than the credits offered by competing states (including
Connecticut and Massachusetts), it continues to be a premier
destination for films and television shows, shining light on the
State's rightful status as a world capital for the arts. The tax
credit program has also proven to have a consistently beneficial
impact on the State's bottom line. In 2009, an Ernst & Young study
estimated that the program had cost the state $690 million while
generating $2.6 billion in tax revenue. Even more importantly, the
program has helped create tens of thousands of new jobs in this state.

While the 2010-2011 state budget extended the program by five years in
2010, it failed to address a major institutional problem which
dissuades television shows from setting up roots in the state. Unlike
movie productions, television productions are "quasi-permanent"
institutions that ordinarily must run for at least four years to reach
syndication length and become truly profitable. This means that as
soon as the second year of a five-year tax credit extension,
television production companies considering putting down roots in the
state can no longer be assured that the credit will still be in place
when their shows reach sufficient length. Consequently, in order to
consistently attract the most promising television series, it is
critical that production companies be given the peace of mind that, if
their shows are successful, they will not be forced to uproot
production and move elsewhere in a few short years.

This bill gives television producers that peace of mind by providing
inflation adjusted annual funding for the Empire State Film Tax Credit
program. A simple funding extension would only delay the problem
instead of providing the genuine solution that is called for.  This
bill does not increase the percentage of production costs eligible for
a tax credit, and it only increases the aggregate total insofar as is
necessary to keep pace with inflation. Consequently, the State would
remain largely insulated from risk while seeing increased benefits.

Between 2002 and 2009 the number of states offering film-production
tax credits rose from 5 to 44. The vast majority of those states offer
more substantial credits to individual productions than New York, and
many are considering increasing the percentage of costs that can be
credited still further. Fortunately, New York does not need to take
part in this film tax credit arms race. Television production
companies want to come here, even if it costs more. They simply want
to be assured that funding for the program will still be in place when
their shows become profitable. If we are to continue to attract
top-shelf television productions we must make certain that our own
program follows the basic dictates of common sense. This bill provides
that common sense solution.

 LEGISLATIVE HISTORY :

2013-2014 - S.115
2011-12: S.7023

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S1297A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1297--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 9, 2015
                               ___________

Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT to amend the tax law, in relation to the aggregate annual amount
  of the empire state film production credit against state taxes

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    Paragraph 4 of subdivision (e) of section 24 of the tax
law, as amended by section 3 of part B of chapter  59  of  the  laws  of
2013, is amended to read as follows:
  (4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional four
hundred twenty million dollars in each year starting in two thousand ten
through  two thousand [nineteen] SIXTEEN, EXCEPT THAT IN TAX YEARS AFTER
TWO THOUSAND SIXTEEN, SUCH AMOUNT SHALL  BE  ADJUSTED  ANNUALLY  ON  THE
FIRST OF JANUARY FOR INFLATION ACCORDING TO THE CONSUMER PRICE INDEX FOR
ALL  CONSUMERS, ALL ITEMS, NORTHEAST REGION, NOT SEASONALLY ADJUSTED, OF
THE PREVIOUS YEAR, BUT IN NO EVENT SHALL SUCH AMOUNT BE LESS  THAN  FOUR
HUNDRED  TWENTY MILLION DOLLARS; provided however, seven million dollars
of the annual allocation shall be available for the  empire  state  film
post production credit pursuant to section thirty-one of this article in
two  thousand thirteen and two thousand fourteen and twenty-five million
dollars of the annual allocation shall be available for the empire state
film post production credit pursuant to section thirty-one of this arti-
cle in each year starting in two thousand fifteen through  two  thousand
nineteen.  This  amount  shall be allocated by the governor's office for
motion picture and television development among taxpayers in  accordance
with  subdivision  (a)  of this section. If the commissioner of economic

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00350-02-6

S. 1297--A                          2

development determines that the aggregate amount of tax  credits  avail-
able  from  additional  pool  2 for the empire state film production tax
credit have been previously allocated, and determines that  the  pending
applications  from  eligible  applicants  for the empire state film post
production tax credit pursuant to section thirty-one of this article  is
insufficient  to  utilize  the  balance of unallocated empire state film
post production tax credits from such pool, the  remainder,  after  such
pending  applications  are considered, shall be made available for allo-
cation in the empire state film tax credit  pursuant  to  this  section,
subdivision thirty-six of section two hundred ten and subsection (gg) of
section  six  hundred  six of this chapter. Also, if the commissioner of
economic development determines that the aggregate amount of tax credits
available from  additional  pool  2  for  the  empire  state  film  post
production  tax  credit  have  been previously allocated, and determines
that the pending applications from eligible applicants  for  the  empire
state  film  production  tax credit pursuant to this section is insuffi-
cient to utilize the balance of unallocated film production tax  credits
from  such  pool,  then all or part of the remainder, after such pending
applications are considered, shall be made available for allocation  for
the  empire  state film post production credit pursuant to this section,
subdivision forty-one of section two hundred ten and subsection (gg)  of
section  six  hundred  six  of  this  chapter. The governor's office for
motion picture and television development must notify taxpayers of their
allocation year and include the allocation year on  the  certificate  of
tax  credit.  Taxpayers eligible to claim a credit must report the allo-
cation year directly on their empire state film  production  credit  tax
form for each year a credit is claimed and include a copy of the certif-
icate  with  their  tax  return.  In  the  case of a qualified film that
receives funds from additional pool 2, no empire state  film  production
credit  shall  be  claimed  before  the  later  of  the taxable year the
production of the qualified film is complete, or the taxable year  imme-
diately  following the allocation year for which the film has been allo-
cated credit by the governor's office for motion picture and  television
development.
  S 2. This act shall take effect immediately.

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