Assembly Bill A8018

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

                                 8018--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               May 1, 2009
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee on Ways and Means -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend the tax law, in relation to the commercial production
  credit

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

  Section  1.  Subparagraph  (i)  of  paragraph  2 of subdivision (a) of
section 28 of the tax law, as amended by chapter  300  of  the  laws  of
2007, is amended to read as follows:
  (i)  The state annually will disburse three million of the total seven
million in tax credits to all  eligible  production  companies  and  the
amount  of  the  credit  shall  be the product (or pro rata share of the
product, in the case of a member of a partnership) of twenty percent  of
the  qualified  production costs paid or incurred in the production of a
qualified commercial, provided that the qualified production costs  paid
or  incurred  are  attributable  to  the use of tangible property or the
performance of services within the state in the production of such qual-
ified commercial. To be eligible for said  credit  the  total  qualified
production  costs  of  a qualified production company must be greater in
the aggregate during the current calendar year than the average  of  the
three  previous years for which the credit was applied. Provided, howev-
er, that until a qualified production company has  established  a  three
year  history,  the  credit will be based on either the previous year or
the average of the two previous years, whichever [is greater] PERIOD  IS
LONGER  FOR  THE QUALIFIED PRODUCTION COMPANY SEEKING THE CREDIT. If the
qualified production company has never applied for  the  growth  credit,
the previous [years] YEAR'S data will be used to create a benchmark. The
tax  credit  shall  be applied only to the amount of the total qualified
production costs of the current calendar year that are greater than  the
total amount of production costs of the [preceding calendar year] APPRO-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11186-02-9
              

A. 8018--A                          2

PRIATE  MEASUREMENT  PERIOD  AS  DESCRIBED IN THIS SUBPARAGRAPH. The tax
credit must be distributed to eligible production  companies  on  a  pro
rata basis, provided, however, that no such qualified production company
shall receive more than three hundred thousand dollars annually for such
credit.  The  credit  shall be allowed for the taxable year in which the
production of such qualified commercial is completed.
  S 2. Paragraph 2 of subdivision (b) of section 28 of the tax  law,  as
amended  by  chapter  440  of  the  laws  of 2006, is amended to read as
follows:
  (2) "Production costs" means any costs for tangible property used  and
services performed directly and predominantly in the production (includ-
ing  pre-production  and  post-production)  of  a  qualified commercial.
"Production costs" shall not include (i) costs for a  story,  script  or
scenario  to  be used for a qualified commercial and (ii) wages or sala-
ries or other  compensation  for  writers,  directors,  including  music
directors,  producers  and performers (other than background actors with
no scripted lines who are employed by  a  qualified  company  and  musi-
cians).   "Production   costs"  generally  include  technical  and  crew
production costs, such as expenditures for commercial production facili-
ties and/or location costs, or any part thereof, film, audiotape,  vide-
otape or digital medium, props, makeup, wardrobe, commercial processing,
camera,  sound recording, scoring, set construction, lighting, shooting,
editing and meals. For purposes of this section, "post production costs"
include the production of original content for  a  qualified  commercial
employing  techniques  traditionally  used in post-production for visual
effects, graphic design, animation, and musical composition.    HOWEVER,
WHERE  THE  COMMERCIAL  CONSISTS  IN  ITS ENTIRETY OF TECHNIQUES SUCH AS
VISUAL EFFECTS, GRAPHIC DESIGN, OR ANIMATION, SUCH COSTS INCURRED IN THE
PRODUCTION OF THE COMMERCIAL, WHEN  OCCURRING  IN  NEW  YORK,  SHALL  BE
DEEMED  QUALIFIED  PRODUCTION  COSTS  FOR  THE PURPOSES OF THIS SECTION.
Provided FURTHER,  however,  that  "post  production  costs"  shall  not
include  the  editing  of  previously  produced  content for a qualified
commercial.
  S 3. This act shall take effect immediately, provided,  however,  that
the amendments to section 28 of the tax law made by sections one and two
of this act shall not affect the expiration of such section and shall be
deemed to expire therewith.