Assembly Bill A8805

2009-2010 Legislative Session

Authorizes additional tax credits for certain costs incurred in film and television productions in N.Y. city

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Archive: Last Bill Status - In Assembly 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to ways and means
Jun 09, 2009	referred to ways and means

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2009-A8805 (ACTIVE) - Details

See Senate Version of this Bill:: S5842
Current Committee:: Assembly Ways And Means
Law Section:: Tax Law
Laws Affected:: Amd §1201-a, Tax L; amd Part P §7, Chap 60 of 2004
Versions Introduced in 2011-2012 Legislative Session:: A1377, S880

2009-A8805 (ACTIVE) - Summary

Authorizes additional tax credits for certain costs incurred in film and television productions in a city having a population of one million or more.

2009-A8805 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A8805

TITLE  OF BILL:  An act to amend the tax law and part P of chapter 60 of
the laws of 2004, amending the tax law relating to the empire state film
production credit, in relation to authorizing additional tax credits for
certain costs incurred in film and  television  productions  in  a  city
having a population of one million or more

PURPOSE:  This legislation would ensure the continued growth of the film
production industry in New York City through 2011.

SUMMARY  OF  PROVISIONS:    Section  1  of this bill would amend Tax Law
51201-a(b), the section that authorizes the City of New  York  to  amend
its  General Corporation Tax ("GCT") and its Unincorporated Business Tax
("UBT") with respect to the Empire State Film Production Credit, to  add
the  term  "qualified  independent  film  production  company", which is
defined therein, to the category of taxpayer's entitled to the credit.

Section 2 of the bill would amend section 7(b)of part P of Chapter 60 of
the Laws of 2004, as amended, to increase the aggregate  amount  of  the
tax  credits allowed by the City of New York to be increased by an addi-
tional $24 million a year in 2009, 2010 and 2011. Such additional credit
amounts authorized may not be claimed by a taxpayer before taxable years
beginning on or after January 1, 2011. Further notwithstanding the  year
to  which  such  additional  credits  are  allocated by the Mayor's film
office, only $24 million can be claimed in a given year. Credits author-

ized and allowed in excess of $24 million in a given year may be claimed
in the subsequent year.

Notwithstanding the foregoing limitations, a taxpayer which is a  quali-
fied  independent  film  production  company  may  claim  credits  up to
$250,000 per qualified film allocated to it in,  the:  taxable  year  in
which the production of the qualified film is completed.

Section 3 of the bill provides that the law would take effect immediate-
ly  and  would  apply  to taxable years beginning on or after January 1,
2009.

JUSTIFICATION:  As part of the 2009-2010 State budget, the Empire  State
Film  Production  Credit program was provided an additional $350 million
in State funding. That legislation did not apply to that portion of  the
program  that  is  particular  to  New York City, which has been enacted
through the City's GCT and the UBT. This bill will  secure  funding  for
the  "Made in NY" film production credit through the end of 2011.  Given
the fiscal constraints facing the City, this legislation contains  meas-
ures  to  enhance  the  program's  effectiveness  as an incentive and to
better target the tax credit by deferring the  cost  of  the  additional
credits to tax years beginning on or after January 1, 2011.

Both  the  City  and  State  have  taken  a number of important steps to
provide incentives to the film and television industry, because it is an
important contributor to the City's economy. The New York City's Mayor's

Office of Film, Theatre & Broadcasting  has  dramatically  enhanced  the
range  of  services  that  it offers to the industry.  Combined with the
State credit, the "Made in NY" film production tax  credit,  enacted  in
January 2005, has been a major success in attracting film and television
production to New York City.  Production spending or qualifying film and
television  projects  increased significantly since 2004, accounting for
an additional $5 billion in direct spending while providing thousands of
additional jobs. These increases were evident in all  production  areas:
feature films, independent films, television series and pilots.

Through  the  "Made  in NY" film production tax credit, New York City is
the only municipality in the United States offering a tax credit  incen-
tive  to the film and television industry. This extension of the program
will ensure its continued success.

LEGISLATIVE HISTORY: New Legislation.

FISCAL IMPLICATIONS:  No new fiscal implications to the State.

EFFECTIVE DATE:  This act shall take effect immediately and shall  apply
to taxable years beginning on or after January 1, 2009.

2009-A8805 (ACTIVE) - Bill Text download pdf

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

                                  8805

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 9, 2009
                               ___________

Introduced by M. of A. LENTOL, FARRELL, ENGLEBRIGHT, DenDEKKER, MORELLE,
  GIANARIS,  V. LOPEZ, TITONE -- read once and referred to the Committee
  on Ways and Means

AN ACT to amend the tax law and part P of chapter  60  of  the  laws  of
  2004,  amending  the  tax  law  relating  to  the  empire  state  film
  production credit, in relation to authorizing additional  tax  credits
  for  certain  costs  incurred  in film and television productions in a
  city having a population of one million or more

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

  Section  1.  Subdivision  (b)  of  section  1201-a  of the tax law, as
amended by section 5 of part Y of chapter 62 of the  laws  of  2006,  is
amended to read as follows:
  (b) Empire state film production credit. Any city in this state having
a  population  of one million or more, acting through its local legisla-
tive body, is hereby authorized to adopt and amend local laws to allow a
credit against the general corporation tax and the unincorporated  busi-
ness  tax  imposed  pursuant  to  the authority of chapter seven hundred
seventy-two of the laws of nineteen hundred  sixty-six  which  shall  be
substantially  identical to the credit allowed under section twenty-four
of this chapter, except that (A) the percentage of qualified  production
costs  used to calculate such credit shall be five percent, (B) whenever
such section twenty-four references the state, such words shall be  read
as  referencing  the  city,  (C)  such credit shall be allowed only to a
taxpayer which is a qualified film production company OR QUALIFIED INDE-
PENDENT FILM PRODUCTION COMPANY, and (D)  the  effective  date  of  such
credit  shall  be  July  first,  two  thousand six. Such credit shall be
applied in a manner consistent with the credit allowed under subdivision
thirty-six of section two hundred ten of this chapter except as  may  be
necessary  to  take  into account differences between the general corpo-
ration tax and the unincorporated business tax.  A "QUALIFIED  INDEPEND-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14216-01-9

A. 8805                             2

ENT FILM PRODUCTION COMPANY" IS AN INDIVIDUAL OR A CORPORATION, PARTNER-
SHIP,  LIMITED  PARTNERSHIP OR OTHER ENTITY THAT IS NOT PUBLICLY TRADED,
AND PUBLICLY TRADED COMPANIES THAT DO NOT OWN, DIRECTLY  OR  INDIRECTLY,
MORE  THAN  FIVE  PERCENT  OF  THE QUALIFIED INDEPENDENT FILM PRODUCTION
COMPANY, AND THE INDIVIDUAL OR ENTITY  IS  PRINCIPALLY  ENGAGED  IN  THE
PRODUCTION  OF  A  QUALIFIED FILM AND CONTROLS THE QUALIFIED FILM DURING
PRODUCTION.
  S 2. Subdivision (b) of section 7 of part P of chapter 60 of the  laws
of  2004,  amending  the  tax  law  relating  to  the  empire state film
production credit, as amended by section 2 of part Y of  chapter  62  of
the laws of 2006, is amended to read as follows:
  (b)  (1)  The  aggregate amount of tax credits allowed pursuant to the
authority of subdivision (b) of section 1201-a of the  tax  law  in  any
calendar year shall be $12.5 million in 2004 and 2005 and $30 million in
2006  through 2011.  Such aggregate amount of credits shall be allocated
by the mayor's office of film, theater and broadcasting among  taxpayers
in  order  of  priority based upon the date of filing an application for
allocation of film production credit with  such  office.  If  the  total
amount  of  allocated credits applied for in any particular year exceeds
the aggregate amount of tax credits allowed for  such  year  under  this
section,  such excess shall be treated as having been applied for on the
first day of the subsequent year.
  (2) NOTWITHSTANDING PARAGRAPH (1) OF THIS SUBDIVISION,  THE  AGGREGATE
AMOUNT  OF  TAX CREDITS ALLOWED PURSUANT TO THE AUTHORITY OF SUBDIVISION
(B) OF SECTION 1201-A OF THE TAX LAW SHALL BE INCREASED BY AN ADDITIONAL
$24 MILLION A YEAR IN 2009, 2010 AND 2011. THIS ADDITIONAL AMOUNT  SHALL
BE  ALLOCATED BY THE MAYOR'S OFFICE OF FILM, THEATER AND BROADCASTING IN
ACCORDANCE WITH PARAGRAPH (1) OF THIS SUBDIVISION. A TAXPAYER  ALLOCATED
CREDITS FROM THE AMOUNTS AUTHORIZED UNDER THIS PARAGRAPH SHALL NOT CLAIM
SUCH CREDITS BEFORE TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2011.
NOTWITHSTANDING  THE  YEAR  TO WHICH CREDITS AUTHORIZED UNDER THIS PARA-
GRAPH ARE ALLOCATED BY THE MAYOR'S OFFICE OF FILM,  THEATER  AND  BROAD-
CASTING, SUCH CREDITS SHALL NOT BE CLAIMED IN EXCESS OF $24 MILLION IN A
GIVEN  YEAR.  CREDITS  AUTHORIZED  UNDER THIS PARAGRAPH AND ALLOCATED IN
EXCESS OF $24 MILLION IN A GIVEN YEAR SHALL BE CLAIMED IN THE SUBSEQUENT
YEAR. NOTWITHSTANDING THE FOREGOING, A TAXPAYER  WHICH  IS  A  QUALIFIED
INDEPENDENT FILM PRODUCTION COMPANY ALLOCATED CREDITS UP TO $250,000 PER
QUALIFIED  FILM  FROM  THE AMOUNTS AUTHORIZED UNDER THIS PARAGRAPH SHALL
CLAIM SUCH CREDITS FOR THE TAXABLE YEAR IN WHICH THE PRODUCTION OF  SUCH
QUALIFIED FILM IS COMPLETED.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2009; provided, however, that the
amendments  to  subdivision (b) of section 1201-a of the tax law made by
section one of this act and the amendments to subdivision (b) of section
7 of part P of chapter 60 of the laws of 2004 made  by  section  two  of
this  act  shall  not  affect  the repeal of such subdivisions and shall
expire and be deemed repealed therewith.

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Assembly Bill A8805

Sponsored By

Archive: Last Bill Status - In Assembly Committee

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co-Sponsors

2009-A8805 (ACTIVE) - Details

2009-A8805 (ACTIVE) - Summary

2009-A8805 (ACTIVE) - Sponsor Memo

2009-A8805 (ACTIVE) - Bill Text download pdf

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Sponsored By

LENTOL

Archive: Last Bill Status - In Assembly Committee

Actions

co-Sponsors

Herman D. Farrell

Steven Englebright

Michael DenDekker

Joseph Morelle

2009-A8805 (ACTIVE) - Details

2009-A8805 (ACTIVE) - Summary

2009-A8805 (ACTIVE) - Sponsor Memo

2009-A8805 (ACTIVE) - Bill Text download pdf

Comments