NY State Senate Bill 2009-S5674

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to investigations and government operations
May 27, 2009	referred to investigations and government operations

2009-S5674 (ACTIVE) - Details

See Assembly Version of this Bill:: A8761
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1201-a, Tax L; amd Part P §7, Chap 60 of 2004
Versions Introduced in Other Legislative Sessions:: 2011-2012: S2883, A5562
2013-2014: S2027, A5621

2009-S5674 (ACTIVE) - Summary

Relates to the allocation of the empire state film production credit against taxes for certain film production costs issued by a city having a population of one million or more.

2009-S5674 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5674

 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 providing tax credits for
certain costs incurred in film and television productions, in relation
to the allocation of such credit against taxes for certain film
production costs issued by a city having a population of one million
or more


 PURPOSE :
This legislation would ensure the "Made in NY" film production tax
credit would be sustained through 2011.

 SUMMARY OF PROVISIONS :
Section 1 of this bill would amend Tax Law § 1201-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.  This proposal would (1)
reduce the City credit rate from five percent to four percent; (2)
phase out the credit for television series:  after three years of
receiving the full credit, a television series would receive a three
percent credit in year four of the program, a two percent credit in
year five, and no credit thereafter; and (3) establish a cap
of$250,000 in credits per qualified film or episode of a qualified

television series; for those productions incurring more than 75% of
their post production costs in New York City, the cap would be
$300,000.

Section 2 of the bill would amend . 7(b) of part P of Chapter 60 of
the Laws of 2004 to provide that if any of the aggregate amount of tax
credits that are available in a given year remain unallocated in such
year, they would be available for allocation in a subsequent year.

Section 3 of the bill would amend such § 7(b) by adding two new
subdivisions (e) and (t).  Subdivision (e) would provide that the tax
credits allocated in 2009 under the GCT and UBT would not exceed $24
million, and if the amount of credits applied for reaches $24 million,
additional tax credit applications would not be accepted until on or
after January 1, 2010.  Subdivision (t) would provide for an
additional aggregate annual amount of $24 million to be allowed in
2010 and 2011, in $12 million increments for the periods January 1st
through June 30th, and from July 1st through December 31st, for each
of these years. Moreover, should the total amount of allocated credits
applied for in any of such six-month periods reach the allowed
additional aggregate amount of $12 million, additional tax credit
applications would not be accepted until the first day of the next
six-month period which has tax credits available for allocation.

Section 4 of the bill provides that the law would take effect
immediately and would apply to taxable years beginning on or after
January 1, 2009, and to applications filed on or after such date.

 JUSTIFICATION :
As part of the 2009-10 State budget, the Empire State Film Production
Credit program was provided additional $350 million in State funding.
The legislation does 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. Without new legislation, funds for the City's film
production credit will be exhausted before the end of calendar year
2009. 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 would also contain
measures to enhance the program's effectiveness as an incentive and to
better target the tax credit. These proposals represent a carefully
crafted plan to share the sacrifices needed to cope with the fiscal
challenges facing the City while preserving the film production credit
program as a viable incentive to attract film and television
production to New York City.

The annual cap of $24 million and the overall reduction of the City
credit rate from five percent to four percent would limit the City's
exposure to excessive program costs and allow for improved future
fiscal planning. The television series phase-out would provide a
credit for the first five years of a series, after which these
successful and established television series would no longer be
eligible for the credit. The per-production cap would preserve the
full credit for independent features and for television series, which
provide year-round employment, and a graduated percentage reduction
for large-budget feature films.

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 for 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
incentive 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; provided further that
this act shall apply to applications filed 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 to
subdivision (b) of section 7 of part P of chapter 60 of the laws of
2004 providing tax credits for certain costs incurred in film and
television productions made by sections two and three of this act,
shall not affect the expiration and repeal of such provisions and
shall expire and be deemed repealed therewith.

2009-S5674 (ACTIVE) - Bill Text download pdf

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

                                  5674

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              May 27, 2009
                               ___________

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

AN ACT to amend the tax law and part P of chapter 60 of the laws of 2004
  amending  the  tax  law  relating to providing tax credits for certain
  costs incurred in film and television productions, in relation to  the
  allocation  of  such  credit against taxes for certain film production
  costs issued by 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) (I) the percentage of qualified production costs used to calculate
such credit shall be [five] FOUR percent,
  (II) FOR A TELEVISION SERIES WITH RESPECT TO WHICH A CREDIT  HAS  BEEN
ALLOWED  (1)  IN  THREE TAXABLE YEARS, THE AMOUNT OF THE CREDIT SHALL BE
THREE PERCENT, (2) IN FOUR TAXABLE YEARS, THE AMOUNT OF THE CREDIT SHALL
BE TWO PERCENT, AND
  (III) NO CREDIT SHALL BE ALLOWED WITH RESPECT TO A  TELEVISION  SERIES
FOR WHICH A CREDIT HAS BEEN ALLOWED IN FIVE TAXABLE YEARS;
  (B)  SUCH  CREDIT  SHALL NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS
PER QUALIFIED FILM OR EPISODE OF  A  QUALIFIED  TELEVISION  SERIES  WITH

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14022-01-9

S. 5674                             2

RESPECT  TO  QUALIFIED  PRODUCTION COSTS; PROVIDED, HOWEVER, THAT IF THE
QUALIFIED POST PRODUCTION COSTS PAID OR INCURRED WHICH ARE  ATTRIBUTABLE
TO THE USE OF TANGIBLE PROPERTY OR THE PERFORMANCE OF SERVICES AT A FILM
POST  PRODUCTION  FACILITY WITHIN THE CITY OF NEW YORK IN THE PRODUCTION
OF SUCH QUALIFIED FILM EQUAL OR EXCEED SEVENTY-FIVE PERCENT OF  ALL  THE
POST PRODUCTION COSTS PAID OR INCURRED WHICH ARE ATTRIBUTABLE TO THE USE
OF  TANGIBLE  PROPERTY  OR  THE PERFORMANCE OF SERVICES AT ANY FILM POST
PRODUCTION FACILITY WITHIN AND WITHOUT THE CITY  IN  THE  PRODUCTION  OF
SUCH  QUALIFIED  FILM,  THEN THE AGGREGATE ANNUAL MAXIMUM ALLOWED CREDIT
SHALL BE THREE HUNDRED THOUSAND DOLLARS,
  [(B)] (C) whenever such section twenty-four references the state, such
words shall be read as referencing the city,
  [(C)] (D) such credit shall be allowed only to a taxpayer which  is  a
qualified film production company, [and];
  [(D)]  (E)  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 corporation tax and the unincorporated
business tax, AND
  (F) FOR PURPOSES OF THIS SUBDIVISION, "TELEVISION SERIES" OR "EPISODIC
TELEVISION SERIES" MEANS A RECURRING PRODUCTION INTENDED IN ITS  INITIAL
RUN   FOR   BROADCAST   ON   TELEVISION,   WHETHER   FREE   OR   THROUGH
SUBSCRIPTION-BASED SERVICE, THAT HAS A RUNNING TIME OF AT  LEAST  THIRTY
MINUTES  IN  LENGTH, INCLUSIVE OF COMMERCIAL ADVERTISEMENT AND INTERSTI-
TIAL PROGRAMMING.
  S 2. Subdivision (b) of section 7 of part P of chapter 60 of the  laws
of  2004,  amending  the  tax  law relating to providing tax credits for
certain costs incurred in film and television productions, as amended by
section 2 of part Y of chapter 62 of the laws of  2006,  is  amended  to
read as follows:
  (b)  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] THEATRE and broadcasting  among
taxpayers in order of priority based upon the date of filing an applica-
tion  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.  IF THE AGGREGATE  AMOUNT  OF  TAX
CREDITS  AVAILABLE  IN  ANY GIVEN YEAR REMAINS UNALLOCATED IN SUCH YEAR,
SUCH CREDITS SHALL BE AVAILABLE FOR ALLOCATION IN A SUBSEQUENT YEAR.
  S 3. Section 7 of part P of chapter 60 of the laws of  2004,  amending
the tax law relating to providing tax credits for certain costs incurred
in  film and television productions, is amended by adding two new subdi-
visions (e) and (f) to read as follows:
  (E) NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY, TAX CREDITS  ALLO-
CATED IN 2009 SHALL NOT EXCEED $24 MILLION. IF THE TOTAL AMOUNT OF ALLO-
CATED CREDITS APPLIED FOR IN 2009 REACHES $24 MILLION, ADDITIONAL APPLI-
CATIONS SHALL NOT BE ACCEPTED UNTIL ON OR AFTER JANUARY 1, 2010.
  (F)  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (B) OF THIS SECTION
AND ANY OTHER PROVISIONS TO THE CONTRARY, AN ADDITIONAL AGGREGATE ANNUAL
AMOUNT OF $24 MILLION SHALL BE ALLOWED IN 2010 AND 2011. THE  ADDITIONAL
AGGREGATE  ANNUAL  AMOUNTS  FOR  2010 AND 2011 SHALL BE ALLOCATED IN $12

S. 5674                             3

MILLION INCREMENTS FROM JANUARY FIRST THROUGH JUNE  THIRTIETH  AND  FROM
JULY  FIRST THROUGH DECEMBER THIRTY-FIRST FOR EACH OF SUCH YEARS. IF THE
TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY OF SUCH  SIX  MONTH
PERIODS  REACHES THE ALLOWED ADDITIONAL AGGREGATE AMOUNT OF $12 MILLION,
ADDITIONAL APPLICATIONS SHALL NOT BE ACCEPTED UNTIL THE FIRST DAY OF THE
NEXT SIX MONTH PERIOD WHICH HAS TAX CREDITS AVAILABLE FOR ALLOCATION.
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2009; provided further that  this
act  shall  apply  to  applications  filed  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 to subdivision
(b)  of  section 7 of part P of chapter 60 of the laws of 2004 providing
tax  credits  for  certain  costs  incurred  in  film   and   television
productions made by sections two and three of this act, shall not affect
the  expiration  and  repeal  of such provisions and shall expire and be
deemed repealed therewith.

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Senate Bill S5674

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

Actions

2009-S5674 (ACTIVE) - Details

2009-S5674 (ACTIVE) - Summary

2009-S5674 (ACTIVE) - Sponsor Memo

2009-S5674 (ACTIVE) - Bill Text download pdf

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Sponsored By

Eric T. Schneiderman

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

Actions

2009-S5674 (ACTIVE) - Details

2009-S5674 (ACTIVE) - Summary

2009-S5674 (ACTIVE) - Sponsor Memo

2009-S5674 (ACTIVE) - Bill Text download pdf

Comments