Senate Bill S8397

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

    S. 8397                                                 A. 11579

                      S E N A T E - A S S E M B L Y

                              June 28, 2010
                               ___________

IN  SENATE -- Introduced by Sen. KRUGER -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Finance

IN ASSEMBLY -- Introduced  by  COMMITTEE  ON  RULES  --  read  once  and
  referred to the Committee on Ways and Means

AN ACT to amend the tax law and chapter 60 of the laws of 2004, amending
  the  tax  law  relating to the empire state film production credit, in
  relation to the empire state film production credit

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

  Section 1. Paragraph 1 of subdivision (a) and subdivisions (b) and (c)
of  section  31  of  the  tax law, as added by section 12 of part Q of a
chapter of the laws of 2010 amending the tax law and other laws relating
to the empire state film production credit, as proposed  in  legislative
bills numbers S. 6610-B/A. 9710-C, are amended to read as follows:
  (1)  A  taxpayer  which  is a [film production company or a] qualified
film production company, and which  is  subject  to  tax  under  article
nine-A  or  twenty-two  of  this chapter, UNLESS ELIGIBLE FOR THE CREDIT
UNDER SECTION TWENTY-FOUR OF THIS ARTICLE WITH RESPECT TO THE  QUALIFIED
FILM,  shall  be  allowed  a  credit  against  such tax, pursuant to the
provisions referenced in subdivision (c) of this section to be  computed
as provided in this subdivision.
  (b)  Definitions.  As  used  in this section the following terms shall
have the following meanings:
  (1) "Qualified film production company"  and  "qualified  film"  shall
have  the  same meaning as are ascribed to such terms by section twenty-
four of this article.
  (2) ["Film production company" is a corporation, partnership,  limited
partnership,  or  other entity or individual which or who is principally
engaged in the production of a qualified film and controls the qualified
film during production.
  (3)] "Post production costs" means production of original content  for
a  qualified film employing traditional, emerging and new workflow tech-
niques used in post-production for picture, sound and  music  editorial,

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

                                                           LBD17919-01-0

S. 8397                             2                           A. 11579

rerecording  and  mixing, visual effects, graphic design, original scor-
ing, animation, and musical composition; but shall not include the edit-
ing of previously produced content for a qualified film.
  [(4)]  (3)  "Post production facility" means a building and/or complex
of buildings and their improvements on which film  are  intended  to  be
post produced.
  [(5)] (4) "Qualified post production facility" means a post production
facility located in the state, engaged in finishing a qualified film.
  (c)  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, THE
AGGREGATE AMOUNT OF TAX CREDITS AVAILABLE UNDER THIS SECTION  SHALL  NOT
EXCEED  THE AMOUNTS ALLOWED PURSUANT TO SUBDIVISION (E) OF SECTION SEVEN
OF PART P OF CHAPTER SIXTY OF THE LAWS OF TWO THOUSAND FOUR AND SHALL BE
ALLOCATED IN THE SAME MANNER AS  PROVIDED  FOR  IN  SUBDIVISION  (A)  OF
SECTION  SEVEN  OF  PART  P OF CHAPTER SIXTY OF THE LAWS OF TWO THOUSAND
FOUR.
  (D) Cross-references. For application of the credit  provided  for  in
this section, see the following provisions of this chapter:
  (1) article 9-A: section 210: subdivision 41.
  (2) article 22: section 606: subsection (qq).
  S  2. Subdivision (e) 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 added by section 2 of part Q of a chapter of the
laws of 2010 amending the tax law and other laws relating to the  empire
state  film  production credit, as proposed in legislative bills numbers
S. 6610-B/A. 9710-C, is amended to read as follows:
  (e) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional $420
million in 2010, $420 million  in  2011,  $420  million  in  2012,  $420
million  in  2013  and  $420  million in 2014 provided however, UP TO $7
million of the annual allocation shall be available for the empire state
film post production credit pursuant to section 31 of the tax law.  This
additional 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.  The  governor's  office for motion
picture and television development must notify taxpayers of their  allo-
cation  year  and  include the allocation year on the certificate of tax
credit. Taxpayers eligible to claim a credit must report the  allocation
year  directly on their empire state film production credit tax form for
each year a credit is claimed and include a copy of the certificate 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 (1) the taxable year the production  of  the
qualified  film is complete, or (2) the taxable year immediately follow-
ing the allocation year for which the film has been allocated credit  by
the governor's office for motion picture and television development.
  S  3.  This  act  shall  take  effect on the same date and in the same
manner as part Q of a chapter of the laws of 2010 amending the  tax  law
and  other  laws relating to the empire state film production credit, as
proposed in legislative bills numbers S. 6610-B/A. 9710-C, takes effect.