S T A T E O F N E W Y O R K
________________________________________________________________________
S. 8465 A. 11678
S E N A T E - A S S E M B L Y
August 3, 2010
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IN SENATE -- Introduced by COMMITTEE ON RULES -- (at request of the
Governor) -- read twice and ordered printed, and when printed to be
committed to the Committee on Rules
IN ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of the
Governor) -- read once and referred to the Committee on Ways and Means
AN ACT to repeal part KK of a chapter of the laws of 2010 amending the
tax law relating to investment management services to a partnership or
other entity, as proposed in legislative bill numbers S. 6610-C and A.
9710-D, relating thereto (Part A); to amend part C of a chapter of the
laws of 2010 amending the tax law relating to clarifying that certain
income constitutes New York source income of nonresident shareholders
of an S corporation, as proposed in legislative bill numbers S.6610-C
and A.9710-D, in relation to the effectiveness of certain portions
thereof (Part B); and to amend 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 (Part C)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2010-2011
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through C. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes reference to a section
"of this act", when used in connection with that particular component,
shall be deemed to mean and refer to the corresponding section of the
Part in which it is found. Section three of this act sets forth the
general effective date of this act.
PART A
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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S. 8465 2 A. 11678
Section 1. Part KK of a chapter of the laws of 2010 amending the tax
law relating to investment management services to a partnership or other
entity, as proposed in legislative bill numbers S. 6610-C and A. 9710-D,
is REPEALED.
S 2. This act shall take effect on the same date and in the same
manner as part KK of a chapter of the laws of 2010 amending the tax law
relating to investment management services to a partnership or other
entity, as proposed in legislative bill numbers S. 6610-C and A. 9710-D,
takes effect.
PART B
Section 1. Section 4 of part C of a chapter of the laws of 2010 amend-
ing the tax law relating to clarifying that certain income constitutes
New York source income of nonresident shareholders of an S corporation,
as proposed in legislative bill numbers S.6610-C and A.9710-D, is
amended to read as follows:
S 4. This act shall take effect immediately; provided however, that
section two of this act shall apply to [all tax years for which the
statute of limitations for seeking a refund or assessing additional tax
are still open,] TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2007 FOR
WHICH THE STATUTE OF LIMITATIONS FOR SEEKING A REFUND OR ASSESSING ADDI-
TIONAL TAX IS STILL OPEN, PROVIDED, HOWEVER, THAT IN CASES OF FAILURE TO
FILE, FAILURE TO REPORT FEDERAL CHANGES, OR FILING A FALSE OR FRAUDULENT
RETURN WITH INTENT TO EVADE TAX, AS SPECIFIED UNDER PARAGRAPH 1 OF
SUBSECTION (C) OF SECTION 683 OF THE TAX LAW, OR IN CASES OF SUBSTANTIAL
OMISSION OF INCOME UNDER SUBSECTION (D) OF SECTION 683 OF THE TAX LAW,
IT SHALL APPLY TO ALL TAXABLE YEARS AS LONG AS SUCH STATUTE OF LIMITA-
TIONS REMAIN OPEN AND ARE SUBJECT TO ASSESSMENT; and section three of
this act shall apply to taxable years beginning on or after January 1,
2010.
S 2. This act shall take effect on the same date as part C of a chap-
ter of the laws of 2010 amending the tax law relating to clarifying that
certain income constitutes New York source income of nonresident share-
holders of an S corporation, as proposed in legislative bill numbers
S.6610-C and A.9710-D, takes effect.
PART C
Section 1. 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 chapter 60 of the laws of 2004 amending the tax
law relating to the empire state film production credit, relating to the
empire state film production credit, as proposed in legislative bill
numbers S.6610-C and A.9710-D, 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. IF THE DIRECTOR OF THE GOVERNOR'S
OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT DETERMINES THAT THE
S. 8465 3 A. 11678
AGGREGATE AMOUNT OF TAX CREDITS AVAILABLE 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 POST PRODUCTION TAX CREDIT PURSUANT TO SECTION 31 OF THE TAX LAW
IS INSUFFICIENT TO UTILIZE THE BALANCE OF UNALLOCATED POST PRODUCTION
TAX CREDITS FROM SUCH POOL, THE REMAINDER, AFTER SUCH PENDING APPLICA-
TIONS ARE CONSIDERED, SHALL BE MADE AVAILABLE FOR ALLOCATION IN THE
EMPIRE STATE FILM TAX CREDIT PURSUANT TO SECTION 24, SUBDIVISION 36 OF
SECTION 210 AND SUBSECTION (GG) OF SECTION 606 OF THE TAX LAW. 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 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 following the allocation year for which
the film has been allocated credit by the governor's office for motion
picture and television development.
S 2. This act shall take effect on the same date and in the same
manner as section 2 of part Q of a chapter of the laws of 2010 amending
chapter 60 of the laws of 2004 amending the tax law relating to the
empire state film production credit, relating to the empire state film
production credit, as proposed in legislative bill numbers S.6610-C and
A.9710-D, takes effect.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through C of this act shall be
as specifically set forth in the last section of such Parts.