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

                                  5559

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 23, 2011
                               ___________

Introduced  by M. of A. ENGLEBRIGHT, O'DONNELL, ZEBROWSKI, HOOPER, BING,
  JAFFEE, PAULIN, COLTON, TITONE, KELLNER, ROSENTHAL, CAHILL,  MAGNAREL-
  LI,  LENTOL,  PEOPLES-STOKES,  GALEF, MARKEY, DenDEKKER -- Multi-Spon-
  sored by -- M. of A. ABBATE, BOYLAND, GLICK, LANCMAN, LUPARDO,  McENE-
  NY,  MILLMAN,  PHEFFER,  SWEENEY  --  read  once  and  referred to the
  Committee on Ways and Means

AN ACT to amend the tax law, in relation to an empire  state  film  post
  production  tax credit and to amend the state finance law, in relation
  to establishing the New York state post production  internship  educa-
  tion  and  development  program  fund; and providing for the repeal of
  such provisions upon expiration thereof

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

  Section 1. The tax law is amended by adding a new section 28-a to read
as follows:
  S  28-A.  EMPIRE  STATE  FILM POST PRODUCTION CREDIT. (A) ALLOWANCE OF
CREDIT. (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, 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.
  (2)  (I)  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  TEN
PERCENT  AND  THE QUALIFIED POST PRODUCTION COSTS PAID IN THE PRODUCTION
OF A QUALIFIED FILM AT A QUALIFIED POST PRODUCTION FACILITY.
  (II) IF A TAXPAYER IS ELIGIBLE FOR THE FILM PRODUCTION CREDIT PURSUANT
TO SECTION TWENTY-FOUR OF THIS ARTICLE, AND THE  POST  PRODUCTION  COSTS
OTHERWISE  MEET  THE REQUIREMENTS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH,
THE AMOUNT OF THE POST PRODUCTION CREDIT ALLOWED SUCH TAXPAYER SHALL  BE
ENHANCED  BY  AN  ADDITIONAL FIVE PERCENT WITH RESPECT TO SUCH QUALIFIED
POST PRODUCTION COSTS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08835-01-1
              

A. 5559                             2

  (3) A TAXPAYER SHALL NOT BE ELIGIBLE FOR  THE  CREDIT  ESTABLISHED  BY
THIS  SECTION  UNLESS THE QUALIFIED POST PRODUCTION COSTS AT A QUALIFIED
POST PRODUCTION FACILITY MEET OR  EXCEED  SEVENTY-FIVE  PERCENT  OF  THE
TOTAL  POST  PRODUCTION COSTS PAID OR INCURRED IN THE POST PRODUCTION OF
THE  QUALIFIED FILM AT ANY POST PRODUCTION FACILITY. THE CREDIT SHALL BE
ALLOWED FOR THE TAXABLE YEAR IN WHICH THE PRODUCTION OF  SUCH  QUALIFIED
FILM IS COMPLETED.
  (4)  NO  QUALIFIED  POST PRODUCTION COSTS USED BY A TAXPAYER EITHER AS
THE BASIS FOR THE ALLOWANCE  OF  THE  CREDIT  PROVIDED  FOR  UNDER  THIS
SECTION OR USED IN THE CALCULATION OF THE CREDIT PROVIDED FOR UNDER THIS
SECTION SHALL BE USED BY SUCH TAXPAYER TO CLAIM ANY OTHER CREDIT ALLOWED
PURSUANT TO THIS CHAPTER.
  (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,
RERECORDING AND MIXING, VISUAL EFFECTS, GRAPHIC DESIGN,  ORIGINAL  SCOR-
ING,  ANIMATION,  AND    MUSICAL  COMPOSITION; BUT SHALL NOT INCLUDE THE
EDITING OF PREVIOUSLY PRODUCED CONTENT FOR A QUALIFIED FILM.
  (4) "POST PRODUCTION FACILITY" MEANS  A  BUILDING  AND/OR  COMPLEX  OF
BUILDINGS  AND  THEIR IMPROVEMENTS ON WHICH FILM ARE INTENDED TO BE POST
PRODUCED.
  (5) "QUALIFIED POST  PRODUCTION  FACILITY"  MEANS  A  POST  PRODUCTION
FACILITY LOCATED IN THE STATE, ENGAGED IN FINISHING A QUALIFIED FILM.
  (C)  WITHHOLDING  OF  PORTION  OF  CREDIT.  NOTWITHSTANDING  ANY OTHER
PROVISION OF LAW TO THE CONTRARY, THE AMOUNT  SHALL  WITHHOLD  FROM  ANY
CREDIT  ALLOWED  A TAXPAYER PURSUANT TO THIS SECTION, AN AMOUNT EQUAL TO
SEVEN PERCENT OF SUCH CREDIT CLAIMED BY THE TAXPAYER. ALL  MONIES  WITH-
HELD  PURSUANT  TO  THIS SUBDIVISION SHALL BE CREDITED AND PAID INTO THE
NEW YORK STATE POST  PRODUCTION  INTERNSHIP  EDUCATION  AND  DEVELOPMENT
PROGRAM  FUND  ESTABLISHED  BY SECTION NINETY-ONE-H OF THE STATE FINANCE
LAW.
  (D) LIMITATION ON CREDIT. (1) THE  AGGREGATE  AMOUNT  OF  TAX  CREDITS
AUTHORIZED  PURSUANT  TO  THIS  SECTION  SHALL  NOT EXCEED SEVEN MILLION
DOLLARS IN EACH OF TWO THOUSAND ELEVEN,  TWO  THOUSAND  TWELVE  AND  TWO
THOUSAND THIRTEEN TAXABLE YEARS.
  (2)  THE  AGGREGATE  AMOUNT  OF TAX CREDITS EACH TAXABLE YEAR SHALL BE
ALLOCATED BY THE GOVERNOR'S OFFICE FOR  MOTION  PICTURE  AND  TELEVISION
DEVELOPMENT  AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE OF
FILING AN APPLICATION WITH SUCH OFFICE FOR ALLOCATION  OF  A  FILM  POST
PRODUCTION  CREDIT. IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR
DURING ANY TAXABLE YEAR EXCEEDS THE AGGREGATE AMOUNT THEREOF  AUTHORIZED
BY  PARAGRAPH  ONE  OF  THIS SUBDIVISION, SUCH EXCESS SHALL BE DEEMED TO
HAVE BEEN APPLIED FOR ON THE FIRST DAY  OF  THE  IMMEDIATELY  SUBSEQUENT
TAXABLE YEAR.
  (E)  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 43.

A. 5559                             3

  (2) ARTICLE 22: SECTION 606: SUBSECTION (SS).
  S 2. Section 210 of the tax law is amended by adding a new subdivision
43 to read as follows:
  43. EMPIRE STATE FILM POST PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT.
A  TAXPAYER  WHO  IS ELIGIBLE PURSUANT TO SECTION TWENTY-EIGHT-A OF THIS
CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED  AS  PROVIDED  IN  SUCH
SECTION TWENTY-EIGHT-A AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN  THE  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS
SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE  CREDIT  ALLOWABLE
UNDER  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS  AN  OVERPAYMENT
OF  TAX  TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE
PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL  BE  PAID  THEREON.  THE
BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY
BE  A  CARRY  OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE YEAR AND MAY BE
DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE EXCESS, IF  ANY,  OF
THE  AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH SUCCEEDING YEAR SHALL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD-
ANCE  WITH  THE  PROVISIONS  OF  SECTION ONE THOUSAND EIGHTY-SIX OF THIS
CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF  SECTION
ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST
SHALL BE PAID THEREON.
  S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended by adding a new clause (xxxii) to read as
follows:

(XXXII) EMPIRE STATE FILM            AMOUNT OF CREDIT FOR
POST PRODUCTION                      QUALIFIED POST PRODUCTION
CREDIT UNDER                         COSTS OF A QUALIFIED FILM
SUBSECTION (SS)                      UNDER SUBDIVISION FORTY-THREE OF
                                     SECTION TWO HUNDRED TEN
  S 4. Section 606 of the tax law is amended by adding a new  subsection
(ss) to read as follows:
  (SS)  EMPIRE STATE FILM POST PRODUCTION CREDIT. (1) ALLOWANCE OF CRED-
IT. A TAXPAYER WHO IS ELIGIBLE PURSUANT  TO  SECTION  TWENTY-EIGHT-A  OF
THIS  CHAPTER  SHALL  BE  ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SECTION TWENTY-EIGHT-A AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT  OF
TAX  TO  BE  CREDITED  OR  REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE
PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL  BE  PAID  THEREON.  THE
BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY
BE  CARRIED  OVER  TO THE IMMEDIATELY SUCCEEDING TAXABLE YEAR AND MAY BE
DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE EXCESS, IF  ANY,  OF
THE  AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH SUCCEEDING YEAR SHALL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD-
ANCE  WITH  THE  PROVISIONS  OF  SECTION ONE THOUSAND EIGHTY-SIX OF THIS
CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF  SECTION

A. 5559                             4

ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST
SHALL BE PAID THEREON.
  S  5. The state finance law is amended by adding a new section 91-h to
read as follows:
  S 91-H. NEW YORK STATE POST PRODUCTION INTERNSHIP EDUCATION AND DEVEL-
OPMENT PROGRAM FUND. 1. THERE IS HEREBY ESTABLISHED, IN THE JOINT CUSTO-
DY OF THE COMMISSIONER OF TAXATION AND FINANCE AND  THE  COMPTROLLER,  A
SPECIAL  FUND TO BE KNOWN AS THE "NEW YORK STATE POST PRODUCTION INTERN-
SHIP EDUCATION AND DEVELOPMENT PROGRAM FUND".
  2. SUCH FUND SHALL CONSIST OF ALL REVENUE CREDITED THERETO PURSUANT TO
SUBDIVISION (C) OF SECTION TWENTY-EIGHT-A OF THE TAX LAW, AND ALL  OTHER
MONEYS APPROPRIATED, CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND
OR  SOURCE  PURSUANT  TO LAW. NOTHING IN THIS SECTION SHALL BE DEEMED TO
PREVENT THE STATE FROM RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR  THE
PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
THE FUND ACCORDING TO LAW.
  3.  THE  MONIES IN THE FUND, UPON APPROPRIATION SHALL ONLY BE EXPENDED
FOR THE PAYMENT OF TUITION ON BEHALF OF QUALIFIED INTERNS  PARTICIPATING
IN  POST  PRODUCTION  INTERNSHIPS WITH POST PRODUCTION COMPANIES. MONIES
SHALL BE PAYABLE FROM THE FUND FOR SUCH PURPOSE ON THE AUDIT AND WARRANT
OF THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSION-
ER OF EDUCATION.
  4. FOR THE PURPOSES FOR THIS  SECTION,  "POST  PRODUCTION  INTERNSHIP"
MEANS  AN INTERNSHIP IN A QUALIFIED POST PRODUCTION FACILITY, AS DEFINED
IN SECTION TWENTY-EIGHT-A OF THE TAX LAW THAT HAS BEEN APPROVED  BY  THE
CHANCELLOR OF THE STATE UNIVERSITY OF NEW YORK, THE BOARD OF TRUSTEES OF
THE  CITY UNIVERSITY OF NEW YORK, OR THE CHIEF ADMINISTRATIVE OFFICER OF
ANY  PRIVATE  COLLEGE  OR  UNIVERSITY  FOR  THE  PURPOSE  OF   PROVIDING
PRODUCTION EXPERIENCE AND SKILL DEVELOPMENT. NO SUCH INTERNSHIP SHALL BE
ELIGIBLE FOR TUITION COST REIMBURSEMENT UNLESS IT GRANTS ACADEMIC CREDIT
TO PARTICIPATING STUDENTS.
  S 6. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2012.