Senate Bill S5661

                                BILL NUMBER:S5661

TITLE OF BILL:
An act
to amend 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 maximum amount of such credits in 2015
and thereafter

PURPOSE OR GENERAL IDEA OF BILL:
To extend the Empire State Film Production Credit program beyond the
current 2014 expiration.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 would create an Additional Pool 3 for the Empire State Film
Production Credit program which would begin in 2015 and continue
every year thereafter at $420 Million per year.

JUSTIFICATION:
In 2010 the State Legislature and then-Governor Paterson wisely sought
to extend the Empire State Film Production Credit program for five
years, funded at $420 Million per year, to expire in 2014. While this
was an enormous step in gaining security, thereby attracting new film
production business to New York, even more business could be
attracted by removing the expiration date entirely.

              

If this bill were to become law, that would signal to all sectors of
the film production business that New York State is committed to the
film production business in the long term. By removing the expiration
of the program, countless programs and production companies who may
be on the fence regarding moving the production of their shows and
films to New York would be encouraged to do so, banking on the fact
that New York State will continue to support them. In that same
respect, the current film studios who house the production of these
shows/films would also gain the security they so desperately need,
and would be able to expand their currently bursting studios to
accommodate and attract more and more productions. In order to
provide for such an expansion, the security provided for in this
legislation is essential so that the financial institutions which
back these studios and their expansion endeavors would be able to
rely on the security of the business within the State.

PRIOR LEGISLATIVE HISTORY:
2004: Empire State Film Production Credit program was created and
funded at $25 Million for 2004, 2005; $60 Million for 2006 and 2007;

2008: Empire State Film Production Credit program is extended and
funded at $65 Million for 2008 and $75 Million for 2009;

2009: Empire State Film Production Credit program was extended and
funded at $350 Million for one year;

2010: Empire State Film Production Credit program was extended and
funded at $420 Million for years 2010-2014.

FISCAL IMPLICATIONS:


An aggregate amount of tax credit shall be $420 Million annually.

EFFECTIVE DATE:
Immediately.