senate Bill S115A

2013-2014 Legislative Session

Provides for an annual increase in the aggregate annual amount of empire state film production credits taken, based upon inflation

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  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Senate Actions - UPPERCASE
Jan 23, 2014 print number 115a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
Jan 09, 2013 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

S115 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §24, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S7023

S115 - Bill Texts

view summary

Provides for an annual increase in the aggregate annual amount of empire state film production credits taken, based upon inflation.

view sponsor memo
BILL NUMBER:S115

TITLE OF BILL:
An act
to amend the tax law,
in relation
to the aggregate annual amount of the empire state film production
credit against state taxes

PURPOSE:
Provides for an annual increase in the aggregate annual amount of
empire state film production credits taken, based upon inflation

SUMMARY OF PROVISIONS:
Section 1 of the bill amends paragraph 4 of subdivision e of section
24 of the tax law relating to the empire state film production
credit, as added by chapter 268 of the laws of 2012, to provide for an
annual aggregate amount of the Empire State Film Credits that may be
taken against state taxes in 2015 and beyond, based on an inflation
adjusted calculation of the amount provided in the final funded year
of 2014.

Section 2 establishes the effective date.

JUSTIFICATION:
The Empire State Film Production Tax Credit has been an unqualified
success for the State of New York, both culturally and financially.
Despite the fact that New York's tax credit is significantly less
generous than the credits offered by competing states (including
Connecticut and Massachusetts), it continues to be a premier
destination for films and television shows, shining light on the
State's rightful status as a world capital for the arts. The tax
credit program has also proven to have a consistently beneficial
impact on the State's bottom line. In 2009, an Ernst & Young study
estimated that the program had cost the state $690 million while
generating $2.6 billion in tax revenue. Even more importantly, the
program has helped create tens of thousands of new jobs in this state.

While the 2010-2011 state budget extended the program by five years in
2010, it failed to address a major institutional problem which
dissuades television shows from setting up roots in the state. Unlike
movie productions, television productions are "quasi-permanent"
institutions that ordinarily must run for at least four years to
reach syndication length and become truly profitable. This means that
as soon as the second year of a five-year tax credit extension,
television production companies considering putting down roots in the
state can no longer be assured that the credit will still be in place
when their shows reach sufficient length.
Consequently, in order to consistently attract the most promising
television series, it is critical that production companies be given
the peace of mind that, if their shows are successful, they will not
be forced to uproot production and move elsewhere in a few short years.

This bill gives television producers that peace of mind by providing
inflation adjusted annual funding for the Empire State Film Tax
Credit program. A simple funding extension would only delay the


problem instead of providing the genuine solution that is called for.
This bill does not increase the percentage of production costs
eligible for a tax credit, and it only increases the aggregate total
insofar as is necessary to keep pace with inflation. Consequently,
the State would remain largely insulated from risk while seeing
increased benefits.

Between 2002 and 2009 the number of states offering film-production
tax credits rose from 5 to 44. The vast majority of those states offer
more substantial credits to individual productions than New York, and
many are considering increasing the percentage of costs that can be
credited still further. Fortunately, New York does not need to take
part in this film tax credit arms race.
Television production companies want to come here, even if it costs
more. They simply want to be assured that funding for the program
will still be in place when their shows become profitable.
If we are to continue to attract top-shelf television productions we
must make certain that our own program follows the basic dictates of
common sense. This bill provides that common sense solution.

LEGISLATIVE HISTORY:
2011-12: S.7023

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                   115

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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

AN ACT to amend the tax law, in relation to the aggregate annual  amount
  of the empire state film production credit against state taxes

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

  Section 1.  Paragraph 4 of subdivision (e) of section 24  of  the  tax
law,  as added by chapter 268 of the laws of 2012, is amended to read as
follows:
  (4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall  be  increased  by  an  [addition]
ADDITIONAL four hundred twenty million dollars in two thousand ten, four
hundred  twenty  million  dollars  in  two thousand eleven, four hundred
twenty million dollars in  two  thousand  twelve,  four  hundred  twenty
million  dollars  in  two  thousand  thirteen [and], four hundred twenty
million dollars in two thousand fourteen AND THEREAFTER, EXCEPT THAT  IN
TAX  YEARS  AFTER  TWO  THOUSAND FOURTEEN, SUCH AMOUNT SHALL BE ADJUSTED
ANNUALLY ON THE FIRST OF JANUARY FOR INFLATION ACCORDING TO THE CONSUMER
PRICE  INDEX  FOR  ALL  CONSUMERS,  ALL  ITEMS,  NORTHEAST  REGION,  NOT
SEASONALLY  ADJUSTED,  OF  THE PREVIOUS YEAR, BUT IN NO EVENT SHALL SUCH
AMOUNT BE LESS THAN FOUR HUNDRED TWENTY MILLION DOLLARS; provided howev-
er, seven million dollars of the annual allocation  shall  be  available
for  the  empire  state  film post production credit pursuant to section
thirty-one of this chapter. This amount shall be allocated by the gover-
nor's office for motion picture and television development among taxpay-
ers 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 aggregate amount of tax credits available from addi-
tional pool 2 for the empire state film production tax credit have  been

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00314-01-3

S. 115                              2

previously  allocated, and determines that the pending applications from
eligible applicants for the  post  production  tax  credit  pursuant  to
section  thirty-one  of  this  chapter  is  insufficient  to utilize the
balance  of  unallocated post production tax credits from such pool, the
remainder, after such pending applications are considered, shall be made
available for allocation in the empire state film tax credit pursuant to
this section, subdivision thirty-six of  section  two  hundred  ten  and
subsection  (gg)  of section six hundred six of this chapter. The gover-
nor'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 quali-
fied film that receives funds from additional pool 2,  no  empire  state
film  production credit shall be claimed before the later of the taxable
year the production of the qualified film is complete,  or  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 immediately.

S115A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §24, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S7023

S115A (ACTIVE) - Bill Texts

view summary

Provides for an annual increase in the aggregate annual amount of empire state film production credits taken, based upon inflation.

view sponsor memo
BILL NUMBER:S115A

TITLE OF BILL: An act to amend the tax law, in relation to the
aggregate annual amount of the empire state film production credit
against state taxes

PURPOSE:

Provides for an annual increase in the aggregate annual amount of
empire state film production credits taken, based upon inflation

SUMMARY OF PROVISIONS:

Section 1 of the bill amends paragraph 4 of subdivision e of section
24 of the tax law relating to the empire state film production credit,
as amended by section 3 of part B of chapter 59 of the laws of 2013,
to provide for an annual aggregate amount of the Empire State Film
Credits that may be taken against state taxes in 2014 and beyond,
based on an inflation adjusted calculation of the amount provided in
the final funded year of 2014.

Section 2 establishes the effective date.

JUSTIFICATION:

The Empire State Film Production Tax Credit has been an unqualified
success for the State of New York, both culturally and financially.
Despite the fact that New York's tax credit is significantly less
generous than the credits offered by competing states (including
Connecticut and Massachusetts), it continues to be a premier
destination for films and television shows, shining light on the
State's rightful status as a world capital for the arts. The tax
credit program has also proven to have a consistently beneficial
impact on the State's bottom line. In 2009, an Ernst & Young study
estimated that the program had cost the state $690 million while
generating $2.6 billion in tax revenue. Even more importantly, the
program has helped create tens of thousands of new jobs in this state.

While the 2010-2011 state budget extended the program by five years in
2010, it failed to address a major institutional problem which
dissuades television shows from setting up roots in the state. Unlike
movie productions, television productions are "quasi-permanent"
institutions that ordinarily must run for at least four years to reach
syndication length and become truly profitable. This means that as
soon as the second year of a five-year tax credit extension,
television production companies considering putting down roots in the
state can no longer be assured that the credit will still be in place
when their shows reach sufficient length. Consequently, in order to
consistently attract the most promising television series, it is
critical that production companies be given the peace of mind that, if
their shows are successful, they will not be forced to uproot
production and move elsewhere in a few short years.

This bill gives television producers that peace of mind by providing
inflation adjusted annual funding for the Empire State Film Tax Credit
program. A simple funding extension would only delay the problem
instead of providing the genuine solution that is called for. This


bill does not increase the percentage of production costs eligible for
a tax credit, and it only increases the aggregate total insofar as is
necessary to keep pace with inflation. Consequently, the State would
remain largely insulated from risk while seeing increased benefits.

Between 2002 and 2009 the number of states offering film-production
tax credits rose from 5 to 44. The vast majority of those states offer
more substantial credits to individual productions than New York, and
many are considering increasing the percentage of costs that can be
credited still further. Fortunately, New York does not need to take
part in this film tax credit arms race. Television production
companies want to come here, even if it costs more. They simply want
to be assured that funding for the program will still be in place when
their shows become profitable. If we are to continue to attract
top-shelf television productions we must make certain that our own
program follows the basic dictates of common sense. This bill provides
that common sense solution.

LEGISLATIVE HISTORY:

2011-12: S.7023

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 115--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT to amend the tax law, in relation to the aggregate annual amount
  of the empire state film production credit against state taxes

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

  Section  1.    Paragraph 4 of subdivision (e) of section 24 of the tax
law, as amended by section 3 of part B of chapter  59  of  the  laws  of
2013, is amended to read as follows:
  (4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional four
hundred twenty million dollars in each year starting in two thousand ten
through two thousand [nineteen] FOURTEEN, EXCEPT THAT IN TAX YEARS AFTER
TWO  THOUSAND  FOURTEEN,  SUCH  AMOUNT SHALL BE ADJUSTED ANNUALLY ON THE
FIRST OF JANUARY FOR INFLATION ACCORDING TO THE CONSUMER PRICE INDEX FOR
ALL CONSUMERS, ALL ITEMS, NORTHEAST REGION, NOT SEASONALLY ADJUSTED,  OF
THE  PREVIOUS  YEAR, BUT IN NO EVENT SHALL SUCH AMOUNT BE LESS THAN FOUR
HUNDRED TWENTY MILLION DOLLARS; provided however, seven million  dollars
of  the  annual  allocation shall be available for the empire state film
post production credit pursuant to section thirty-one of this article in
two thousand thirteen and two thousand fourteen and twenty-five  million
dollars of the annual allocation shall be available for the empire state
film post production credit pursuant to section thirty-one of this arti-
cle  in  each year starting in two thousand fifteen through two thousand
nineteen. This amount shall be allocated by the  governor's  office  for
motion  picture and television development among taxpayers in accordance

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00314-02-4

S. 115--A                           2

with subdivision (a) of this section. If the  commissioner  of  economic
development  determines  that the aggregate amount of tax credits avail-
able 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  empire  state  film  post
production  tax credit pursuant to section thirty-one of this article is
insufficient to utilize the balance of  unallocated  empire  state  film
post  production  tax  credits from such pool, the remainder, after such
pending applications are considered, shall be made available  for  allo-
cation  in  the  empire  state film tax credit pursuant to this section,
subdivision thirty-six of section two hundred ten and subsection (gg) of
section six hundred six of this chapter. Also, if  the  commissioner  of
economic development determines that the aggregate amount of tax credits
available  from  additional  pool  2  for  the  empire  state  film post
production tax credit have been  previously  allocated,  and  determines
that  the  pending  applications from eligible applicants for the empire
state film production tax credit pursuant to this  section  is  insuffi-
cient  to utilize the balance of unallocated film production tax credits
from such pool, then all or part of the remainder,  after  such  pending
applications  are considered, shall be made available for allocation for
the empire state film post production credit pursuant to  this  section,
subdivision  forty-one of section two hundred ten and subsection (gg) of
section six hundred six of  this  chapter.  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  allo-
cation  year  directly  on their empire state film production credit tax
form for each year a credit is claimed and include a copy of the certif-
icate 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  the  taxable  year  the
production  of the qualified film is complete, or the taxable year imme-
diately following the allocation year for which the film has been  allo-
cated  credit by the governor's office for motion picture and television
development.
  S 2. This act shall take effect immediately.

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