S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7182
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 12, 2017
                                ___________
 
 Introduced by M. of A. LENTOL -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT  to  amend  the  tax  law,  in relation to the empire state film
   production tax 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) of section 24 of the tax
 law, as amended by section 3 of part Q of chapter  57  of  the  laws  of
 2010, is amended to read as follows:
   (1)  Allowance  of  credit.  A  taxpayer  which  is  a  qualified film
 production company, [or] a qualified independent film production  compa-
 ny, OR A QUALIFIED CONVERTED INDUSTRIAL SPACE FILM PRODUCTION COMPANY or
 which  is  a  sole proprietor of or a member of a partnership which is a
 qualified film production company [or],  a  qualified  independent  film
 production  company,  OR  A  QUALIFIED  CONVERTED  INDUSTRIAL SPACE FILM
 PRODUCTION COMPANY, and which is subject to tax under articles 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 hereinafter provided.
   § 2. Paragraph 2 of subdivision (a) of section 24 of the tax  law,  as
 amended  by  section  4  of part Q of chapter 57 of the laws of 2010, is
 amended to read as follows:
   (2) 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 thirty
 percent and the qualified production  costs  paid  or  incurred  in  the
 production  of a qualified film, provided that, EXCEPT WITH RESPECT TO A
 QUALIFIED CONVERTED INDUSTRIAL FILM PRODUCTION COMPANY: (i)  the  quali-
 fied production costs (excluding post production costs) paid or incurred
 which  are  attributable to the use of tangible property or the perform-
 ance of  services  at  a  qualified  film  production  facility  in  the
 production  of  such qualified film equal or exceed seventy-five percent
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10849-01-7

 A. 7182                             2
 
 of the production  costs  (excluding  post  production  costs)  paid  or
 incurred  which  are attributable to the use of tangible property or the
 performance of services at any film production facility within and with-
 out  the state in the production of such qualified film, and (ii) except
 with respect to a  qualified  independent  film  production  company  or
 pilot,  at least ten percent of the total principal photography shooting
 days spent in the production of such qualified film must be spent  at  a
 qualified  film  production  facility. However, EXCEPT WITH RESPECT TO A
 QUALIFIED CONVERTED INDUSTRIAL FILM PRODUCTION COMPANY, if the qualified
 production costs (excluding post production costs) which  are  attribut-
 able to the use of tangible property or the performance of services at a
 qualified  film  production facility in the production of such qualified
 film is less than three million dollars, then the portion of the  quali-
 fied  production  costs  attributable to the use of tangible property or
 the performance of services in the production  of  such  qualified  film
 outside of a qualified film production facility shall be allowed only if
 the shooting days spent in New York outside of a film production facili-
 ty in the production of such qualified film equal or exceed seventy-five
 percent  of  the  total  shooting days spent within and without New York
 outside of a film production facility in the production of  such  quali-
 fied  film.  IN  THE  CASE  OF  A  QUALIFIED  CONVERTED  INDUSTRIAL FILM
 PRODUCTION COMPANY THE SOLE CRITERION SHALL BE THAT THE COMPANY PAID  OR
 INCURRED  AT  LEAST FIFTY THOUSAND DOLLARS OF QUALIFIED CONVERTED INDUS-
 TRIAL SPACE EXPENSES (EXCLUDING POST  PRODUCTION  COSTS)  TO  PRODUCE  A
 QUALIFIED  FILM,  AND  THAT  THE  QUALIFIED  CONVERTED  INDUSTRIAL SPACE
 EXPENSES EQUAL OR EXCEED THIRTY-FOUR PERCENT  OF  THE  TOTAL  PRODUCTION
 COSTS  (EXCLUDING  POST  PRODUCTION  COSTS)  PAID OR INCURRED WITHIN AND
 WITHOUT THE STATE IN THE PRODUCTION OF SUCH QUALIFIED FILM.  The  credit
 shall  be  allowed  for the taxable year in which the production of such
 qualified film is completed, EXCEPT THAT WITH  RESPECT  TO  A  QUALIFIED
 CONVERTED  INDUSTRIAL  FILM  PRODUCTION COMPANY HAVING INCURRED AT LEAST
 FIFTY THOUSAND DOLLARS OF QUALIFIED CONVERTED INDUSTRIAL SPACE  EXPENSES
 WITH  RESPECT TO A QUALIFIED FILM, SUCH COMPANY MAY APPLY FOR THE CREDIT
 USING AN INTERIM APPLICATION NOTWITHSTANDING THAT THE QUALIFIED FILM  IS
 NOT  YET  COMPLETED.  However,  in  the  case  of  a qualified film that
 receives funds from additional pool 2, no 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 allo-
 cation year for which the film has been allocated credit by  the  gover-
 nor's  office for motion picture and television development. IN THE CASE
 OF A QUALIFIED CONVERTED INDUSTRIAL SPACE  FILM  PRODUCTION  COMPANY,  A
 QUALIFIED  FILM  SHALL  BE  DEEMED TO BE COMPLETE IN THE TAXABLE YEAR IN
 WHICH THE QUALIFIED FILM IS ACTUALLY COMPLETED, OR THE TAXABLE  YEAR  IN
 WHICH  AN  INTERIM  APPLICATION  IS PROPERLY FILED UNDER THIS SECTION IN
 RESPECT OF SUCH QUALIFIED FILM. If the amount of the credit CLAIMED BY A
 TAXPAYER  OTHER  THAN  A  QUALIFIED  CONVERTED  INDUSTRIAL  SPACE   FILM
 PRODUCTION  COMPANY  is  at least one million dollars but less than five
 million dollars, the credit shall be claimed  over  a  two  year  period
 beginning  in  the first taxable year in which the credit may be claimed
 and in the next succeeding taxable year, with one-half of the amount  of
 credit  allowed  being claimed in each year. If the amount of the credit
 CLAIMED BY A TAXPAYER OTHER  THAN  A  QUALIFIED  INDUSTRIAL  SPACE  FILM
 PRODUCTION COMPANY is at least five million dollars, the credit shall be
 claimed  over a three year period beginning in the first taxable year in
 which the credit may be claimed and in the next two  succeeding  taxable

 A. 7182                             3
 
 years,  with one-third of the amount of the credit allowed being claimed
 in each year.
   §  3.  Paragraph 3 of subdivision (a) of section 24 of the tax law, as
 added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
 amended to read as follows:
   (3)  No  qualified  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 pursu-
 ant to this chapter. IF ANY TAXPAYER CLAIMS OR  PREVIOUSLY  CLAIMED  THE
 BENEFIT  OF  ANY  CREDIT UNDER THIS SECTION OTHER THAN WITH RESPECT TO A
 QUALIFIED FILM PRODUCED BY A QUALIFIED CONVERTED INDUSTRIAL  SPACE  FILM
 PRODUCTION  COMPANY  AT  A  QUALIFIED  CONVERTED  INDUSTRIAL  SPACE FILM
 PRODUCTION FACILITY, THE TAXPAYER SHALL NOT BE ENTITLED TO CLAIM CREDITS
 WITH RESPECT TO QUALIFYING CONVERTED INDUSTRIAL SPACE EXPENSES UNDER THE
 RULES APPLICABLE TO QUALIFIED CONVERTED INDUSTRIAL SPACE FILM PRODUCTION
 COMPANIES.
   § 4. Paragraph 4 of subdivision (a) of section 24 of the tax  law,  as
 added  by  section  5  of  part  Q of chapter 57 of the laws of 2010, is
 amended to read as follows:
   (4) Notwithstanding the foregoing provisions of  this  subdivision,  a
 qualified  film  production  company  [or], A qualified independent film
 production company, OR  A  QUALIFIED  CONVERTED  INDUSTRIAL  SPACE  FILM
 PRODUCTION  COMPANY, that has applied for credit under the provisions of
 this section, agrees as a condition for the granting of the credit:  (i)
 to include in each qualified film distributed by DVD, or other media for
 the  secondary  market,  a  New  York  promotional video approved by the
 governor's office of motion picture and  television  development  or  to
 include  in  the  end  credits  of  each qualified film "Filmed With the
 Support of the New York State Governor's Office of  Motion  Picture  and
 Television  Development" and a logo provided by the governor's office of
 motion picture and television development, and (ii) to certify  that  it
 will  purchase taxable tangible property and services, defined as quali-
 fied production costs pursuant to paragraph one of  subdivision  (b)  of
 this  section, only from companies registered to collect and remit state
 and local sales and use taxes  pursuant  to  articles  twenty-eight  and
 twenty-nine of this chapter.
   §  5.  Paragraph 5 of subdivision (a) of section 24 of the tax law, as
 amended by chapter 420 of the laws  of  2016,  is  amended  to  read  as
 follows:
   (5) For the period two thousand fifteen through two thousand nineteen,
 in addition to the amount of credit established in paragraph two of this
 subdivision,  a  taxpayer shall be allowed a credit equal to the product
 (or pro rata share of the product, in the case of a member of a partner-
 ship) of ten percent and the amount of wages or salaries paid  to  indi-
 viduals  directly  employed (excluding those employed as writers, direc-
 tors, music directors, producers and  performers,  including  background
 actors  with  no  scripted lines) by a qualified film production company
 [or], a qualified independent film production company,  OR  A  QUALIFIED
 CONVERTED   INDUSTRIAL   SPACE  FILM  PRODUCTION  COMPANY  for  services
 performed by those individuals in one of the counties specified in  this
 paragraph  in  connection with a qualified film with a minimum budget of
 five hundred thousand dollars. For purposes of this  additional  credit,
 the services must be performed in one or more of the following counties:
 Albany,  Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua, Chemung,
 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie,  Essex,

 A. 7182                             4
 
 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
 Livingston,  Madison,  Monroe,  Montgomery,  Niagara,  Oneida, Onondaga,
 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer,  Saratoga,
 Schenectady,   Schoharie,   Schuyler,  Seneca,  St.  Lawrence,  Steuben,
 Suffolk, Sullivan, Tioga, Tompkins, Ulster, Warren,  Washington,  Wayne,
 Wyoming,  or Yates. The aggregate amount of tax credits allowed pursuant
 to the authority of this paragraph shall be five  million  dollars  each
 year  during  the period two thousand fifteen through two thousand nine-
 teen of the annual allocation made available to the program pursuant  to
 paragraph four of subdivision (e) of this section. Such aggregate amount
 of  credits  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 for allocation of film
 production credit with such office. If the  total  amount  of  allocated
 credits  applied for under this paragraph in any year exceeds the aggre-
 gate amount of tax credits allowed for such year under  this  paragraph,
 such excess shall be treated as having been applied for on the first day
 of  the  next year. If the total amount of allocated tax credits applied
 for under this paragraph at the conclusion of any year is less than five
 million dollars, the remainder shall be treated as part  of  the  annual
 allocation  made  available to the program pursuant to paragraph four of
 subdivision (e) of this section. However, in no event may the  total  of
 the  credits  allocated  under  this paragraph and the credits allocated
 under paragraph five of subdivision (a) of section  thirty-one  of  this
 article  exceed  five  million dollars in any year during the period two
 thousand fifteen through two thousand nineteen.
   § 6. Paragraph 2 of subdivision (b) of section 24 of the tax  law,  as
 added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
 amended to read as follows:
   (2) "Production costs" means any costs for tangible property used  and
 services performed directly and predominantly in the production (includ-
 ing pre-production and post production) of a qualified film.  OTHER THAN
 WITH  RESPECT  TO  QUALIFIED CONVERTED INDUSTRIAL SPACE EXPENSES PAID OR
 INCURRED BY A  QUALIFIED  CONVERTED  INDUSTRIAL  SPACE  FILM  PRODUCTION
 COMPANY, "[Production] PRODUCTION costs" shall not include (i) costs for
 a  story,  script  or  scenario to be used for a qualified film and (ii)
 wages or salaries or other compensation for writers, directors,  includ-
 ing  music  directors,  producers  and performers (other than background
 actors with no scripted lines).  "Production  costs"  generally  include
 technical  and  crew  production  costs,  such  as expenditures for film
 production facilities, or any part  thereof,  props,  makeup,  wardrobe,
 film  processing,  camera,  sound recording, set construction, lighting,
 shooting, editing and meals.
   § 7. Paragraph 3 of subdivision (b) of section 24 of the tax  law,  as
 amended  by  section  1  of part B of chapter 59 of the laws of 2013, is
 amended to read as follows:
   (3) "Qualified film" means a  feature-length  film,  television  film,
 relocated television production, television pilot and/or each episode of
 a  television  series,  regardless  of  the medium by means of which the
 film, pilot or episode is created  or  conveyed[.],  PROVIDED,  HOWEVER,
 THAT  EXCEPT AS TO BE PROVIDED IN REGULATIONS ISSUED BY THE COMMISSIONER
 OF ECONOMIC DEVELOPMENT WITH RESPECT TO A QUALIFIED FILM PRODUCED  BY  A
 CONVERTED  INDUSTRIAL SPACE FILM PRODUCTION COMPANY, "[Qualified] QUALI-
 FIED film" shall not include [(i)] a documentary film, news  or  current
 affairs  program,  interview  or  talk program, "how-to" (i.e., instruc-
 tional) film or program, film or program consisting primarily  of  stock

 A. 7182                             5
 
 footage,  sporting event or sporting program, game show, award ceremony,
 film or program intended primarily for industrial, corporate or institu-
 tional end-users, fundraising film  or  program,  daytime  drama  (i.e.,
 daytime  "soap opera"), commercials, music videos or "reality" program[,
 or (ii)]. IN NO CASE SHALL "QUALIFIED FILM"  INCLUDE  a  production  for
 which records are required under section 2257 of title 18, United States
 code,  to be maintained with respect to any performer in such production
 (reporting of books, films,  etc.  with  respect  to  sexually  explicit
 conduct).
   §  8.  Paragraph 5 of subdivision (b) of section 24 of the tax law, as
 amended by section 8 of part Q of chapter 57 of the  laws  of  2010,  is
 amended to read as follows:
   (5)  "Qualified film production facility" shall mean a film production
 facility in the state, which contains at least one sound stage having  a
 minimum  of  seven  thousand square feet of contiguous production space,
 provided,  however,  that  except  with  respect  to  a  qualified  film
 production   facility   being  used  by  a  qualified  independent  film
 production company  OR  A  QUALIFIED  CONVERTED  INDUSTRIAL  SPACE  FILM
 PRODUCTION FACILITY BEING USED BY A QUALIFIED CONVERTED INDUSTRIAL SPACE
 FILM  PRODUCTION COMPANY:  (i) a film production facility in the city of
 New York must contain at least one sound stage having a minimum of seven
 thousand square feet of contiguous production space that is sound  proof
 with a Noise Criteria ("NC") of 30 or better, has sufficient heating and
 air  conditioning  for shooting without the need for supplemental units,
 incorporates a permanent grid and sufficient built-in  electric  service
 for  shooting without the need for generators, and is column-free with a
 clear height of at least sixteen feet under the permanent grid; and (ii)
 an armory owned by the state or city of New York located in the city  of
 New  York that does not satisfy the criteria of subparagraph (i) of this
 paragraph shall be treated as a qualified film production facility  upon
 certification  by the governor's office of motion picture and television
 development of a petition submitted to that office by a  qualified  film
 production company establishing that no qualified film production facil-
 ity  is available in the city of New York that has stage space available
 for shooting such company's film. Such petition shall  be  submitted  no
 later  than  ninety days prior to the start of principal photography for
 the qualified film and the governor's office of motion picture and tele-
 vision development shall have ten days to certify or  reject  the  peti-
 tion.  A stage will be deemed unavailable if consideration has been paid
 for its use or such stage is currently under an agreement with an option
 for use and, in either circumstance, such period  of  use  includes  the
 petitioner's estimated start date of principal photography.
   § 9. Subdivision (b) of section 24 of the tax law is amended by adding
 four new paragraphs 9, 10, 11, and 12 to read as follows:
   (9)  "QUALIFIED  CONVERTED  INDUSTRIAL SPACE FILM PRODUCTION FACILITY"
 SHALL MEAN ANY FILM PRODUCTION FACILITY IN THE STATE: (I) LOCATED  IN  A
 DISTRICT  THAT,  UNDER THE ZONING CLASSIFICATIONS PROMULGATED BY THE NEW
 YORK CITY PLANNING COMMISSION, IS CURRENTLY OR WAS  FORMERLY  CLASSIFIED
 AS  A  MANUFACTURING  DISTRICT;  (II)  OWNED  OR  LEASED  BY A QUALIFIED
 CONVERTED INDUSTRIAL SPACE FILM  PRODUCTION  COMPANY;  AND  (III)  WHICH
 CONTAINS AT LEAST ONE SOUND STAGE HAVING A MINIMUM OF FOUR THOUSAND FIVE
 HUNDRED  SQUARE FEET OF CONTIGUOUS PRODUCTION SPACE, THAT IS SOUND PROOF
 WITH A NOISE CRITERIA OF THIRTY OR BETTER, HAS  SUFFICIENT  HEATING  AND
 AIR  CONDITIONING  FOR SHOOTING WITHOUT THE NEED FOR SUPPLEMENTAL UNITS,
 INCORPORATES SUFFICIENT BUILT-IN ELECTRIC SERVICE FOR  SHOOTING  WITHOUT
 THE  NEED  FOR  GENERATORS,  HAS  BUILT-IN LIVE INGEST AND DATA TRANSFER

 A. 7182                             6
 
 FACILITIES, AND HAS A CLEAR HEIGHT OF AT LEAST  THIRTEEN  FEET  BUT  NOT
 MORE  THAN  FOURTEEN  FEET. FOR PURPOSES OF THIS PARAGRAPH AS APPLIED TO
 ANY QUALIFIED  CONVERTED  INDUSTRIAL  SPACE  FILM  PRODUCTION  FACILITY,
 "CONTIGUOUS" SHALL NOT BE INTERPRETED TO REQUIRE ANY PRODUCTION SPACE IN
 SUCH FACILITY TO BE COLUMN-FREE.
   (10) "QUALIFIED CONVERTED INDUSTRIAL SPACE FILM PRODUCTION COMPANY" IS
 A  CORPORATION,  PARTNERSHIP,  LIMITED  PARTNERSHIP OR LIMITED LIABILITY
 COMPANY WHICH:   (I) OWNS OR LEASES  A  QUALIFIED  CONVERTED  INDUSTRIAL
 SPACE  FILM  PRODUCTION  FACILITY;  (II)  EMPLOYS THROUGHOUT THE YEAR AT
 LEAST EIGHT HUNDRED FULL-TIME STAFF IN NEW YORK, OF WHICH AT LEAST  FIVE
 HUNDRED  STAFF  ARE  LOCATED AT THE QUALIFIED CONVERTED INDUSTRIAL SPACE
 FILM PRODUCTION FACILITY; AND (III) DURING THE COURSE OF  ITS  OWNERSHIP
 OR  LEASE  OF THE FACILITY HAS INVESTED A MINIMUM OF THIRTY-FIVE MILLION
 DOLLARS IN CAPITAL EXPENDITURES TO REPURPOSE  THE  FACILITY  AS  A  FILM
 PRODUCTION FACILITY FOR THE PURPOSE OF CONDUCTING FILM PRODUCTION ACTIV-
 ITY THEREIN.
   (11)  "QUALIFIED  CONVERTED  INDUSTRIAL  SPACE  EXPENSES"  SHALL  MEAN
 PRODUCTION COSTS (EXCLUDING POST PRODUCTION COSTS) PAID OR INCURRED BY A
 QUALIFIED CONVERTED INDUSTRIAL SPACE FILM PRODUCTION COMPANY IN  ONE  OR
 MORE TAXABLE YEARS, AND ATTRIBUTABLE TO: (I) THE USE OF TANGIBLE PROPER-
 TY  AT  A QUALIFIED CONVERTED INDUSTRIAL SPACE FILM PRODUCTION FACILITY,
 (II) THE PERFORMANCE OF  SERVICES  INCLUDING  WAGES  PAID  TO  EMPLOYEES
 LOCATED AT A QUALIFIED CONVERTED INDUSTRIAL SPACE FILM PRODUCTION FACIL-
 ITY, AND (III) WAGES THAT QUALIFY FOR THE TEN PERCENT CREDIT UNDER PARA-
 GRAPH  FIVE  OF  SUBDIVISION  (A)  OF  THIS SECTION. QUALIFIED CONVERTED
 INDUSTRIAL SPACE EXPENSES SHALL INCLUDE COSTS FOR  A  STORY,  SCRIPT  OR
 SCENARIO  TO BE USED FOR A QUALIFIED FILM AND WAGES OR SALARIES OR OTHER
 COMPENSATION FOR WRITERS, DIRECTORS, INCLUDING MUSIC DIRECTORS,  PRODUC-
 ERS AND PERFORMERS.
   (12) "INTERIM APPLICATION" SHALL MEAN AN APPLICATION FILED BY A QUALI-
 FIED  CONVERTED  INDUSTRIAL SPACE FILM PRODUCTION COMPANY FOR PRODUCTION
 CREDITS UNDER THIS SECTION FOR A QUALIFIED FILM WITH  RESPECT  TO  WHICH
 THE  COMPANY  HAS  PAID  OR  INCURRED AT LEAST FIFTY THOUSAND DOLLARS OF
 ELIGIBLE SPEND.
   § 10. Paragraph 4 of subdivision (e) of section 24 of the tax law,  as
 amended  by  section 1-a of part P of chapter 60 of the laws of 2016, 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 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
 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

 A. 7182                             7
 
 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]  TWENTY of section two hundred [ten] TEN-B 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 insufficient 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] THIRTY-TWO of section two  hundred
 [ten]  TEN-B  and  subsection  [(gg)] (QQ) 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  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
 OTHER THAN A QUALIFIED FILM PRODUCED BY A QUALIFIED CONVERTED INDUSTRIAL
 SPACE FILM PRODUCTION COMPANY, 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  follow-
 ing  the allocation year for which the film has been allocated credit by
 the governor's office for motion picture and television development.  IN
 THE CASE OF A  QUALIFIED  CONVERTED  INDUSTRIAL  SPACE  FILM  PRODUCTION
 COMPANY,  A QUALIFIED FILM SHALL BE DEEMED TO BE COMPLETE IN THE TAXABLE
 YEAR IN WHICH THE QUALIFIED FILM IS ACTUALLY COMPLETED, OR  THE  TAXABLE
 YEAR  IN  WHICH  AN  INTERIM  APPLICATION  IS  PROPERLY FILED UNDER THIS
 SECTION IN RESPECT OF SUCH QUALIFIED FILM.
   § 11. The state commissioner of economic development, after consulting
 with the state commissioner of taxation and  finance,  shall  promulgate
 any regulations as may be necessary to effectuate the changes instituted
 by this act by December 31, 2017.
   (i)  The  commissioner  of economic development, after consulting with
 the commissioner of taxation and  finance,  shall  promulgate  rules  to
 update  the  definitions  contained  in the regulations to be consistent
 with section 24 of the tax law, as amended by this act. Such  rules  and
 regulations shall include provisions with respect to qualified converted
 industrial  space  film  production companies describing the application
 process, the due dates for such applications, the standards which  shall
 be  used  to  evaluate  the applications, the documentation that will be
 provided to substantiate to the department of taxation and  finance  the
 amount of tax credits allocated to such taxpayers, under what conditions
 all  or  a  portion  of  this  tax credit may be revoked, and such other
 provisions as deemed  necessary  and  appropriate.  Notwithstanding  any
 other  provisions  to the contrary in the state administrative procedure
 act, such rules and regulations may be adopted on an emergency basis  if
 necessary  to meet such December 31, 2017 deadline, and shall explicitly
 provide for a mechanism for a qualified converted industrial space  film
 production  company  with  at  least  fifty thousand dollars in eligible
 spend paid or incurred over one or more tax years commencing on or after

 A. 7182                             8
 
 January 1, 2017 to claim the credit with respect to  such  year  on  its
 timely filed New York state income tax return for such tax year, includ-
 ing any excess eligible for refund under subdivision 48 of section 210-B
 of the tax law. The rules shall ensure that no such applications submit-
 ted  with respect to a qualified film is rejected as premature or incom-
 plete, based  on  submission  of  sufficient  supporting  documentation.
 Regardless  of  whether such rules and regulation have been adopted, the
 commissioner shall not under any circumstances deny or fail to certify a
 qualified  converted  industrial  space  film  production  company  with
 respect  to  any qualified film produced at a qualified converted indus-
 trial space film production facility, including any interim  application
 meeting  the fifty thousand dollar threshold contained in paragraph 2 of
 subdivision (a) of section 24 of the tax law, as amended by section  two
 of  this  act,  on account of such rules and regulations not having been
 promulgated. The governor's office for  motion  picture  and  television
 development  must  notify each qualified converted industrial space film
 production company of its allocation year with respect to each  applica-
 tion  meeting  the requirements of section 24 of the tax law, as amended
 by this act.
   (ii) The state commissioner of economic development, after  consulting
 with  the  state  commissioner of taxation and finance, shall promulgate
 rules to modify the definition of "qualified film" solely  with  respect
 to  a  qualified  converted industrial space film production company, to
 explicitly permit such company to obtain the credit under paragraph  (1)
 of  subdivision (a) of section 24 of the tax law for content transmitted
 via any means or medium including television, film, digital  media,  and
 mobile,  and  will  permit  such  a  company  to file applications under
 section 24 of the tax law for: (a) documentary  films  and  shorts;  (b)
 "how-to"   (i.e.,  instructional)  films  or  programs;  (c)  long-form,
 specials, mini-series, series, and interstitial television  programming;
 and  (d) "reality" programming. The new rules shall exempt any qualified
 film produced by a qualified converted industrial space film  production
 company from scripting requirements.
   §  12. This act shall take effect immediately and shall apply to taxa-
 ble years beginning on or after January 1, 2017.