NY State Senate Bill 2017-S7903

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 08, 2018	referred to investigations and government operations

co-Sponsors

2017-S7903 (ACTIVE) - Details

See Assembly Version of this Bill:: A10267
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §24-a, Tax L; amd part HH §5, Chap 59 of 2014

2017-S7903 (ACTIVE) - Summary

Relates to the musical and theatrical production credit; extends provisions; expands available credits; permits applicants to self-certify through an auditor.

2017-S7903 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7903

SPONSOR: FUNKE
 
TITLE OF BILL:  An act to amend the tax law, in relation to the
musical and theatrical production credit; and to amend part HH of chap-
ter 59 of the laws of 2014 amending the tax law relating to a musical
and theatrical production credit, in relation to extending the effec-
tiveness of such provisions

 
PURPOSE:

To extend the musical and theatrical production credit and increases the
maximum amount of credits from $4 million to $6 million.

 
SUMMARY OF PROVISIONS:

Section 1: Amends subdivision (e) of section 24-a of the tax law, as
added by section 1 of part HH of chapter 59 of the laws of 2014 by
increasing from $4 million to $6 million the maximum amount of credits;
and allows applicants for the credits to provide the required certif-
ications by providing information and other documentation provided by a

licensed auditor on behalf of the applicant.

Section 2: Extends the refundable credit of 25% of certain production
and transportation expenditures that was set to expire in 2019 to 2023.

Section 3: Establishes the effective date.

 
JUSTIFICATION:

In the budget for fiscal year 2014-15, New York State created the Empire
State Theatre Production Tax Credit Program offering a 25% tax credit to
producers who tech their shows in New York State facilities. New York
has eight upstate theatres ideal for teching and launching new plays and
musicals, this new program ensures national competitiveness. A typical
tech period requires between two and four weeks, but in 2017 the Lion
King in Syracuse spent six weeks in development and production. During
this time a show is readied for launch by constructing sets, fitting
costumes, choreography is finalized and microphone frequencies are coor-
dinated. This credit is set to expire January 1, 2019 and in order for
productions to continue choosing to use Upstate Theatres we must extend
the credit.

In 2015, this tax credit program spurred approximately $2.3 million in
overall production expenditures related to the qualified production
facilities (including labor), $923,284 in additional expenditures
(transportation, travel and hotels), 248 hires by the touring production
and 153 hires by the production facility. In 2016, the program stimu-
lated an estimated $13.9 million in production expenditures, $1.4
million in additional expenditures, 430 hires by the production and 321
hires by the facility. 2016 is the last year for which fully accurate
numbers are available, but 2017 is expected to be the same or greater
due to the huge success of the "Lion King." Each year the entire $4
million is utilized by upstate productions, and as can be seen by the
numbers - money generated and jobs created continue to happen year-to-
year; that is why increasing the cap to $6 million is necessary.

While this credit has proven to generate money through the production
costs, it is important to remember that shows that utilize this credit
are also then going to spend time launching in each of the theatres in
which they have been produced. In one theatre season alone, audience
spending in Upstate New York reached $35.85 million, whether on
parking/transportation costs, restaurants, hotels, etc. By the conclu-
sion of the current pilot program in December 2018, 17 national tours
will have launched from New York. Disney's The Lion King set the record
for Syracuse's highest-grossing theatrical engagement by drawing over
53,000 people. The economic impact was more than $14 million and 163
local stagehands were employed and worked more than 21,000 hours. This
program is a vital part of increasing and promoting upstate Tourism, and
growing our local economies.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately, provided, however, that the
amendments to section 24-a of the tax law made by section one of this
act shall not affect the repeal of such section and shall expire and be
deemed to repeal therewith.

2017-S7903 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7903
 
                             I N  S E N A T E
 
                               March 8, 2018
                                ___________
 
 Introduced  by  Sen.  FUNKE  -- 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 musical  and  theatrical
   production  credit;  and to amend part HH of chapter 59 of the laws of
   2014 amending the  tax  law  relating  to  a  musical  and  theatrical
   production  credit, in relation to extending the effectiveness of such
   provisions
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (e) of section 24-a of the tax law, as added by
 section  1  of  part HH of chapter 59 of the laws of 2014, is amended to
 read as follows:
   (e) Maximum amount of credits. (1) The aggregate amount of tax credits
 allowed under this  section,  subdivision  forty-seven  of  section  two
 hundred  ten-B  and  subsection  (u)  of section six hundred six of this
 chapter in any calendar year shall be [four] SIX million  dollars.  Such
 aggregate  amount  of  credits  shall  be allocated by the department of
 economic development among taxpayers in order of priority based upon the
 date of filing an application for allocation of musical  and  theatrical
 production credit with such department. If the total amount of allocated
 credits  applied for in any particular year exceeds the aggregate amount
 of tax credits allowed for such year under  this  section,  such  excess
 shall  be  treated  as  having  been applied for on the first day of the
 subsequent year.
   (2) The commissioner of economic development,  after  consulting  with
 the  commissioner, shall promulgate regulations by October thirty-first,
 two thousand fourteen to establish procedures for the allocation of  tax
 credits  as  required by subdivision (a) of this section. Such rules and
 regulations shall include provisions 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
 taxpayers  to  substantiate  to the department the amount of tax credits
 allocated to such taxpayers, and such other provisions as deemed  neces-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14726-01-8

 S. 7903                             2
 
 sary  and appropriate. SUCH RULES AND REGULATIONS SHALL PERMIT AN APPLI-
 CANT FOR CREDITS UNDER THIS SECTION  TO  PROVIDE  THE  REQUIRED  CERTIF-
 ICATIONS  BY PROVIDING INFORMATION AND OTHER DOCUMENTATION PROVIDED BY A
 LICENSED  AUDITOR  ON BEHALF OF THE APPLICANT. 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 October thirty-first, two thousand fourteen dead-
 line.
   § 2.  Section 5 of part HH of chapter 59 of the laws of 2014  amending
 the  tax  law relating to a musical and theatrical production credit, is
 amended to read as follows:
   § 5. This act shall take effect immediately, provided that section two
 of this act shall take effect on January 1, 2015,  and  shall  apply  to
 taxable  years  beginning  on  or after January 1, 2015, with respect to
 "qualified production expenditures"  and  "transportation  expenditures"
 paid  or incurred on or after such effective date, regardless of whether
 the  production  of  the  qualified  musical  or  theatrical  production
 commenced  before such date, provided further that this act shall expire
 and be deemed repealed [4 years after such date] MARCH 31, 2023.
   § 3. This act shall take effect immediately, provided,  however,  that
 the  amendments  to  section  24-a of the tax law made by section one of
 this act shall not affect the repeal of such section  and  shall  expire
 and be deemed to repeal therewith.

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Senate Bill S7903

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

2017-S7903 (ACTIVE) - Details

2017-S7903 (ACTIVE) - Summary

2017-S7903 (ACTIVE) - Sponsor Memo

2017-S7903 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7903

Share this bill

Sponsored By

Rich Funke

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

Brad Hoylman-Sigal

Jose M. Serrano

2017-S7903 (ACTIVE) - Details

2017-S7903 (ACTIVE) - Summary

2017-S7903 (ACTIVE) - Sponsor Memo

2017-S7903 (ACTIVE) - Bill Text download pdf

Comments