Senate Bill S4661

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4661
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2025
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- 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  requiring  third-party
   verification  of  an  application  to  receive  the  Empire State film
   production credit and the Empire State film post production credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision (a) of section 24 of the tax law is amended by
 adding a new paragraph 6 to read as follows:
   (6) (I) FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "APPROVED  CERTI-
 FIED  PUBLIC  ACCOUNTANTS" SHALL MEAN INDEPENDENT, THIRD PARTY, IN-STATE
 CERTIFIED PUBLIC ACCOUNTANTS APPROVED  BY  THE  DEPARTMENT  OF  ECONOMIC
 DEVELOPMENT  TO PROVIDE THIRD-PARTY VERIFICATION SERVICES REQUIRED UNDER
 THIS PARAGRAPH.
   (II) ON OR AFTER JANUARY FIRST, TWO THOUSAND  TWENTY-SIX,  A  TAXPAYER
 WHICH IS A QUALIFIED FILM PRODUCTION COMPANY, OR A QUALIFIED INDEPENDENT
 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 QUALI-
 FIED INDEPENDENT FILM PRODUCTION COMPANY, AND WHICH IS  SUBJECT  TO  TAX
 UNDER  ARTICLES NINE-A OR TWENTY-TWO OF THIS CHAPTER, SHALL, AS A CONDI-
 TION FOR THE GRANTING OF THE CREDIT AS  PART  OF  THE  TAXPAYER'S  FINAL
 APPLICATION  FOR THE CREDIT, SUBMIT TO THE DEPARTMENT OF ECONOMIC DEVEL-
 OPMENT A THIRD-PARTY VERIFICATION OF THEIR FINAL  APPLICATION  PERFORMED
 BY  APPROVED CERTIFIED PUBLIC ACCOUNTANTS. THE COSTS OF SUCH THIRD-PARTY
 VERIFICATION SHALL NOT BE CLAIMED AS AN EXPENSE FOR THE PURPOSES OF THIS
 SECTION.
   (III) THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL MAINTAIN A LIST  OF
 CERTIFIED  PUBLIC  ACCOUNTANTS  WHICH  SHALL  BE UTILIZED TO PROVIDE THE
 THIRD-PARTY  VERIFICATION  SERVICES  PURSUANT  TO  THIS  PARAGRAPH.  THE
 DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL DEVELOP PROCEDURES AND PERFORM-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09244-02-5
              

 S. 4661                             2
 
 ANCE  STANDARDS  FOR SUCH CERTIFIED PUBLIC ACCOUNTANTS AND ANY CERTIFIED
 PUBLIC ACCOUNTANTS FAILING TO MEET THE REQUIREMENTS OF  SUCH  PROCEDURES
 AND PERFORMANCE STANDARDS SHALL BE REMOVED FROM THE LIST IMMEDIATELY.
   § 2. Subdivision (a) of section 31 of the tax law, as added by section
 12  of  part Q of chapter 57 of the laws of 2010, is amended by adding a
 new paragraph 7 to read as follows:
   (7) (I) FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "APPROVED  CERTI-
 FIED  PUBLIC  ACCOUNTANTS" SHALL MEAN INDEPENDENT, THIRD PARTY, IN-STATE
 CERTIFIED PUBLIC ACCOUNTANTS APPROVED  BY  THE  DEPARTMENT  OF  ECONOMIC
 DEVELOPMENT  TO PROVIDE THIRD-PARTY VERIFICATION SERVICES REQUIRED UNDER
 THIS PARAGRAPH.
   (II) ON OR AFTER JANUARY FIRST, TWO THOUSAND  TWENTY-SIX,  A  TAXPAYER
 WHICH  IS  A  QUALIFIED FILM PRODUCTION COMPANY, AND WHICH IS SUBJECT TO
 TAX UNDER ARTICLES NINE-A OR TWENTY-TWO OF THIS CHAPTER, UNLESS ELIGIBLE
 FOR THE CREDIT UNDER SECTION TWENTY-FOUR OF THIS ARTICLE WITH RESPECT TO
 THE QUALIFIED FILM, SHALL, AS A CONDITION FOR THE GRANTING OF THE CREDIT
 AS PART OF THE TAXPAYER'S FINAL APPLICATION FOR THE  CREDIT,  SUBMIT  TO
 THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT A THIRD-PARTY VERIFICATION OF
 THEIR FINAL APPLICATION PERFORMED BY APPROVED CERTIFIED PUBLIC  ACCOUNT-
 ANTS. THE COSTS OF SUCH THIRD-PARTY VERIFICATION SHALL NOT BE CLAIMED AS
 AN EXPENSE FOR THE PURPOSES OF THIS SECTION.
   (III)  THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL MAINTAIN A LIST OF
 CERTIFIED PUBLIC ACCOUNTANTS WHICH SHALL  BE  UTILIZED  TO  PROVIDE  THE
 THIRD-PARTY  VERIFICATION  SERVICES  PURSUANT  TO  THIS  PARAGRAPH.  THE
 DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL DEVELOP PROCEDURES AND PERFORM-
 ANCE STANDARDS FOR SUCH CERTIFIED PUBLIC ACCOUNTANTS AND  ANY  CERTIFIED
 PUBLIC  ACCOUNTANTS  FAILING TO MEET THE REQUIREMENTS OF SUCH PROCEDURES
 AND PERFORMANCE STANDARDS SHALL BE REMOVED FROM THE LIST IMMEDIATELY.
   § 3. This act shall take effect immediately.