A5559-2011 Actions

• Jun 1, 2011: enacting clause stricken
• Feb 23, 2011: referred to ways and means

A5559-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         5559
 2011-2012 Regular Sessions
 I N  ASSEMBLY
 February 23, 2011
 
 Introduced  by M. of A. ENGLEBRIGHT, O'DONNELL, ZEBROWSKI, HOOPER, BING,
 JAFFEE, PAULIN, COLTON, TITONE, KELLNER, ROSENTHAL, CAHILL,  MAGNAREL
 LI,  LENTOL,  PEOPLES-STOKES,  GALEF, MARKEY, DenDEKKER -- Multi-Spon
 sored by -- M. of A. ABBATE, BOYLAND, GLICK, LANCMAN, LUPARDO,  McENE
 NY,  MILLMAN,  PHEFFER,  SWEENEY  --  read  once  and  referred to the
 Committee on Ways and Means
 

AN ACT to amend the tax law, in relation to an empire  state  film  post
 production  tax credit and to amend the state finance law, in relation
 to establishing the New York state post production  internship  educa
 tion  and  development  program  fund; and providing for the repeal of
 such provisions upon expiration thereof
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. The tax law is amended by adding a new section 28-a to read
 as follows:

 

S  28-A.  EMPIRE  STATE  FILM POST PRODUCTION CREDIT. (A) ALLOWANCE OF
 CREDIT. (1) A TAXPAYER WHICH IS A FILM PRODUCTION COMPANY OR A QUALIFIED
 FILM PRODUCTION COMPANY, AND WHICH  IS  SUBJECT  TO  TAX  UNDER  ARTICLE
 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 PROVIDED IN THIS SUBDIVISION.
 (2)  (I)  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  TEN
 PERCENT  AND  THE QUALIFIED POST PRODUCTION COSTS PAID IN THE PRODUCTION
 OF A QUALIFIED FILM AT A QUALIFIED POST PRODUCTION FACILITY.
 (II) IF A TAXPAYER IS ELIGIBLE FOR THE FILM PRODUCTION CREDIT PURSUANT
 TO SECTION TWENTY-FOUR OF THIS ARTICLE, AND THE  POST  PRODUCTION  COSTS
 OTHERWISE  MEET  THE REQUIREMENTS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH,
 THE AMOUNT OF THE POST PRODUCTION CREDIT ALLOWED SUCH TAXPAYER SHALL  BE
 ENHANCED  BY  AN  ADDITIONAL FIVE PERCENT WITH RESPECT TO SUCH QUALIFIED
 POST PRODUCTION COSTS.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD08835-01-1
 
       A. 5559                             2
 (3) A TAXPAYER SHALL NOT BE ELIGIBLE FOR  THE  CREDIT  ESTABLISHED  BY
 THIS  SECTION  UNLESS THE QUALIFIED POST PRODUCTION COSTS AT A QUALIFIED
 POST PRODUCTION FACILITY MEET OR  EXCEED  SEVENTY-FIVE  PERCENT  OF  THE
 TOTAL  POST  PRODUCTION COSTS PAID OR INCURRED IN THE POST PRODUCTION OF
 THE  QUALIFIED FILM AT ANY POST PRODUCTION FACILITY. THE CREDIT SHALL BE
 ALLOWED FOR THE TAXABLE YEAR IN WHICH THE PRODUCTION OF  SUCH  QUALIFIED
 FILM IS COMPLETED.
 (4)  NO  QUALIFIED  POST 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
 PURSUANT TO THIS CHAPTER.
 (B)  DEFINITIONS.  AS  USED  IN THIS SECTION THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:

 (1) "QUALIFIED FILM PRODUCTION COMPANY"  AND  "QUALIFIED  FILM"  SHALL
 HAVE  THE  SAME  MEANING  AS  ARE  ASCRIBED  TO  SUCH  TERMS  BY SECTION
 TWENTY-FOUR OF THIS ARTICLE.
 (2) "FILM PRODUCTION COMPANY" IS A CORPORATION,  PARTNERSHIP,  LIMITED
 PARTNERSHIP,  OR  OTHER ENTITY OR INDIVIDUAL WHICH OR WHO IS PRINCIPALLY
 ENGAGED IN THE PRODUCTION OF A QUALIFIED FILM AND CONTROLS THE QUALIFIED
 FILM DURING PRODUCTION.
 (3) "POST PRODUCTION COSTS" MEANS PRODUCTION OF ORIGINAL CONTENT FOR A
 QUALIFIED FILM EMPLOYING TRADITIONAL, EMERGING AND  NEW  WORKFLOW  TECH
 NIQUES  USED  IN POST-PRODUCTION FOR PICTURE, SOUND AND MUSIC EDITORIAL,
 RERECORDING AND MIXING, VISUAL EFFECTS, GRAPHIC DESIGN,  ORIGINAL  SCOR
 ING,  ANIMATION,  AND    MUSICAL  COMPOSITION; BUT SHALL NOT INCLUDE THE
 EDITING OF PREVIOUSLY PRODUCED CONTENT FOR A QUALIFIED FILM.
 (4) "POST PRODUCTION FACILITY" MEANS  A  BUILDING  AND/OR  COMPLEX  OF
 BUILDINGS  AND  THEIR IMPROVEMENTS ON WHICH FILM ARE INTENDED TO BE POST
 PRODUCED.
 (5) "QUALIFIED POST  PRODUCTION  FACILITY"  MEANS  A  POST  PRODUCTION
 FACILITY LOCATED IN THE STATE, ENGAGED IN FINISHING A QUALIFIED FILM.
 (C)  WITHHOLDING  OF  PORTION  OF  CREDIT.  NOTWITHSTANDING  ANY OTHER
 PROVISION OF LAW TO THE CONTRARY, THE AMOUNT  SHALL  WITHHOLD  FROM  ANY
 CREDIT  ALLOWED  A TAXPAYER PURSUANT TO THIS SECTION, AN AMOUNT EQUAL TO
 SEVEN PERCENT OF SUCH CREDIT CLAIMED BY THE TAXPAYER. ALL  MONIES  WITH
 HELD  PURSUANT  TO  THIS SUBDIVISION SHALL BE CREDITED AND PAID INTO THE
 NEW YORK STATE POST  PRODUCTION  INTERNSHIP  EDUCATION  AND  DEVELOPMENT
 PROGRAM  FUND  ESTABLISHED  BY SECTION NINETY-ONE-H OF THE STATE FINANCE
 LAW.
 (D) LIMITATION ON CREDIT. (1) THE  AGGREGATE  AMOUNT  OF  TAX  CREDITS
 AUTHORIZED  PURSUANT  TO  THIS  SECTION  SHALL  NOT EXCEED SEVEN MILLION
 DOLLARS IN EACH OF TWO THOUSAND ELEVEN,  TWO  THOUSAND  TWELVE  AND  TWO
 THOUSAND THIRTEEN TAXABLE YEARS.
 (2)  THE  AGGREGATE  AMOUNT  OF TAX CREDITS EACH TAXABLE YEAR 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 WITH SUCH OFFICE FOR ALLOCATION  OF  A  FILM  POST
 PRODUCTION  CREDIT. IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR
 DURING ANY TAXABLE YEAR EXCEEDS THE AGGREGATE AMOUNT THEREOF  AUTHORIZED
 BY  PARAGRAPH  ONE  OF  THIS SUBDIVISION, SUCH EXCESS SHALL BE DEEMED TO
 HAVE BEEN APPLIED FOR ON THE FIRST DAY  OF  THE  IMMEDIATELY  SUBSEQUENT
 TAXABLE YEAR.
 (E)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:

 (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 43.
 
       A. 5559                             3
 (2) ARTICLE 22: SECTION 606: SUBSECTION (SS).
 

S 2.

Section 210 of the tax law is amended by adding a new subdivision
 43 to read as follows:

 43. EMPIRE STATE FILM POST PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT.
 A  TAXPAYER  WHO  IS ELIGIBLE PURSUANT TO SECTION TWENTY-EIGHT-A OF THIS
 CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED  AS  PROVIDED  IN  SUCH
 SECTION TWENTY-EIGHT-A AGAINST THE TAX IMPOSED BY THIS ARTICLE.
 (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS
 SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE  CREDIT  ALLOWABLE
 UNDER  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
 AMOUNT, FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS  AN  OVERPAYMENT
 OF  TAX  TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
 SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE
 PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
 THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL  BE  PAID  THEREON.  THE
 BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY
 BE  A  CARRY  OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE YEAR AND MAY BE
 DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE EXCESS, IF  ANY,  OF
 THE  AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH SUCCEEDING YEAR SHALL BE
 TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD
 ANCE  WITH  THE  PROVISIONS  OF  SECTION ONE THOUSAND EIGHTY-SIX OF THIS
 CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF  SECTION
 ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST
 SHALL BE PAID THEREON.
 

S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended by adding a new clause (xxxii) to read as
 follows:

 (XXXII) EMPIRE STATE FILM            AMOUNT OF CREDIT FOR
 POST PRODUCTION                      QUALIFIED POST PRODUCTION
 CREDIT UNDER                         COSTS OF A QUALIFIED FILM
 SUBSECTION (SS)                      UNDER SUBDIVISION FORTY-THREE OF
 SECTION TWO HUNDRED TEN
 

S 4.

Section 606 of the tax law is amended by adding a new  subsection
 (ss) to read as follows:

 (SS)  EMPIRE STATE FILM POST PRODUCTION CREDIT. (1) ALLOWANCE OF CRED
 IT. A TAXPAYER WHO IS ELIGIBLE PURSUANT  TO  SECTION  TWENTY-EIGHT-A  OF
 THIS  CHAPTER  SHALL  BE  ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
 SUCH SECTION TWENTY-EIGHT-A AGAINST THE TAX IMPOSED BY THIS ARTICLE.
 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT  OF
 TAX  TO  BE  CREDITED  OR  REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
 SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE
 PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
 THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL  BE  PAID  THEREON.  THE
 BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY
 BE  CARRIED  OVER  TO THE IMMEDIATELY SUCCEEDING TAXABLE YEAR AND MAY BE
 DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE EXCESS, IF  ANY,  OF
 THE  AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH SUCCEEDING YEAR SHALL BE
 TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD
 ANCE  WITH  THE  PROVISIONS  OF  SECTION ONE THOUSAND EIGHTY-SIX OF THIS
 CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF  SECTION
 
       A. 5559                             4
 ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST
 SHALL BE PAID THEREON.
 

S  5. The state finance law is amended by adding a new section 91-h to
 read as follows:

 

S 91-H. NEW YORK STATE POST PRODUCTION INTERNSHIP EDUCATION AND DEVEL
 OPMENT PROGRAM FUND. 1. THERE IS HEREBY ESTABLISHED, IN THE JOINT CUSTO
 DY OF THE COMMISSIONER OF TAXATION AND FINANCE AND  THE  COMPTROLLER,  A
 SPECIAL  FUND TO BE KNOWN AS THE "NEW YORK STATE POST PRODUCTION INTERN
 SHIP EDUCATION AND DEVELOPMENT PROGRAM FUND".
 2. SUCH FUND SHALL CONSIST OF ALL REVENUE CREDITED THERETO PURSUANT TO
 SUBDIVISION (C) OF SECTION TWENTY-EIGHT-A OF THE TAX LAW, AND ALL  OTHER
 MONEYS APPROPRIATED, CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND
 OR  SOURCE  PURSUANT  TO LAW. NOTHING IN THIS SECTION SHALL BE DEEMED TO
 PREVENT THE STATE FROM RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR  THE
 PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
 THE FUND ACCORDING TO LAW.
 3.  THE  MONIES IN THE FUND, UPON APPROPRIATION SHALL ONLY BE EXPENDED
 FOR THE PAYMENT OF TUITION ON BEHALF OF QUALIFIED INTERNS  PARTICIPATING
 IN  POST  PRODUCTION  INTERNSHIPS WITH POST PRODUCTION COMPANIES. MONIES
 SHALL BE PAYABLE FROM THE FUND FOR SUCH PURPOSE ON THE AUDIT AND WARRANT
 OF THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSION
 ER OF EDUCATION.
 4. FOR THE PURPOSES FOR THIS  SECTION,  "POST  PRODUCTION  INTERNSHIP"
 MEANS  AN INTERNSHIP IN A QUALIFIED POST PRODUCTION FACILITY, AS DEFINED
 IN SECTION TWENTY-EIGHT-A OF THE TAX LAW THAT HAS BEEN APPROVED  BY  THE
 CHANCELLOR OF THE STATE UNIVERSITY OF NEW YORK, THE BOARD OF TRUSTEES OF
 THE  CITY UNIVERSITY OF NEW YORK, OR THE CHIEF ADMINISTRATIVE OFFICER OF
 ANY  PRIVATE  COLLEGE  OR  UNIVERSITY  FOR  THE  PURPOSE  OF   PROVIDING
 PRODUCTION EXPERIENCE AND SKILL DEVELOPMENT. NO SUCH INTERNSHIP SHALL BE
 ELIGIBLE FOR TUITION COST REIMBURSEMENT UNLESS IT GRANTS ACADEMIC CREDIT
 TO PARTICIPATING STUDENTS.
 

S 6. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2012.

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