Bill S1975A-2011

Increases to 15% the amount of the empire state film production credit that can be taken against taxes administered by the city of New York

Increases to 15% the amount of the empire state film production credit that can be taken against taxes administered by cities of one million or more; increases the aggregate of the credits which may be taken against such taxes.

Details

Actions

  • Jan 5, 2012: PRINT NUMBER 1975A
  • Jan 5, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 14, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S1975A

TITLE OF BILL: An act to amend the tax law and chapter 60 of the laws of 2004 amending the tax law relating to providing tax credits for certain costs incurred in film and television productions, in relation to the amount of such credits against taxes administered by cities of one million or more

PURPOSE: To increase to 15.% the amount of the empire state film production credit that can be taken against taxes administered by cities of one million or more.

SUMMARY OF PROVISIONS: Section 1. Subdivision (b) of section 1201-a of the tax law, as amended by section 5 of part y of chapter 62 of the laws of 2006, is amended to authorize any city with a population of one million or more to adopt the Empire state film production tax credit acting through its local legislative body and amend local laws to allow a 15 percent credit against the general corporation tax and the unincorporated business tax.

Section 2. Subdivision (b) of section 7 of part p of chapter 60 of the laws of 2004 amending the tax law relating to providing tax credits for certain costs incurred in film and television productions, as amended by section 2 of part y of chapter 62 of the laws of 2006, amends the aggregate amount of tax credits allowed pursuant to the authority of subdivision (b) of section 1201a of the tax law in any calendar year shall be 30 million in 2006 through 2010, 37.5 million in 2011, 42.5 million in 2012, 45 million in 2013 and 2014, and $55 million in 2015.

JUSTIFICATION: New York's film tax credit is one of the most successful economic development programs in recent history. Since New York State tripled its own film production tax credit, film and television shooting days are up 84 percent. These shoots employ more union actors and extras than typical production days, and are thus a strong measure of the broader employment impact of increased filming.

Since the initial credit was enacted, $600 million and over 6,000 new jobs have been generated for the New York City's economy. This new legislation would vastly expand on those results by tripling the production credit from 5 percent to 15 percent. By joining the state in this program, New York City can maximize the economic benefits for our region at a time when the economy is struggling. Increased tax credits would ensure that the recent growth in New York's film production business continues, and that our economy receives a much-needed boost at a sensitive time.

In addition, Screen Actors Guild officials note that New York State's newly tripled credit, along with the City's initial credit, has brought a significant number of previously uninsured actors into the union-sponsored healthcare program.

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately and applies to the taxable years beginning on or after July 1, 2011 and shall apply to applications filed on or after the date it becomes a law.


Text

STATE OF NEW YORK ________________________________________________________________________ 1975--A 2011-2012 Regular Sessions IN SENATE January 14, 2011 ___________
Introduced by Sen. GIANARIS -- 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 and chapter 60 of the laws of 2004 amending the tax law relating to providing tax credits for certain costs incurred in film and television productions, in relation to the amount of such credits against taxes administered by cities of one million or more THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (b) of section 1201-a of the tax law, as amended by section 5 of part Y of chapter 62 of the laws of 2006, is amended to read as follows: (b) Empire state film production credit. Any city in this state having a population of one million or more, acting through its local legisla- tive body, is hereby authorized to adopt and amend local laws to allow a credit against the general corporation tax and the unincorporated busi- ness tax imposed pursuant to the authority of chapter seven hundred seventy-two of the laws of nineteen hundred sixty-six which shall be substantially identical to the credit allowed under section twenty-four of this chapter, except that (A) the percentage of qualified production costs used to calculate such credit shall be [five] FIFTEEN percent, (B) whenever such section twenty-four references the state, such words shall be read as referencing the city, (C) such credit shall be allowed only to a taxpayer which is a qualified film production company, and (D) the effective date of such credit shall be July first, two thousand [six] EIGHT. Such credit shall be applied in a manner consistent with the credit allowed under subdivision thirty-six of section two hundred ten
of this chapter except as may be necessary to take into account differ- ences between the general corporation tax and the unincorporated busi- ness tax. S 2. Subdivision (b) of section 7 of part P of chapter 60 of the laws of 2004 amending the tax law relating to providing tax credits for certain costs incurred in film and television productions, as amended by section 2 of part Y of chapter 62 of the laws of 2006, is amended to read as follows: (b) The aggregate amount of tax credits allowed pursuant to the authority of subdivision (b) of section 1201-a of the tax law in any calendar year shall be $12.5 million in 2004 and 2005 [and], $30 million in 2006 through [2011] 2010, $37.5 MILLION IN 2011, $42.5 MILLION IN 2012, $45 MILLION IN 2013 AND 2014, AND $55 MILLION IN 2015. Such aggregate amount of credits shall be allocated by the mayor's office of film, theater and broadcasting 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 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. S 3. This act shall take effect immediately and applies to taxable years beginning on or after July 1, 2011 and shall apply to applications filed on or after the date it becomes a law.

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