Bill S498-2013

Amends the empire state film production credit to provide differing percentages of credit depending on which county the production costs are paid or incurred in

Amends the empire state film production credit to provide differing percentages of credit depending on which county the production costs are paid or incurred in during the production of qualifying films.

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  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S498

TITLE OF BILL: An act to amend the tax law, in relation to amending the empire state film production credit

PURPOSE: This bill will more effectively encourage film production in New York State by increasing the tax credit percentage for films produced farther from New York City.

SUMMARY OF PROVISIONS: Section 1. Amends 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 by increasing the tax credit in five percent increments, as production takes place away from New York City, over three steps, until the tax credit maxes out at forty-five percent

Section 2. Effective date.

EXISTING LAW: Paragraph (2) of subdivision (a) of section 24 of the tax law provides a tax credit of thirty percent of qualified costs for films produced in New York State, regardless of where the film is produced in the state.

JUSTIFICATION: The current Empire State film production credit does not effectively encourage film production in New York State. Undoubtedly some films would be produced regardless of the tax credits. However, the tax credit has its greatest effect on films produced outside of New York City. Because necessary film crews are based in New York City, the costs of moving and housing these crews to other areas in the State increase proportionally with the distance from New York City. In order to encourage more films to be produced in the various regions of the state, the tax credit must be graduated to account for the increased costs of filming in these locations. This bill achieves that by increasing the tax credit in five percent increments, as production takes place away from New York city, over three steps, until the tax credit maxes out at forty-five percent. Because the total allocation to the film production credit remains unchanged, this bill does not require any additional state funding in order to increase the number of films being produced in New York State.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 498 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. GALLIVAN -- 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 amending the empire state film production credit THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. 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] SUM OF THE PRODUCTS (or pro rata share of the product, in the case of a member of a partnership) of: (I) thirty percent [and] FOR the qualified production costs paid or incurred in THE COUNTIES OF BRONX, KINGS, NEW YORK, QUEENS OR RICHMOND DURING the production of a qualified film[,]; (II) THIRTY-FIVE PERCENT FOR THE QUALIFIED PRODUCTION COSTS PAID OR INCURRED IN THE COUNTIES OF DUTCHESS, NASSAU, ORANGE, PUTNAM, ROCKLAND, SUFFOLK, SULLIVAN, ULSTER OR WESTCHESTER, DURING THE PRODUCTION OF A QUALIFIED FILM; (III) FORTY PERCENT FOR THE QUALIFIED PRODUCTION COSTS PAID OR INCURRED IN THE COUNTIES OF ALBANY, COLOMBIA, GREENE, RENSSELAER, SARA- TOGA, SCHENECTADY, WARREN OR WASHINGTON DURING THE PRODUCTION OF A QUAL- IFIED FILM; AND (IV) FORTY-FIVE PERCENT FOR THE QUALIFIED PRODUCTION COSTS PAID OR INCURRED IN ALL COUNTIES NOT REFERENCED IN SUBPARAGRAPH (I), (II) OR (III) OF THIS PARAGRAPH DURING THE PRODUCTION OF A QUALI- FIED FILM; provided that: [(i)] (1) the qualified production costs (excluding post production costs) paid or incurred 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 equal or exceed seventy-five percent of the production costs (excluding post production costs) paid or incurred which are attribut-
able to the use of tangible property or the performance of services at any film production facility within and without the state in the production of such qualified film[,]; and [(ii)] (2) 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, if the qualified production costs (exclud- ing post production costs) which are attributable 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 qualified 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 facility 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 qualified film. The credit shall be allowed for the taxable year in which the production of such qualified film is 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)] (A) the taxable year the production of the qualified film is complete, or [(2)] (B) the taxable year immediate- ly following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television devel- opment. If the amount of the credit 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 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 years, with one-third of the amount of the credit allowed being claimed in each year. S 2. This act shall take effect immediately.

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