Requires that services eligible for the empire state film production tax credit take place in certain counties.
TITLE OF BILL: An act to amend the tax law, in relation to requiring that services eligible for the empire state film production tax credit take place in certain counties
To expand the upstate areas which are eligible for participation in the Empire State Film Production Tax Credit program.
SUMMARY OF PROVISIONS:
The bill amends Section 24(a)(5) of the Tax Law, as added by section 7 of part B of chapter 59 of the laws of 2013, to include Albany, Columbia, Dutchess, Greene, Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenectady, Sullivan, Ulster, Warren and Washington as counties in which film production companies are eligible to receive a tax credit for their services performed.
The Empire State Film Tax Credit, as enhanced under the 2013-14 state budget, is an important initiative to encourage film and TV production in New York State. Such activities provide significant economic benefits to the State. While most of the current tax credits awarded under this program will go to support film and TV projects in New York City, the program also seeks to encourage and support film production in Upstate areas.
The 2013 budget authorized an additional tax incentive for film services undertaken in many Upstate counties. This bill would extend the credit to additional Upstate counties in order to further help in attracting more film production companies to the area, thereby creating. jobs and boosting the local economies.
To be determined
Immediately, and shall apply to taxable years beginning on or after January 1, 2013.
STATE OF NEW YORK ________________________________________________________________________ 5691 2013-2014 Regular Sessions IN SENATE June 5, 2013 ___________Introduced by Sen. FARLEY -- 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 that services eligible for the empire state film production tax credit take place in certain counties THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax law, as added by section 7 of part B of chapter 59 of the laws of 2013, is amended to read as follows: (5) For the period two thousand fifteen through two thousand nineteen, in addition to the amount of credit established in paragraph two of this subdivision, a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partner- ship) of ten percent and the amount of wages or salaries paid to indi- viduals directly employed (excluding those employed as writers, direc- tors, music directors, producers and performers, including background actors with no scripted lines) by a qualified film production company or a qualified independent film production company for services performed by those individuals in one of the counties specified in this paragraph in connection with a qualified film with a minimum budget of five hundred thousand dollars. For purposes of this additional credit, the services must be performed in one or more of the following counties: ALBANY, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, COLUMBIA, Cortland, Delaware, DUTCHESS, Erie, Essex, Franklin, Fulton, Genesee, GREENE, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, ORANGE, Orleans, Oswego, Otsego, PUTNAM, RENSSELAER, ROCKLAND, SARATOGA, SCHENECTADY, Schoharie, Schuyler, Seneca, St. Lawrence, Steu- ben, SULLIVAN, Tioga, Tompkins, ULSTER, WARREN, WASHINGTON, Wayne, Wyom-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10749-02-3 S. 5691 2
ing, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this paragraph shall be five million dollars each year during the period two thousand fifteen through two thousand nineteen of the annual allocation made available to the program pursuant to para- graph four of subdivision (e) of this section. Such aggregate amount of credits 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 for allocation of film production credit with such office. If the total amount of allocated credits applied for under this paragraph in any year exceeds the aggregate amount of tax credits allowed for such year under this paragraph, such excess shall be treated as having been applied for on the first day of the next year. If the total amount of allocated tax credits applied for under this paragraph at the conclusion of any year is less than five million dollars, the remainder shall be treated as part of the annual allocation made available to the program pursuant to paragraph four of subdivision (e) of this section. However, in no event may the total of the credits allocated under this paragraph and the credits allocated under paragraph five of subdivision (a) of section thirty-one of this article exceed five million dollars in any year during the period two thousand fifteen through two thousand nineteen. S 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2013.