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.
TITLE OF BILL: An act to amend the tax law, 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. Paragraph 2 of subdivision (e) of section 24 of the tax law, as added by chapter 268 of the laws of 2012, is amended relating to providing tax credits for certain costs incurred in film and television productions, 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 12.5 million in 2004 through 2005, 30 million in 2006 through 2012, 37.5 million in 2013, 42.5 million in 2014, 45 million in 2015 and 2016, and $55 million in 2017.
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 5,000 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:
2012: Senate Bill 1975-A (Gianasis) - Died in Senate Investigations & Government Operations Committee 2012: Assembly Bill 4834-A (Simotas) - Died in Assembly Ways & Means Committee 2010: Assembly Bill 229 (Gianaris) - Died in Assembly Ways & Means Committee
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, 2012 and shall apply to applications filed on or after the date it becomes a law.
STATE OF NEW YORK ________________________________________________________________________ 614 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. GIANARIS -- 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 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. Paragraph 2 of subdivision (e) of section 24 of the tax law, as added by chapter 268 of the laws of 2012, is amended to read as follows:EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01547-01-3 S. 614 2
(2) The aggregate amount of tax credits allowed pursuant to the authority of subdivision (b) of section twelve hundred one-a of this chapter in any calendar year shall be twelve million five hundred thou- sand dollars in two thousand four and two thousand five
[and], thirty million dollars in two thousand six through two thousand [eleven]TWELVE, THIRTY-SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS IN TWO THOU- SAND THIRTEEN, FORTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS IN TWO THOUSAND FOURTEEN, FORTY-FIVE MILLION DOLLARS IN TWO THOUSAND FIFTEEN AND TWO THOUSAND SIXTEEN, AND FIFTY-FIVE MILLION DOLLARS IN TWO THOUSAND SEVENTEEN. 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 allo- cation 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, 2012 and shall apply to applications filed on or after the date it becomes a law.