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.

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S614-2013 Actions

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

S614-2013 Memo

BILL NUMBER:S614

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.

S614-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     614

                         2013-2014 Regular Sessions

                              I N  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.