Bill S7244A-2011

Relates to the allocation of credit for the empire state film production credit; repealer

Relates to the allocation of credit for the empire state film production credit.

Details

Actions

  • Jul 24, 2012: SIGNED CHAP.268
  • Jul 20, 2012: DELIVERED TO GOVERNOR
  • Jun 18, 2012: returned to senate
  • Jun 18, 2012: passed assembly
  • Jun 18, 2012: ordered to third reading rules cal.327
  • Jun 18, 2012: substituted for a10244a
  • Jun 18, 2012: referred to ways and means
  • Jun 18, 2012: DELIVERED TO ASSEMBLY
  • Jun 18, 2012: PASSED SENATE
  • Jun 5, 2012: ADVANCED TO THIRD READING
  • Jun 4, 2012: 2ND REPORT CAL.
  • May 31, 2012: 1ST REPORT CAL.977
  • May 18, 2012: PRINT NUMBER 7244A
  • May 18, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • May 2, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - May 31, 2012
Ayes (7): Marcellino, Alesi, Golden, Nozzolio, Zeldin, Squadron, Peralta
Excused (1): Diaz

Memo

BILL NUMBER:S7244A

TITLE OF BILL: An act to amend the tax law, in relation to the allocation of credit for the empire state film production credit; and to repeal section 7 of part P of chapter 60 of the laws of 2004, amending the tax law relating to the empire state film production credit, relating thereto

PURPOSE: This bill would increase the percentage amount of funds currently available for post production film tax credits to facilitate a greater utilization of those funds, throughout New York State.

SUMMARY OF PROVISIONS: Section 1 - Section 7 of part P of Chapter 60 of the laws of 2004, amending the tax law relating to the empire state film production credit is repealed.

Section 2 - Section 24 of the tax law is amended by adding a new subdivision (e) which creates film tax credit and post production tax credit language in the tax law. This language was previously unconsolidated law.

Section 3 - Paragraph 2 of subdivision (a) and subdivision (c) of section 31 of the tax law, as added by section 12 of part Q of chapter 57 of the laws of 2010 are amended to reflect an increase of the post production credit from 10 to 30% within the MTA region and to 35% outside the MTA region with no change to qualified expenses.

Section 4 - Effective date.

JUSTIFICATION: Currently the $7M allocated for post production film tax credits within the film tax credit funding pool has been under utilized. Increasing the percentage would create a greater incentive for production companies to conduct business within New York State.

LEGISLATIVE HISTORY: New bill

FISCAL IMPLICATIONS: None. This funding was previously allocated within the State Budget for the NYS film tax credit.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7244--A IN SENATE May 2, 2012 ___________
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to the allocation of credit for the empire state film production credit; and to repeal section 7 of part P of chapter 60 of the laws of 2004, amending the tax law relat- ing to the empire state film production credit, relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 7 of part P of chapter 60 of the laws of 2004, amending the tax law relating to the empire state film production cred- it, is REPEALED. S 2. Section 24 of the tax law is amended by adding a new subdivision (e) to read as follows: (E) ALLOCATION OF CREDIT. (1) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS SECTION, SUBDIVISION THIRTY-SIX OF SECTION TWO HUNDRED TEN AND SUBSECTION (GG) OF SECTION SIX HUNDRED SIX OF THIS CHAP- TER IN ANY CALENDAR YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS IN TWO THOUSAND FOUR AND TWO THOUSAND FIVE, SIXTY MILLION DOLLARS IN TWO THOU- SAND SIX AND TWO THOUSAND SEVEN, SIXTY-FIVE MILLION DOLLARS IN TWO THOU- SAND EIGHT, SEVENTY-FIVE MILLION DOLLARS IN TWO THOUSAND NINE, EIGHTY-FIVE MILLION DOLLARS IN TWO THOUSAND TEN, NINETY MILLION DOLLARS IN TWO THOUSAND ELEVEN AND TWO THOUSAND TWELVE, AND ONE HUNDRED TEN MILLION DOLLARS IN TWO THOUSAND THIRTEEN. SUCH AGGREGATE AMOUNT OF CRED- ITS 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 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.
(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. 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. (3) ADDITIONAL POOL 1 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN SUBDIVISION (A) OF THIS SECTION SHALL BE INCREASED BY AN ADDITIONAL THREE HUNDRED FIFTY MILLION DOLLARS IN TWO THOUSAND NINE. THIS ADDI- TIONAL AMOUNT SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT AMONG TAXPAYERS IN ACCORDANCE WITH SUBDIVISION (A) OF THIS SECTION. (4) ADDITIONAL POOL 2 - THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN SUBDIVISION (A) OF THIS SECTION SHALL BE INCREASED BY AN ADDITION FOUR HUNDRED TWENTY MILLION DOLLARS IN TWO THOUSAND TEN, FOUR HUNDRED TWENTY MILLION DOLLARS IN TWO THOUSAND ELEVEN, FOUR HUNDRED TWENTY MILLION DOLLARS IN TWO THOUSAND TWELVE, FOUR HUNDRED TWENTY MILLION DOLLARS IN TWO THOUSAND THIRTEEN AND FOUR HUNDRED TWENTY MILLION DOLLARS IN TWO THOUSAND FOURTEEN PROVIDED HOWEVER, SEVEN MILLION DOLLARS OF THE ANNUAL ALLOCATION SHALL BE AVAILABLE FOR THE EMPIRE STATE FILM POST PRODUCTION CREDIT PURSUANT TO SECTION THIRTY-ONE OF THIS CHAPTER. THIS AMOUNT SHALL BE ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELE- VISION DEVELOPMENT AMONG TAXPAYERS IN ACCORDANCE WITH SUBDIVISION (A) OF THIS SECTION. IF THE DIRECTOR OF THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT DETERMINES THAT THE AGGREGATE AMOUNT OF TAX CREDITS AVAILABLE FROM ADDITIONAL POOL 2 FOR THE EMPIRE STATE FILM PRODUCTION TAX CREDIT HAVE BEEN PREVIOUSLY ALLOCATED, AND DETER- MINES THAT THE PENDING APPLICATIONS FROM ELIGIBLE APPLICANTS FOR THE POST PRODUCTION TAX CREDIT PURSUANT TO SECTION THIRTY-ONE OF THIS CHAP- TER IS INSUFFICIENT TO UTILIZE THE BALANCE OF UNALLOCATED POST PRODUCTION TAX CREDITS FROM SUCH POOL, THE REMAINDER, AFTER SUCH PENDING APPLICATIONS ARE CONSIDERED, SHALL BE MADE AVAILABLE FOR ALLOCATION IN THE EMPIRE STATE FILM TAX CREDIT PURSUANT TO THIS SECTION, SUBDIVISION THIRTY-SIX OF SECTION TWO HUNDRED TEN AND SUBSECTION (GG) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT MUST NOTIFY TAXPAYERS OF THEIR ALLOCATION YEAR AND INCLUDE THE ALLOCATION YEAR ON THE CERTIFICATE OF TAX CREDIT. TAXPAYERS ELIGIBLE TO CLAIM A CREDIT MUST REPORT THE ALLOCATION YEAR DIRECTLY ON THEIR EMPIRE STATE FILM PRODUCTION CREDIT TAX FORM FOR EACH YEAR A CREDIT IS CLAIMED AND INCLUDE A COPY OF THE CERTIFICATE WITH THEIR TAX RETURN. IN THE CASE OF A QUALIFIED FILM THAT RECEIVES FUNDS FROM ADDITIONAL POOL 2, NO EMPIRE STATE FILM PRODUCTION CREDIT SHALL BE CLAIMED BEFORE THE LATER OF THE TAXABLE YEAR THE PRODUCTION OF THE QUAL- IFIED FILM IS COMPLETE, OR THE TAXABLE YEAR IMMEDIATELY FOLLOWING THE ALLOCATION YEAR FOR WHICH THE FILM HAS BEEN ALLOCATED CREDIT BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVELOPMENT. S 3. Paragraph 2 of subdivision (a) and subdivision (c) of section 31 of the tax law, as added by section 12 of part Q of chapter 57 of the laws of 2010, are amended to read as follows:
(2) The amount of the credit shall be the product (or pro rata share of the product, in the case of a member of a partnership) of [ten] THIR- TY percent and the qualified post production costs paid in the production of a qualified film at a qualified post production facility LOCATED WITHIN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT AS DEFINED IN SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW OR THIRTY-FIVE PERCENT AND THE QUALIFIED POST PRODUCTION COSTS PAID IN THE PRODUCTION OF A QUALIFIED FILM AT A QUALIFIED POST PRODUCTION FACILITY LOCATED ELSEWHERE IN THE STATE. (c) Notwithstanding any other provision of law to the contrary, the aggregate amount of tax credits available under this section shall not exceed the amounts allowed pursuant to PARAGRAPH FOUR OF subdivision (e) of section [seven of part P of chapter sixty of the laws of two thousand four] TWENTY-FOUR OF THIS ARTICLE and shall be allocated in the same manner as provided for in PARAGRAPH ONE OF subdivision [(a)] (E) of section [seven of part P of chapter sixty of the laws of two thousand four] TWENTY-FOUR OF THIS ARTICLE. S 4. This act shall take effect immediately.

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