S880-2011 Actions

• Jan 9, 2012: PRINT NUMBER 880A
• Jan 9, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 5, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S880-2011 Memo

BILL NUMBER:S880

TITLE OF BILL:
An act
to amend the tax law and part P of chapter 60 of the laws of 2004,
amending the tax law relating to the empire state film production
credit, in relation to authorizing additional tax credits for certain
costs incurred in film and television productions in a city having a
population of one million or more

PURPOSE:
This legislation would ensure the continued growth of the film
production industry in New York City through 2013.

SUMMARY OF PROVISIONS:
Section 1 amends adds a new definition of "qualified independent film
production company" to tax law 51201-a(b). This section authorizes
New York City to amend its General Corporation Tax ("GCT") and its
Unincorporated Business Tax ("UBT").

Section 2 amends section 7(b)of part P of Chapter 60 of the Laws of
2004, to increase the aggregate amount of the tax credits allowed
by the City of New York by an additional $24 million a year in 2011,
2012 and 2013. These new credits may not be claimed before taxable
years beginning January 1, 2011, and payout in any year is capped
at $24 million, with any amount in excess to be claimed in the
subsequent year. There is an exception for qualified independent film
production companies, which may claim credits up to $250,000 per
qualified film in the taxable year in which film production is
completed.

JUSTIFICATION:
In the 2009-2010 State budget, the Empire State Film Production Credit
program was provided an additional $350 million in State funding.
That legislation did not apply to the New York City program, which
has been enacted through the City's GCT and the UBT.
This bill will secure funding for the New York City film production
credit through 2013.
Given the fiscal constraints facing the City, this legislation
contains measures to enhance the effectiveness of the incentive and to
better target the tax credit, and also defers the cost to the City of
providing the additional credits to tax years beginning on or
after January 1, 2011.

The City and State have taken important steps to provide incentives to
the film and television industry, because it is an important
contributor to the City's economy. The New York City's Mayor's Office
of Film, Theatre & Broadcasting dramatically enhanced the range
of services that it offers to the industry. Combined with the State
credit, the New York City "Made in NY" film production tax credit,
enacted in January 2005, has been a major success in attracting film
and television production to New York City. Production spending
or qualifying film and television projects increased significantly
since 2004, accounting for an additional $5 billion in direct spending
while providing thousands of additional jobs. These increases


were evident in all production areas: feature films, independent
films, television series and pilots.

LEGISLATIVE HISTORY:
S.5842 of 2009-10, Referred to Investigations & Government Operations

FISCAL IMPLICATIONS:
No new fiscal implications to the State.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2011.

S880-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          880
 2011-2012 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 5, 2011
 
 Introduced  by  Sen.  GOLDEN -- 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 and part P of chapter  60  of  the  laws  of
 2004,  amending  the  tax  law  relating  to  the  empire  state  film
 production credit, in relation to authorizing additional  tax  credits
 for  certain  costs  incurred  in film and television productions in a
 city having a population 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 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 OR QUALIFIED INDE
 PENDENT FILM PRODUCTION COMPANY, and (D)  the  effective  date  of  such
 credit  shall  be  July  first,  two  thousand six. 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 differences between the general corpo
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03856-01-1
 
       S. 880                              2
 ration tax and the unincorporated business tax.  A "QUALIFIED  INDEPEND
 ENT FILM PRODUCTION COMPANY" IS AN INDIVIDUAL OR A CORPORATION, PARTNER
 SHIP,  LIMITED  PARTNERSHIP OR OTHER ENTITY THAT IS NOT PUBLICLY TRADED,
 AND  PUBLICLY  TRADED COMPANIES THAT DO NOT OWN, DIRECTLY OR INDIRECTLY,
 MORE THAN FIVE PERCENT OF  THE  QUALIFIED  INDEPENDENT  FILM  PRODUCTION
 COMPANY,  AND  THE  INDIVIDUAL  OR  ENTITY IS PRINCIPALLY ENGAGED IN THE
 PRODUCTION OF A QUALIFIED FILM AND CONTROLS THE  QUALIFIED  FILM  DURING
 PRODUCTION.
 

S  2. Subdivision (b) of 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,  as  amended by section 2 of part Y of chapter 62 of
 the laws of 2006, is amended to read as follows:

 (b) (1) The aggregate amount of tax credits allowed  pursuant  to  the
 authority  of  subdivision  (b)  of section 1201-a of the tax law in any
 calendar year shall be $12.5 million in 2004 and 2005 and $30 million in
 2006 through 2011.  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.
 (2)  NOTWITHSTANDING  PARAGRAPH (1) OF THIS SUBDIVISION, THE AGGREGATE
 AMOUNT OF TAX CREDITS ALLOWED PURSUANT TO THE AUTHORITY  OF  SUBDIVISION
 (B) OF SECTION 1201-A OF THE TAX LAW SHALL BE INCREASED BY AN ADDITIONAL
 $24  MILLION  IN  2011. THIS ADDITIONAL AMOUNT SHALL BE ALLOCATED BY THE
 MAYOR'S OFFICE OF FILM, THEATER  AND  BROADCASTING  IN  ACCORDANCE  WITH
 PARAGRAPH (1) OF THIS SUBDIVISION. A TAXPAYER ALLOCATED CREDITS FROM THE
 AMOUNTS  AUTHORIZED  UNDER  THIS  PARAGRAPH SHALL NOT CLAIM SUCH CREDITS
 BEFORE TAXABLE YEARS BEGINNING ON OR AFTER  JANUARY  1,  2011.  NOTWITH
 STANDING  THE  YEAR TO WHICH CREDITS AUTHORIZED UNDER THIS PARAGRAPH ARE
 ALLOCATED BY THE MAYOR'S OFFICE OF FILM, THEATER AND BROADCASTING,  SUCH
 CREDITS  SHALL  NOT BE CLAIMED IN EXCESS OF $24 MILLION IN A GIVEN YEAR.
 CREDITS AUTHORIZED UNDER THIS PARAGRAPH AND ALLOCATED IN EXCESS  OF  $24
 MILLION  IN  A  GIVEN  YEAR  SHALL  BE  CLAIMED  IN THE SUBSEQUENT YEAR.
 NOTWITHSTANDING THE FOREGOING, A TAXPAYER WHICH IS A QUALIFIED INDEPEND
 ENT FILM PRODUCTION COMPANY WHO IS ALLOCATED CREDITS UP TO $250,000  PER
 QUALIFIED  FILM  FROM  THE AMOUNTS AUTHORIZED UNDER THIS PARAGRAPH SHALL
 CLAIM SUCH CREDITS FOR THE TAXABLE YEAR IN WHICH THE PRODUCTION OF  SUCH
 QUALIFIED FILM IS COMPLETED.
 

S 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2011.

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