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A09415 Summary:

BILL NOA09415
 
SAME ASSAME AS S06987
 
SPONSORGunther
 
COSPNSRSkartados, McDonald, Woerner
 
MLTSPNSR
 
Amd 24, Tax L
 
Increases the number of counties in which services can be performed to qualify for the empire state film production credit.
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A09415 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9415
 
SPONSOR: Gunther
  TITLE OF BILL: An act to amend the tax law, in relation to increasing the number of counties in which services can be performed to qualify for the empire state film production credit   PURPOSE: The purpose of this legislation is to create an additional 10% Film Production Tax Credit for the counties that are both outside of the New York City studio zone and ineligible for the current 10% incentive.   SUMMARY OF PROVISIONS: Section one amends paragraph 5 of subdivision (a) of section 24 of the tax law to include additional counties in the 10% Film Production Tax Credit. Section two is the effective date.   JUSTIFICATION: In an effort to boost film production in other parts of the state, particularly economically struggling upstate New York, the 2013-14 state budget created an additional 10% Film Production Tax Credit for production companies who film (or production's filmed) in forty upstate counties (two counties, Albany and Schenectady, were subsequently added in the 2014-15 budget). This incentive has worked. Production companies are now filming in upstate New York because most or all of the extra costs associated with filming outside of the studio zone are being offset with this additional tax credit. While this incentive has had a positive impact on the film industry upstate, it has unfortunately had a negative impact on other parts of the state, namely, the Hudson Valley and parts of the Capital Region and Long Island. These areas, which are both outside of the New York City studio zone and ineligible for the additional 10% incentive, are becom- ing "film fly over" counties. These counties include: Warren, Saratoga, Washington, Rensselaer, Greene, Columbia, Ulster, Dutchess, Sullivan, Orange, Putnam and Suffolk. These counties we represent simply cannot afford to be off-limits to this important and lucrative industry.   LEGISLATIVE HISTORY: New Bill   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect immediately.
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A09415 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9415
 
                   IN ASSEMBLY
 
                                      March 3, 2016
                                       ___________
 
        Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
          tee on Ways and Means
 
        AN ACT to amend the tax law, in relation to  increasing  the  number  of
          counties  in which services can be performed to qualify for the empire
          state film production credit
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Paragraph  5  of subdivision (a) of section 24 of the tax
     2  law, as amended by section 1 of part JJ of chapter 59  of  the  laws  of
     3  2014, is amended to read as follows:
     4    (5) For the period two thousand fifteen through two thousand nineteen,
     5  in addition to the amount of credit established in paragraph two of this
     6  subdivision,  a  taxpayer shall be allowed a credit equal to the product
     7  (or pro rata share of the product, in the case of a member of a partner-
     8  ship) of ten percent and the amount of wages or salaries paid  to  indi-
     9  viduals  directly  employed (excluding those employed as writers, direc-
    10  tors, music directors, producers and  performers,  including  background
    11  actors with no scripted lines) by a qualified film production company or
    12  a  qualified  independent film production company for services performed
    13  by those individuals in one of the counties specified in this  paragraph
    14  in  connection  with  a  qualified  film  with  a minimum budget of five
    15  hundred thousand dollars. For purposes of this  additional  credit,  the
    16  services  must  be  performed  in one or more of the following counties:
    17  Albany, Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung,
    18  Chenango,  Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex,
    19  Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
    20  Livingston, Madison,  Monroe,  Montgomery,  Niagara,  Oneida,  Onondaga,
    21  Ontario,  Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga,
    22  Schenectady,  Schoharie,  Schuyler,  Seneca,  St.   Lawrence,   Steuben,
    23  Suffolk,  Sullivan,  Tioga, Tompkins, Ulster, Warren, Washington, Wayne,
    24  Wyoming, or Yates. The aggregate amount of tax credits allowed  pursuant
    25  to  the  authority  of this paragraph shall be five million dollars each
    26  year during the period two thousand fifteen through two  thousand  nine-
    27  teen  of the annual allocation made available to the program pursuant to
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14462-01-6

        A. 9415                             2
 
     1  paragraph four of subdivision (e) of this section. Such aggregate amount
     2  of credits shall be  allocated  by  the  governor's  office  for  motion
     3  picture  and television development among taxpayers in order of priority
     4  based  upon  the  date  of  filing an application for allocation of film
     5  production credit with such office.  If the total  amount  of  allocated
     6  credits  applied for under this paragraph in any year exceeds the aggre-
     7  gate amount of tax credits allowed for such year under  this  paragraph,
     8  such excess shall be treated as having been applied for on the first day
     9  of  the  next year. If the total amount of allocated tax credits applied
    10  for under this paragraph at the conclusion of any year is less than five
    11  million dollars, the remainder shall be treated as part  of  the  annual
    12  allocation  made  available to the program pursuant to paragraph four of
    13  subdivision (e) of this section. However, in no event may the  total  of
    14  the  credits  allocated  under  this paragraph and the credits allocated
    15  under paragraph five of subdivision (a) of section  thirty-one  of  this
    16  article  exceed  five  million dollars in any year during the period two
    17  thousand fifteen through two thousand nineteen.
    18    § 2. This act shall take effect immediately.
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