|SAME AS||SAME AS S06987|
|COSPNSR||Skartados, McDonald, Woerner|
|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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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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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. LBD14462-01-6A. 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.