S02724 Summary:

BILL NOS02724A
 
SAME ASSAME AS A09060
 
SPONSORGOLDEN
 
COSPNSR
 
MLTSPNSR
 
Amd Part P S7, Chap 60 of 2004
 
Removes the cap on the aggregate amount of tax credits allowed pursuant to the empire state film production credit.
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S02724 Actions:

BILL NOS02724A
 
02/27/2009REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
06/15/2009AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
06/15/2009PRINT NUMBER 2724A
01/06/2010REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
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S02724 Floor Votes:

There are no votes for this bill in this legislative session.
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S02724 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         2724--A
 
                               2009-2010 Regular Sessions
 
                    IN SENATE
 
                                    February 27, 2009
                                       ___________
 
        Introduced  by  Sens.  GOLDEN, DeFRANCISCO, LANZA, PADAVAN -- 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  removing  the  cap  on  the
          aggregate  amount  of tax credits allowed pursuant to the empire state
          film production credit; and to amend chapter 60 of the  laws  of  2004
          amending  the  tax  law  relating  to the empire state film production
          credit, in relation to aggregate amounts of tax credits
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1.  Subdivision (b) of section 24 of the tax law is amended by
     2  adding a new paragraph 7 to read as follows:
     3    (7)  "Qualified independent film production company" is an individual,
     4  or a corporation, partnership, limited partnership, or other entity that
     5  is not publicly traded,  and  publicly  traded  companies  do  not  own,

     6  directly  or  indirectly,  more than five percent of the qualified inde-
     7  pendent film production company and the entity or individual is  princi-
     8  pally  engaged  in  the  production of a qualified film and controls the
     9  qualified film during production.
    10    § 2. Paragraph 2 of subdivision (a) of section 24 of the tax  law,  as
    11  amended  by  section 1 of part Y-1 of chapter 57 of the laws of 2009, is
    12  amended to read as follows:
    13    (2) (i) The amount of the credit shall be the  product  (or  pro  rata
    14  share of the product, in the case of a member of a partnership) of thir-
    15  ty  percent  and  the qualified production costs paid or incurred in the
    16  production of a qualified film, provided that the  qualified  production
    17  costs  (excluding  post  production  costs)  paid  or incurred which are

    18  attributable to the use of  tangible  property  or  the  performance  of
    19  services  at  a  qualified film production facility in the production of
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07661-04-9

        S. 2724--A                          2
 
     1  such  qualified  film  equal  or  exceed  seventy-five  percent  of  the
     2  production  costs  (excluding  post  production  costs) paid or incurred
     3  which are attributable to the use of tangible property or  the  perform-
     4  ance  of services at any film production facility within and without the
     5  state in the production of such qualified film. However, if  the  quali-
     6  fied  production  costs  (excluding  post  production  costs)  which are

     7  attributable to the use of  tangible  property  or  the  performance  of
     8  services  at  a  qualified film production facility in the production of
     9  such qualified film is less than three million dollars, then the portion
    10  of the qualified production costs attributable to the  use  of  tangible
    11  property or the performance of services in the production of such quali-
    12  fied  film  outside  of  a  qualified  film production facility shall be
    13  allowed only if the shooting days spent in New York outside  of  a  film
    14  production  facility  in  the production of such qualified film equal or
    15  exceed seventy-five percent of the total shooting days spent within  and
    16  without New York outside of a film production facility in the production
    17  of such qualified film. The credit shall be allowed for the taxable year
    18  in which the production of such qualified film is completed.

    19    (ii)  If  the amount of the credit is at least one million dollars but
    20  less than five million dollars, the credit shall be claimed over  a  two
    21  year period beginning in the taxable year in which the production of the
    22  qualified  film  is  completed  and in the next succeeding taxable year,
    23  with one-half of the amount of credit  allowed  being  claimed  in  each
    24  year.  If the amount of the credit is at least five million dollars, the
    25  credit shall be claimed over a three year period beginning in the  taxa-
    26  ble  year in which the production of the qualified film is completed and
    27  in the next two succeeding taxable years, with one-third of  the  amount
    28  of  the  credit  allowed being claimed in each year.  Provided, however,
    29  that the limitations on claiming imposed by this subparagraph shall  not

    30  apply  to  credits claimed pursuant to subdivision (e) of section two of
    31  part Y-1 of chapter fifty-seven of the laws of two thousand nine.
    32    § 3. Section 7 of part P of chapter 60 of the laws of  2004,  amending
    33  the  tax  law  relating  to  the empire state film production credit, is
    34  amended by adding a new subdivision (e) to read as follows:
    35    (e) The aggregate amount of tax credits allowed in subdivision (a)  of
    36  this  section  shall  be  increased  by $420 million a year in each year
    37  2011, 2012, 2013, 2014 and 2015. This additional amount shall  be  allo-
    38  cated  by the governor's office for motion picture and television devel-
    39  opment among taxpayers  in  accordance  with  subdivision  (a)  of  this
    40  section  but  only  after the credits in subdivision (d) of this section

    41  have been allocated. A  taxpayer  allocated  credits  from  the  amounts
    42  authorized  under  this subdivision shall not claim such credits against
    43  the tax under articles nine-A or twenty-two of the tax law before  taxa-
    44  ble  years  beginning on or after January 1, 2011, provided however that
    45  notwithstanding the amount  of  tax  credits  allocated,  the  aggregate
    46  amount  of  such  tax  credits  paid  to taxpayers shall not exceed $420
    47  million in any year, with any amount of credits in excess of  such  $420
    48  million amount to be treated as having been applied for on the first day
    49  of  the  subsequent  year and thus the first to be paid. Notwithstanding
    50  the  foregoing,  a  taxpayer  which  is  a  qualified  independent  film

    51  production  company,  as  defined in section 24 of the tax law, which is
    52  allocated credits in an amount not exceeding $3  million  per  qualified
    53  film  from the amounts authorized under this subdivision, may claim such
    54  credits for the taxable year in which the production of  such  qualified
    55  film  is  completed.  The governor's office for motion picture and tele-
    56  vision development shall promulgate regulations not later  than  October

        S. 2724--A                          3
 
     1  31,  2009,  establishing  procedures  for the claiming of tax credits as
     2  provided by this subdivision.
     3    § 4. This act shall take effect immediately; provided however that the
     4  amendments  to section 24 of the tax law made by sections one and two of

     5  this act shall not affect the repeal of such section and shall be deemed
     6  repealed therewith; and provided further, that the amendments to section
     7  7 of part P of chapter 60 of the laws of 2004 made by section  three  of
     8  this  act  shall  not affect the repeal of such part and shall be deemed
     9  repealed therewith.
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