Relates to the claiming of credits under the empire state film production credit; provides for the application of certain provisions of the tax law related to the empire state film production credit and the empire state film post-production credit.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7757
SPONSOR: Weinstein TITLE OF BILL:
An act to amend part D of chapter 59 of the laws of 2023 amending the
tax law relating to the empire state film production credit and the
empire state film post-production credit, in relation to the application
of such provisions; and to amend the tax law, in relation to the claim-
ing of credits under the empire state film product credit
PURPOSE:
The bill amends Empire State Film Production Tax Credit Program to clar-
ify that the law allows applicants who have applied to the program prior
to April 1, 2023, to access the increased pool of funding that was added
to the program in the 2023-2024 budget.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends section 10 of part D of chapter 59 of the
laws of 2023 to clarify that the new $700 million pool for film tax
credits does not only apply to applications submitted after April 1,
2023.
Sections 2 and 3 of the bill amend paragraph 4 of subdivision e of
section 24 of the Tax Law to clarify that a qualified film that receives
funds from additional pool 2 where the taxpayer filed an initial appli-
cation before April 1, 2023, no Empire State Film Production Credit
shall be claimed before the later of (1) the taxable year the production
of the qualified film is complete, or (2) the taxable year immediately
following the allocation year for which the film has been allocated
credit by the Department of Economic Development. In the case of a qual-
ified film that receives funds from additional pool 2 where the taxpayer
filed an initial application on or after April 1, 2023, no Empire State
Film Production Credit shall be claimed before the later of (1) the
taxable year the production of the qualified film is complete, or (2)
the taxable year that includes the last day of the allocation year for
which the film has been allocated credit by the Department of Economic
Development.
Section 4 provides that the act shall take effect immediately and have
the same force and effect as part D of chapter 59 of the laws of 2023.
EXISTING LAW:
The Film Production Tax Credit program, codified in section 24 of the
Tax Law, is designed to strengthen the film production industry in New
York State and its positive impact on the State's economy. Film
productions which comply with requirements may be eligible for a tax
credit of 30% percent of the qualified production expenses to encourage
film companies to film in New York. Qualified expenses include certain
above-the-line wages subject to specific caps, below-the-line wages, and
production costs directly related to the production of a qualified film.
This tax credit is already funded at $700 million a year through 2034.
JUSTIFICATION:
This technical fix that clarifies that both existing and new applica-
tions to have access to the new pool of funding, which was the initial
intent of the 2023-2024 budget legislation.
LEGISLATIVE HISTORY:
This is a new bill.
BUDGET IMPLICATIONS:
None. This bill does not increase the contemplated overall funding for
the program.
EFFECTIVE DATE:
This bill would be effective immediately and have the same force and
effect as part D of chapter 59 of the laws of 2023.
STATE OF NEW YORK
________________________________________________________________________
7757
2023-2024 Regular Sessions
IN ASSEMBLY
June 6, 2023
___________
Introduced by M. of A. WEINSTEIN -- (at request of the Governor) -- read
once and referred to the Committee on Ways and Means
AN ACT to amend part D of chapter 59 of the laws of 2023 amending the
tax law relating to the empire state film production credit and the
empire state film post-production credit, in relation to the applica-
tion of such provisions; and to amend the tax law, in relation to the
claiming of credits under the empire state film product credit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 10 of part D of chapter 59 of the laws of 2023
2 amending the tax law relating to the empire state film production credit
3 and the empire state film post-production credit, is amended to read as
4 follows:
5 § 10. This act shall take effect immediately [and]; provided, however,
6 that sections one, two, two-a, three, four, five, five-a, eight, nine
7 and nine-a of this act shall apply to initial applications received on
8 or after April 1, 2023; further provided, however, that the amendments
9 to paragraph 4 of subdivision (e) of section 24 of the tax law made by
10 section six of this act shall take effect on the same date and in the
11 same manner as section 6 of chapter 683 of the laws of 2019, as amended,
12 takes effect.
13 § 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
14 amended by section 6 of part D of chapter 59 of the laws of 2023, is
15 amended to read as follows:
16 (4) Additional pool 2 - The aggregate amount of tax credits allowed in
17 subdivision (a) of this section shall be increased by an additional four
18 hundred twenty million dollars in each year starting in two thousand ten
19 through two thousand twenty-three and seven hundred million dollars each
20 year starting in two thousand twenty-four through two thousand thirty-
21 four, provided however, seven million dollars of the annual allocation
22 shall be available for the empire state film post production credit
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD12016-02-3
A. 7757 2
1 pursuant to section thirty-one of this article in two thousand thirteen
2 and two thousand fourteen, twenty-five million dollars of the annual
3 allocation shall be available for the empire state film post production
4 credit pursuant to section thirty-one of this article in each year
5 starting in two thousand fifteen through two thousand twenty-three, and
6 forty-five million dollars of the annual allocation shall be available
7 for the empire state film post production credit pursuant to section
8 thirty-one of this article in each year starting in two thousand twen-
9 ty-four through two thousand thirty-four. Provided further, five million
10 dollars of the annual allocation shall be made available for the tele-
11 vision writers' and directors' fees and salaries credit pursuant to
12 section twenty-four-b of this article in each year starting in two thou-
13 sand twenty through two thousand thirty-four. This amount shall be allo-
14 cated by the department of economic development among taxpayers in
15 accordance with subdivision (a) of this section. If the commissioner of
16 economic development determines that the aggregate amount of tax credits
17 available from additional pool 2 for the empire state film production
18 tax credit have been previously allocated, and determines that the pend-
19 ing applications from eligible applicants for the empire state film post
20 production tax credit pursuant to section thirty-one of this article is
21 insufficient to utilize the balance of unallocated empire state film
22 post production tax credits from such pool, the remainder, after such
23 pending applications are considered, shall be made available for allo-
24 cation in the empire state film tax credit pursuant to this section,
25 subdivision twenty of section two hundred ten-B and subsection (gg) of
26 section six hundred six of this chapter. Also, if the commissioner of
27 economic development determines that the aggregate amount of tax credits
28 available from additional pool 2 for the empire state film post
29 production tax credit have been previously allocated, and determines
30 that the pending applications from eligible applicants for the empire
31 state film production tax credit pursuant to this section is insuffi-
32 cient to utilize the balance of unallocated film production tax credits
33 from such pool, then all or part of the remainder, after such pending
34 applications are considered, shall be made available for allocation for
35 the empire state film post production credit pursuant to this section,
36 subdivision thirty-two of section two hundred ten-B and subsection (qq)
37 of section six hundred six of this chapter. The department of economic
38 development must notify taxpayers of their allocation year and include
39 the allocation year on the certificate of tax credit. Taxpayers eligible
40 to claim a credit must report the allocation year directly on their
41 empire state film production credit tax form for each year a credit is
42 claimed and include a copy of the certificate with their tax return. In
43 the case of a qualified film that receives funds from additional pool 2
44 where the taxpayer filed an initial application before April first, two
45 thousand twenty-three, no empire state film production credit shall be
46 claimed before the later of (1) the taxable year the production of the
47 qualified film is complete, or (2) the taxable year immediately follow-
48 ing the allocation year for which the film has been allocated credit by
49 the department of economic development. In the case of a qualified film
50 that receives funds from additional pool 2 where the taxpayer filed an
51 initial application on or after April first, two thousand twenty-three,
52 no empire state film production credit shall be claimed before the later
53 of (1) the taxable year the production of the qualified film is
54 complete, or (2) the taxable year that includes the last day of the
55 allocation year for which the film has been allocated credit by the
56 department of economic development.
A. 7757 3
1 § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
2 amended by section 7 of part D of chapter 59 of the laws of 2023, is
3 amended to read as follows:
4 (4) Additional pool 2 - The aggregate amount of tax credits allowed in
5 subdivision (a) of this section shall be increased by an additional four
6 hundred twenty million dollars in each year starting in two thousand ten
7 through two thousand twenty-three and seven hundred million dollars in
8 each year starting in two thousand twenty-four through two thousand
9 thirty-four, provided however, seven million dollars of the annual allo-
10 cation shall be available for the empire state film post production
11 credit pursuant to section thirty-one of this article in two thousand
12 thirteen and two thousand fourteen, twenty-five million dollars of the
13 annual allocation shall be available for the empire state film post
14 production credit pursuant to section thirty-one of this article in each
15 year starting in two thousand fifteen through two thousand twenty-three,
16 and forty-five million dollars of the annual allocation shall be avail-
17 able for the empire state film post production credit pursuant to
18 section thirty-one of this article in each year starting in two thousand
19 twenty-four through two thousand thirty-four. This amount shall be allo-
20 cated by the department of economic development among taxpayers in
21 accordance with subdivision (a) of this section. If the commissioner of
22 economic development determines that the aggregate amount of tax credits
23 available from additional pool 2 for the empire state film production
24 tax credit have been previously allocated, and determines that the pend-
25 ing applications from eligible applicants for the empire state film post
26 production tax credit pursuant to section thirty-one of this article is
27 insufficient to utilize the balance of unallocated empire state film
28 post production tax credits from such pool, the remainder, after such
29 pending applications are considered, shall be made available for allo-
30 cation in the empire state film tax credit pursuant to this section,
31 subdivision twenty of section two hundred ten-B and subsection (gg) of
32 section six hundred six of this chapter. Also, if the commissioner of
33 economic development determines that the aggregate amount of tax credits
34 available from additional pool 2 for the empire state film post
35 production tax credit have been previously allocated, and determines
36 that the pending applications from eligible applicants for the empire
37 state film production tax credit pursuant to this section is insuffi-
38 cient to utilize the balance of unallocated film production tax credits
39 from such pool, then all or part of the remainder, after such pending
40 applications are considered, shall be made available for allocation for
41 the empire state film post production credit pursuant to this section,
42 subdivision thirty-two of section two hundred ten-B and subsection (qq)
43 of section six hundred six of this chapter. The department of economic
44 development must notify taxpayers of their allocation year and include
45 the allocation year on the certificate of tax credit. Taxpayers eligible
46 to claim a credit must report the allocation year directly on their
47 empire state film production credit tax form for each year a credit is
48 claimed and include a copy of the certificate with their tax return. In
49 the case of a qualified film that receives funds from additional pool 2
50 where the taxpayer filed an initial application before April first, two
51 thousand twenty-three, no empire state film production credit shall be
52 claimed before the later of (1) the taxable year the production of the
53 qualified film is complete, or (2) the taxable year immediately follow-
54 ing the allocation year for which the film has been allocated credit by
55 the department of economic development. In the case of a qualified film
56 that receives funds from additional pool 2 where the taxpayer filed an
A. 7757 4
1 initial application on or after April first, two thousand twenty-three,
2 no empire state film production credit shall be claimed before the later
3 of (1) the taxable year the production of the qualified film is
4 complete, or (2) the taxable year that includes the last day of the
5 allocation year for which the film has been allocated credit by the
6 department of economic development.
7 § 4. This act shall take effect immediately and shall be deemed to
8 have been in full force and effect on and after the effective date of
9 part D of chapter 59 of the laws of 2023; provided, however, that the
10 amendments made to paragraph 4 of subdivision (e) of section 24 of the
11 tax law made by section two of this act shall take effect on the same
12 date and in the same manner as section 6 of chapter 683 of the laws of
13 2019, as amended, takes effect.
