S04527 Summary:

BILL NOS04527A
 
SAME ASNo same as
 
SPONSORGOLDEN
 
COSPNSR
 
MLTSPNSR
 
Amd S28, Tax L; amd Part V S8, Chap 62 of 2006
 
Relates to the empire state commercial production tax credit.
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S04527 Actions:

BILL NOS04527A
 
04/11/2011REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
04/15/2011AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
04/15/2011PRINT NUMBER 4527A
01/04/2012REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
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S04527 Floor Votes:

There are no votes for this bill in this legislative session.
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S04527 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         4527--A
 
                               2011-2012 Regular Sessions
 
                    IN SENATE
 
                                     April 11, 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  --  committee  discharged,  bill  amended,   ordered
          reprinted as amended and recommitted to said committee
 
        AN  ACT  to  amend  the  tax law, in relation to empire state commercial

          production tax credit; and to amend section 8 of part V of chapter  62
          of  the laws of 2006 amending the tax law relating to the empire state
          commercial production tax credit
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Paragraph  2  of subdivision (a) of section 28 of the tax
     2  law, as amended by chapter 300 of the laws of 2007, subparagraph (i)  as
     3  amended  by  chapter  448  of  the  laws  of 2009, is amended to read as
     4  follows:
     5    (2) The state has annually [seven] ten million dollars  in  total  tax
     6  credits  to  disburse  to  all eligible commercial production companies.
     7  The [seven] ten million dollars in total tax credits shall be  allocated

     8  according to subparagraphs (i), (ii) [and], (iii) and (iv) of this para-
     9  graph:
    10    (i) The state annually will disburse [three] four and one-half million
    11  of  the  total  [seven]  ten  million  in  tax  credits  to all eligible
    12  production companies and the amount of the credit shall be  the  product
    13  (or pro rata share of the product, in the case of a member of a partner-
    14  ship)  of  twenty  percent  of  the  qualified  production costs paid or
    15  incurred in the production of a qualified commercial, provided that  the
    16  qualified  production costs paid or incurred are attributable to the use
    17  of tangible property or the performance of services within the state  in
    18  the  production  of  such  qualified commercial. To be eligible for said

    19  credit the total qualified production costs of  a  qualified  production
    20  company  must  be  greater  in the aggregate during the current calendar
    21  year than the average of the three previous years for which  the  credit
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10632-02-1

        S. 4527--A                          2
 
     1  was applied. Provided, however, that until a qualified production compa-
     2  ny  has  established  a  three year history, the credit will be based on
     3  either the previous year or the  average  of  the  two  previous  years,
     4  whichever  period is longer for the qualified production company seeking
     5  the credit. If the qualified production company has  never  applied  for

     6  the  growth  credit,  the  previous year's data will be used to create a
     7  benchmark. The tax credit shall be applied only to  the  amount  of  the
     8  total  qualified  production costs of the current calendar year that are
     9  greater than the total amount of production  costs  of  the  appropriate
    10  measurement  period  as  described  in this subparagraph. The tax credit
    11  must be distributed to eligible  production  companies  on  a  pro  rata
    12  basis,  provided,  however,  that  no  such qualified production company
    13  shall receive more than three hundred thousand dollars annually for such
    14  credit. The credit shall be allowed for the taxable year  in  which  the
    15  production of such qualified commercial is completed.
    16    (ii)  The  state  annually  will  disburse  [three]  four and one-half

    17  million of the total [seven] ten million in tax credits to all  eligible
    18  production companies who film or record qualified commercials within the
    19  metropolitan  commuter  transportation  district  as  defined in section
    20  twelve hundred sixty-two of the public authorities law.  The  amount  of
    21  the  credit  shall  be the product (or pro rata share of the product, in
    22  the case of a member of a partnership) of five percent of the  qualified
    23  production  costs  paid  or  incurred  in  the production of a qualified
    24  commercial,  provided  that  the  qualified  production  costs  paid  or
    25  incurred  are  attributable  to  the  use  of  tangible  property or the
    26  performance of services within the state in the production of such qual-
    27  ified commercial. To be eligible for said  credit  the  total  qualified
    28  production  costs of a qualified production company must be greater than

    29  five hundred thousand dollars in the aggregate during the calendar year.
    30  Such credit will be applied to qualified production costs exceeding five
    31  hundred thousand dollars in a calendar year.
    32    (iii) The state annually  will  disburse  one  million  of  the  total
    33  [seven]  ten million in tax credits to all eligible production companies
    34  who film or record a qualified commercial outside  of  the  metropolitan
    35  commuter  transportation  district  as defined in section twelve hundred
    36  sixty-two of the public authorities law. The amount of the credit  shall
    37  be  the  product  (or  pro  rata  share of the product, in the case of a
    38  member of a partnership) of five percent  of  the  qualified  production
    39  costs  paid  or  incurred  in  the production of a qualified commercial,
    40  provided that the  qualified  production  costs  paid  or  incurred  are

    41  attributable  to  the  use  of  tangible  property or the performance of
    42  services within the state in the production of  such  qualified  commer-
    43  cial.  To  be  eligible  for  said credit the total qualified production
    44  costs of a qualified production company must be greater than two hundred
    45  thousand dollars in the aggregate during the calendar year. Such  credit
    46  will  be  applied  to  qualified  production costs exceeding two hundred
    47  thousand dollars in a calendar year.
    48    (iv) Provided, however, if there is any money remaining for the annual
    49  tax credit disbursement as described in subparagraph (iii) of this para-
    50  graph, such money shall be disbursed to all eligible  production  compa-
    51  nies  satisfying the criteria set forth in subparagraphs (i) and (ii) of
    52  this paragraph on a pro rata basis.

    53    § 2. Section 8 of part V of chapter 62 of the laws  of  2006  amending
    54  the tax law relating to the empire state commercial production tax cred-
    55  it,  as  amended  by chapter 440 of the laws of 2006, subdivision (d) as

        S. 4527--A                          3
 
     1  amended by chapter 300 of the laws  of  2007,  is  amended  to  read  as
     2  follows:
     3    §  8. Maximum amount of credits. (a) The aggregate amount of tax cred-
     4  its allowed under subparagraph (i) of paragraph 2 of subdivision (a)  of
     5  section 28, subdivision 38 of section 210 and subsection (jj) of section
     6  606  of the tax law in any calendar year shall be $[3] 4.5 million. Such
     7  aggregate amount of credits shall be allocated by the governor's  office
     8  for  motion  picture and television development among taxpayers on a pro

     9  rata basis.  Such office shall establish by rules and regulations a date
    10  certain on which the taxpayers eligible for  such  pro  rata  allocation
    11  shall be determined.
    12    (b)  The  aggregate  amount  of tax credits allowed under subparagraph
    13  (ii) of paragraph 2 of subdivision (a) of section 28, subdivision 38  of
    14  section  210  and  subsection  (jj) of section 606 of the tax law in any
    15  calendar year shall be $[3] 4.5 million. Such aggregate amount of  cred-
    16  its  shall  be allocated by the governor's office for motion picture and
    17  television development among taxpayers on a pro rata basis. If the total
    18  amount of allocated credits applied for in any particular  year  exceeds
    19  the  aggregate  amount  of  tax credits allowed for such year under this
    20  section, such excess shall be treated as having been applied for on  the
    21  first day of the subsequent year.

    22    (c)  The  aggregate  amount  of tax credits allowed under subparagraph
    23  (iii) of paragraph 2 of subdivision (a) of section 28, subdivision 38 of
    24  section 210 and subsection (jj) of section 606 of the  tax  law  in  any
    25  calendar  year  shall  be  $1  million. Such aggregate amount of credits
    26  shall be allocated by the governor's office for motion picture and tele-
    27  vision development among taxpayers on a pro rata  basis.  If  the  total
    28  amount  of  allocated credits applied for in any particular year exceeds
    29  the aggregate amount of tax credits allowed for  such  year  under  this
    30  section,  such excess shall be treated as having been applied for on the
    31  first day of the subsequent year.
    32    (d) The aggregate amount  of  tax  credits  allowed  pursuant  to  the
    33  authority  of  subdivision  (c) of section 1201-a  of the tax law in any

    34  calendar year shall be $[3] 4.5 million for 2007 through 2011  allocated
    35  equally  to  the credit substantially identical to credits allowed under
    36  subparagraphs (i) and (ii) of paragraph 2 of section 28 of the tax  law.
    37  Such  aggregate  amount  of  credits  shall  be allocated by the mayor's
    38  office of film, theater and broadcasting among taxpayers on a  pro  rata
    39  basis.  Such  credits  shall be allocated in amounts to be determined by
    40  the city via local law and such credits shall be substantially identical
    41  to credits allowed under subparagraphs (i) and (ii) of  paragraph  2  of
    42  subdivision  (a) of section 28 of the tax law.  Provided however nothing
    43  herein shall preclude the city via local law from allocating its  entire
    44  annual  amount  of  credits  to  one  category  of credits allowed under
    45  subparagraph (i) or (ii) of paragraph 2 of subdivision (a) of section 28

    46  of the tax law.
    47    (e) The New York state commissioner  of  economic  development,  after
    48  consulting with the New York state commissioner of taxation and finance,
    49  the  New  York  city  commissioner  of finance and the mayor's office of
    50  film, theater and broadcasting shall promulgate regulations  by  October
    51  31,  2006  to  establish procedures for the allocation of tax credits as
    52  required by subdivisions (a), (b) and (c) of this  section.  Such  rules
    53  and  regulations  shall  include  provisions  describing the application
    54  process, the due dates for such applications, the standards which  shall
    55  be  used  to  evaluate  the applications, the documentation that will be
    56  provided to taxpayers to substantiate to the New York  state  department

        S. 4527--A                          4
 

     1  of  taxation  and finance or the New York city department of finance the
     2  amount of tax credits  allocated  to  such  taxpayers,  and  such  other
     3  provisions  as are deemed necessary and appropriate. Notwithstanding any
     4  other  provisions  to the contrary in the state administrative procedure
     5  act or the city administrative procedure act, such rules and regulations
     6  may be adopted on an emergency basis if necessary to meet  such  October
     7  31, 2006 deadline.
     8    § 3. This act shall take effect immediately and shall apply to taxable
     9  years  beginning  on  and after January 1, 2011; provided, however, that
    10  the amendments to paragraph 2 of subdivision (a) of section  28  of  the
    11  tax  law  made by section one of this act shall not affect the repeal of
    12  such section and shall be deemed repealed therewith.
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