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A07757 Summary:

BILL NOA07757
 
SAME ASSAME AS S07562
 
SPONSORWeinstein
 
COSPNSROtis, Weprin
 
MLTSPNSR
 
Amd Part D 10, Chap 59 of 2023; amd 24, Tax L
 
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.
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A07757 Memo:

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.
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A07757 Text:



 
                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.
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