Bill Text: NY A05559 | 2011-2012 | General Assembly | Introduced
Bill Title: Establishes an Empire state film post production tax credit against personal and corporate franchise taxes for a portion of qualified post production costs attributable to the use of tangible property or services within the state; directs the commissioner of taxation and finance to withhold 7% of such credit and to deposit the revenue therefrom into the New York state post production internship education and development program fund; monies from such fund shall be disbursed for the payment of tuition for post production interns.
Spectrum: Partisan Bill (Democrat 27-0)
Status: (Introduced - Dead) 2011-06-01 - enacting clause stricken [A05559 Detail]
Download: New_York-2011-A05559-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 5559 2011-2012 Regular Sessions I N A S S E M B L Y February 23, 2011 ___________ Introduced by M. of A. ENGLEBRIGHT, O'DONNELL, ZEBROWSKI, HOOPER, BING, JAFFEE, PAULIN, COLTON, TITONE, KELLNER, ROSENTHAL, CAHILL, MAGNAREL- LI, LENTOL, PEOPLES-STOKES, GALEF, MARKEY, DenDEKKER -- Multi-Spon- sored by -- M. of A. ABBATE, BOYLAND, GLICK, LANCMAN, LUPARDO, McENE- NY, MILLMAN, PHEFFER, SWEENEY -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to an empire state film post production tax credit and to amend the state finance law, in relation to establishing the New York state post production internship educa- tion and development program fund; and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. The tax law is amended by adding a new section 28-a to read 2 as follows: 3 S 28-A. EMPIRE STATE FILM POST PRODUCTION CREDIT. (A) ALLOWANCE OF 4 CREDIT. (1) A TAXPAYER WHICH IS A FILM PRODUCTION COMPANY OR A QUALIFIED 5 FILM PRODUCTION COMPANY, AND WHICH IS SUBJECT TO TAX UNDER ARTICLE 6 NINE-A OR TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST 7 SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (C) OF 8 THIS SECTION TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION. 9 (2) (I) THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA 10 SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER OF A PARTNERSHIP) OF TEN 11 PERCENT AND THE QUALIFIED POST PRODUCTION COSTS PAID IN THE PRODUCTION 12 OF A QUALIFIED FILM AT A QUALIFIED POST PRODUCTION FACILITY. 13 (II) IF A TAXPAYER IS ELIGIBLE FOR THE FILM PRODUCTION CREDIT PURSUANT 14 TO SECTION TWENTY-FOUR OF THIS ARTICLE, AND THE POST PRODUCTION COSTS 15 OTHERWISE MEET THE REQUIREMENTS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH, 16 THE AMOUNT OF THE POST PRODUCTION CREDIT ALLOWED SUCH TAXPAYER SHALL BE 17 ENHANCED BY AN ADDITIONAL FIVE PERCENT WITH RESPECT TO SUCH QUALIFIED 18 POST PRODUCTION COSTS. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08835-01-1 A. 5559 2 1 (3) A TAXPAYER SHALL NOT BE ELIGIBLE FOR THE CREDIT ESTABLISHED BY 2 THIS SECTION UNLESS THE QUALIFIED POST PRODUCTION COSTS AT A QUALIFIED 3 POST PRODUCTION FACILITY MEET OR EXCEED SEVENTY-FIVE PERCENT OF THE 4 TOTAL POST PRODUCTION COSTS PAID OR INCURRED IN THE POST PRODUCTION OF 5 THE QUALIFIED FILM AT ANY POST PRODUCTION FACILITY. THE CREDIT SHALL BE 6 ALLOWED FOR THE TAXABLE YEAR IN WHICH THE PRODUCTION OF SUCH QUALIFIED 7 FILM IS COMPLETED. 8 (4) NO QUALIFIED POST PRODUCTION COSTS USED BY A TAXPAYER EITHER AS 9 THE BASIS FOR THE ALLOWANCE OF THE CREDIT PROVIDED FOR UNDER THIS 10 SECTION OR USED IN THE CALCULATION OF THE CREDIT PROVIDED FOR UNDER THIS 11 SECTION SHALL BE USED BY SUCH TAXPAYER TO CLAIM ANY OTHER CREDIT ALLOWED 12 PURSUANT TO THIS CHAPTER. 13 (B) DEFINITIONS. AS USED IN THIS SECTION THE FOLLOWING TERMS SHALL 14 HAVE THE FOLLOWING MEANINGS: 15 (1) "QUALIFIED FILM PRODUCTION COMPANY" AND "QUALIFIED FILM" SHALL 16 HAVE THE SAME MEANING AS ARE ASCRIBED TO SUCH TERMS BY SECTION 17 TWENTY-FOUR OF THIS ARTICLE. 18 (2) "FILM PRODUCTION COMPANY" IS A CORPORATION, PARTNERSHIP, LIMITED 19 PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL WHICH OR WHO IS PRINCIPALLY 20 ENGAGED IN THE PRODUCTION OF A QUALIFIED FILM AND CONTROLS THE QUALIFIED 21 FILM DURING PRODUCTION. 22 (3) "POST PRODUCTION COSTS" MEANS PRODUCTION OF ORIGINAL CONTENT FOR A 23 QUALIFIED FILM EMPLOYING TRADITIONAL, EMERGING AND NEW WORKFLOW TECH- 24 NIQUES USED IN POST-PRODUCTION FOR PICTURE, SOUND AND MUSIC EDITORIAL, 25 RERECORDING AND MIXING, VISUAL EFFECTS, GRAPHIC DESIGN, ORIGINAL SCOR- 26 ING, ANIMATION, AND MUSICAL COMPOSITION; BUT SHALL NOT INCLUDE THE 27 EDITING OF PREVIOUSLY PRODUCED CONTENT FOR A QUALIFIED FILM. 28 (4) "POST PRODUCTION FACILITY" MEANS A BUILDING AND/OR COMPLEX OF 29 BUILDINGS AND THEIR IMPROVEMENTS ON WHICH FILM ARE INTENDED TO BE POST 30 PRODUCED. 31 (5) "QUALIFIED POST PRODUCTION FACILITY" MEANS A POST PRODUCTION 32 FACILITY LOCATED IN THE STATE, ENGAGED IN FINISHING A QUALIFIED FILM. 33 (C) WITHHOLDING OF PORTION OF CREDIT. NOTWITHSTANDING ANY OTHER 34 PROVISION OF LAW TO THE CONTRARY, THE AMOUNT SHALL WITHHOLD FROM ANY 35 CREDIT ALLOWED A TAXPAYER PURSUANT TO THIS SECTION, AN AMOUNT EQUAL TO 36 SEVEN PERCENT OF SUCH CREDIT CLAIMED BY THE TAXPAYER. ALL MONIES WITH- 37 HELD PURSUANT TO THIS SUBDIVISION SHALL BE CREDITED AND PAID INTO THE 38 NEW YORK STATE POST PRODUCTION INTERNSHIP EDUCATION AND DEVELOPMENT 39 PROGRAM FUND ESTABLISHED BY SECTION NINETY-ONE-H OF THE STATE FINANCE 40 LAW. 41 (D) LIMITATION ON CREDIT. (1) THE AGGREGATE AMOUNT OF TAX CREDITS 42 AUTHORIZED PURSUANT TO THIS SECTION SHALL NOT EXCEED SEVEN MILLION 43 DOLLARS IN EACH OF TWO THOUSAND ELEVEN, TWO THOUSAND TWELVE AND TWO 44 THOUSAND THIRTEEN TAXABLE YEARS. 45 (2) THE AGGREGATE AMOUNT OF TAX CREDITS EACH TAXABLE YEAR SHALL BE 46 ALLOCATED BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION 47 DEVELOPMENT AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE OF 48 FILING AN APPLICATION WITH SUCH OFFICE FOR ALLOCATION OF A FILM POST 49 PRODUCTION CREDIT. IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR 50 DURING ANY TAXABLE YEAR EXCEEDS THE AGGREGATE AMOUNT THEREOF AUTHORIZED 51 BY PARAGRAPH ONE OF THIS SUBDIVISION, SUCH EXCESS SHALL BE DEEMED TO 52 HAVE BEEN APPLIED FOR ON THE FIRST DAY OF THE IMMEDIATELY SUBSEQUENT 53 TAXABLE YEAR. 54 (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN 55 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: 56 (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 43. A. 5559 3 1 (2) ARTICLE 22: SECTION 606: SUBSECTION (SS). 2 S 2. Section 210 of the tax law is amended by adding a new subdivision 3 43 to read as follows: 4 43. EMPIRE STATE FILM POST PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT. 5 A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION TWENTY-EIGHT-A OF THIS 6 CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH 7 SECTION TWENTY-EIGHT-A AGAINST THE TAX IMPOSED BY THIS ARTICLE. 8 (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION 9 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS 10 THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS 11 SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE 12 UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH 13 AMOUNT, FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT 14 OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF 15 SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE 16 PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF 17 THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. THE 18 BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY 19 BE A CARRY OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE YEAR AND MAY BE 20 DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE EXCESS, IF ANY, OF 21 THE AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH SUCCEEDING YEAR SHALL BE 22 TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD- 23 ANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS 24 CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION 25 ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST 26 SHALL BE PAID THEREON. 27 S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 28 of the tax law is amended by adding a new clause (xxxii) to read as 29 follows: 30 (XXXII) EMPIRE STATE FILM AMOUNT OF CREDIT FOR 31 POST PRODUCTION QUALIFIED POST PRODUCTION 32 CREDIT UNDER COSTS OF A QUALIFIED FILM 33 SUBSECTION (SS) UNDER SUBDIVISION FORTY-THREE OF 34 SECTION TWO HUNDRED TEN 35 S 4. Section 606 of the tax law is amended by adding a new subsection 36 (ss) to read as follows: 37 (SS) EMPIRE STATE FILM POST PRODUCTION CREDIT. (1) ALLOWANCE OF CRED- 38 IT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION TWENTY-EIGHT-A OF 39 THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN 40 SUCH SECTION TWENTY-EIGHT-A AGAINST THE TAX IMPOSED BY THIS ARTICLE. 41 (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER 42 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH 43 YEAR, FIFTY PERCENT OF THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF 44 TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF 45 SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE 46 PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF 47 THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. THE 48 BALANCE OF SUCH CREDIT NOT CREDITED OR REFUNDED IN SUCH TAXABLE YEAR MAY 49 BE CARRIED OVER TO THE IMMEDIATELY SUCCEEDING TAXABLE YEAR AND MAY BE 50 DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR. THE EXCESS, IF ANY, OF 51 THE AMOUNT OF THE CREDIT OVER THE TAX FOR SUCH SUCCEEDING YEAR SHALL BE 52 TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD- 53 ANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS 54 CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION A. 5559 4 1 ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST 2 SHALL BE PAID THEREON. 3 S 5. The state finance law is amended by adding a new section 91-h to 4 read as follows: 5 S 91-H. NEW YORK STATE POST PRODUCTION INTERNSHIP EDUCATION AND DEVEL- 6 OPMENT PROGRAM FUND. 1. THERE IS HEREBY ESTABLISHED, IN THE JOINT CUSTO- 7 DY OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE COMPTROLLER, A 8 SPECIAL FUND TO BE KNOWN AS THE "NEW YORK STATE POST PRODUCTION INTERN- 9 SHIP EDUCATION AND DEVELOPMENT PROGRAM FUND". 10 2. SUCH FUND SHALL CONSIST OF ALL REVENUE CREDITED THERETO PURSUANT TO 11 SUBDIVISION (C) OF SECTION TWENTY-EIGHT-A OF THE TAX LAW, AND ALL OTHER 12 MONEYS APPROPRIATED, CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND 13 OR SOURCE PURSUANT TO LAW. NOTHING IN THIS SECTION SHALL BE DEEMED TO 14 PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE 15 PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO 16 THE FUND ACCORDING TO LAW. 17 3. THE MONIES IN THE FUND, UPON APPROPRIATION SHALL ONLY BE EXPENDED 18 FOR THE PAYMENT OF TUITION ON BEHALF OF QUALIFIED INTERNS PARTICIPATING 19 IN POST PRODUCTION INTERNSHIPS WITH POST PRODUCTION COMPANIES. MONIES 20 SHALL BE PAYABLE FROM THE FUND FOR SUCH PURPOSE ON THE AUDIT AND WARRANT 21 OF THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSION- 22 ER OF EDUCATION. 23 4. FOR THE PURPOSES FOR THIS SECTION, "POST PRODUCTION INTERNSHIP" 24 MEANS AN INTERNSHIP IN A QUALIFIED POST PRODUCTION FACILITY, AS DEFINED 25 IN SECTION TWENTY-EIGHT-A OF THE TAX LAW THAT HAS BEEN APPROVED BY THE 26 CHANCELLOR OF THE STATE UNIVERSITY OF NEW YORK, THE BOARD OF TRUSTEES OF 27 THE CITY UNIVERSITY OF NEW YORK, OR THE CHIEF ADMINISTRATIVE OFFICER OF 28 ANY PRIVATE COLLEGE OR UNIVERSITY FOR THE PURPOSE OF PROVIDING 29 PRODUCTION EXPERIENCE AND SKILL DEVELOPMENT. NO SUCH INTERNSHIP SHALL BE 30 ELIGIBLE FOR TUITION COST REIMBURSEMENT UNLESS IT GRANTS ACADEMIC CREDIT 31 TO PARTICIPATING STUDENTS. 32 S 6. This act shall take effect immediately and shall apply to taxable 33 years beginning on or after January 1, 2012.