Bill Text: NY A06067 | 2013-2014 | General Assembly | Introduced

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Bill Title: Relates to eligibility for the empire state film post production credit; provides for eligibility for the credit if expenditures meet or exceed seventy-five percent of qualified expenditures, including picture and sound post production costs, music and visual effects; defines "picture and sound post production", "music", and "visual effects".

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced - Dead) 2014-01-08 - referred to ways and means [A06067 Detail]

Download: New_York-2013-A06067-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6067
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                    March 14, 2013
                                      ___________
       Introduced by M. of A. ENGLEBRIGHT, MAISEL, BENEDETTO, GALEF, DenDEKKER,
         MILLMAN,  TITONE,  MOYA,  GABRYSZAK,  BOYLAND,  ROSENTHAL,  HOOPER  --
         Multi-Sponsored by -- M. of A.    ABBATE,  COOK,  CRESPO,  CYMBROWITZ,
         THIELE -- read once and referred to the Committee on Ways and Means
       AN  ACT  to  amend  the  tax  law,  in relation to the empire state film
         production credit
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 31 of the tax law, as added by section 12 of part Q
    2  of  chapter  57  of the laws of 2010, paragraph 2 of subdivision (a) and
    3  subdivision (c) as amended by chapter  268  of  the  laws  of  2012,  is
    4  amended to read as follows:
    5    S 31. Empire state film post production credit. (a) Allowance of cred-
    6  it.  (1)  A  taxpayer  which is a qualified film production company, and
    7  which is subject to tax under article nine-A or twenty-two of this chap-
    8  ter, unless eligible for the credit under section  twenty-four  of  this
    9  article  with  respect  to the qualified film, shall be allowed a credit
   10  against such tax, pursuant to the provisions referenced  in  subdivision
   11  (c) of this section to be computed as provided in this subdivision.
   12    (2)  The  amount of the credit shall be the product (or pro rata share
   13  of the product, in the case of a member  of  a  partnership)  of  thirty
   14  percent  and  the qualified post production costs paid in the production
   15  of a qualified film at a  qualified  post  production  facility  located
   16  within  the  metropolitan commuter transportation district as defined in
   17  section twelve hundred sixty-two of the public authorities law or  thir-
   18  ty-five  percent  and  the  qualified  post production costs paid in the
   19  production of a qualified film at a qualified post  production  facility
   20  located elsewhere in the state.
   21    (3)  A  taxpayer  shall  not be eligible for the credit established by
   22  this section unless the qualified post production costs at  a  qualified
   23  post  production  facility  meet  or  exceed seventy-five percent of the
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09690-01-3
       A. 6067                             2
    1  [total post production costs] QUALIFIED EXPENDITURES WITH RESPECT TO ANY
    2  ONE OR MORE OF THE FOLLOWING SUBSETS:
    3    (I)  PICTURE  AND SOUND POST PRODUCTION COSTS, AS HEREINAFTER DEFINED;
    4  (II) MUSIC, AS HEREINAFTER DEFINED; AND (III) VISUAL EFFECTS, AS HEREIN-
    5  AFTER DEFINED; AS EACH MAY BE paid or incurred in the post production of
    6  the qualified film at any post production facility. The credit shall [be
    7  allowed] ONLY BE ALLOWED AS TO THE  SUBSET  OR  SUBSETS  FOR  WHICH  THE
    8  SEVENTY-FIVE  PERCENT  THRESHOLD  HAS  BEEN  MET for the taxable year in
    9  which the production of such qualified film is completed.
   10    (4) No qualified post production costs used by a  taxpayer  either  as
   11  the  basis  for  the  allowance  of  the  credit provided for under this
   12  section or used in the calculation of the credit provided for under this
   13  section shall be used by such taxpayer to claim any other credit allowed
   14  pursuant to this chapter.
   15    (b) Definitions. As used in this section  the  following  terms  shall
   16  have the following meanings:
   17    (1)  "Qualified  film  production  company" and "qualified film" shall
   18  have the same meaning as are ascribed to such terms by  section  twenty-
   19  four of this article.
   20    (2) "Post production costs" means ANY EXPENDITURE IN PICTURE AND SOUND
   21  POST  PRODUCTION,  MUSIC,  OR  VISUAL  EFFECTS,  AS  HEREIN  DEFINED, IN
   22  CONNECTION WITH THE production of original content for a qualified  film
   23  employing  traditional,  emerging  and  new  workflow techniques used in
   24  post-production [for picture, sound and music editorial, rerecording and
   25  mixing, visual effects, graphic design, original scoring, animation, and
   26  musical composition; but]. FOR PURPOSES OF THIS PARAGRAPH, "PICTURE  AND
   27  SOUND POST PRODUCTION" SHALL INCLUDE COSTS INCURRED IN PICTURE AND SOUND
   28  EDITORIAL,  ASSEMBLY, RECORDING, RERECORDING, MIXING, TRANSFERS, RELATED
   29  EQUIPMENT AND FACILITY FEES, SCREENING, COLOR GRADING, COLOR CORRECTION,
   30  SCANNING, FILM CLEANING, CONFORMING, AND  LABORATORY  SERVICES;  "MUSIC"
   31  SHALL  INCLUDE  COSTS INCURRED IN ORIGINAL SCORING, MUSIC EDITORIAL, AND
   32  RELATED EQUIPMENT AND FACILITY  FEES;  "VISUAL  EFFECTS"  SHALL  INCLUDE
   33  COSTS  INCURRED  IN  GRAPHIC  DESIGN,  COMPOSITING,  TRACKING, REMOVALS,
   34  ANIMATION, DATA ARCHIVING, RENTALS; HOWEVER,  THE  FOREGOING  shall  not
   35  include the editing of previously produced content for a qualified film.
   36    (3)  "Post  production  facility"  means  a building and/or complex of
   37  buildings and their improvements on which film are intended to  be  post
   38  produced.
   39    (4)  "Qualified  post  production  facility"  means  a post production
   40  facility located in the state, engaged in finishing a qualified film.
   41    (c) Notwithstanding any other provision of law to  the  contrary,  the
   42  aggregate  amount  of tax credits available under this section shall not
   43  exceed the amounts allowed pursuant to paragraph four of subdivision (e)
   44  of section twenty-four of this article and shall  be  allocated  in  the
   45  same  manner  as  provided  for  in  paragraph one of subdivision (e) of
   46  section twenty-four of this article.
   47    (d) Cross-references. For application of the credit  provided  for  in
   48  this section, see the following provisions of this chapter:
   49    (1) article 9-A: section 210: subdivision 41.
   50    (2) article 22: section 606: subsection (qq).
   51    S 2. This act shall take effect immediately.