S T A T E O F N E W Y O R K
________________________________________________________________________
9060
2009-2010 Regular Sessions
I N A S S E M B L Y
June 23, 2009
___________
Introduced by M. of A. MORELLE, ENGLEBRIGHT -- read once and referred to
the Committee on Ways and Means
AN ACT to amend the tax law, in relation to removing the cap on the
aggregate amount of tax credits allowed pursuant to the empire state
film production credit; and to amend chapter 60 of the laws of 2004
amending the tax law relating to the empire state film production
credit, in relation to aggregate amounts of tax credits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision (b) of section 24 of the tax law is amended by
2 adding a new paragraph 7 to read as follows:
3 (7) "QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY" IS AN INDIVIDUAL,
4 OR A CORPORATION, PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY THAT
5 IS NOT PUBLICLY TRADED, AND PUBLICLY TRADED COMPANIES DO NOT OWN,
6 DIRECTLY OR INDIRECTLY, MORE THAN FIVE PERCENT OF THE QUALIFIED INDE-
7 PENDENT FILM PRODUCTION COMPANY AND THE ENTITY OR INDIVIDUAL IS PRINCI-
8 PALLY ENGAGED IN THE PRODUCTION OF A QUALIFIED FILM AND CONTROLS THE
9 QUALIFIED FILM DURING PRODUCTION.
10 S 2. Paragraph 2 of subdivision (a) of section 24 of the tax law, as
11 amended by section 1 of part Y-1 of chapter 57 of the laws of 2009, is
12 amended to read as follows:
13 (2) (I) The amount of the credit shall be the product (or pro rata
14 share of the product, in the case of a member of a partnership) of thir-
15 ty percent and the qualified production costs paid or incurred in the
16 production of a qualified film, provided that the qualified production
17 costs (excluding post production costs) paid or incurred which are
18 attributable to the use of tangible property or the performance of
19 services at a qualified film production facility in the production of
20 such qualified film equal or exceed seventy-five percent of the
21 production costs (excluding post production costs) paid or incurred
22 which are attributable to the use of tangible property or the perform-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07661-05-9
A. 9060 2
1 ance of services at any film production facility within and without the
2 state in the production of such qualified film. However, if the quali-
3 fied production costs (excluding post production costs) which are
4 attributable to the use of tangible property or the performance of
5 services at a qualified film production facility in the production of
6 such qualified film is less than three million dollars, then the portion
7 of the qualified production costs attributable to the use of tangible
8 property or the performance of services in the production of such quali-
9 fied film outside of a qualified film production facility shall be
10 allowed only if the shooting days spent in New York outside of a film
11 production facility in the production of such qualified film equal or
12 exceed seventy-five percent of the total shooting days spent within and
13 without New York outside of a film production facility in the production
14 of such qualified film. The credit shall be allowed for the taxable year
15 in which the production of such qualified film is completed.
16 (II) If the amount of the credit is at least one million dollars but
17 less than five million dollars, the credit shall be claimed over a two
18 year period beginning in the taxable year in which the production of the
19 qualified film is completed and in the next succeeding taxable year,
20 with one-half of the amount of credit allowed being claimed in each
21 year. If the amount of the credit is at least five million dollars, the
22 credit shall be claimed over a three year period beginning in the taxa-
23 ble year in which the production of the qualified film is completed and
24 in the next two succeeding taxable years, with one-third of the amount
25 of the credit allowed being claimed in each year. PROVIDED, HOWEVER,
26 THAT THE LIMITATIONS ON CLAIMING IMPOSED BY THIS SUBPARAGRAPH SHALL NOT
27 APPLY TO CREDITS CLAIMED PURSUANT TO SUBDIVISION (E) OF SECTION TWO OF
28 PART Y-1 OF CHAPTER FIFTY-SEVEN OF THE LAWS OF TWO THOUSAND NINE.
29 S 3. Section 7 of part P of chapter 60 of the laws of 2004, amending
30 the tax law relating to the empire state film production credit, is
31 amended by adding a new subdivision (e) to read as follows:
32 (E) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED IN SUBDIVISION (A) OF
33 THIS SECTION SHALL BE INCREASED BY $420 MILLION A YEAR IN EACH YEAR
34 2011, 2012, 2013, 2014 AND 2015. THIS ADDITIONAL AMOUNT SHALL BE ALLO-
35 CATED BY THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELEVISION DEVEL-
36 OPMENT AMONG TAXPAYERS IN ACCORDANCE WITH SUBDIVISION (A) OF THIS
37 SECTION BUT ONLY AFTER THE CREDITS IN SUBDIVISION (D) OF THIS SECTION
38 HAVE BEEN ALLOCATED. A TAXPAYER ALLOCATED CREDITS FROM THE AMOUNTS
39 AUTHORIZED UNDER THIS SUBDIVISION SHALL NOT CLAIM SUCH CREDITS AGAINST
40 THE TAX UNDER ARTICLES NINE-A OR TWENTY-TWO OF THE TAX LAW BEFORE TAXA-
41 BLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2011, PROVIDED HOWEVER THAT
42 NOTWITHSTANDING THE AMOUNT OF TAX CREDITS ALLOCATED, THE AGGREGATE
43 AMOUNT OF SUCH TAX CREDITS PAID TO TAXPAYERS SHALL NOT EXCEED $420
44 MILLION IN ANY YEAR, WITH ANY AMOUNT OF CREDITS IN EXCESS OF SUCH $420
45 MILLION AMOUNT TO BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY
46 OF THE SUBSEQUENT YEAR AND THUS THE FIRST TO BE PAID. NOTWITHSTANDING
47 THE FOREGOING, A TAXPAYER WHICH IS A QUALIFIED INDEPENDENT FILM
48 PRODUCTION COMPANY, AS DEFINED IN SECTION 24 OF THE TAX LAW, WHICH IS
49 ALLOCATED CREDITS IN AN AMOUNT NOT EXCEEDING $3 MILLION PER QUALIFIED
50 FILM FROM THE AMOUNTS AUTHORIZED UNDER THIS SUBDIVISION, MAY CLAIM SUCH
51 CREDITS FOR THE TAXABLE YEAR IN WHICH THE PRODUCTION OF SUCH QUALIFIED
52 FILM IS COMPLETED. THE GOVERNOR'S OFFICE FOR MOTION PICTURE AND TELE-
53 VISION DEVELOPMENT SHALL PROMULGATE REGULATIONS NOT LATER THAN OCTOBER
54 31, 2009, ESTABLISHING PROCEDURES FOR THE CLAIMING OF TAX CREDITS AS
55 PROVIDED BY THIS SUBDIVISION.
A. 9060 3
1 S 4. This act shall take effect immediately; provided however that the
2 amendments to section 24 of the tax law made by sections one and two of
3 this act shall not affect the repeal of such section and shall be deemed
4 repealed therewith; and provided further, that the amendments to section
5 7 of part P of chapter 60 of the laws of 2004 made by section three of
6 this act shall not affect the repeal of such part and shall be deemed
7 repealed therewith.