Bill Text: NY S04527 | 2011-2012 | General Assembly | Amended
Bill Title: Relates to the empire state commercial production tax credit.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-04 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S04527 Detail]
Download: New_York-2011-S04527-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
4527--A
2011-2012 Regular Sessions
I N S E N A T E
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 S 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 S 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 S 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.
