Increases to 15% the amount of the empire state film production credit that can be taken against taxes administered by the city of New York

BILL NUMBER:S1975A

Title of bill

An act to amend the tax law and chapter 60 of the laws of 2004 amending the tax law relating to providing tax credits for certain costs incurred in film and television productions, in relation to the amount of such credits against taxes administered by cities of one million or more

Purpose

To increase to 15.% the amount of the empire state film production credit that can be taken against taxes administered by cities of one million or more.

Summary of provisions

Section 1. Subdivision (b) of section 1201-a of the tax law, as amended by section 5 of part y of chapter 62 of the laws of 2006, is amended to authorize any city with a population of one million or more to adopt the Empire state film production tax credit acting through its local legislative body and amend local laws to allow a 15 percent credit against the general corporation tax and the unincorporated business tax.

Section 2. Subdivision (b) of section 7 of part p of chapter 60 of the laws of 2004 amending the tax law relating to providing tax credits for certain costs incurred in film and television productions, as amended by section 2 of part y of chapter 62 of the laws of 2006, amends the aggregate amount of tax credits allowed pursuant to the authority of subdivision (b) of section 1201a of the tax law in any calendar year shall be 30 million in 2006 through 2010, 37.5 million in 2011, 42.5 million in 2012, 45 million in 2013 and 2014, and $55 million in 2015.

Justification

New York's film tax credit is one of the most successful economic development programs in recent history. Since New York State tripled its own film production tax credit, film and television shooting days are up 84 percent. These shoots employ more union actors and extras than typical production days, and are thus a strong measure of the broader employment impact of increased filming.

Since the initial credit was enacted, $600 million and over 6,000 new jobs have been generated for the New York City's economy. This new legislation would vastly expand on those results by tripling the production credit from 5 percent to 15 percent. By joining the state in this program, New York City can maximize the economic benefits for our region at a time when the economy is struggling. Increased tax credits would ensure that the recent growth in New York's film production business continues, and that our economy receives a much-needed boost at a sensitive time.

In addition, Screen Actors Guild officials note that New York State's newly tripled credit, along with the City's initial credit, has brought a significant number of previously uninsured actors into the union-sponsored healthcare program.

Prior legislative history

None.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately and applies to the taxable years beginning on or after July 1, 2011 and shall apply to applications filed on or after the date it becomes a law.