Provides that qualified production costs for purposes of the empire state film production credit shall include cost of constructing, equipping or expanding a film production facility

BILL NUMBER:S7398

Title of bill

An act to amend the tax law, in relation to the empire state film production credit

Purpose

To encourage and support the growth of the film industry in New York State.

Summary of provisions

Section one of the bill amends Section 24(b) of the Tax Law. The defi- nitions of "qualified production costs" and "production costs" are expanded to include the cost of constructing, equipping or expanding a film production facility within the State.

Section two of the bill amends Section 24(e) of the Tax Law to provide that allocations of tax credits authorized from Additional Pool 2 shall give priority to applicants that plan to construct, equip or expand film production facilities within the state. The amendments further provide that if a taxpayer claims the credit allowed under this section, the taxpayer may not use such construction costs as the basis of any other credit allowed under this article.

Justification

This bill seeks to encourage and support the continued growth of the film industry in New York State. The existing film tax credit program would be amended to make such tax credits available for the construction or expansion of film production studios. This bill would leverage these tax credits to assist in creating or expanding permanent facilities and assets in the State. This would help encourage and support ongoing and sustained film production activity, and serve as the base of operations for the production of films.

Fiscal implications

None. The bill relates to the allocation and prioritization of the existing Additional Pool 2 of film tax credit funding, but does not increase or affect the total amount of funding available under this pool.

Effective date

This act shall take effect on the same date as section 15 of part A of Chapter 59 of 2014 takes effect (i.e. January 1, 2015).