What's happening
This bill shortens the Empire State commercial production tax credit, making it expire in 2020 instead of 2024.
Why it matters
Accelerates the end of a tax incentive. for commercial production companies, which could impact the economics of producing commercials in New York and potentially make the state less attractive for such business after 2020.
Affects existing and prospective commercial projects. any productions planned for 2021-2024 would no longer be able to count on this credit, potentially leading to changes in hiring, location decisions, and investment by production companies.
May have broader economic implications. for related industries (such as local crew, equipment rental, hospitality, and post-production) that benefit from commercial shoots incentivized by this credit, possibly resulting in reduced business activity and job opportunities.
Reflects a shift in state fiscal priorities. by shortening the duration of a targeted industry tax break, which could free up state resources for other purposes but might also signal less government support for the commercial production sector.
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Who cares
Headline styles
Extend Commercial Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to rules
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 55–6
- Ordered to third reading cal.20
- Referred to rules
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1277
2019-2020 Regular Sessions
IN SENATE
January 11, 2019
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the tax law, in relation to extending the empire state commercial production tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 1 of subdivision (a) of section 28 of the tax law, as amended by a chapter of the laws of 2018, amending the tax law relating to extending the empire state commercial production tax credit, as proposed in legislative bills numbers A. 10768 and S. 8465, is amended to read as follows:
(1) A taxpayer which is a qualified commercial production company, or which is a sole proprietor of a qualified commercial production company, and which is subject to tax under article nine-A or twenty-two of this chapter, shall be allowed a credit against such tax, pursuant to the provisions referenced in subdivision (c) of this section, to be computed as provided in this section. Provided, however, to be eligible for such credit, at least seventy-five percent of the production costs (excluding post production costs) paid or incurred directly and predominantly in the actual filming or recording of the qualified commercial must be costs incurred in New York state. The tax credit allowed pursuant to this section shall apply to taxable years beginning before January first, two thousand [twenty-four] twenty.
§ 2. Paragraph (c) of subdivision 23 of section 210-B of the tax law, as amended by a chapter of the laws of 2018, amending the tax law relating to extending the empire state commercial production tax credit, as proposed in legislative bills numbers A. 10768 and S. 8465, is amended to read as follows:
(c) Expiration of credit. The credit allowed under this subdivision shall not be applicable to taxable years beginning on or after January first, two thousand [twenty-four] twenty.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07035-01-9
S. 1277 2
§ 3. Paragraph 1 of subsection (jj) of section 606 of the tax law, as amended by a chapter of the laws of 2018, amending the tax law relating to extending the empire state commercial production tax credit, as proposed in legislative bills numbers A. 10768 and S. 8465, is amended to read as follows:
(1) Allowance of credit. A taxpayer that is eligible pursuant to the provisions of section twenty-eight of this chapter shall be allowed a credit to be computed as provided in such section against the tax imposed by this article. The tax credit allowed pursuant to this section shall apply to taxable years beginning before January first, two thousand [twenty-four] twenty.
§ 4. This act shall take effect on the same date and in the same manner as a chapter of the laws of 2018, amending the tax law relating to extending the empire state commercial production tax credit, as proposed in legislative bills numbers A. 10768 and S. 8465, takes effect.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to extending the empire state commercial production tax credit
Purpose
This is a chapter amendment that makes changes to provisions of L.2018, c.518, to amend the length of the extension of the empire state commer- cial production tax credit
Summary of provisions
Section 1 of the chapter amendment amends subdivision (a) of section 28 of the tax law to extend the credit to the end of tax year 2020.
Section 2 of the chapter amendment amends paragraph (c) of subdivision 23 of section 210-B of the tax law to extend the credit to the end of tax year 2020.
Section 3 of the chapter amendment amends paragraph 1 of subsection (jj) of section 606 of the tax law to extend the credit to the end of tax year 2020.
Section 4 establishes and effective date.
Existing law
Section 28 of the Tax Law establishes the empire state commercial production tax credit, and is referenced in sections 210-B of the tax law as a credit under the corporate franchise tax and section 606 of the tax law, as a credit under the personal income tax. The credit was due to expire on December 31, 2018 and was extended for four years.
Justification
The Executive believes the current program requires amendments to func- tion more effectively, and plans to discuss those changes in the FY 2019-2020 budget process. For this reason, they do not want to extend a program they feel needs updating for four years, and instead requested a one-year extension.
Legislative history
Chapter amendment to Chapter 518 of the Laws of 2018. S.8465 and A.10768 passed both the Senate and Assembly in June 19 of 2018.
Fiscal implications
The empire state production tax credit program is capped at $7 million a year in allowable credits.
Effective date
This act shall take effect on the same date and in the same manner as a chapter of the laws of 2018, amending the tax law in relation to extend- ing the empire state commercial production tax credit as proposed in legislative bills numbers S. 8465 and A. 10768, takes effect.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.