What's happening
This bill amends the tax law to exclude the New York City "film zone" from certain additional film production tax credits.
Why it matters
Limits extra tax credits to productions outside NYC’s core film area. By defining the "film zone" as the 25-mile radius from Columbus Circle in Manhattan and excluding it from additional credits, the bill aims to prevent the concentration of state incentives in New York City, encouraging productions to film in other regions.
Potential economic boost for upstate and suburban counties. Areas outside the "film zone," including specified counties and parts of Rockland and Westchester, become uniquely eligible for the additional 10% wage credit. This could attract more film productions—and the jobs and spending they bring—to these less-served areas.
Shifts focus of state support in the film industry. The bill reflects a policy choice to use tax incentives as a tool for regional economic development, rather than reinforcing existing film industry infrastructure in the city, which is already well-established. This may help address regional disparities in economic opportunity tied to the film sector.
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Who cares
Film production companies
Qualified productions with budgets of at least $500,000 would gain access to the additional 10 percent wage credit for eligible work in parts of Rockland and Westchester outside the newly defined film zone.
Rockland and Westchester film crews
Eligible crew work outside a 25-mile radius of Columbus Circle would qualify for the additional credit, while work inside that zone would remain excluded.
Governor’s Office for Motion Picture and Television Development
The office would allocate credits to newly eligible applicants within the existing annual cap and application-priority system.
Headline styles
Limit Film Tax Credits
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Film Tax Credits
In Assembly Committee · Ways And Means · Sponsor Kenneth Zebrowski
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4349
2019-2020 Regular Sessions
IN SENATE
March 8, 2019
Introduced by Sen. HARCKHAM -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to the definition of film zone and the exclusion of the film zone from the additional empire state film production credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax law, as amended by section 1 of part M of chapter 59 of the laws of 2017, is amended to read as follows:
(5) For the period two thousand fifteen through two thousand twentytwo, in addition to the amount of credit established in paragraph two of this subdivision, a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partnership) of ten percent and the amount of wages or salaries paid to individuals directly employed (excluding those employed as writers, directors, music directors, producers and performers, including background actors with no scripted lines) by a qualified film production company or a qualified independent film production company for services performed by those individuals in one of the counties or areas specified in this paragraph in connection with a qualified film with a minimum budget of five hundred thousand dollars. For purposes of this additional credit, the services must be performed in one or more of the following counties or areas: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster, Warren, Washing-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06480-01-9
S. 4349 2
ton, Wayne, Wyoming, [or] Yates, or any area in the counties of Rockland or Westchester which is not located in the film zone as defined in paragraph nine of subdivision (b) of this section. The aggregate amount of tax credits allowed pursuant to the authority of this paragraph shall be five million dollars each year during the period two thousand fifteen through two thousand twenty-two of the annual allocation made available to the program pursuant to paragraph four of subdivision (e) of this section. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and television development among taxpayers in order of priority based upon the date of filing an application for allocation of film production credit with such office. If the total amount of allocated credits applied for under this paragraph in any year exceeds the aggregate amount of tax credits allowed for such year under this paragraph, such excess shall be treated as having been applied for on the first day of the next year. If the total amount of allocated tax credits applied for under this paragraph at the conclusion of any year is less than five million dollars, the remainder shall be treated as part of the annual allocation made available to the program pursuant to paragraph four of subdivision (e) of this section. However, in no event may the total of the credits allocated under this paragraph and the credits allocated under paragraph five of subdivision (a) of section thirty-one of this article exceed five million dollars in any year during the period two thousand fifteen through two thousand twenty-two.
§ 2. Subdivision (b) of section 24 of the tax law is amended by adding a new paragraph 9 to read as follows:
(9) "Film zone" shall mean an area within a twenty-five mile radius of Columbus Circle in the borough of Manhattan.
§ 3. This act shall take effect immediately.
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 the definition of film zone and the exclusion of the film zone from the additional empire state film production credit
Purpose
This bill will add areas of Rockland and Westchester which are outside the "film zone" to the additional empire state film production credit.
Summary of provisions
Section one of the bill amends paragraph 5 of subdivision (a) of section 24 of the tax law as it relates to including areas of Rockland or West- chester counties not located within the film zone as part of the addi- tional empire state film production credit.
Section two of the bill amends subdivision (b) of section 24 at the tax law as it relates to adding the definition of film zone.
Section three of the bill relates to the effective date.
Justification
In 2013, in an effort to provide an economic boost to certain areas of the state, an additional 10% film production tax credit was created to incentivize filming in certain upstate counties. Since the creation of this additional film credit, other counties have been subsequently added with all counties north of New York City eligible except Rockland and Westchester counties.
The film industry uses a film zone which requires productions outside a 25 mile radius of New York City to pay additional labor rates. These productions outside the film zone (25 miles outside Columbus Circle) are more expensive to film given the additional labor costs and the lack of the additional film credit. There are portions of both Rockland and Westchester counties which are outside the film zone and are not eligi- ble for the additional 10% tax credit; creating a severe disadvantage to areas that receive the additional credit and areas within the film zone. This bill will create parity by incentivizing filming in the areas in Rockland and Westchester that fall outside the 25 mile film zone.
Legislative history
A.8463 of 2017-18
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.