NY Tax L § 31-2 (2021)
2021 New York Laws TAX - Tax Article 1 - Short Title; Definitions; Miscellaneous 31*2 - Empire State Film Post Production Credit.

* §  31.  Empire  state  film post production credit. (a) Allowance of credit. (1) A taxpayer which is a qualified film production company, and which is subject to tax under  article  nine-A  or  twenty-two  of  this chapter,  unless  eligible  for  the credit under section twenty-four of this article with respect to the qualified  film,  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 subdivision.  (2)  The  amount of the credit shall be the product (or pro rata share of the product, in the case of a member of a partnership) of twenty-five percent and the qualified post production costs paid in  the  production of  a  qualified  film  at  a qualified post production facility located within the metropolitan commuter transportation district as  defined  in section twelve hundred sixty-two of the public authorities law or thirty percent  and  the qualified post production costs paid in the production of a qualified film at a  qualified  post  production  facility  located elsewhere in the state.  (3) (i) A taxpayer shall not be eligible for the credit established by this  section  for  qualified post production costs, excluding the costs for visual effects and animation, unless the qualified  post  production costs,  excluding  the  costs  for  visual  effects  and animation, at a qualified post production facility meet or exceed  seventy-five  percent of  the  total  post  production  costs,  excluding the costs for visual effects and animation, paid or incurred in the post  production  of  the qualified  film  at  any post production facility. (ii) A taxpayer shall not be eligible for the credit established by this section for qualified post production costs which are costs for visual  effects  or  animation unless  the  qualified  post  production  costs  for  visual  effects or animation at a qualified post production facility meet or  exceed  three million dollars or twenty percent of the total post production costs for visual effects or animation paid or incurred in the post production of a qualified film at any post production facility, whichever is less. (iii) A  taxpayer  may  claim  a  credit  for  qualified post production costs excluding the costs for visual effects and animation, and for  qualified post production costs of visual effects and animation, provided that the criteria  in  subparagraphs  (i)  and  (ii)  of  this paragraph are both satisfied. The credit shall be allowed for the taxable year in which the production of such qualified film is completed.  (4) No qualified post production costs used by a  taxpayer  either  as the  basis  for  the  allowance  of  the  credit provided for under this section or used in the calculation of the credit provided for under this section shall be used by such taxpayer to claim any other credit allowed pursuant to this chapter.  (5) If the amount of the credit is at least one  million  dollars  but less  than  five million dollars, the credit shall be claimed over a two year period beginning in the first taxable year in which the credit  may be claimed and in the next succeeding taxable year, with one-half of the amount  of  credit  allowed being claimed in each year. If the amount of the credit is at least five million dollars, the credit shall be claimed over a three year period beginning in the first taxable  year  in  which the  credit may be claimed and in the next two succeeding taxable years, with one-third of the amount of the credit allowed being claimed in each year.  (6)  For  the  period  two  thousand  fifteen  through  two   thousand twenty-six, 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) for services performed by those  individuals in one of the counties specified in this paragraph in connection with the post production work on  a  qualified  film  with  a minimum  budget  of  five  hundred  thousand dollars at a qualified post production facility in one of the counties listed in this paragraph. For purposes of this additional credit, the services must  be  performed  in one  or  more  of  the  following  counties:  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,  Washington,  Wayne,  Wyoming,  or Yates. 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-six  of   the   annual allocation  made  available  to  the  empire  state film post production credit  pursuant  to  paragraph  four  of  subdivision  (e)  of  section twenty-four  of  this article. 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 post 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 for two thousand  seventeen  made  available  to  the  empire  state  film  post production  credit  pursuant  to  paragraph  four  of subdivision (e) of section twenty-four of this article. 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 twenty-four  of  this article  exceed  five  million dollars in any year during the period two thousand fifteen through two thousand twenty-six.  (b) Definitions. As used in this section  the  following  terms  shall have the following meanings:  (1)  "Qualified  film  production  company" and "qualified film" shall have the  same  meaning  as  are  ascribed  to  such  terms  by  section twenty-four of this article.  (2) "Post production costs" means production of original content for a qualified   film   employing  traditional,  emerging  and  new  workflow techniques  used  in  post-production  for  picture,  sound  and   music editorial,  rerecording  and  mixing,  visual  effects,  graphic design, original scoring, animation, and  musical  composition;  but  shall  not include the editing of previously produced content for a qualified film.  (3)  "Post  production  facility"  means  a building and/or complex of buildings and their improvements on which film are intended to  be  post produced.  (4)  "Qualified  post  production  facility"  means  a post production facility located in the state, engaged in finishing a qualified film.  (c) Notwithstanding any other provision of law to  the  contrary,  the aggregate  amount  of tax credits available under this section shall not exceed the amounts allowed pursuant to paragraph four of subdivision (e)  of section twenty-four of this article and shall  be  allocated  in  the same  manner  as  provided  for  in  paragraph one of subdivision (e) of section twenty-four of this article.  (d)  Cross-references.  For  application of the credit provided for in this section, see the following provisions of this chapter:  (1) article 9-A: section 210-B: subdivision 32.  (2) article 22: section 606: subsection (qq).  (e) With regard to certificates of  tax  credit  issued  on  or  after January  first,  two  thousand  twenty,  the  commissioner  of  economic development shall reduce by one-quarter of one  percent  the  amount  of credit  allowed  to a taxpayer and this reduced amount shall be reported on a certificate of tax credit issued pursuant to this section  and  the regulations  promulgated  by the commissioner of economic development to implement this credit program. Such reductions in tax  credit  shall  be deposited  into  the  empire  state entertainment diversity job training development fund as provided in subdivision (f) of  section  twenty-four of this article.   * NB There are 2 § 31's