2023 New York Laws › TAX - Tax › Article 1 - Short Title; Definitions; Miscellaneous › 24 - Empire State Film Production Credit.

§  24.  Empire  state  film  production  credit.  (a) (1) Allowance of
credit. A taxpayer which is a qualified film production  company,  or  a
qualified  independent  film  production  company,  or  which  is a sole
proprietor of or a member of a partnership which  is  a  qualified  film
production  company  or a qualified independent film production company,
and which is subject to tax under articles 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 hereinafter provided.
(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 thirty
percent and the qualified production  costs  paid  or  incurred  in  the
production  of  a  qualified  film,  provided  that:  (i)  the qualified
production costs (excluding post  production  costs)  paid  or  incurred
which   are  attributable  to  the  use  of  tangible  property  or  the
performance of services at a qualified film production facility  in  the
production  of  such qualified film equal or exceed seventy-five percent
of the production  costs  (excluding  post  production  costs)  paid  or
incurred  which  are attributable to the use of tangible property or the
performance of services at  any  film  production  facility  within  and
without  the  state  in  the production of such qualified film, and (ii)
except with respect to a qualified independent film  production  company
or  pilot,  at  least  ten  percent  of  the total principal photography
shooting days spent in the production of such  qualified  film  must  be
spent at a qualified film production facility. However, if the qualified
production   costs   (excluding   post   production   costs)  which  are
attributable to the use of  tangible  property  or  the  performance  of
services  at  a  qualified film production facility in the production of
such qualified film is less than three million dollars, then the portion
of the qualified production costs attributable to the  use  of  tangible
property  or  the  performance  of  services  in  the production of such
qualified film outside of a qualified film production facility shall  be
allowed  only  if  the shooting days spent in New York outside of a film
production facility in the production of such qualified  film  equal  or
exceed  seventy-five percent of the total shooting days spent within and
without New York outside of a film production facility in the production
of such qualified film. The credit shall be allowed for the taxable year
in which the production of such qualified film is completed. However, in
the case of a qualified film that receives funds from additional pool 2,
no credit shall be claimed before the later of (1) the taxable year  the
production  of  the  qualified film is complete, or (2) the taxable year
that includes the last day of the allocation year for which the film has
been allocated credit by the department of economic development. 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.
(3)  No  qualified  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.
(4) (i) Notwithstanding the foregoing provisions of this  subdivision,
a  qualified  film  production  company  or  qualified  independent film
production company, that has applied for credit under the provisions  of
this  section, agrees as a condition for the granting of the credit: (A)
to include in each qualified film distributed by DVD, or other media for
the  secondary  market,  a  New  York  promotional video approved by the
governor's office of motion picture and  television  development  or  to
include  in  the  end  credits  of  each qualified film "Filmed With the
Support of the New York State Governor's Office of  Motion  Picture  and
Television  Development" and a logo provided by the governor's office of
motion picture and television development, and (B) to  certify  that  it
will  purchase  taxable  tangible  property  and  services,  defined  as
qualified production costs pursuant to paragraph one of subdivision  (b)
of  this  section,  only  from companies registered to collect and remit
state and local sales and use taxes pursuant  to  articles  twenty-eight
and twenty-nine of this chapter.
(ii) On or after January first, two thousand twenty-three, a qualified
film production company or qualified independent film production company
that  has applied for credit under the provisions of this section shall,
as a condition for the granting of the credit,  file  a  diversity  plan
with the governor's office for motion picture and television development
outlining   specific   goals   for   hiring  a  diverse  workforce.  The
commissioner  of  economic  development  shall  promulgate   regulations
implementing  the requirements of this paragraph, which, notwithstanding
any provisions to the contrary in  the  state  administrative  procedure
act, may be adopted on an emergency basis, to ensure compliance with the
provisions  of  this paragraph. The governor's office for motion picture
and television development  shall  review  each  submitted  plan  as  to
whether  it  meets  the  requirements established by the commissioner of
economic development, and shall verify that the  applicant  has  met  or
made  good-faith  efforts  in  achieving these goals. The diversity plan
also shall indicate whether the qualified  film  production  company  or
qualified  independent  film  production  company  that  has applied for
credit under the provisions of this section intends  to  participate  in
training,  education,  and  recruitment  programs  that  are designed to
promote and encourage the training and hiring in the film and television
industry of New York  residents  who  represent  the  diversity  of  the
State's population.
(5)   For  the  period  two  thousand  fifteen  through  two  thousand
thirty-four,  in  addition  to  the  amount  of  credit  established  in
paragraph  two of this subdivision, a taxpayer shall be allowed a credit
equal to (i) the product (or pro rata share of the product, in the  case
of  a member of a partnership) of ten percent and the wages, salaries or
other compensation constituting qualified production costs as defined in
paragraph two of subdivision (b) of this section,  paid  to  individuals
directly  employed by a qualified film production company or a qualified
independent film production company  for  services  performed  by  those
individuals  in  one  of  the  counties  specified  in this paragraph in
connection with a qualified film with a minimum budget of  five  hundred
thousand  dollars,  and  (ii)  the  product  (or  pro  rata share of the
product, in the case of a member of a partnership) of  ten  percent  and
the  qualified  production  costs  (excluding  wages,  salaries or other
compensation) paid or incurred in the production  of  a  qualified  film
where  the  property  constituting  such  qualified production costs was
used, and the services constituting such qualified production costs were
performed in  any  of  the  counties  specified  in  this  paragraph  in
connection  with  a qualified film with a minimum budget of five hundred
thousand dollars where the majority of  principal  photography  shooting

days  in  the  production  of such film were shot in any of the counties
specified in this paragraph. Provided, however, that the aggregate total
eligible qualified production  costs  constituting  wages,  salaries  or
other  compensation,  for  writers, directors, composers, producers, and
performers shall not exceed forty percent of the aggregate sum total  of
all  other  qualified  production costs. For purposes of the credit, the
services must be performed and the property must be used 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.
(b)  Definitions.  As  used in this section, the following terms shall
have the following meanings:
(1) "Qualified production costs" means production costs  only  to  the
extent  such  costs  are attributable to the use of tangible property or
the performance of services within the state directly and  predominantly
in  the  production  (including pre-production and post production) of a
qualified film. In the case of an eligible relocated television  series,
the term "qualified production costs" shall include, in the first season
that  the  eligible  relocated television series is produced in New York
after relocation, qualified relocation costs.  Provided,  however,  that
the  aggregate  total eligible qualified production costs for producers,
writers, directors, performers (other than  background  actors  with  no
scripted  lines),  and  composers  shall not exceed forty percent of the
aggregate sum total of all other qualified production costs.
(2) "Production costs" means any costs for tangible property used  and
services   performed   directly  and  predominantly  in  the  production
(including pre-production and post  production)  of  a  qualified  film.
"Production  costs"  shall  not include (i) costs for a story, script or
scenario to be used for a qualified film and (ii) wages or  salaries  or
other  compensation  for  writers,  directors, composers, and performers
(other than background actors with no  scripted  lines)  to  the  extent
those  wages  or  salaries  or  other  compensation  exceed five hundred
thousand dollars per individual. "Production  costs"  generally  include
technical  and  crew  production  costs,  such  as expenditures for film
production facilities, or any part  thereof,  props,  makeup,  wardrobe,
film  processing,  camera,  sound recording, set construction, lighting,
shooting, editing and meals, and shall include the  wages,  salaries  or
other compensation of no more than two producers per qualified film, not
to  exceed five hundred thousand dollars per producer, where only one of
whom is the principal individual responsible for overseeing the creative
and managerial process of production of the qualified film and only  one
of  whom  is  the  principal  individual  responsible for the day-to-day
operational management of production of the  qualified  film;  provided,
however,  that such producers are not compensated for any other position
on the qualified film by  a  qualified  film  production  company  or  a
qualified independent film production company for services performed.
(3)  "Qualified  film"  means  a feature-length film, television film,
relocated television production, television pilot or television  series,
regardless  of the medium by means of which the film, pilot or series is
created or conveyed. For the purposes of the  credit  provided  by  this
section only, a "qualified film" whose majority of principal photography
shooting  days  in  the  production  of  the  qualified film are shot in
Westchester, Rockland, Nassau, or Suffolk county or any of the five  New

York City boroughs shall have a minimum budget of one million dollars. A
"qualified  film", whose majority of principal photography shooting days
in the production of the qualified film are shot in any other county  of
the  state  than  those  listed  in  the preceding sentence shall have a
minimum budget of two hundred fifty thousand dollars.  "Qualified  film"
shall  not  include:  (i)  a  documentary  film, news or current affairs
program, interview or talk program, "how-to" (i.e., instructional)  film
or  program,  film  or  program  consisting  primarily of stock footage,
sporting event or sporting program, game show, award ceremony,  film  or
program  intended  primarily  for industrial, corporate or institutional
end-users, fundraising film or program,  daytime  drama  (i.e.,  daytime
"soap  opera"),  commercials,  music videos or "reality" program; (ii) a
production for which records are required under section  2257  of  title
18,  United  States code, to be maintained with respect to any performer
in such production (reporting of books,  films,  etc.  with  respect  to
sexually  explicit  conduct); or (iii) other than a relocated television
production, a television series commonly known as variety entertainment,
variety sketch and variety talk, i.e.,  a  program  with  components  of
improvisational  or scripted content (monologues, sketches, interviews),
either exclusively or in combination with other  entertainment  elements
such  as musical performances, dancing, cooking, crafts, pranks, stunts,
and games and which  may  be  further  defined  in  regulations  of  the
commissioner  of  economic  development. However, a qualified film shall
include a television series as described in subparagraph (iii)  of  this
paragraph  only  if  an  application  for  such  series  has been deemed
conditionally eligible for the tax credit under this  section  prior  to
April  first,  two  thousand  twenty,  such series remains in continuous
production for each season, and an annual application for each season of
such series is continually submitted for such series after April  first,
two  thousand  twenty. A series that changes either or both the title of
the series or the  principal  cast  prior  to  March  thirty-first,  two
thousand  twenty-three,  shall  be  considered  to  remain in continuous
production for each season,  provided  the  series  films  at  the  same
location  as  prior seasons, is produced by the same entity, and retains
at least eighty percent of the staff from the prior season.
(4) "Film production facility" shall mean a building and/or complex of
buildings and their improvements and associated back-lot  facilities  in
which  films  are  or  are  intended  to be regularly produced and which
contain at least one sound stage,  provided,  however,  that  an  armory
owned  by  the state or city of New York located in the city of New York
shall not be considered to be a "film  production  facility"  unless  it
meets  the  criteria  contained in paragraph five of this subdivision or
unless such facility is used by a qualified independent film  production
company.
(5)  "Qualified film production facility" shall mean a film production
facility in the state, which contains at least one sound stage having  a
minimum  of  seven  thousand square feet of contiguous production space,
provided,  however,  that  except  with  respect  to  a  qualified  film
production   facility   being  used  by  a  qualified  independent  film
production company: (i) a film production facility in the  city  of  New
York  must  contain  at  least one sound stage having a minimum of seven
thousand square feet of contiguous production space that is sound  proof
with a Noise Criteria ("NC") of 30 or better, has sufficient heating and
air  conditioning  for shooting without the need for supplemental units,
incorporates a permanent grid and sufficient built-in  electric  service
for  shooting without the need for generators, and is column-free with a
clear height of at least sixteen  feet  under  the  permanent  grid  for
facilities constructed on or after January first, two thousand nineteen,

and  at  least  twelve  feet  under  the  permanent  grid for facilities
constructed before January first, two thousand  nineteen;  and  (ii)  an
armory owned by the state or city of New York located in the city of New
York  that  does  not  satisfy  the criteria of subparagraph (i) of this
paragraph shall be treated as a qualified film production facility  upon
certification  by the governor's office of motion picture and television
development of a petition submitted to that office by a  qualified  film
production  company  establishing  that  no  qualified  film  production
facility is available in the city of  New  York  that  has  stage  space
available  for  shooting  such  company's  film.  Such petition shall be
submitted no later than ninety days prior  to  the  start  of  principal
photography  for  the qualified film and the governor's office of motion
picture and television development shall have ten  days  to  certify  or
reject the petition. A stage will be deemed unavailable if consideration
has  been paid for its use or such stage is currently under an agreement
with an option for use and, in either circumstance, such period  of  use
includes the petitioner's estimated start date of principal photography.
(6) "Qualified film production company" is a corporation, partnership,
limited  partnership,  or  other  entity  or  individual which or who is
principally engaged in the production of a qualified film  and  controls
the qualified film during production.
(7)  "Qualified independent film production company" is a corporation,
partnership, limited partnership, or other entity or individual, that or
who (i) is principally engaged in the production  of  a  qualified  film
with  a maximum budget of fifteen million dollars, and (ii) controls the
qualified film during production, and (iii) either  is  not  a  publicly
traded  entity, or no more than five percent of the beneficial ownership
of which is owned, directly or indirectly, by a publicly traded entity.
(8) "Relocated television production" shall mean, notwithstanding  the
limitations  in subparagraph (i) of paragraph three of this subdivision,
a television production that is a talk or variety program that filmed at
least two seasons outside the state prior to its first relocated  season
in  New  York,  the  episodes are filmed before a studio audience of two
hundred or more, and the relocated television production incurs  (i)  at
least thirty million dollars in annual production costs in the state, or
(ii) at least ten million dollars in capital expenditures at a qualified
production facility in the state.
(9)  "Eligible  relocated  television series" shall mean the first two
years of a regularly occurring production intended to run in its initial
broadcast, regardless of the medium or mode of its  distribution,  in  a
series  of narrative and/or thematically related episodes, each of which
has a running time of at least thirty minutes in  length  (inclusive  of
commercial  advertisement  and  interstitial programming, if any), which
had filmed a minimum of six episodes of the  television  series  outside
the  state  immediately  prior  to  relocating  to  the state, where the
television series had a total minimum budget of  at  least  one  million
dollars  per  episode.  For  the  purposes  of  this  definition only, a
television series produced by and for media services providers described
as  streaming  services  and/or   digital   platforms   (and   excluding
network/cable)  shall  mean a regularly occurring production intended to
run in its initial release in a series of narrative and/or  thematically
related episodes, the aggregate length of which is at least seventy-five
minutes,  although the episodes themselves may vary in duration from the
thirty minutes specified for network/cable production.
(10) "Qualified relocation costs" means the costs incurred,  excluding
wages,  salaries  and  other  compensation,  in the first season that an
eligible relocated television series relocates  to  New  York  including
such  costs  incurred  to transport sets, props and wardrobe to New York

and other costs as determined by the department of economic  development
to the extent such costs do not exceed six million dollars.
(c)  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 20.
(2) article 22: section 606: subsection (gg).
(d) Notwithstanding any  provision  of  this  chapter,  employees  and
officers  of  the  governor's  office  of  motion picture and television
development and the department shall be  allowed  and  are  directed  to
share  and  exchange  information  regarding  the  credits  applied for,
allowed, or claimed pursuant to  this  section  and  taxpayers  who  are
applying  for credits or who are claiming credits, including information
contained in or  derived  from  credit  claim  forms  submitted  to  the
department  and  applications  for  credit  submitted  to the governor's
office of motion picture and television development.
(e) Allocation of credit. (1) The  aggregate  amount  of  tax  credits
allowed  under  this  section,  subdivision  thirty-six  of  section two
hundred ten and subsection (gg) of  section  six  hundred  six  of  this
chapter in any calendar year shall be twenty-five million dollars in two
thousand  four  and  two  thousand  five,  sixty  million dollars in two
thousand six and two thousand seven, sixty-five million dollars  in  two
thousand  eight,  seventy-five  million  dollars  in  two thousand nine,
eighty-five million dollars in two thousand ten, ninety million  dollars
in  two  thousand  eleven  and  two thousand twelve, and one hundred ten
million dollars in two  thousand  thirteen.  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 in any particular year exceeds the aggregate amount  of  tax
credits  allowed  for such year under this section, such excess shall be
treated as having been applied for on the first day  of  the  subsequent
year.
(2)  The  aggregate  amount  of  tax  credits  allowed pursuant to the
authority of subdivision (b) of section twelve  hundred  one-a  of  this
chapter  in  any  calendar  year  shall  be  twelve million five hundred
thousand dollars in two thousand four and two thousand five  and  thirty
million  dollars  in  two thousand six through two thousand eleven. Such
aggregate amount of credits shall be allocated by the mayor's office  of
film,  theater  and  broadcasting  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 in any particular year exceeds the aggregate  amount
of  tax  credits  allowed  for such year under this section, such excess
shall be treated as having been applied for on  the  first  day  of  the
subsequent year.
(3) Additional pool 1 - The aggregate amount of tax credits allowed in
subdivision  (a)  of  this  section  shall be increased by an additional
three  hundred  fifty  million  dollars  in  two  thousand  nine.   This
additional amount shall be allocated by the governor's office for motion
picture  and  television  development among taxpayers in accordance with
subdivision (a) of this section.
* (4) Additional pool 2 - The aggregate amount of tax credits  allowed
in  subdivision  (a) of this section shall be increased by an additional
four hundred twenty  million  dollars  in  each  year  starting  in  two
thousand ten through two thousand twenty-three and seven hundred million
dollars  in  each  year starting in two thousand twenty-four through two
thousand thirty-four, provided however, seven  million  dollars  of  the

annual  allocation  shall  be  available  for the empire state film post
production credit pursuant to section thirty-one of this article in  two
thousand thirteen and two thousand fourteen, twenty-five million dollars
of  the  annual  allocation shall be available for the empire state film
post production credit pursuant to section thirty-one of this article in
each  year  starting  in  two  thousand  fifteen  through  two  thousand
twenty-three,  and  forty-five  million dollars of the annual allocation
shall be available for the empire  state  film  post  production  credit
pursuant  to section thirty-one of this article in each year starting in
two thousand twenty-four through two thousand thirty-four.  This  amount
shall  be  allocated  by  the  department  of economic development among
taxpayers in accordance with subdivision (a) of  this  section.  If  the
commissioner  of  economic  development  determines  that  the aggregate
amount of tax credits available from additional pool 2  for  the  empire
state  film  production  tax  credit have been previously allocated, and
determines that the pending applications from  eligible  applicants  for
the  empire  state  film  post production tax credit pursuant to section
thirty-one of this article is insufficient to  utilize  the  balance  of
unallocated  empire  state  film  post  production tax credits from such
pool, the remainder, after such  pending  applications  are  considered,
shall  be  made  available  for  allocation in the empire state film tax
credit pursuant to this  section,  subdivision  twenty  of  section  two
hundred  ten-B  and  subsection  (gg) of section six hundred six of this
chapter. Also, if the commissioner of  economic  development  determines
that  the aggregate amount of tax credits available from additional pool
2 for the empire  state  film  post  production  tax  credit  have  been
previously  allocated, and determines that the pending applications from
eligible applicants for the empire  state  film  production  tax  credit
pursuant  to  this  section  is  insufficient  to utilize the balance of
unallocated film production tax credits from such pool, then all or part
of the remainder, after such pending applications are considered,  shall
be  made  available  for  allocation  for  the  empire  state  film post
production credit pursuant to this section,  subdivision  thirty-two  of
section two hundred ten-B and subsection (qq) of section six hundred six
of  this  chapter.  The  department  of economic development must notify
taxpayers of their allocation year and include the  allocation  year  on
the certificate of tax credit. Taxpayers eligible to claim a credit must
report   the  allocation  year  directly  on  their  empire  state  film
production credit tax form for each year a credit is claimed and include
a copy of the certificate with their  tax  return.  In  the  case  of  a
qualified  film  that  receives  funds  from additional pool 2 where the
taxpayer filed an initial application before April first,  two  thousand
twenty-three,  no  empire  state film production credit shall be claimed
before the later of (1) the taxable year the production of the qualified
film is complete, or (2) the  taxable  year  immediately  following  the
allocation  year  for  which  the  film has been allocated credit by the
department of economic development. In the case of a qualified film that
receives funds from additional  pool  2  where  the  taxpayer  filed  an
initial  application on or after April first, two thousand twenty-three,
no empire state film production credit shall be claimed before the later
of (1) the  taxable  year  the  production  of  the  qualified  film  is
complete,  or  (2)  the  taxable  year that includes the last day of the
allocation year for which the film has  been  allocated  credit  by  the
department of economic development.
* NB Effective until the first of January next succeeding the date the
department  of  economic  development provides notice to the legislative
bill drafting commission of a determination pursuant to § 7  of  chapter
683 of 2019
* (4)  Additional pool 2 - The aggregate amount of tax credits allowed
in subdivision (a) of this section shall be increased by  an  additional
four  hundred  twenty  million  dollars  in  each  year  starting in two
thousand ten through two thousand twenty-three and seven hundred million
dollars  each  year  starting  in  two  thousand twenty-four through two
thousand thirty-four, provided however, seven  million  dollars  of  the
annual  allocation  shall  be  available  for the empire state film post
production credit pursuant to section thirty-one of this article in  two
thousand thirteen and two thousand fourteen, twenty-five million dollars
of  the  annual  allocation shall be available for the empire state film
post production credit pursuant to section thirty-one of this article in
each  year  starting  in  two  thousand  fifteen  through  two  thousand
twenty-three,  and  forty-five  million dollars of the annual allocation
shall be available for the empire  state  film  post  production  credit
pursuant  to section thirty-one of this article in each year starting in
two thousand twenty-four  through  two  thousand  thirty-four.  Provided
further,  five  million  dollars  of the annual allocation shall be made
available for the television writers' and directors' fees  and  salaries
credit  pursuant  to  section twenty-four-b of this article in each year
starting in two thousand twenty through two thousand  thirty-four.  This
amount  shall  be  allocated  by  the department of economic development
among taxpayers in accordance with subdivision (a) of this  section.  If
the  commissioner  of economic development determines that the aggregate
amount of tax credits available from additional pool 2  for  the  empire
state  film  production  tax  credit have been previously allocated, and
determines that the pending applications from  eligible  applicants  for
the  empire  state  film  post production tax credit pursuant to section
thirty-one of this article is insufficient to  utilize  the  balance  of
unallocated  empire  state  film  post  production tax credits from such
pool, the remainder, after such  pending  applications  are  considered,
shall  be  made  available  for  allocation in the empire state film tax
credit pursuant to this  section,  subdivision  twenty  of  section  two
hundred  ten-B  and  subsection  (gg) of section six hundred six of this
chapter. Also, if the commissioner of  economic  development  determines
that  the aggregate amount of tax credits available from additional pool
2 for the empire  state  film  post  production  tax  credit  have  been
previously  allocated, and determines that the pending applications from
eligible applicants for the empire  state  film  production  tax  credit
pursuant  to  this  section  is  insufficient  to utilize the balance of
unallocated film production tax credits from such pool, then all or part
of the remainder, after such pending applications are considered,  shall
be  made  available  for  allocation  for  the  empire  state  film post
production credit pursuant to this section,  subdivision  thirty-two  of
section two hundred ten-B and subsection (qq) of section six hundred six
of  this  chapter.  The  department  of economic development must notify
taxpayers of their allocation year and include the  allocation  year  on
the certificate of tax credit. Taxpayers eligible to claim a credit must
report   the  allocation  year  directly  on  their  empire  state  film
production credit tax form for each year a credit is claimed and include
a copy of the certificate with their  tax  return.  In  the  case  of  a
qualified  film  that  receives  funds  from additional pool 2 where the
taxpayer filed an initial application before April first,  two  thousand
twenty-three,  no  empire  state film production credit shall be claimed
before the later of (1) the taxable year the production of the qualified
film is complete, or (2) the  taxable  year  immediately  following  the
allocation  year  for  which  the  film has been allocated credit by the
department of economic development. In the case of a qualified film that
receives funds from additional  pool  2  where  the  taxpayer  filed  an

initial  application on or after April first, two thousand twenty-three,
no empire state film production credit shall be claimed before the later
of (1) the  taxable  year  the  production  of  the  qualified  film  is
complete,  or  (2)  the  taxable  year that includes the last day of the
allocation year for which the film has  been  allocated  credit  by  the
department of economic development.
* NB  Effective  on  the first of January next succeeding the date the
department of economic development provides notice  to  the  legislative
bill  drafting  commission of a determination pursuant to § 7 of chapter
683 of 2019
(f) (1) 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. Provided, however,  for  certificates  of
tax  credit issued on or after January first, two thousand twenty-three,
the amount of credit shall be reduced by one-half of one percent allowed
to the taxpayer.
(2) By January thirty-first of each year, the commissioner of economic
development shall report to the comptroller the  total  amount  of  such
reductions of tax credit during the immediately preceding calendar year.
On  or  before  March  thirty-first  of each year, the comptroller shall
transfer without appropriations from the  general  fund  to  the  empire
state  entertainment diversity job training development fund established
under section ninety-seven-ff of the state finance law an  amount  equal
to  the  total amount of such reductions reported by the commissioner of
economic development for the immediately preceding calendar year.
(3) Notwithstanding paragraph two of this subdivision,  the  following
provisions  shall  apply with respect to reductions of tax credit in two
thousand twenty. (i) The  commissioner  of  economic  development  shall
report  to  the comptroller by June first, two thousand twenty the total
amount of such reductions of tax credit during  the  period  of  January
first,  two  thousand twenty through May fifteenth, two thousand twenty.
On or before July first, two  thousand  twenty,  the  comptroller  shall
transfer  without  appropriations  from  the  general fund to the empire
state entertainment diversity job training development  fund  an  amount
equal   to   the  total  amount  of  such  reductions  reported  by  the
commissioner of economic development for the period  of  January  first,
two  thousand twenty through May fifteenth, two thousand twenty. (ii) By
January thirty-first,  two  thousand  twenty-one,  the  commissioner  of
economic development shall report to the comptroller the total amount of
such  reductions  of  tax credit during the period of May sixteenth, two
thousand twenty through December thirty-first, two thousand  twenty.  On
or  before  March thirty-first, two thousand twenty-one, the comptroller
shall transfer without appropriations  from  the  general  fund  to  the
empire  state  entertainment  diversity job training development fund an
amount equal to the total amount of  such  reductions  reported  by  the
commissioner  of  economic  development for the period of May sixteenth,
two thousand twenty through December thirty-first, two thousand twenty.