New York Codes, Rules and Regulations › Title 5 - DEPARTMENT OF ECONOMIC DEVELOPMENT › Chapter XXIII - EMPIRE STATE POST PRODUCTION TAX CREDIT PROGRAM › Part 230 - EMPIRE STATE POST PRODUCTION TAX CREDIT PROGRAM › Section 230.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
As used in this Part, the following terms shall have the
				  following meanings:
(a)
Authorized applicant
means a qualified film production company
				that is scheduled to begin post production on a qualified film no more than 180
				days after submitting an initial application to the department.
(b)
Certificate of conditional
				eligibility
means a certificate issued by the department which states
				that the authorized applicant has met the criteria set forth in section
				230.6(a) of this
				Part and is being considered for the Empire State Post Production Tax Credit,
				pending successful completion and approval of the final application. Such
				certificate shall include, but not be limited to, the following information:
				name and address of the authorized applicant, effective date, taxpayer
				identification number, a statement that the initial application meets the
				criteria for conditional eligibility under section
				230.6(a)(1)-(9) of
				this Part and a disclaimer stating that actual receipt of the tax credit is
				subject to completion and approval of the final application.
(c)
Certificate of tax
				credit
means a certificate issued by the Department which states the
				amount of the Empire State Post Production Tax Credit that an approved
				applicant has qualified for based on the Department's analysis under section
				thirty one of the Tax Law and the provisions
				of this Part. Such certificate shall include, but not be limited to, the
				following information: name and address of the approved applicant, name of the
				qualified film to which the credit applies, the amount of the tax credit to be
				received by the approved applicant, allocation year of the tax credit earned, a
				disclaimer stating the credit shall be allowed for the taxable year in which
				the production of such qualified film is completed and a disclaimer stating
				that actual receipt of the tax credit is subject to the statutory maximum
				amount of credits that are allocated for the program.
(d)
Commissioner
means the
				Commissioner of the New York State Department of Economic
				Development.
(e)
Completeness of the application
means that all questions on
				the application itself are fully addressed by the applicant and that any
				additional substantiating documents that are requested by the department are
				provided.
(f)
Completion of
				a qualified film
means that the process of post production of a
				qualified film has been finished and a cut negative, video master or other
				final locked form of the qualified film is ready for the striking of prints or
				electronic copies, and/or ready for broadcast or delivery to a distributor. All
				activities and expenses related to marketing and distribution, including, but
				not limited to, the making of release prints, video dupes or other forms of
				copies, promotional images, and poster art are considered to occur after the
				production of a qualified film is completed.
(g)
Department
means the New
				York State Department of Economic Development.
(h)
End credit requirements
means that a qualified film production company that has applied for credit
				under the provisions of this Part agrees, as a condition for the granting of
				the credit, either to include in the end credits of each qualified film the
				phrase "This Production Participated in the New York State Governor's Office
				for Motion Picture & Television Development's Post Production Credit
				Program" and a logo provided by the Governor's Office of Motion Picture and
				Television Development or 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.
(i)
Feature-length film
means a production intended for commercial
				distribution to a motion picture theater or directly to the consumer viewing
				market that has a running time of at least 75 minutes in length.
(j)
Final application
means
				a document created by the department and submitted by an applicant after it has
				completed post production of a qualified film which contains information
				concerning actual post production expenditures regarding a qualified film that
				could make it eligible for the Empire State Post Production Tax Credit under
				section 31 of the Tax Law and
				the provisions of this Part. Such application shall include, but not be limited
				to: actual data with regard to the qualified film's total post production
				budget, the total post production costs at post production facilities in and
				outside of New York and any other information the department determines is
				necessary.
(k)
Initial
				application
means a document created by the department and submitted
				by an authorized applicant which contains information concerning projected post
				production expenditures regarding a qualified film that could make it eligible
				for the Empire State Post Production Tax Credit under section
				31 of the Tax Law and the provisions of this
				Part. Such application shall include, but is not limited to, the following
				information: the estimated total post production budget for the qualified film,
				estimates of post production expenditures at qualifying post production
				facilities, estimates of post production expenditures in New York State and
				outside of New York State and any other information the department determines
				is necessary.
(l)
Principally engaged in the production and post production of a
				qualified film and controls the qualified film during production and post
				production
means that the legal entity is responsible for payment of
				the direct production expenses (including pre- and post-production) and is a
				signatory to the qualified film's contracts with its payroll company, post
				production facility operators and all vendors.
(m)
Post production costs
means costs for 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 or
				the salary of music composers. Post production costs shall not include:
(1) costs for a story, script or scenario to
				be used for a qualified film;
(2)
				licensing or rights associated with the production of a qualified film;
				and
(3) wages or salaries or other
				compensation for writers, directors, including music directors, producers and
				performers (other than background actors with no scripted lines).