N.Y. Tax Law § 24 — Empire state film production credit

§ 24. Empire state film production credit. (a) (1) Allowance of\ncredit. A taxpayer which is a qualified film production company, or a\nqualified independent film production company, or which is a sole\nproprietor of or a member of a partnership which is a qualified film\nproduction company or a qualified independent film production company,\nand which is subject to tax under articles nine-A or twenty-two of this\nchapter, shall be allowed a credit against such tax, pursuant to the\nprovisions referenced in subdivision (c) of this section, to be computed\nas hereinafter provided.\n (2) The amount of the credit shall be the product (or pro rata share\nof the product, in the case of a member of a partnership) of thirty\npercent and the qualified production costs paid or incurred in the\nproduction of a qualified film, provided that: (i) the qualified\nproduction costs (excluding post production costs) paid or incurred\nwhich are attributable to the use of tangible property or the\nperformance of services at a qualified film production facility in the\nproduction of such qualified film equal or exceed seventy-five percent\nof the production costs (excluding post production costs) paid or\nincurred which are attributable to the use of tangible property or the\nperformance of services at any film production facility within and\nwithout the state in the production of such qualified film, (ii) except\nwith respect to a qualified independent film production company or\npilot, at least ten percent of the total principal photography shooting\ndays spent in the production of such qualified film must be spent at a\nqualified film production facility, and (iii) qualified production costs\nthat are attributable to scoring shall be eligible for an additional ten\npercent credit on such scoring costs when incurred within the state and\nwhen such scoring costs include payment to a minimum of five musicians.\nHowever, if the qualified production costs (excluding post production\ncosts) which are attributable to the use of tangible property or the\nperformance of services at a qualified film production facility in the\nproduction of such qualified film is less than three million dollars,\nthen the portion of the qualified production costs attributable to the\nuse of tangible property or the performance of services in the\nproduction of such qualified film outside of a qualified film production\nfacility shall be allowed only if the shooting days spent in New York\noutside of a film production facility in the production of such\nqualified film equal or exceed seventy-five percent of the total\nshooting days spent within and without New York outside of a film\nproduction facility in the production of such qualified film. The credit\nshall be allowed for the taxable year in which the production of such\nqualified film is completed. However, in the case of a qualified film\nthat receives funds from additional pool 2, no credit shall be claimed\nbefore the later of (1) the taxable year the production of the qualified\nfilm is complete, or (2) the taxable year that includes the last day of\nthe allocation year for which the film has been allocated credit by the\ndepartment of economic development. If the amount of the credit is at\nleast one million dollars but less than five million dollars, the credit\nshall be claimed over a two year period beginning in the first taxable\nyear in which the credit may be claimed and in the next succeeding\ntaxable year, with one-half of the amount of credit allowed being\nclaimed in each year. If the amount of the credit is at least five\nmillion dollars, the credit shall be claimed over a three year period\nbeginning in the first taxable year in which the credit may be claimed\nand in the next two succeeding taxable years, with one-third of the\namount of the credit allowed being claimed in each year. Provided,\nhowever, in the case of a qualified film for which the credit\napplication was received on or after January first, two thousand\ntwenty-five, the credit shall be claimed in the taxable year that\nincludes the last day of the allocation year for which the film has been\nallocated a credit by the department of economic development.\n (3) No qualified production costs used by a taxpayer either as the\nbasis for the allowance of the credit provided for under this section or\nused in the calculation of the credit provided for under this section\nshall be used by such taxpayer to claim any other credit allowed\npursuant to this chapter.\n (4) (i) Notwithstanding the foregoing provisions of this subdivision,\na qualified film production company or qualified independent film\nproduction company, that has applied for credit under the provisions of\nthis section, agrees as a condition for the granting of the credit: (A)\nto include in each qualified film distributed by DVD, or other media for\nthe secondary market, a New York promotional video approved by the\ngovernor's office of motion picture and television development or to\ninclude in the end credits of each qualified film "Filmed With the\nSupport of the New York State Governor's Office of Motion Picture and\nTelevision Development" and a logo provided by the governor's office of\nmotion picture and television development, and (B) to certify that it\nwill purchase taxable tangible property and services, defined as\nqualified production costs pursuant to paragraph one of subdivision (b)\nof this section, only from companies registered to collect and remit\nstate and local sales and use taxes pursuant to articles twenty-eight\nand twenty-nine of this chapter.\n (ii) On or after January first, two thousand twenty-three, a qualified\nfilm production company or qualified independent film production company\nthat has applied for credit under the provisions of this section shall,\nas a condition for the granting of the credit, file a diversity plan\nwith the governor's office for motion picture and television development\noutlining specific goals for hiring a diverse workforce. The\ncommissioner of economic development shall promulgate regulations\nimplementing the requirements of this paragraph, which, notwithstanding\nany provisions to the contrary in the state administrative procedure\nact, may be adopted on an emergency basis, to ensure compliance with the\nprovisions of this paragraph. The governor's office for motion picture\nand television development shall review each submitted plan as to\nwhether it meets the requirements established by the commissioner of\neconomic development, and shall verify that the applicant has met or\nmade good-faith efforts in achieving these goals. The diversity plan\nalso shall indicate whether the qualified film production company or\nqualified independent film production company that has applied for\ncredit under the provisions of this section intends to participate in\ntraining, education, and recruitment programs that are designed to\npromote and encourage the training and hiring in the film and television\nindustry of New York residents who represent the diversity of the\nState's population.\n (5) For the period two thousand fifteen through two thousand\nthirty-six, in addition to the amount of credit established in paragraph\ntwo of this subdivision, a taxpayer shall be allowed a credit equal to\n(i) the product (or pro rata share of the product, in the case of a\nmember of a partnership) of ten percent and the wages, salaries or other\ncompensation constituting qualified production costs as defined in\nparagraph two of subdivision (b) of this section, paid to individuals\ndirectly employed by a qualified film production company or a qualified\nindependent film production company for services performed by those\nindividuals in one of the counties specified in this paragraph in\nconnection with a qualified film with a minimum budget of five hundred\nthousand dollars, and (ii) the product (or pro rata share of the\nproduct, in the case of a member of a partnership) of ten percent and\nthe qualified production costs (excluding wages, salaries or other\ncompensation) paid or incurred in the production of a qualified film\nwhere the property constituting such qualified production costs was\nused, and the services constituting such qualified production costs were\nperformed in any of the counties specified in this paragraph in\nconnection with a qualified film with a minimum budget of five hundred\nthousand dollars where the majority of principal photography shooting\ndays in the production of such film were shot in any of the counties\nspecified in this paragraph. Provided, however, that the aggregate total\neligible qualified production costs constituting wages, salaries or\nother compensation, for writers, directors, composers, producers, and\nperformers shall not exceed forty percent of the aggregate sum total of\nall other qualified production costs. For purposes of the credit, the\nservices must be performed and the property must be used in one or more\nof the following counties: Albany, Allegany, Broome, Cattaraugus,\nCayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland,\nDelaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene,\nHamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe,\nMontgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego,\nOtsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler,\nSeneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, Ulster,\nWarren, Washington, Wayne, Wyoming, or Yates.\n (6) Production plus program. (i) A qualified independent film\nproduction company or a qualified film production company, or a company\nthat is a majority owner of one or more qualified film production\ncompanies or qualified independent film production companies, may apply\nto participate in the production plus program after it, or qualified\nfilm production companies or qualified independent film production\ncompanies of which it is the majority owner, has submitted two or more\ninitial applications to the empire state film production tax credit\nprogram after January first, two thousand twenty-five.\n (ii) A qualified film production company or qualified independent film\nproduction company that has been accepted into the production plus\nprogram, or is majority-owned by a company that has been accepted into\nthe production plus program, may be eligible to receive an additional\ntax credit equal to the product of ten percent and the qualified\nproduction costs in New York state if program acceptance was based on\ninitial applications, the sum of which totaled at least one hundred\nmillion dollars in qualified production costs in New York state.\n (iii) A qualified independent film production company that has been\naccepted into the production plus program, or is majority-owned by a\ncompany that has been accepted into the production plus program, that is\nengaging in the production of a feature length film, television film or\ntelevision series as defined in the regulations promulgated for this\nprogram, may receive an additional tax credit equal to the product of\nfive percent and the qualified production costs incurred on all\nsubsequent films or series applied for if program acceptance was based\non initial applications the sum of which totaled at least twenty million\ndollars in qualified production costs in New York state.\n (iv) Initial applications for feature length films and new television\nseries submitted after December thirty-first, two thousand twenty-eight\nshall not be eligible for the program pursuant to this paragraph;\nprovided, however, a television series that enters the program pursuant\nto this paragraph before January first, two thousand twenty-nine shall\ncontinue to be eligible.\n (b) Definitions. As used in this section, the following terms shall\nhave the following meanings:\n (1) "Qualified production costs" means production costs only to the\nextent such costs are attributable to the use of tangible property or\nthe performance of services within the state directly and predominantly\nin the production (including pre-production and post production) of a\nqualified film. In the case of an eligible relocated television series,\nthe term "qualified production costs" shall include, in the first season\nthat the eligible relocated television series is produced in New York\nafter relocation, qualified relocation costs. Provided, however, that\nthe aggregate total eligible qualified production costs for producers,\nwriters, directors, performers (other than background actors with no\nscripted lines), and composers shall not exceed forty percent of the\naggregate sum total of all other qualified production costs.\n (2) "Production costs" means any costs for tangible property used and\nservices performed directly and predominantly in the production\n(including pre-production and post production) of a qualified film.\n"Production costs" shall not include costs for a story, script or\nscenario to be used for a qualified film. "Production costs" generally\ninclude the wages or salaries or other compensation for writers,\ndirectors, composers and performers, technical and crew production\ncosts, such as expenditures for film production facilities, or any part\nthereof, props, makeup, wardrobe, film processing, camera, sound\nrecording, set construction, lighting, shooting, editing and meals, and\nshall include the wages, salaries or other compensation of no more than\ntwo producers per qualified film.\n (3) "Qualified film" means a feature-length film, television film,\nrelocated television production, television pilot or television series,\nregardless of the medium by means of which the film, pilot or series is\ncreated or conveyed. For the purposes of the credit provided by this\nsection only, a "qualified film" whose majority of principal photography\nshooting days in the production of the qualified film are shot in\nWestchester, Rockland, Nassau, or Suffolk county or any of the five New\nYork City boroughs shall have a minimum budget of one million dollars. A\n"qualified film", whose majority of principal photography shooting days\nin the production of the qualified film are shot in any other county of\nthe state than those listed in the preceding sentence shall have a\nminimum budget of two hundred fifty thousand dollars. "Qualified film"\nshall not include: (i) a documentary film, news or current affairs\nprogram, interview or talk program, "how-to" (i.e., instructional) film\nor program, film or program consisting primarily of stock footage,\nsporting event or sporting program, game show, award ceremony, film or\nprogram intended primarily for industrial, corporate or institutional\nend-users, fundraising film or program, daytime drama (i.e., daytime\n"soap opera"), commercials, music videos or "reality" program; (ii) a\nproduction for which records are required under section 2257 of title\n18, United States code, to be maintained with respect to any performer\nin such production (reporting of books, films, etc. with respect to\nsexually explicit conduct); or (iii) other than a relocated television\nproduction, a television series commonly known as variety entertainment,\nvariety sketch and variety talk, i.e., a program with components of\nimprovisational or scripted content (monologues, sketches, interviews),\neither exclusively or in combination with other entertainment elements\nsuch as musical performances, dancing, cooking, crafts, pranks, stunts,\nand games and which may be further defined in regulations of the\ncommissioner of economic development. However, a qualified film shall\ninclude a television series as described in subparagraph (iii) of this\nparagraph only if an application for such series has been deemed\nconditionally eligible for the tax credit under this section prior to\nApril first, two thousand twenty, such series remains in continuous\nproduction for each season, and an annual application for each season of\nsuch series is continually submitted for such series after April first,\ntwo thousand twenty. A series that changes either or both the title of\nthe series or the principal cast prior to March thirty-first, two\nthousand twenty-three, shall be considered to remain in continuous\nproduction for each season, provided the series films at the same\nlocation as prior seasons, is produced by the same entity, and retains\nat least eighty percent of the staff from the prior season.\n (4) "Film production facility" shall mean a building and/or complex of\nbuildings and their improvements and associated back-lot facilities in\nwhich films are or are intended to be regularly produced and which\ncontain at least one sound stage, provided, however, that an armory\nowned by the state or city of New York located in the city of New York\nshall not be considered to be a "film production facility" unless it\nmeets the criteria contained in paragraph five of this subdivision or\nunless such facility is used by a qualified independent film production\ncompany.\n (5) "Qualified film production facility" shall mean a film production\nfacility in the state, which contains at least one sound stage having a\nminimum of seven thousand square feet of contiguous production space,\nprovided, however, that except with respect to a qualified film\nproduction facility being used by a qualified independent film\nproduction company: (i) a film production facility in the city of New\nYork must contain at least one sound stage having a minimum of seven\nthousand square feet of contiguous production space that is sound proof\nwith a Noise Criteria ("NC") of 30 or better, has sufficient heating and\nair conditioning for shooting without the need for supplemental units,\nincorporates a permanent grid and sufficient built-in electric service\nfor shooting without the need for generators, and is column-free with a\nclear height of at least sixteen feet under the permanent grid for\nfacilities constructed on or after January first, two thousand nineteen,\nand at least twelve feet under the permanent grid for facilities\nconstructed before January first, two thousand nineteen; and (ii) an\narmory owned by the state or city of New York located in the city of New\nYork that does not satisfy the criteria of subparagraph (i) of this\nparagraph shall be treated as a qualified film production facility upon\ncertification by the governor's office of motion picture and television\ndevelopment of a petition submitted to that office by a qualified film\nproduction company establishing that no qualified film production\nfacility is available in the city of New York that has stage space\navailable for shooting such company's film. Such petition shall be\nsubmitted no later than ninety days prior to the start of principal\nphotography for the qualified film and the governor's office of motion\npicture and television development shall have ten days to certify or\nreject the petition. A stage will be deemed unavailable if consideration\nhas been paid for its use or such stage is currently under an agreement\nwith an option for use and, in either circumstance, such period of use\nincludes the petitioner's estimated start date of principal photography.\n (6) "Qualified film production company" is a corporation, partnership,\nlimited partnership, or other entity or individual which or who is\nprincipally engaged in the production of a qualified film and controls\nthe qualified film during production.\n (7) "Qualified independent film production company" is a corporation,\npartnership, limited partnership, or other entity or individual, that or\nwho (i) is principally engaged in the production of a qualified film,\n(ii) is not publicly traded, and (iii) is not majority owned, fifty-one\npercent or more, by a company publicly traded on a United States stock\nexchange.\n (8) "Relocated television production" shall mean, notwithstanding the\nlimitations in subparagraph (i) of paragraph three of this subdivision,\na television production that is a talk or variety program that filmed at\nleast two seasons outside the state prior to its first relocated season\nin New York, the episodes are filmed before a studio audience of two\nhundred or more, and the relocated television production incurs (i) at\nleast thirty million dollars in annual production costs in the state, or\n(ii) at least ten million dollars in capital expenditures at a qualified\nproduction facility in the state.\n (9) "Eligible relocated television series" shall mean the first two\nyears of a regularly occurring production intended to run in its initial\nbroadcast, regardless of the medium or mode of its distribution, in a\nseries of narrative and/or thematically related episodes, each of which\nhas a running time of at least thirty minutes in length (inclusive of\ncommercial advertisement and interstitial programming, if any), which\nhad filmed a minimum of six episodes of the television series outside\nthe state immediately prior to relocating to the state, where the\ntelevision series had a total minimum budget of at least one million\ndollars per episode. For the purposes of this definition only, a\ntelevision series produced by and for media services providers described\nas streaming services and/or digital platforms (and excluding\nnetwork/cable) shall mean a regularly occurring production intended to\nrun in its initial release in a series of narrative and/or thematically\nrelated episodes, the aggregate length of which is at least seventy-five\nminutes, although the episodes themselves may vary in duration from the\nthirty minutes specified for network/cable production.\n (10) "Qualified relocation costs" means the costs incurred, excluding\nwages, salaries and other compensation, in the first season that an\neligible relocated television series relocates to New York including\nsuch costs incurred to transport sets, props and wardrobe to New York\nand other costs as determined by the department of economic development\nto the extent such costs do not exceed six million dollars.\n (c) Cross-references. For application of the credit provided for in\nthis section, see the following provisions of this chapter:\n (1) article 9-A: section 210-B: subdivision 20.\n (2) article 22: section 606: subsection (gg).\n (d) Notwithstanding any provision of this chapter, employees and\nofficers of the governor's office of motion picture and television\ndevelopment and the department shall be allowed and are directed to\nshare and exchange information regarding the credits applied for,\nallowed, or claimed pursuant to this section and taxpayers who are\napplying for credits or who are claiming credits, including information\ncontained in or derived from credit claim forms submitted to the\ndepartment and applications for credit submitted to the governor's\noffice of motion picture and television development.\n (e) Allocation of credit. (1) The aggregate amount of tax credits\nallowed under this section, subdivision thirty-six of section two\nhundred ten and subsection (gg) of section six hundred six of this\nchapter in any calendar year shall be twenty-five million dollars in two\nthousand four and two thousand five, sixty million dollars in two\nthousand six and two thousand seven, sixty-five million dollars in two\nthousand eight, seventy-five million dollars in two thousand nine,\neighty-five million dollars in two thousand ten, ninety million dollars\nin two thousand eleven and two thousand twelve, and one hundred ten\nmillion dollars in two thousand thirteen. Such aggregate amount of\ncredits shall be allocated by the governor's office for motion picture\nand television development among taxpayers in order of priority based\nupon the date of filing an application for allocation of film production\ncredit with such office. If the total amount of allocated credits\napplied for in any particular year exceeds the aggregate amount of tax\ncredits allowed for such year under this section, such excess shall be\ntreated as having been applied for on the first day of the subsequent\nyear.\n (2) The aggregate amount of tax credits allowed pursuant to the\nauthority of subdivision (b) of section twelve hundred one-a of this\nchapter in any calendar year shall be twelve million five hundred\nthousand dollars in two thousand four and two thousand five and thirty\nmillion dollars in two thousand six through two thousand eleven. Such\naggregate amount of credits shall be allocated by the mayor's office of\nfilm, theater and broadcasting among taxpayers in order of priority\nbased upon the date of filing an application for allocation of film\nproduction credit with such office. If the total amount of allocated\ncredits applied for in any particular year exceeds the aggregate amount\nof tax credits allowed for such year under this section, such excess\nshall be treated as having been applied for on the first day of the\nsubsequent year.\n (3) Additional pool 1 - The aggregate amount of tax credits allowed in\nsubdivision (a) of this section shall be increased by an additional\nthree hundred fifty million dollars in two thousand nine. This\nadditional amount shall be allocated by the governor's office for motion\npicture and television development among taxpayers in accordance with\nsubdivision (a) of this section.\n * (4) Additional pool 2 - The aggregate amount of tax credits allowed\nin subdivision (a) of this section shall be increased by an additional\nfour hundred twenty million dollars in each year starting in two\nthousand ten through two thousand twenty-three and seven hundred million\ndollars each year starting in two thousand twenty-four through two\nthousand thirty-six, provided however, seven million dollars of the\nannual allocation shall be available for the empire state film post\nproduction credit pursuant to section thirty-one of this article in two\nthousand thirteen and two thousand fourteen, twenty-five million dollars\nof the annual allocation shall be available for the empire state film\npost production credit pursuant to section thirty-one of this article in\neach year starting in two thousand fifteen through two thousand\ntwenty-three, and forty-five million dollars of the annual allocation\nshall be available for the empire state film post production credit\npursuant to section thirty-one of this article in each year starting in\ntwo thousand twenty-four through two thousand thirty-six. This amount\nshall be allocated by the department of economic development among\ntaxpayers in accordance with subdivision (a) of this section. If the\ncommissioner of economic development determines that the aggregate\namount of tax credits available from additional pool 2 for the empire\nstate film production tax credit have been previously allocated, and\ndetermines that the pending applications from eligible applicants for\nthe empire state film post production tax credit pursuant to section\nthirty-one of this article is insufficient to utilize the balance of\nunallocated empire state film post production tax credits from such\npool, the remainder, after such pending applications are considered,\nshall be made available for allocation in the empire state film tax\ncredit pursuant to this section, subdivision twenty of section two\nhundred ten-B and subsection (gg) of section six hundred six of this\nchapter. Also, if the commissioner of economic development determines\nthat the aggregate amount of tax credits available from additional pool\n2 for the empire state film post production tax credit have been\npreviously allocated, and determines that the pending applications from\neligible applicants for the empire state film production tax credit\npursuant to this section is insufficient to utilize the balance of\nunallocated film production tax credits from such pool, then all or part\nof the remainder, after such pending applications are considered, shall\nbe made available for allocation for the empire state film post\nproduction credit pursuant to this section, subdivision thirty-two of\nsection two hundred ten-B and subsection (qq) of section six hundred six\nof this chapter. The department of economic development must notify\ntaxpayers of their allocation year and include the allocation year on\nthe certificate of tax credit. Taxpayers eligible to claim a credit must\nreport the allocation year directly on their empire state film\nproduction credit tax form for each year a credit is claimed and include\na copy of the certificate with their tax return. In the case of a\nqualified film that receives funds from additional pool 2 where the\ntaxpayer filed an initial application before April first, two thousand\ntwenty-three, no empire state film production credit shall be claimed\nbefore the later of (1) the taxable year the production of the qualified\nfilm is complete, or (2) the taxable year immediately following the\nallocation year for which the film has been allocated credit by the\ndepartment of economic development. In the case of a qualified film that\nreceives funds from additional pool 2 where the taxpayer filed an\ninitial application on or after April first, two thousand twenty-three\nand before January first, two thousand twenty-five, no empire state film\nproduction credit shall be claimed before the later of (1) the taxable\nyear the production of the qualified film is complete, or (2) the\ntaxable year that includes the last day of the allocation year for which\nthe film has been allocated credit by the department of economic\ndevelopment. Provided, however, in the case of a qualified film for\nwhich the credit application was received on or after January first, two\nthousand twenty-five, the credit shall be claimed in the taxable year\nthat includes the last day of the allocation year for which the film has\nbeen allocated a credit by the department of economic development.\n * NB Effective until the first of January next succeeding the date the\ndepartment of economic development provides notice to the legislative\nbill drafting commission of a determination pursuant to § 7 of chapter\n683 of 2019\n * (4) Additional pool 2 - The aggregate amount of tax credits allowed\nin subdivision (a) of this section shall be increased by an additional\nfour hundred twenty million dollars in each year starting in two\nthousand ten through two thousand twenty-three and seven hundred million\ndollars in each year starting in two thousand twenty-four through two\nthousand thirty-six, provided however, seven million dollars of the\nannual allocation shall be available for the empire state film post\nproduction credit pursuant to section thirty-one of this article in two\nthousand thirteen and two thousand fourteen, twenty-five million dollars\nof the annual allocation shall be available for the empire state film\npost production credit pursuant to section thirty-one of this article in\neach year starting in two thousand fifteen through two thousand\ntwenty-three, and forty-five million dollars of the annual allocation\nshall be available for the empire state film post production credit\npursuant to section thirty-one of this article in each year starting in\ntwo thousand twenty-four through two thousand thirty-six. Provided\nfurther, five million dollars of the annual allocation shall be made\navailable for the television writers' and directors' fees and salaries\ncredit pursuant to section twenty-four-b of this article in each year\nstarting in two thousand twenty through two thousand thirty-six. This\namount shall be allocated by the department of economic development\namong taxpayers in accordance with subdivision (a) of this section. If\nthe commissioner of economic development determines that the aggregate\namount of tax credits available from additional pool 2 for the empire\nstate film production tax credit have been previously allocated, and\ndetermines that the pending applications from eligible applicants for\nthe empire state film post production tax credit pursuant to section\nthirty-one of this article is insufficient to utilize the balance of\nunallocated empire state film post production tax credits from such\npool, the remainder, after such pending applications are considered,\nshall be made available for allocation in the empire state film tax\ncredit pursuant to this section, subdivision twenty of section two\nhundred ten-B and subsection (gg) of section six hundred six of this\nchapter. Also, if the commissioner of economic development determines\nthat the aggregate amount of tax credits available from additional pool\n2 for the empire state film post production tax credit have been\npreviously allocated, and determines that the pending applications from\neligible applicants for the empire state film production tax credit\npursuant to this section is insufficient to utilize the balance of\nunallocated film production tax credits from such pool, then all or part\nof the remainder, after such pending applications are considered, shall\nbe made available for allocation for the empire state film post\nproduction credit pursuant to this section, subdivision thirty-two of\nsection two hundred ten-B and subsection (qq) of section six hundred six\nof this chapter. The department of economic development must notify\ntaxpayers of their allocation year and include the allocation year on\nthe certificate of tax credit. Taxpayers eligible to claim a credit must\nreport the allocation year directly on their empire state film\nproduction credit tax form for each year a credit is claimed and include\na copy of the certificate with their tax return. In the case of a\nqualified film that receives funds from additional pool 2 where the\ntaxpayer filed an initial application before April first, two thousand\ntwenty-three and before January first, two thousand twenty-five, no\nempire state film production credit shall be claimed before the later of\n(1) the taxable year the production of the qualified film is complete,\nor (2) the taxable year immediately following the allocation year for\nwhich the film has been allocated credit by the department of economic\ndevelopment. In the case of a qualified film that receives funds from\nadditional pool 2 where the taxpayer filed an initial application on or\nafter April first, two thousand twenty-three and before January first,\ntwo thousand twenty-five, no empire state film production credit shall\nbe claimed before the later of (1) the taxable year the production of\nthe qualified film is complete, or (2) the taxable year that includes\nthe last day of the allocation year for which the film has been\nallocated credit by the department of economic development. In the case\nof a qualified film for which the taxpayer filed an initial application\non or after January first, two thousand twenty-five, the credit shall be\nclaimed in the taxable year that includes the last day of the allocation\nyear for which the production of such qualified film has been allocated\na credit by the department of economic development.\n * NB Effective on the first of January next succeeding the date the\ndepartment of economic development provides notice to the legislative\nbill drafting commission of a determination pursuant to § 7 of chapter\n683 of 2019\n (f) (1) With regard to certificates of tax credit issued on or after\nJanuary first, two thousand twenty, the commissioner of economic\ndevelopment shall reduce by one-quarter of one percent the amount of\ncredit allowed to a taxpayer and this reduced amount shall be reported\non a certificate of tax credit issued pursuant to this section and the\nregulations promulgated by the commissioner of economic development to\nimplement this credit program. Provided, however, for certificates of\ntax credit issued on or after January first, two thousand twenty-three,\nthe amount of credit shall be reduced by one-half of one percent allowed\nto the taxpayer.\n (2) By January thirty-first of each year, the commissioner of economic\ndevelopment shall report to the comptroller the total amount of such\nreductions of tax credit during the immediately preceding calendar year.\nOn or before March thirty-first of each year, the comptroller shall\ntransfer without appropriations from the general fund to the empire\nstate entertainment diversity job training development fund established\nunder section ninety-seven-ff of the state finance law an amount equal\nto the total amount of such reductions reported by the commissioner of\neconomic development for the immediately preceding calendar year.\n (3) Notwithstanding paragraph two of this subdivision, the following\nprovisions shall apply with respect to reductions of tax credit in two\nthousand twenty. (i) The commissioner of economic development shall\nreport to the comptroller by June first, two thousand twenty the total\namount of such reductions of tax credit during the period of January\nfirst, two thousand twenty through May fifteenth, two thousand twenty.\nOn or before July first, two thousand twenty, the comptroller shall\ntransfer without appropriations from the general fund to the empire\nstate entertainment diversity job training development fund an amount\nequal to the total amount of such reductions reported by the\ncommissioner of economic development for the period of January first,\ntwo thousand twenty through May fifteenth, two thousand twenty. (ii) By\nJanuary thirty-first, two thousand twenty-one, the commissioner of\neconomic development shall report to the comptroller the total amount of\nsuch reductions of tax credit during the period of May sixteenth, two\nthousand twenty through December thirty-first, two thousand twenty. On\nor before March thirty-first, two thousand twenty-one, the comptroller\nshall transfer without appropriations from the general fund to the\nempire state entertainment diversity job training development fund an\namount equal to the total amount of such reductions reported by the\ncommissioner of economic development for the period of May sixteenth,\ntwo thousand twenty through December thirty-first, two thousand twenty.\n (g) Credit recapture. If a certificate of tax credit issued by the\ndepartment of economic development pursuant to this section is revoked\nby such department because the taxpayer does not meet the eligibility\nrequirements of this section, the amount of credit described in this\nsection and claimed by the taxpayer prior to that revocation shall be\nadded back to tax in the taxable year in which any such revocation\nbecomes final.\n