N.Y. Tax Law § 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, (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, and (iii) qualified production costs

that are attributable to scoring shall be eligible for an additional ten

percent credit on such scoring costs when incurred within the state and

when such scoring costs include payment to a minimum of five musicians.

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. Provided,

however, in the case of a qualified film for which the credit

application was received on or after January first, two thousand

twenty-five, the credit shall be claimed in the taxable year that

includes the last day of the allocation year for which the film has been

allocated a credit by the department of economic development.

(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-six, 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.

(6) Production plus program. (i) A qualified independent film

production company or a qualified film production company, or a company

that is a majority owner of one or more qualified film production

companies or qualified independent film production companies, may apply

to participate in the production plus program after it, or qualified

film production companies or qualified independent film production

companies of which it is the majority owner, has submitted two or more

initial applications to the empire state film production tax credit

program after January first, two thousand twenty-five.

(ii) A qualified film production company or qualified independent film

production company that has been accepted into the production plus

program, or is majority-owned by a company that has been accepted into

the production plus program, may be eligible to receive an additional

tax credit equal to the product of ten percent and the qualified

production costs in New York state if program acceptance was based on

initial applications, the sum of which totaled at least one hundred

million dollars in qualified production costs in New York state.

(iii) A qualified independent film production company that has been

accepted into the production plus program, or is majority-owned by a

company that has been accepted into the production plus program, that is

engaging in the production of a feature length film, television film or

television series as defined in the regulations promulgated for this

program, may receive an additional tax credit equal to the product of

five percent and the qualified production costs incurred on all

subsequent films or series applied for if program acceptance was based

on initial applications the sum of which totaled at least twenty million

dollars in qualified production costs in New York state.

(iv) Initial applications for feature length films and new television

series submitted after December thirty-first, two thousand twenty-eight

shall not be eligible for the program pursuant to this paragraph;

provided, however, a television series that enters the program pursuant

to this paragraph before January first, two thousand twenty-nine shall

continue to be eligible.

(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 costs for a story, script or

scenario to be used for a qualified film. "Production costs" generally

include the wages or salaries or other compensation for writers,

directors, composers and performers, 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.

(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,

(ii) is not publicly traded, and (iii) is not majority owned, fifty-one

percent or more, by a company publicly traded on a United States stock

exchange.

(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 each year starting in two thousand twenty-four through two

thousand thirty-six, 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-six. 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

and before January first, two thousand twenty-five, 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. Provided, however, in the case of a qualified film for

which the credit application was received on or after January first, two

thousand twenty-five, the credit shall be claimed in the taxable year

that includes the last day of the allocation year for which the film has

been allocated a 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 in each year starting in two thousand twenty-four through two

thousand thirty-six, 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-six. 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-six. 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 and before January first, two thousand twenty-five, 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 and before January first,

two thousand twenty-five, 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. In the case

of a qualified film for which the taxpayer filed an initial application

on or after January first, two thousand twenty-five, the credit shall be

claimed in the taxable year that includes the last day of the allocation

year for which the production of such qualified film has been allocated

a 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.

(g) Credit recapture. If a certificate of tax credit issued by the

department of economic development pursuant to this section is revoked

by such department because the taxpayer does not meet the eligibility

requirements of this section, the amount of credit described in this

section and claimed by the taxpayer prior to that revocation shall be

added back to tax in the taxable year in which any such revocation

becomes final.