Last week Gov. George E. Pataki (R-N.Y.) vetoed more than $2 billion in tax cuts and spending in the proposed New York State budget that the legislature had passed for fiscal year 2006-’07. The veto puts the governor and both houses at odds, with initial reports that when it reconvenes on April 24, the legislature may elect to override the veto. It would take a two-thirds vote by legislators for an override.
Among the programs placed in a holding pattern due to what’s shaping up as a showdown between Gov. Pataki and the legislature is an initiative providing $7 million in funding for newly created tax credits specifically designed to help the State of New York keep and attract more commercial production.
Though the governor is not believed to be opposed to the pro-commercialmaking measure, his veto–based on objections to other state budget provisions which he deemed unconstitutional–now puts the ad industry in a wait-and-see position to see what comes out of what figures to be spirited behind-the-scenes political wrangling.
The state’s proposed commercial production tax credit program consists of three prime components:
A growth credit provision designed to encourage companies to increase the amount of business they bring to the state by providing a refundable tax credit of 20 percent of qualifying production costs solely on newly generated business. The amount would be based on the difference between the total qualified production costs of the current year and the total amount of production costs of the preceding year. The growth credit would be funded by $3 million of the aforementioned $7 million total.
A downstate jobs credit which addresses the misconception about the commercials industry that there is a fixed amount of work that will occur in a certain location regardless of economic circumstances. This is clearly not the case in that every spot lensing job is considered up for grabs prior to being filmed. The rationale for this downstate jobs credit is that it’s important not to take this business for granted and to make efforts to retain the existing share of work that is currently being produced in New York. For this provision, $3 million in annual funding would be apportioned for eligible commercial production companies that conduct filming activities within the Metropolitan Commuter Transportation District. The jobs credit is five percent of the total production costs that exceed $500,000 and would be distributed on a first come, first served basis.
And an upstate jobs credit which recognizes that spot production regularly occurs outside major metropolitan areas that are considered traditional production centers. This incentive component provides $1 million annually to all eligible commercial production houses that participate in filming activity outside the Metropolitan Commuter Transportation District. This jobs credit would be five percent of the total production costs that exceed $200,000 and would be distributed on a first come, first served basis.
Furthermore, if passed, the state program targeting commercials would likely trigger a companion program in New York City. Gotham would put 50 cents to the dollar on what the state spends for its spot financial incentives. This would amount to a $3.5 million fund for tax credits to encourage commercialmaking in New York City.
The city tax credits are subject to New York City Council approval. There is precedent for this matching municipal initiative in that the state credits for theatrical features and TV programs–which were passed in 2004 under the Empire State Film Production Credit measure–also garnered a companion program funded by New York City.
TikTok’s Fate Arrives At Supreme Court; Arguments Center On Free Speech and National Security
In one of the most important cases of the social media age, free speech and national security collide at the Supreme Court on Friday in arguments over the fate of TikTok, a wildly popular digital platform that roughly half the people in the United States use for entertainment and information.
TikTok says it plans to shut down the social media site in the U.S. by Jan. 19 unless the Supreme Court strikes down or otherwise delays the effective date of a law aimed at forcing TikTok's sale by its Chinese parent company.
Working on a tight deadline, the justices also have before them a plea from President-elect Donald Trump, who has dropped his earlier support for a ban, to give him and his new administration time to reach a "political resolution" and avoid deciding the case. It's unclear if the court will take the Republican president-elect's views — a highly unusual attempt to influence a case — into account.
TikTok and China-based ByteDance, as well as content creators and users, argue the law is a dramatic violation of the Constitution's free speech guarantee.
"Rarely if ever has the court confronted a free-speech case that matters to so many people," lawyers for the users and content creators wrote. Content creators are anxiously awaiting a decision that could upend their livelihoods and are eyeing other platforms.
The case represents another example of the court being asked to rule about a medium with which the justices have acknowledged they have little familiarity or expertise, though they often weigh in on meaty issues involving restrictions on speech.
The Biden administration, defending the law that President Joe Biden signed in April after it was approved by wide bipartisan majorities in Congress, contends that... Read More