Governor's rrocramon, PROGRAM BILL #3 2 3 2010 MEMORANDUM. AN ACT to repeal part KK of a chapter of the laws of 2010 amending the tax law relating to investment management services to @ partnership or other entity, as proposed in legislative bill numbers S. 6610-C and A, 8710-D, relating thereto (Part A); to amend part C of a chapter of the laws of 2010 amending the tax law relating to clarifying that certain income constitutes New York source income of nonresident shareholders of an S corporation, as proposed in legislative bill numbers S. 6610-C and A. 9710-0, in relation to the effectiveness of certain portions thereof (Part B); and to amend chapter 60 of the laws ‘of 2004 amending the tax law relating to the empire state film production credit, in relation to the empire state film production credit (Part C) Purpose: This bill amends various provisions of a chapter of the Laws of 2010 as proposed in $6610-C and A9710-D relating to the Tax Law. Summary of Provisions and Statement in Suppo Part A: Taxation of nonresident hedge fund managers This bill would repeal Part KK of a chapter of the Laws of 2010 as proposed in '$6610-C and A9710-D relating to amending the Tax Law to impose the personal income tax on investment management services to a partnership or other entity, Part B: S-Corporation gains This bill would amend Part C of a chapter of the Laws of 2010 as proposed in S6610- C and A9710-D relating to amending the Tax Law to clarify that certain income constitutes New York source income of nonresident shareholders of an S-corporation is in effect for tax years beginning on or after January 1, 2007. Part C: Post-production tax credit This bill would amend Part Q of a chapter of the Laws of 2010 as proposed in S6610- C and A9710-D to clarify that the film production credit can receive unallocated portions of the post production film credit.Budget Implications: Compared to the revenue generated by a chapter of the Laws of 2010 as proposed in $6610-C and A9710-D, Parts A and B would reduce revenue marginally. Part C has no revenue impact.