Bill Text: NY A01390 | 2021-2022 | General Assembly | Introduced

---

Bill Title: Includes writers' salaries and fees within production costs eligible for the empire state film production credit.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A01390 Detail]

Download: New_York-2021-A01390-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          1390

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                     January 8, 2021
                                       ___________

        Introduced  by  M. of A. CAHILL -- Multi-Sponsored by -- M. of A. AUBRY,
          PRETLOW -- read once and referred to the Committee on Ways and Means

        AN ACT to amend the tax law, in relation to eligibility for  the  empire
          state film production credit

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Legislative intent. The Legislature hereby recognizes  that
     2  providing  tax incentive to enhance diversity in the ranks of television
     3  writers and directors will also enhance the  diversity  of  stories  and
     4  casts.
     5    §  2.  Paragraph 1 of subdivision (a) of section 24 of the tax law, as
     6  amended by section 3 of part Q of chapter 57 of the  laws  of  2010,  is
     7  amended to read as follows:
     8    (1)  Allowance  of  credit.  A  taxpayer  which  is  a  qualified film
     9  production company, or a qualified independent film production  company,
    10  or which is a sole proprietor of or a member of a partnership which is a
    11  qualified  film  production  company  or  a  qualified  independent film
    12  production company, and which is subject to tax under articles nine-A or
    13  twenty-two of this chapter, shall be allowed a credit against such  tax,
    14  pursuant  to  the provisions referenced in subdivision [(c)] (e) of this
    15  section, to be computed as [hereinafter] provided in this section.
    16    § 3. Paragraph 2 of subdivision (b) of section 24 of the tax  law,  as
    17  added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
    18  amended and two new paragraphs 9 and 10 are added to read as follows:
    19    (2) "Production costs" means any costs for tangible property used  and
    20  services performed directly and predominantly in the production (includ-
    21  ing   pre-production   and   post   production)  of  a  qualified  film.
    22  "Production costs" shall not include [(i) costs for a story,  script  or
    23  scenario  to be used for a qualified film and (ii)] wages or salaries or
    24  other compensation for writers, directors,  including  music  directors,
    25  producers  and performers (other than background actors with no scripted

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01642-01-1
        A. 1390                             2

     1  lines). Writers' and directors' fees  and  salaries  shall  be  eligible
     2  production  costs subject to the provisions of subdivision (c-1) of this
     3  section; provided, however, that fees that are based on deferred, lever-
     4  aged  or profit participation costs, or are in excess of those otherwise
     5  permitted by subdivision (c-1) of this section  shall  not  be  eligible
     6  production  costs.  "Production  costs"  generally include technical and
     7  crew production costs, such as expenditures for film production  facili-
     8  ties,  or  any  part  thereof, props, makeup, wardrobe, film processing,
     9  camera, sound recording, set construction, lighting,  shooting,  editing
    10  and meals.
    11    (9)  "Writer"  means  a writer employed or retained to write or revise
    12  scripts,  screenplays,  teleplays,  dialogue,  sketches,   routines   or
    13  narrations.
    14    (10)  "Director"  means  the individual employed or retained to direct
    15  the production, as the word "direct" is  commonly  used  in  the  motion
    16  picture industry.
    17    §  4.  Section 24 of the tax law is amended by adding two new subdivi-
    18  sions (c-1) and (c-2) to read as follows:
    19    (c-1) For a television production, writers' and  directors'  fees  and
    20  salaries  shall  be  eligible costs; provided, however, such costs shall
    21  not exceed: (i) for each writer or director who receives an on-air cred-
    22  it, fifty thousand dollars in fees or salary per episode; and  (ii)  for
    23  each  non-credited writer or director, seventy-five thousand dollars per
    24  series of episodes and provided that such writer or director is a minor-
    25  ity group member, as defined  by  subdivision  eight  of  section  three
    26  hundred ten of the executive law, or a woman.
    27    Provided,  further,  that, notwithstanding any other provision of this
    28  section, a writer's or director's fees and salary shall be eligible  for
    29  the  maximum  amount  of the credit granted by this subdivision, only if
    30  such writer or director is a resident of this state.
    31    (c-2) For each tax year, not more than five  million  dollars  in  tax
    32  credits  for  writers' and directors' fees and salaries shall be granted
    33  pursuant to this section. Such credits  shall  only  be  available  from
    34  credits allowed for production costs pursuant to this section.
    35    § 5. This act shall take effect on the one hundred twentieth day after
    36  it  shall  have become a law and shall apply to the tax year in which it
    37  takes effect and all subsequent tax years.