Bill Text: NY A02320 | 2013-2014 | General Assembly | Introduced

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

Spectrum: Strong Partisan Bill (Democrat 23-2)

Status: (Introduced - Dead) 2014-06-17 - held for consideration in ways and means [A02320 Detail]

Download: New_York-2013-A02320-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2320
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 14, 2013
                                      ___________
       Introduced  by  M.  of  A. JAFFEE, ENGLEBRIGHT, MILLMAN, WRIGHT, THIELE,
         CRESPO, ROSENTHAL, QUART -- Multi-Sponsored by -- M.  of  A.  FARRELL,
         GLICK,  HEASTIE,  O'DONNELL,  PERRY  --  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. Paragraph 1 of subdivision (a) of section  24  of  the  tax
    2  law,  as  amended  by  section  3 of part Q of chapter 57 of the laws of
    3  2010, is amended to read as follows:
    4    (1) Allowance  of  credit.  A  taxpayer  which  is  a  qualified  film
    5  production  company, or a qualified independent film production company,
    6  or which is a sole proprietor of or a member of a partnership which is a
    7  qualified film  production  company  or  a  qualified  independent  film
    8  production company, and which is subject to tax under articles nine-A or
    9  twenty-two  of this chapter, shall be allowed a credit against such tax,
   10  pursuant to the provisions referenced in subdivision [(c)] (G)  of  this
   11  section, to be computed as [hereinafter] provided IN THIS SECTION.
   12    S  2.  Paragraph 2 of subdivision (b) of section 24 of the tax law, as
   13  added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
   14  amended and a new paragraph 8 is added to read as follows:
   15    (2)  "Production costs" means any costs for tangible property used and
   16  services performed directly and predominantly in the production (includ-
   17  ing  pre-production  and  post  production)   of   a   qualified   film.
   18  "Production  costs"  shall not include [(i) costs for a story, script or
   19  scenario to be used for a qualified film and (ii)] wages or salaries  or
   20  other  compensation  for  writers, directors, including music directors,
   21  producers and performers (other than background actors with no  scripted
   22  lines).  WRITERS'  FEES  AND SALARIES SHALL BE ELIGIBLE PRODUCTION COSTS
   23  SUBJECT TO THE PROVISIONS OF SUBDIVISION (C) OF THIS SECTION;  PROVIDED,
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05848-01-3
       A. 2320                             2
    1  HOWEVER,  THAT  FEES  THAT  ARE  BASED  ON DEFERRED, LEVERAGED OR PROFIT
    2  PARTICIPATION COSTS, OR ARE IN EXCESS OF THOSE  OTHERWISE  PERMITTED  BY
    3  SUBDIVISION  (C) OF THIS SECTION SHALL NOT BE ELIGIBLE PRODUCTION COSTS.
    4  "Production  costs"  generally  include  technical  and  crew production
    5  costs, such as expenditures for film production facilities, or any  part
    6  thereof, props, makeup, wardrobe, film processing, camera, sound record-
    7  ing, set construction, lighting, shooting, editing and meals.
    8    (8)  "WRITER"  MEANS  A WRITER EMPLOYED OR RETAINED TO WRITE OR REVISE
    9  SCRIPTS,  SCREEN  PLAYS,  TELEPLAYS,  DIALOGUE,  SKETCHES,  ROUTINES  OR
   10  NARRATIONS.
   11    S  3.  Subdivisions  (c), (d) and (e) of section 24 of the tax law are
   12  relettered subdivisions (g), (h) and (f),  respectively  and  three  new
   13  subdivisions (c), (d) and (e) are added to read as follows:
   14    (C)  FOR  A  FEATURE  FILM OR TELEVISION PRODUCTION, WRITERS' FEES AND
   15  SALARIES SHALL BE ELIGIBLE COSTS; PROVIDED, HOWEVER,  SUCH  COSTS  SHALL
   16  NOT  EXCEED  FIFTY  THOUSAND  DOLLARS  PER  WRITER  PER  QUALIFIED FILM.
   17  PROVIDED, FURTHER, THAT, NOTWITHSTANDING ANY  OTHER  PROVISION  OF  THIS
   18  SECTION,  A  WRITER'S  FEES AND SALARY SHALL BE ELIGIBLE FOR THE MAXIMUM
   19  AMOUNT OF THE CREDIT GRANTED BY THIS SUBDIVISION, IF SUCH  WRITER  IS  A
   20  RESIDENT OF THIS STATE.
   21    (D) WHERE MORE THAN THREE WRITERS ARE HIRED OR RETAINED FOR SERVICE ON
   22  AN  ELIGIBLE PRODUCTION AND AT LEAST ONE SUCH WRITER IS A MINORITY GROUP
   23  MEMBER, AS DEFINED BY SUBDIVISION EIGHT OF SECTION THREE HUNDRED TEN  OF
   24  THE  EXECUTIVE LAW, OR A WOMAN SUCH COSTS SHALL NOT EXCEED SEVENTY THOU-
   25  SAND DOLLARS PER WRITER PER QUALIFIED FILM.
   26    (E) FOR EACH TAX YEAR, NOT MORE THAN FIVE MILLION DOLLARS IN TAX CRED-
   27  ITS FOR WRITERS' FEES AND SALARIES SHALL BE  GRANTED  PURSUANT  TO  THIS
   28  SECTION.   SUCH CREDITS SHALL ONLY BE AVAILABLE FROM CREDITS ALLOWED FOR
   29  PRODUCTION COSTS PURSUANT TO THIS SECTION.
   30    S 4. This act shall take effect on the one hundred twentieth day after
   31  it shall have become a law and shall apply to the tax year in  which  it
   32  takes effect and all subsequent tax years.