Bill Text: NY A07634 | 2023-2024 | General Assembly | Amended

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Bill Title: Excludes a production using artificial intelligence in a manner which results in the displacement of employees whose salaries are qualified expenses from the definition of qualified film for the purposes of the empire state film production credit.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A07634 Detail]

Download: New_York-2023-A07634-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         7634--A

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      May 25, 2023
                                       ___________

        Introduced  by M. of A. MEEKS -- read once and referred to the Committee
          on Ways and Means  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee

        AN ACT to amend the tax law, in relation to excluding a production which
          uses  artificial  intelligence  in  a  manner  which  results  in  the
          displacement of employees whose salaries are qualified  expenses  from
          the  definition of qualified film for the purposes of 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  3  of subdivision (b) of section 24 of the tax
     2  law, as amended by section 9-a of part D of chapter 59 of  the  laws  of
     3  2023, is amended to read as follows:
     4    (3)  "Qualified  film"  means  a feature-length film, television film,
     5  relocated television production, television pilot or television  series,
     6  regardless  of the medium by means of which the film, pilot or series is
     7  created or conveyed. For the purposes of the  credit  provided  by  this
     8  section only, a "qualified film" whose majority of principal photography
     9  shooting  days in the production of the qualified film are shot in West-
    10  chester, Rockland, Nassau, or Suffolk county or any of the five New York
    11  City boroughs shall have a minimum budget  of  one  million  dollars.  A
    12  "qualified  film", whose majority of principal photography shooting days
    13  in the production of the qualified film are shot in any other county  of
    14  the state than those listed in the preceding sentence shall have a mini-
    15  mum budget of two hundred fifty thousand dollars. "Qualified film" shall
    16  not  include:  (i)  a documentary film, news or current affairs program,
    17  interview or  talk  program,  "how-to"  (i.e.,  instructional)  film  or
    18  program, film or program consisting primarily of stock footage, sporting
    19  event  or  sporting  program, game show, award ceremony, film or program
    20  intended primarily for industrial, corporate or institutional end-users,
    21  fundraising film or program, daytime drama (i.e., daytime "soap opera"),

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11610-05-3
        A. 7634--A                          2

     1  commercials, music videos or "reality" program; (ii)  a  production  for
     2  which records are required under section 2257 of title 18, United States
     3  code,  to be maintained with respect to any performer in such production
     4  (reporting  of  books,  films,  etc.  with  respect to sexually explicit
     5  conduct); [or] (iii) a production which uses artificial intelligence  in
     6  a  manner  which results in the displacement of employees whose salaries
     7  are qualified expenses,  unless  such  replacement  is  permitted  by  a
     8  current  collective  bargaining agreement in force covering such employ-
     9  ees; or (iv) other than a relocated television production, a  television
    10  series commonly known as variety entertainment, variety sketch and vari-
    11  ety talk, i.e., a program with components of improvisational or scripted
    12  content  (monologues,  sketches,  interviews),  either exclusively or in
    13  combination with other entertainment elements such as  musical  perform-
    14  ances, dancing, cooking, crafts, pranks, stunts, and games and which may
    15  be further defined in regulations of the commissioner of economic devel-
    16  opment.  However,  a qualified film shall include a television series as
    17  described in subparagraph [(iii)] (iv) of  this  paragraph  only  if  an
    18  application  for  such series has been deemed conditionally eligible for
    19  the tax credit under this section prior to  April  first,  two  thousand
    20  twenty,  such  series  remains in continuous production for each season,
    21  and an annual application for each season of such series is  continually
    22  submitted  for  such  series  after  April first, two thousand twenty. A
    23  series that changes either or both the title of the series or the  prin-
    24  cipal cast prior to March thirty-first, two thousand twenty-three, shall
    25  be  considered  to  remain  in  continuous  production  for each season,
    26  provided the series films at the same  location  as  prior  seasons,  is
    27  produced  by the same entity, and retains at least eighty percent of the
    28  staff from the prior season.
    29    § 2. This act shall take effect immediately.