senate Bill S4199A

Includes writer salaries and fees within production costs eligible for the empire state film production credit

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 23 / Mar / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 07 / Feb / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 07 / Feb / 2012
    • PRINT NUMBER 4199A
  • 02 / May / 2012
    • REPORTED AND COMMITTED TO FINANCE

Summary

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

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Bill Details

Versions:
S4199
S4199A
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Tax Law
Laws Affected:
Amd ยง24, Tax L

Votes

5
2
5
Aye
2
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details
nay (2)
aye wr (1)

Sponsor Memo

BILL NUMBER:S4199A

TITLE OF BILL:
An act
to amend the tax law, in relation to eligibility for the empire
state film
production credit

PURPOSE:
Includes writer salaries and fees within production costs eligible for
the empire state film production credit.

SUMMARY OF PROVISIONS:
Section 1. Provides for the allowance of credit.

Section 2. Modifies the definition of "qualified production costs" to
include writer's fees and services. Defines "writer". for purposes of
the Empire State Film Production. Credit.

Section 3. Outlines criteria to qualify as eligible production costs
including requirements for writer residency, and either a cap of
$50,000 per writer on the amount of the credit that may be claimed by
a qualified taxpayer, or a $70,000 per writer credit where a minority
or woman writer is hired when three or more writers are hired.

Section 4. This act shall take effect one hundred twentieth day after
it shall have become a law.

JUSTIFICATION:
Many films and television shows are drawn to the unique urban and
picturesque landscapes of New York. The Empire State Film Production
Credit has created jobs and brought revenue to New York when
productions move to or begin in New York and take advantage of the
30% tax. credit on qualifying production costs. However, it has not
created employment opportunities for the thousands of New York State
residents who try to earn their living by writing for television and
film.

In 2008 there were 15 major television productions filming in New York
State.
Collectively, these shows employed a total of 122 writers. Of these
122 writers only 24 of them live in New York. The remaining writers
reside on the West Coast, many in Los Angeles. Some of these writers
work on scripts for shows such as Ugly Betty and Law & Order: special
victims Unit, where the City of New York is a main character, without
even visiting New York prior to writing an episode. At the same time,
many New Yorkers have found it impossible to maintain a career
writing for television without leaving the state, uprooting their
families and depriving the state of tax revenue.

Currently the Empire State Film Credit does not include writers as a
qualified production cost, while Connecticut and Michigan do include
writers in their film production tax credits. Canada, the biggest
competitor for film and television productions, includes writers in
their tax credit as well.
Including writers as a qualified production cost will create jobs for


New Yorkers as well as preserving New York's strong tradition as a
creative center for entertainment.

The inclusion of writers as a qualified production cost would Create
new jobs and revenue with little fiscal impact. Funds for the Empire
State Film Production Tax Credit are already allocated; this bill
would carve out a small amount of those funds and devote them to
writers.

LEGISLATIVE HISTORY:
2009-2010: S.6101 Schneiderman/A.8144 Englebright

FISCAL IMPLICATIONS:
This bill makes use of funds already allocated to the Empire Film Tax
Credit.
No additional allocation of funds is required.

EFFECTIVE DATE:
This act shall take effect one hundred twentieth day after it shall
have become a law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4199--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 23, 2011
                               ___________

Introduced  by  Sens.  HANNON, ADDABBO, HASSELL-THOMPSON, KRUEGER, McDO-
  NALD, MONTGOMERY, PERKINS, RIVERA -- read twice and  ordered  printed,
  and  when  printed  to be committed to the Committee on Investigations
  and Government Operations -- recommitted to the Committee on  Investi-
  gations  and  Government  Operations in accordance with Senate Rule 6,
  sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

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:

  Section  1.  Paragraph  1  of subdivision (a) of section 24 of the tax
law, as amended by section 3 of part Q of chapter  57  of  the  laws  of
2010, is amended to read as follows:
  (1)  Allowance  of  credit.  A  taxpayer  which  is  a  qualified film
production company, or a qualified independent film production  company,
or which is a sole proprietor of or a member of a partnership which is a
qualified  film  production  company  or  a  qualified  independent film
production company, and which is subject to tax under articles nine-A or
twenty-two of this chapter, shall be allowed a credit against such  tax,
pursuant  to  the provisions referenced in subdivision [(c)] (F) of this
section, to be computed as [hereinafter] provided IN THIS SECTION.
  S 2. Paragraph 2 of subdivision (b) of section 24 of the tax  law,  as
added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
amended and a new paragraph 8 is added to read as follows:
  (2) "Production costs" means any costs for tangible property used  and
services performed directly and predominantly in the production (includ-
ing   pre-production   and   post   production)  of  a  qualified  film.
"Production costs" shall not include [(i) costs for a story,  script  or
scenario  to be used for a qualified film and (ii)] wages or salaries or
other compensation for writers, directors,  including  music  directors,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10413-08-1

S. 4199--A                          2

producers  and performers (other than background actors with no scripted
lines). WRITERS' FEES AND SALARIES SHALL BE  ELIGIBLE  PRODUCTION  COSTS
SUBJECT  TO THE PROVISIONS OF SUBDIVISION (C) OF THIS SECTION; PROVIDED,
HOWEVER,  THAT  FEES  THAT  ARE  BASED  ON DEFERRED, LEVERAGED OR PROFIT
PARTICIPATION COSTS, OR ARE IN EXCESS OF THOSE  OTHERWISE  PERMITTED  BY
SUBDIVISION  (C) OF THIS SECTION SHALL NOT BE ELIGIBLE PRODUCTION COSTS.
"Production costs"  generally  include  technical  and  crew  production
costs,  such as expenditures for film production facilities, or any part
thereof, props, makeup, wardrobe, film processing, camera, sound record-
ing, set construction, lighting, shooting, editing and meals.
  (8) "WRITER" MEANS A WRITER EMPLOYED OR RETAINED TO  WRITE  OR  REVISE
SCRIPTS,  SCREEN  PLAYS,  TELEPLAYS,  DIALOGUE,  SKETCHES,  ROUTINES  OR
NARRATIONS.
  S 3. Subdivisions (c) and (d) of section 24 of the tax law are  relet-
tered  subdivisions  (f) and (g) and three new subdivisions (c), (d) and
(e) are added to read as follows:
  (C) FOR A FEATURE FILM OR TELEVISION  PRODUCTION,  WRITERS'  FEES  AND
SALARIES  SHALL  BE  ELIGIBLE COSTS; PROVIDED, HOWEVER, SUCH COSTS SHALL
NOT EXCEED  FIFTY  THOUSAND  DOLLARS  PER  WRITER  PER  QUALIFIED  FILM.
PROVIDED,  FURTHER,  THAT,  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS
SECTION, A WRITER'S FEES AND SALARY SHALL BE ELIGIBLE  FOR  THE  MAXIMUM
AMOUNT  OF  THE  CREDIT GRANTED BY THIS SUBDIVISION, IF SUCH WRITER IS A
RESIDENT OF THIS STATE.
  (D) WHERE MORE THAN THREE WRITERS ARE HIRED OR RETAINED FOR SERVICE ON
AN ELIGIBLE PRODUCTION AND AT LEAST ONE SUCH WRITER IS A MINORITY  GROUP
MEMBER,  AS DEFINED BY SUBDIVISION EIGHT OF SECTION THREE HUNDRED TEN OF
THE EXECUTIVE LAW, OR A WOMAN SUCH COSTS SHALL NOT EXCEED SEVENTY  THOU-
SAND DOLLARS PER WRITER PER QUALIFIED FILM.
  (E) FOR EACH TAX YEAR, NOT MORE THAN FIVE MILLION DOLLARS IN TAX CRED-
ITS  FOR  WRITERS'  FEES  AND SALARIES SHALL BE GRANTED PURSUANT TO THIS
SECTION.  SUCH CREDITS SHALL ONLY BE AVAILABLE FROM CREDITS ALLOWED  FOR
PRODUCTION COSTS PURSUANT TO THIS SECTION.
  S 4. This act shall take effect on the one hundred twentieth day after
it  shall  have become a law and shall apply to the tax year in which it
takes effect and all subsequent tax years.

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