senate Bill S5370A

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

  • 16 / May / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 24 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 24 / Jan / 2014
    • PRINT NUMBER 5370A
  • 28 / May / 2014
    • 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

See Assembly Version of this Bill:
A7373A
Versions:
S5370
S5370A
Legislative Cycle:
2013-2014
Current Committee:
Senate Finance
Law Section:
Tax Law
Laws Affected:
Amd §24, Tax L

Votes

7
0
7
Aye
0
Nay
2
aye with reservations
0
absent
0
excused
0
abstained
show Investigations and Government Operations committee vote details

Sponsor Memo

BILL NUMBER:S5370A

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 where that writer is a minority group member or a
woman. Places a cap of $3.5 million of the Empire State Film
Production that may be used for writers.

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:

New bill.

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 and shall apply to the tax year in which it takes
effect and all subsequent years.

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

                                 5370--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by  Sens. HANNON, KRUEGER -- 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)] (E)  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 9 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,
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.
                                                           LBD10927-02-4

S. 5370--A                          2

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.
  (9)  "WRITER"  MEANS  A WRITER EMPLOYED OR RETAINED TO WRITE OR REVISE
SCRIPTS,  SCREENPLAYS,  TELEPLAYS,  DIALOGUE,  SKETCHES,   ROUTINES   OR
NARRATIONS.
  S  3.  Subdivisions  (c), (d) and (e) of section 24 of the tax law are
relettered subdivisions (e), (f)  and  (g),  respectively  and  two  new
subdivisions (c) and (d) 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 IN FEES OR SALARY PER WRITER PER QUAL-
IFIED  FILM AND PROVIDED THAT SUCH WRITER IS A MINORITY GROUP MEMBER, AS
DEFINED BY SUBDIVISION EIGHT OF SECTION THREE HUNDRED TEN OF THE  EXECU-
TIVE LAW, OR A WOMAN.
  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) FOR EACH TAX YEAR, NOT MORE THAN THREE MILLION FIVE HUNDRED  THOU-
SAND  DOLLARS  IN  TAX  CREDITS  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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