Senate Bill S3378

2011-2012 Legislative Session

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

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to investigations and government operations
Feb 17, 2011	referred to investigations and government operations

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2011-S3378 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §24, add §24-a, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S6101
2013-2014: S3191
2015-2016: S2518
2017-2018: S2256
2019-2020: S4227
2021-2022: S4799
2023-2024: S6031

2011-S3378 (ACTIVE) - Summary

Includes writer salaries and fees within production costs eligible for the empire state film production credit; defines "writer" as a person employed or retained to write or revise scripts, screen plays, teleplays, dialogue, sketches, routines or narrations.

2011-S3378 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3378

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

PURPOSE:
To include writing fees as an eligible expense to receive a credit
under the Empire State Film Production Credit for a movie or
television show produced in New York State.

SUMMARY OF PROVISIONS:
Section 1. Modifies the definition of "qualified production costs" to
include writer's fees and services.

Section 2. Defines "writer" for purposes of the Empire State Film
Production Credit.

Section 3. Places a cap of$50,000 per writer on the amount of the
credit that may be claimed by a qualified taxpayer.

Section 4. Places a cap of five million dollars on the amount of tax
credit that may be disbursed for writers.

Section 5. Requires of hiring of a minority or woman writer when more
than three writers are hired.

Section 6. This bill shall take effect on April 1, 2012.

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 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. Both
New York State and the film industry have been committed to
increasing the presence of minorities and women in film and
television. In this light, this bill requires that when three or more
writers are hired by an entity seeking such a credit, at least one
must be a minority or woman.

The inclusion of writers as a qualified production cost would create
new jobs and revenue with little fiscal impact. Although 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:
This is a 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 April 1, 2012.

2011-S3378 (ACTIVE) - Bill Text download pdf

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

                                  3378

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 17, 2011
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

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 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 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
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.
  S 2. Subdivision (b) of section 24 of the tax law is amended by adding
a new paragraph 8 to read as follows:
  (8)  "WRITER"  MEANS  A WRITER EMPLOYED OR RETAINED TO WRITE OR REVISE
SCRIPTS,  SCREEN  PLAYS,  TELEPLAYS,  DIALOGUE,  SKETCHES,  ROUTINES  OR
NARRATIONS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09121-01-1

S. 3378                             2

  S  3. Subdivisions (c) and (d) of section 24 of the tax law are relet-
tered subdivision (e) and (f) and two new subdivisions (c) and  (d)  are
added to read as follows:
  (C) FOR A FEATURE FILM OR TELEVISION PRODUCTION WRITERS FEES AND SALA-
RIES  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 SERVICES SHALL BE ELIGIBLE FOR THE CREDIT  UP  TO  THE  MAXIMUM
AMOUNTS  OF  THIS  SUBDIVISION  IF SUCH WRITER IS SUBJECT TO TAXATION BY
THIS STATE.
  (D) THE STATE ANNUALLY WILL DISBURSE NO MORE THAN FIVE MILLION DOLLARS
IN TAX CREDITS FOR PRODUCTION COSTS FOR WRITERS FEES AND SALARIES PURSU-
ANT TO THIS SECTION. SUCH CREDITS SHALL ONLY BE AVAILABLE  FROM  CREDITS
ALLOWED FOR PRODUCTION COSTS AS DEFINED AND GOVERNED BY THIS SECTION.
  S  4.  The  tax law is amended by adding a new section 24-a to read as
follows:
  S 24-A. DIVERSITY IN HIRING FOR WRITERS. WHERE MORE THAN THREE WRITERS
ARE TO BE HIRED OR RETAINED FOR SERVICE ON AN ELIGIBLE PRODUCTION, CRED-
ITS FOR WRITER COSTS AUTHORIZED PURSUANT TO SECTION TWENTY-FOUR OF  THIS
ARTICLE SHALL ONLY BE GRANTED WHERE AT LEAST ONE SUCH WRITER IS A MINOR-
ITY  GROUP  MEMBER,  AS  DEFINED  BY  SUBDIVISION EIGHT OF SECTION THREE
HUNDRED TEN OF THE EXECUTIVE LAW, OR A WOMAN.
  S 5. This act shall take effect April 1, 2012.

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Senate Bill S3378

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

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co-Sponsors

2011-S3378 (ACTIVE) - Details

2011-S3378 (ACTIVE) - Summary

2011-S3378 (ACTIVE) - Sponsor Memo

2011-S3378 (ACTIVE) - Bill Text download pdf

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Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

co-Sponsors

2011-S3378 (ACTIVE) - Details

2011-S3378 (ACTIVE) - Summary

2011-S3378 (ACTIVE) - Sponsor Memo

2011-S3378 (ACTIVE) - Bill Text download pdf

Comments