Senate Bill S3791

2013-2014 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 08, 2014	referred to investigations and government operations
Feb 15, 2013	referred to investigations and government operations

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2013-S3791 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §24, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S4199
2015-2016: S3401

2013-S3791 (ACTIVE) - Summary

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

2013-S3791 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3791

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 2011-2012: S.4199-A

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.

2013-S3791 (ACTIVE) - Bill Text download pdf

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

                                  3791

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 15, 2013
                               ___________

Introduced  by  Sen.  HANNON -- 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 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,
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09026-01-3

S. 3791                             2

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), (d) and (e) of section 24 of the  tax  law  are
relettered subdivisions (f), (g) and (h) 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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Senate Bill S3791

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

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co-Sponsors

2013-S3791 (ACTIVE) - Details

2013-S3791 (ACTIVE) - Summary

2013-S3791 (ACTIVE) - Sponsor Memo

2013-S3791 (ACTIVE) - Bill Text download pdf

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

Actions

co-Sponsors

2013-S3791 (ACTIVE) - Details

2013-S3791 (ACTIVE) - Summary

2013-S3791 (ACTIVE) - Sponsor Memo

2013-S3791 (ACTIVE) - Bill Text download pdf

Comments