The New York State Senate

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

                                  5870

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            February 16, 2017
                               ___________

Introduced  by  M. of A. CAHILL -- Multi-Sponsored by -- M. of A. AUBRY,
  BLAKE, ORTIZ, PRETLOW, TITONE -- read once and referred to the Commit-
  tee on Ways and Means

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. Legislative intent. The Legislature hereby recognizes  that
providing  tax incentive to enhance diversity in the ranks of television
writers and directors will also enhance the  diversity  of  stories  and
casts.
  §  2.  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.
  § 3. 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 two new paragraphs 9 and 10 are 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.

                                                           LBD01685-01-7

A. 5870                             2

producers  and performers (other than background actors with no scripted
lines). WRITERS' AND DIRECTORS' 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, LEVER-
AGED  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  facili-
ties,  or  any  part  thereof, props, makeup, wardrobe, film processing,
camera, sound recording, 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.
  (10)  "DIRECTOR"  MEANS  THE INDIVIDUAL EMPLOYED OR RETAINED TO DIRECT
THE PRODUCTION, AS THE WORD "DIRECT" IS  COMMONLY  USED  IN  THE  MOTION
PICTURE INDUSTRY.
  §  4.  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  TELEVISION  PRODUCTION,  WRITERS' AND DIRECTORS' FEES AND
SALARIES SHALL BE ELIGIBLE COSTS; PROVIDED, HOWEVER,  SUCH  COSTS  SHALL
NOT EXCEED: (I) FOR EACH WRITER OR DIRECTOR WHO RECEIVES AN ON-AIR CRED-
IT,  FIFTY  THOUSAND DOLLARS IN FEES OR SALARY PER EPISODE; AND (II) FOR
EACH NON-CREDITED WRITER OR DIRECTOR, SEVENTY-FIVE THOUSAND DOLLARS  PER
SERIES OF EPISODES AND PROVIDED THAT SUCH WRITER OR DIRECTOR IS A MINOR-
ITY  GROUP  MEMBER,  AS  DEFINED  BY  SUBDIVISION EIGHT OF SECTION THREE
HUNDRED TEN OF THE EXECUTIVE LAW, OR A WOMAN.
  PROVIDED, FURTHER, THAT, NOTWITHSTANDING ANY OTHER PROVISION  OF  THIS
SECTION,  A WRITER'S OR DIRECTOR'S FEES AND SALARY SHALL BE ELIGIBLE FOR
THE MAXIMUM AMOUNT OF THE CREDIT GRANTED BY THIS  SUBDIVISION,  ONLY  IF
SUCH WRITER OR DIRECTOR IS A RESIDENT OF THIS STATE.
  (D) FOR EACH TAX YEAR, NOT MORE THAN FIVE MILLION DOLLARS IN TAX CRED-
ITS  FOR  WRITERS'  AND  DIRECTORS'  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.
  § 5. 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.