S T A T E O F N E W Y O R K
________________________________________________________________________
556
2019-2020 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 9, 2019
___________
Introduced by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. AUBRY,
BLAKE, ORTIZ, PRETLOW -- read once and referred to the Committee 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03115-01-9
A. 556 2
other compensation for writers, directors, including music directors,
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.