S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6498
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 8, 2019
                                ___________
 
 Introduced  by  M. of A. CRESPO, DICKENS, PICHARDO, PERRY, DAVILA, PRET-
   LOW, SIMON, JAFFEE, LIFTON, MOSLEY, ARROYO -- Multi-Sponsored by -- M.
   of A. GALEF -- read once and referred to the  Committee  on  Ways  and
   Means
 
 AN  ACT  to  amend the tax law, in relation to a television writers' and
   directors' fees and salaries credit

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new section 24-b to read
 as follows:
   §  24-B.  TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDIT.
 (A)(1) 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 (D) OF THIS SECTION, TO BE COMPUTED
 AS HEREINAFTER PROVIDED.
   (2) NO QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES AND  SALARIES
 USED  BY  A TAXPAYER EITHER AS THE BASIS FOR THE ALLOWANCE OF THE CREDIT
 PROVIDED FOR PURSUANT TO THIS SECTION OR USED IN THE CALCULATION OF  THE
 CREDIT  PROVIDED PURSUANT TO THIS SECTION SHALL BE USED BY SUCH TAXPAYER
 TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER.
   (B) DEFINITIONS. AS USED IN THIS SECTION, THE  FOLLOWING  TERMS  SHALL
 HAVE THE FOLLOWING MEANINGS:
   (1) "QUALIFIED FILM PRODUCTION COMPANY" IS A CORPORATION, PARTNERSHIP,
 LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL WHICH OR WHO IS PRIN-
 CIPALLY  ENGAGED  IN THE PRODUCTION OF A QUALIFIED FILM AND CONTROLS THE
 QUALIFIED FILM DURING PRODUCTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10303-01-9
              

 A. 6498                             2
 
   (2) "QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY" IS A  CORPORATION,
 PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL, THAT OR
 WHO  (I)  IS  PRINCIPALLY  ENGAGED IN THE PRODUCTION OF A QUALIFIED FILM
 WITH A MAXIMUM BUDGET OF FIFTEEN  MILLION  DOLLARS,  (II)  CONTROLS  THE
 QUALIFIED  FILM  DURING  PRODUCTION,  AND (III) EITHER IS NOT A PUBLICLY
 TRADED ENTITY, OR NO MORE THAN FIVE PERCENT OF THE BENEFICIAL  OWNERSHIP
 OF WHICH IS OWNED, DIRECTLY OR INDIRECTLY, BY A PUBLICLY TRADED ENTITY.
   (3)  "QUALIFIED  TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES"
 MEANS: (I) FOR EACH WRITER OR DIRECTOR WHO RECEIVES  AN  ON-AIR  CREDIT,
 FIFTY  THOUSAND  DOLLARS  IN  FEES  OR SALARY PER EPISODE; (II) FOR EACH
 NON-CREDITED  WRITER,  SEVENTY-FIVE  THOUSAND  DOLLARS  PER  SERIES   OF
 EPISODES;  AND  (III)  FOR  EACH ELIGIBLE WRITER OR DIRECTOR, AN OVERALL
 TOTAL OF ONE HUNDRED FIFTY  THOUSAND  DOLLARS  PER  SERIES  PER  SEASON.
 PROVIDED  THAT IN EACH CASE, SUCH WRITER OR DIRECTOR IS A MINORITY GROUP
 MEMBER, AS DEFINED BY SUBDIVISION EIGHT OF SECTION THREE HUNDRED TEN  OF
 THE EXECUTIVE LAW, OR A WOMAN, AND PROVIDED, FURTHER, THAT ANY WRITER OR
 DIRECTOR  WHO  IS A PROFIT PARTICIPANT IN THE QUALIFIED PRODUCTION SHALL
 NOT BE ELIGIBLE.
   (4) "WRITER" MEANS A WRITER WHO IS EMPLOYED OR RETAINED  TO  WRITE  OR
 REVISE  SCRIPTS, SCREENPLAYS, TELEPLAYS, DIALOGUE, SKETCHES, ROUTINES OR
 NARRATIONS AND WHO REPORTS TO WORK REGULARLY IN A WRITERS  ROOM  LOCATED
 IN THE STATE.
   (5) "DIRECTOR" MEANS THE INDIVIDUAL EMPLOYED OR RETAINED TO DIRECT THE
 PRODUCTION,  AS THE WORD "DIRECT" IS COMMONLY USED IN THE MOTION PICTURE
 INDUSTRY.
   (6) "WRITERS ROOM" MEANS A ROOM OR PHYSICAL LOCATION WHERE  TELEVISION
 STORIES ARE CONCEIVED BY WRITERS.
   (7)  "PROFIT  PARTICIPANT"  IS  AN INDIVIDUAL WHO HAS NEGOTIATED FOR A
 PERCENTAGE OF PROFITS GENERATED BY THEIR TELEVISION SHOW. PROFIT PARTIC-
 IPATION DOES NOT INCLUDE MONIES CONTRACTUALLY REQUIRED  BY  COLLECTIVELY
 BARGAINED  AGREEMENTS  FOR  REUSE  OF THE PROGRAM ON DIFFERENT PLATFORMS
 OVER TIME.
   (C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 53.
   (2) ARTICLE 22: SECTION 606: SUBSECTION (V).
   (D)  NOTWITHSTANDING  ANY PROVISION OF THIS CHAPTER, (I) EMPLOYEES AND
 OFFICERS OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT  AND  THE  DEPARTMENT
 SHALL  BE  ALLOWED  AND  ARE  DIRECTED TO SHARE AND EXCHANGE INFORMATION
 REGARDING THE CREDITS APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO  THIS
 SECTION  AND  TAXPAYERS WHO ARE APPLYING FOR CREDITS OR WHO ARE CLAIMING
 CREDITS, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM
 FORMS SUBMITTED TO THE DEPARTMENT  AND  APPLICATIONS  FOR  CERTIFICATION
 SUBMITTED  TO  THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT,  AND (II) THE
 COMMISSIONER AND THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOP-
 MENT MAY RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER  CLAIMING  THIS
 CREDIT  AND  THE  AMOUNT OF THE CREDIT EARNED BY THE TAXPAYER. PROVIDED,
 HOWEVER, IF A TAXPAYER CLAIMS THIS CREDIT BECAUSE IT IS A  MEMBER  OF  A
 LIMITED LIABILITY COMPANY OR A PARTNER IN A PARTNERSHIP, ONLY THE AMOUNT
 OF  CREDIT  EARNED BY THE ENTITY AND NOT THE AMOUNT OF CREDIT CLAIMED BY
 THE TAXPAYER MAY BE RELEASED.
   (E) MAXIMUM AMOUNT OF CREDITS. (1) THE AGGREGATE AMOUNT OF TAX CREDITS
 ALLOWED UNDER THIS  SECTION,  SUBDIVISION  FIFTY-THREE  OF  SECTION  TWO
 HUNDRED  TEN-B  AND  SUBSECTION  (V)  OF SECTION SIX HUNDRED SIX OF THIS
 CHAPTER IN ANY CALENDAR YEAR SHALL BE FIVE MILLION DOLLARS. SUCH  AGGRE-
 GATE  AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE DEPARTMENT OF ECONOMIC

 A. 6498                             3
 
 DEVELOPMENT AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE  OF
 FILING  AN  APPLICATION FOR ALLOCATION OF TELEVISION WRITERS' AND DIREC-
 TORS' FEES AND SALARIES CREDIT WITH SUCH DEPARTMENT. IF THE TOTAL AMOUNT
 OF  ALLOCATED  CREDITS  APPLIED  FOR  IN ANY PARTICULAR YEAR EXCEEDS THE
 AGGREGATE AMOUNT OF  TAX  CREDITS  ALLOWED  FOR  SUCH  YEAR  UNDER  THIS
 SECTION,  SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE
 FIRST DAY OF THE SUBSEQUENT YEAR.
   (2) THE COMMISSIONER OF ECONOMIC DEVELOPMENT,  AFTER  CONSULTING  WITH
 THE  COMMISSIONER, SHALL PROMULGATE REGULATIONS BY OCTOBER THIRTY-FIRST,
 TWO THOUSAND NINETEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF  TAX
 CREDITS  AS  REQUIRED BY SUBDIVISION (A) OF THIS SECTION. SUCH RULES AND
 REGULATIONS SHALL INCLUDE PROVISIONS DESCRIBING THE APPLICATION PROCESS,
 THE DUE DATES FOR SUCH APPLICATIONS, THE STANDARDS WHICH SHALL  BE  USED
 TO EVALUATE THE APPLICATIONS, THE DOCUMENTATION THAT WILL BE PROVIDED TO
 TAXPAYERS  TO  SUBSTANTIATE  TO THE DEPARTMENT THE AMOUNT OF TAX CREDITS
 ALLOCATED TO SUCH TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED  NECES-
 SARY  AND  APPROPRIATE.  NOTWITHSTANDING  ANY  OTHER  PROVISIONS  TO THE
 CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND REGU-
 LATIONS MAY BE ADOPTED ON AN EMERGENCY BASIS IF NECESSARY TO  MEET  SUCH
 OCTOBER THIRTY-FIRST, TWO THOUSAND NINETEEN DEADLINE.
   (F)  THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL SUBMIT TO THE GOVER-
 NOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  AND  THE  SPEAKER  OF  THE
 ASSEMBLY,  AN  ANNUAL  REPORT  TO BE SUBMITTED ON FEBRUARY FIRST OF EACH
 YEAR EVALUATING THE EFFECTIVENESS OF THE TELEVISION WRITERS' AND  DIREC-
 TORS' FEES AND SALARIES TAX CREDIT PROVIDED BY THIS SECTION IN STIMULAT-
 ING  THE  GROWTH  OF  DIVERSITY  IN THE FILM INDUSTRY IN THE STATE. SUCH
 REPORT SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, THE NUMBER  OF  QUALI-
 FIED   FILM  PRODUCTION  COMPANIES  AND/OR  QUALIFIED  INDEPENDENT  FILM
 PRODUCTION COMPANIES WHICH RECEIVED A TELEVISION WRITERS' AND DIRECTORS'
 FEES AND SALARIES CREDIT, THE CREDIT AMOUNTS CLAIMED BY  EACH  QUALIFIED
 FILM  PRODUCTION  COMPANY  AND/OR  QUALIFIED INDEPENDENT FILM PRODUCTION
 COMPANY, AS WELL AS THE IMPACT ON EMPLOYMENT  AND  THE  ECONOMY  OF  THE
 STATE. SUCH REPORT SHALL BE BASED ON DATA AVAILABLE FROM THE APPLICATION
 FILED  WITH  THE  DEPARTMENT  OF  ECONOMIC DEVELOPMENT FOR ALLOCATION OF
 TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDITS.   NOTWITH-
 STANDING ANY PROVISION OF LAW TO THE CONTRARY, THE INFORMATION CONTAINED
 IN  THE  REPORT SHALL BE PUBLIC INFORMATION. THE REPORT MAY ALSO INCLUDE
 ANY RECOMMENDATIONS OF CHANGES IN THE CALCULATION OR  ADMINISTRATION  OF
 THE  CREDIT,  AND  ANY  OTHER  RECOMMENDATION OF THE COMMISSIONER OF THE
 DEPARTMENT OF ECONOMIC DEVELOPMENT  REGARDING  CONTINUING  MODIFICATION,
 REPEAL  OF SUCH ACT, AND SUCH OTHER INFORMATION REGARDING THE ACT AS THE
 COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT MAY  FEEL  USEFUL
 AND APPROPRIATE.
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDIT.   (A)
 ALLOWANCE  OF  CREDIT.  A  TAXPAYER  WHO IS ELIGIBLE PURSUANT TO SECTION
 TWENTY-FOUR-B OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO  BE  COMPUTED
 AS PROVIDED IN SUCH SECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF  THE
 AMOUNT  OF  THE  CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
 YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE  TAXPAYER  OTHERWISE  PAYS
 TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, THE EXCESS SHALL BE TREAT-

 A. 6498                             4
 
 ED  AS  AN  OVERPAYMENT  OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE
 WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS  CHAPTER.
 PROVIDED, FURTHER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOU-
 SAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE
 PAID THEREON.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (v) to read as follows:
   (V)  TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDIT.  (1)
 ALLOWANCE OF CREDIT. A TAXPAYER WHO  IS  ELIGIBLE  PURSUANT  TO  SECTION
 TWENTY-FOUR-B  OF  THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED
 AS PROVIDED IN SUCH SECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF  THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
 follows:
 
 (XLIV) TELEVISION WRITERS'            AMOUNT OF CREDIT FOR THE SUM OF
 AND DIRECTORS' FEES AND SALARIES      QUALIFIED TELEVISION WRITERS' AND
 CREDIT UNDER SUBSECTION (V)           DIRECTORS' SALARIES CREDIT
                                       UNDER SUBDIVISION FIFTY-THREE OF
                                       SECTION TWO HUNDRED TEN-B
 
   §  5. This act shall take effect immediately, and shall apply to taxa-
 ble years beginning on or after January 1, 2020.