S T A T E O F N E W Y O R K
________________________________________________________________________
7628
2019-2020 Regular Sessions
I N A S S E M B L Y
May 14, 2019
___________
Introduced by M. of A. MAGNARELLI -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to increasing the amount of the
taxpayer 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 5 of subdivision (a) of section 24 of the tax
law, as amended by section 1 of part SSS of chapter 59 of the laws of
2019, is amended to read as follows:
(5) For the period two thousand fifteen through two thousand twenty-
four, in addition to the amount of credit established in paragraph two
of this subdivision, a taxpayer shall be allowed a credit equal to the
product (or pro rata share of the product, in the case of a member of a
partnership) of ten percent and the amount of wages or salaries paid to
individuals directly employed (excluding those employed as writers,
directors, music directors, producers and performers, including back-
ground actors with no scripted lines) by a qualified film production
company or a qualified independent film production company for services
performed by those individuals in one of the counties specified in this
paragraph in connection with a qualified film with a minimum budget of
five hundred thousand dollars. For purposes of this additional credit,
the services must be performed in one or more of the following counties:
Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung,
Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex,
Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga,
Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga,
Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli-
van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or
Yates. The aggregate amount of tax credits allowed pursuant to the
authority of this paragraph shall be [five] FIFTEEN million dollars each
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11503-01-9
A. 7628 2
year during the period two thousand fifteen through two thousand twen-
ty-four of the annual allocation made available to the program pursuant
to paragraph four of subdivision (e) of this section. Such aggregate
amount of credits shall be allocated by the governor's office for motion
picture and television development among taxpayers in order of priority
based upon the date of filing an application for allocation of film
production credit with such office. If the total amount of allocated
credits applied for under this paragraph in any year exceeds the aggre-
gate amount of tax credits allowed for such year under this paragraph,
such excess shall be treated as having been applied for on the first day
of the next year. If the total amount of allocated tax credits applied
for under this paragraph at the conclusion of any year is less than five
million dollars, the remainder shall be treated as part of the annual
allocation made available to the program pursuant to paragraph four of
subdivision (e) of this section. However, in no event may the total of
the credits allocated under this paragraph and the credits allocated
under paragraph five of subdivision (a) of section thirty-one of this
article exceed [five] FIFTEEN million dollars in any year during the
period two thousand fifteen through two thousand twenty-four.
§ 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 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) PROVIDED, HOWEVER, SUCH COSTS OTHERWISE EXCLUDED IN THIS PARA-
GRAPH SHALL BE ELIGIBLE AS PRODUCTION COSTS IF SUCH COSTS ARE NO MORE
THAN THE STANDARD COMPENSATION RATES SET EITHER BY THE WRITERS GUILD OF
AMERICA, THE DIRECTORS GUILD OF AMERICA OR THE SCREEN ACTORS GUILD AND
ARE DIRECTLY RELATED TO THE SERVICE PERFORMED IN ONE OR MORE OF THE
COUNTIES LISTED IN PARAGRAPH FIVE OF SUBDIVISION (A) OF THIS SECTION.
"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.
§ 3. This act shall take effect April 1, 2020.