Senate Bill S4227

2019-2020 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, 2020	referred to investigations and government operations
Mar 05, 2019	referred to investigations and government operations

2019-S4227 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §24, add §24-b, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S6101
2011-2012: S3378
2013-2014: S3191
2015-2016: S2518
2017-2018: S2256
2021-2022: S4799
2023-2024: S6031

2019-S4227 (ACTIVE) - Summary

Includes writer salaries and fees within production costs eligible for the empire state film production credit; defines "writer" as a person employed or retained to write or revise scripts, screenplays, teleplays, dialogue, sketches, routines or narrations.

2019-S4227 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4227

SPONSOR: PARKER
 
TITLE OF BILL:  An act to amend the tax law, in relation to eligibil-
ity for the empire state film production credit

 
PURPOSE:

To include writing fees as an eligible expense to receive a credit under
the Empire State Film Production Credit for a movie or television show
produced in New York State.

 
SUMMARY OF PROVISIONS:

Section 1. Modifies the definition of "qualified production costs" to
include writer's fees and services.

Section 2. Defines "writer" for purposes of the Empire State Film
Production Credit.

Section 3. Places a cap of $50,000 per writer on the amount of the cred-

it that may be claimed by a qualified taxpayer. Places a cap of five
million dollars on the amount of tax credit that may be disbursed for
writers.

Section 4. Requires of hiring of a minority or woman writer when more
than three writers are hired.

Section 5. This bill shall take effect on April 1, 2020.

 
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 301, 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.

Since 2008, the number of major television productions filming in New
York State has drastically risen. Collectively, these shows employed
more than 122 writers. Of these writers, only 24 of them lived 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. Both New York
State and the film industry have been committed to increasing the pres-
ence of minorities and women in film and television. In this light, this
bill requires that when three or more writers are hired by an entity
seeking such a credit, at least one must be a minority or woman.

The inclusion of writers as a qualified production cost would create new
jobs and revenue with little fiscal impact. Although 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 writ-
ers.

 
LEGISLATIVE HISTORY:

2017-18: S2256 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
2015-2016: S.2518A - Amended and Recommitted to Investigations & Gov Ops
2013-2014: S.3191A - Investigations & Gov Ops
2011-2012: S.3378 - Investigations & Gov Ops
2010: S.6101 - Investigations & Gov Ops; A.8144 - Ways & Means
2009: S.6101 - Rules; A.8144 - Ways & Means

 
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 April 1, 2020.

2019-S4227 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4227
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               March 5, 2019
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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 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). 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
 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.
   § 2. Subdivision (b) of section 24 of the tax law is amended by adding
 a new paragraph 9 to read as follows:
   (9)  "WRITER"  MEANS  A WRITER EMPLOYED OR RETAINED TO WRITE OR REVISE
 SCRIPTS,  SCREENPLAYS,  TELEPLAYS,  DIALOGUE,  SKETCHES,   ROUTINES   OR
 NARRATIONS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10338-01-9

 S. 4227                             2
 
   §  3.  Subdivisions  (c), (d) and (e) of section 24 of the tax law are
 relettered subdivisions (e), (f) and (g) and two  new  subdivisions  (c)
 and (d) 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 SERVICES SHALL BE ELIGIBLE FOR THE CREDIT UP TO THE
 MAXIMUM AMOUNTS OF THIS SUBDIVISION IF SUCH WRITER IS SUBJECT  TO  TAXA-
 TION BY THIS STATE.
   (D) THE STATE ANNUALLY WILL DISBURSE NO MORE THAN FIVE MILLION DOLLARS
 IN TAX CREDITS FOR PRODUCTION COSTS FOR WRITERS FEES AND SALARIES PURSU-
 ANT  TO  THIS SECTION. SUCH CREDITS SHALL ONLY BE AVAILABLE FROM CREDITS
 ALLOWED FOR PRODUCTION COSTS AS DEFINED AND GOVERNED BY THIS SECTION.
   § 4. The tax law is amended by adding a new section 24-b  to  read  as
 follows:
   § 24-B. DIVERSITY IN HIRING FOR WRITERS. WHERE MORE THAN THREE WRITERS
 ARE TO BE HIRED OR RETAINED FOR SERVICE ON AN ELIGIBLE PRODUCTION, CRED-
 ITS  FOR WRITER COSTS AUTHORIZED PURSUANT TO SECTION TWENTY-FOUR OF THIS
 ARTICLE SHALL ONLY BE GRANTED WHERE AT LEAST ONE SUCH WRITER IS A MINOR-
 ITY GROUP MEMBER, AS DEFINED  BY  SUBDIVISION  EIGHT  OF  SECTION  THREE
 HUNDRED TEN OF THE EXECUTIVE LAW, OR A WOMAN.
   § 5. This act shall take effect April 1, 2020.

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Senate Bill S4227

Sponsored By

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

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2019-S4227 (ACTIVE) - Details

2019-S4227 (ACTIVE) - Summary

2019-S4227 (ACTIVE) - Sponsor Memo

2019-S4227 (ACTIVE) - Bill Text download pdf

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Sponsored By

Kevin S. Parker

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

Actions

2019-S4227 (ACTIVE) - Details

2019-S4227 (ACTIVE) - Summary

2019-S4227 (ACTIVE) - Sponsor Memo

2019-S4227 (ACTIVE) - Bill Text download pdf

Comments