The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1390
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 8, 2021
                                ___________
 
 Introduced  by  M. of A. CAHILL -- Multi-Sponsored by -- M. of A. AUBRY,
   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
 other compensation for writers, directors,  including  music  directors,
 producers  and performers (other than background actors with no scripted
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01642-01-1

 A. 1390                             2
 
 lines). WRITERS' AND DIRECTORS' FEES  AND  SALARIES  SHALL  BE  ELIGIBLE
 PRODUCTION  COSTS SUBJECT TO THE PROVISIONS OF SUBDIVISION (C-1) 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-1) 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.  Section 24 of the tax law is amended by adding two new subdivi-
 sions (c-1) and (c-2) to read as follows:
   (C-1) 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.
   (C-2) FOR EACH TAX YEAR, NOT MORE THAN FIVE  MILLION  DOLLARS  IN  TAX
 CREDITS  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.