NY State Senate Bill 2023-S7422B

Senate Bill S7422B

2023-2024 Legislative Session

Excludes a production using artificial intelligence or autonomous vehicles in a manner which results in the displacement of employees from the definition of qualified film

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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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 27, 2024	print number 7422b
Mar 27, 2024	amend (t) and recommit to investigations and government operations
Jan 03, 2024	referred to investigations and government operations
Oct 06, 2023	print number 7422a
Oct 06, 2023	amend (t) and recommit to investigations and government operations
May 24, 2023	referred to investigations and government operations

Bill Amendments

Original

B (Active)

co-Sponsors

2023-S7422 - Details

See Assembly Version of this Bill:: A7634
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §24, Tax L
Versions Introduced in 2025-2026 Legislative Session:: S6751, A6180

2023-S7422 - Summary

Excludes a production using artificial intelligence or autonomous vehicles in a manner which results in the displacement of employees whose salaries are qualified expenses from the definition of qualified film for the purposes of the empire state film production credit.

2023-S7422 - Sponsor Memo

2023-S7422 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7422
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 24, 2023
                                ___________
 
 Introduced  by  Sen.  WEBB  --  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  prohibiting  applicants  of
   the empire state film production credit from using artificial intelli-
   gence that would displace any natural person in their productions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 4 of subdivision (a) of section 24 of the tax law
 is amended by adding a new subparagraph (iii) to read as follows:
   (III)(A) ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, A QUALI-
 FIED FILM PRODUCTION COMPANY OR QUALIFIED  INDEPENDENT  FILM  PRODUCTION
 COMPANY THAT HAS APPLIED FOR CREDIT UNDER THE PROVISIONS OF THIS SECTION
 SHALL, AS A CONDITION FOR THE GRANTING OF THE CREDIT, BE PROHIBITED FROM
 USING SYNTHETIC MEDIA IN ANY COMPONENT OF PRODUCTION THAT WOULD DISPLACE
 ANY NATURAL PERSON IN SUCH PRODUCTION.
   (B) FOR THE PURPOSES OF THIS SUBPARAGRAPH, "SYNTHETIC MEDIA" MEANS ANY
 FORM  OF  MEDIA INCLUDING TEXT, IMAGE, VIDEO OR SOUND FULLY OR PARTIALLY
 CREATED OR MODIFIED THROUGH THE USE  OF  ARTIFICIAL  INTELLIGENCE  ALGO-
 RITHMS.
   § 2. This act shall take effect immediately.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11610-01-3

co-Sponsors

2023-S7422A - Details

See Assembly Version of this Bill:: A7634
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §24, Tax L
Versions Introduced in 2025-2026 Legislative Session:: S6751, A6180

2023-S7422A - Summary

2023-S7422A - Sponsor Memo

                                 
BILL NUMBER: S7422A          Revised 10/6/23

SPONSOR: WEBB
 
TITLE OF BILL:

An act to amend the tax law, in relation to excluding a production which
uses artificial intelligence in a manner which results in the displace-
ment of employees whose salaries are qualified expenses from the defi-
nition of qualified film for the purposes of the empire state film
production credit

 
PURPOSE:

Prohibits applicants of the empire state film production credit from
using artificial intelligence that would displace any natural person in
their productions

 
SUMMARY OF PROVISIONS:

Section one amends paragraph 3 of subdivision b of section 24 of the tax
law that adds a new exclusion to the definition a "Qualified Film" with-
in the empire state film production tax credit. Any productions that use

artificial intelligence in a manner which results in the displacement of
employees whose salaries are qualified expenses, unless the replacement
is permitted by a current collective bargaining agreement in force
covering such employees will not be considered a qualified film.

Section 2 is the effective date.

 
JUSTIFICATION:

First enacted in 2004, this tax credit was created as a part of the
State's Economic Development efforts to increase film and television
production and post production across New York State. This incentive is
a jobs creation program, intended to create well paying middle class
jobs with good benefits. To that end, a report on the economic impact of
this incentive indicates the growth in employment in the film industry
has grown by 54% since the tax credit's inception, supporting over
57,000 direct jobs in New York State.

New York State is unique among the states with a strong union tradition
dating back to the original labor movements created in the wake of the
excesses of powerful corporate interests during the Gilded Era. The
original pioneers for workers rights fought to protect workers from the
dangers generated by new industrial machines at that time and would work
to protect modern film and television workers from the infringement of
their creative and intellectual properties created by artificial intel-
ligence generated products.

Given the robust changes in this tax credit in the recently adopted
budget, and, in consideration of New York's storied history in the union
movement, it makes sense that taxpayer dollars continue to be used to
generate employment and not as an incentive to ( utilize artificial
intelligence to replace workers.

This bill aims to protect the very workers that support the film and
television industry through the prohibition of displacing workers in
favor of artificial intelligence. There is a place for artificial intel-
ligence and technology, but the film tax credit should not be used to
replace the talented and creative artists and workers in the film and
television community.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2023-S7422A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7422--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 24, 2023
                                ___________
 
 Introduced by Sens. WEBB, COMRIE, RAMOS -- read twice and ordered print-
   ed,  and  when  printed  to  be committed to the Committee on Investi-
   gations  and  Government  Operations  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee

 AN ACT to amend the tax law, in relation to excluding a production which
   uses  artificial  intelligence  in  a  manner  which  results  in  the
   displacement  of  employees whose salaries are qualified expenses from
   the definition of qualified film for the purposes of 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 3 of subdivision (b) of section  24  of  the  tax
 law,  as  amended  by section 9-a of part D of chapter 59 of the laws of
 2023, is amended to read as follows:
   (3) "Qualified film" means a  feature-length  film,  television  film,
 relocated  television production, television pilot or television series,
 regardless of the medium by means of which the film, pilot or series  is
 created  or  conveyed.  For  the purposes of the credit provided by this
 section only, a "qualified film" whose majority of principal photography
 shooting days in the production of the qualified film are shot in  West-
 chester, Rockland, Nassau, or Suffolk county or any of the five New York
 City  boroughs  shall  have  a  minimum budget of one million dollars. A
 "qualified film", whose majority of principal photography shooting  days
 in  the production of the qualified film are shot in any other county of
 the state than those listed in the preceding sentence shall have a mini-
 mum budget of two hundred fifty thousand dollars. "Qualified film" shall
 not include: (i) a documentary film, news or  current  affairs  program,
 interview  or  talk  program,  "how-to"  (i.e.,  instructional)  film or
 program, film or program consisting primarily of stock footage, sporting
 event or sporting program, game show, award ceremony,  film  or  program
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11610-04-3

 S. 7422--A                          2
 
 intended primarily for industrial, corporate or institutional end-users,
 fundraising film or program, daytime drama (i.e., daytime "soap opera"),
 commercials,  music  videos  or "reality" program; (ii) a production for
 which records are required under section 2257 of title 18, United States
 code,  to be maintained with respect to any performer in such production
 (reporting of books, films,  etc.  with  respect  to  sexually  explicit
 conduct);  [or] (iii) A PRODUCTION WHICH USES ARTIFICIAL INTELLIGENCE IN
 A MANNER WHICH RESULTS IN THE DISPLACEMENT OF EMPLOYEES  WHOSE  SALARIES
 ARE  QUALIFIED  EXPENSES,  UNLESS  SUCH  REPLACEMENT  IS  PERMITTED BY A
 CURRENT COLLECTIVE BARGAINING AGREEMENT IN FORCE COVERING  SUCH  EMPLOY-
 EES;  OR (IV) other than a relocated television production, a television
 series commonly known as variety entertainment, variety sketch and vari-
 ety talk, i.e., a program with components of improvisational or scripted
 content (monologues, sketches, interviews),  either  exclusively  or  in
 combination  with  other entertainment elements such as musical perform-
 ances, dancing, cooking, crafts, pranks, stunts, and games and which may
 be further defined in regulations of the commissioner of economic devel-
 opment. However, a qualified film shall include a television  series  as
 described  in  subparagraph  [(iii)]  (IV)  of this paragraph only if an
 application for such series has been deemed conditionally  eligible  for
 the  tax  credit  under  this section prior to April first, two thousand
 twenty, such series remains in continuous production  for  each  season,
 and  an annual application for each season of such series is continually
 submitted for such series after April  first,  two  thousand  twenty.  A
 series  that changes either or both the title of the series or the prin-
 cipal cast prior to March thirty-first, two thousand twenty-three, shall
 be considered to  remain  in  continuous  production  for  each  season,
 provided  the  series  films  at  the same location as prior seasons, is
 produced by the same entity, and retains at least eighty percent of  the
 staff from the prior season.
   § 2. This act shall take effect immediately.

co-Sponsors

2023-S7422B (ACTIVE) - Details

See Assembly Version of this Bill:: A7634
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §24, Tax L
Versions Introduced in 2025-2026 Legislative Session:: S6751, A6180

2023-S7422B (ACTIVE) - Summary

2023-S7422B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7422B

SPONSOR: WEBB
 
TITLE OF BILL:

An act to amend the tax law, in relation to excluding a production which
uses artificial intelligence or autonomous vehicles in a manner which
results in the displacement of employees whose salaries are qualified
expenses from the definition of qualified film for the purposes of the
empire state film production credit

 
PURPOSE:

Prohibits applicants of the empire state film production credit from
using artificial intelligence that would displace any natural person in
their productions

 
SUMMARY OF PROVISIONS:

Section one amends paragraph 3 of subdivision b of section 24 of the tax
law that adds a new exclusion to the definition a "Qualified Film" with-
in the empire state film production tax credit. Any productions that use

artificial intelligence or autonomous vehicles in a manner which results
in the displacement of employees whose salaries are qualified expenses,
unless the replacement is permitted by a current collective bargaining
agreement in force covering such employees will not be considered a
qualified film.

Section 2 is the effective date.

 
JUSTIFICATION:

First enacted in 2004, this tax credit was created as a part of the
State's Economic Development efforts to increase film and television
production and post production across New York State. This incentive is
a jobs creation program, intended to create well paying middle class
jobs with good benefits. To that end, a report on the economic impact of
this incentive indicates the growth in employment in the film industry
has grown by 54% since the tax credit's inception, supporting over
59,000 direct jobs in New York State.

New York State is unique among the states with a strong union tradition
dating back to the original labor movements created in the wake of the
excesses of powerful corporate interests during the Gilded Era. The
original pioneers for workers rights fought to protect workers from the
dangers generated by new industrial machines at that time and would work
to protect modern film and television workers from the infringement of
their creative and intellectual properties created by artificial intel-
ligence generated products.

Given the robust changes in this tax credit in the recently adopted
budget, and, in consideration of New York's storied history in the union
movement, it makes sense that taxpayer dollars continue to be used to
generate employment and not as an incentive to utilize artificial intel-
ligence to replace workers.

This bill aims to protect the very workers that support the film and
television industry through the prohibition of displacing workers in
favor of artificial intelligence or autonomous vehicles. There is a
place for artificial intelligence and technology, but the film tax cred-
it should not be used to replace the talented, specialized and creative
artists and workers in the film and television community.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2023-S7422B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7422--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 24, 2023
                                ___________
 
 Introduced by Sens. WEBB, COMRIE, RAMOS -- read twice and ordered print-
   ed,  and  when  printed  to  be committed to the Committee on Investi-
   gations  and  Government  Operations  --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee -- recommitted to the Committee on Investigations  and  Government
   Operations  in  accordance  with  Senate  Rule  6, sec. 8 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the tax law, in relation to excluding a production which
   uses artificial intelligence or autonomous vehicles in a manner  which
   results  in the displacement of employees whose salaries are qualified
   expenses from the definition of qualified film for the purposes of 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  3  of subdivision (b) of section 24 of the tax
 law, as amended by section 9-a of part D of chapter 59 of  the  laws  of
 2023, is amended to read as follows:
   (3)  "Qualified  film"  means  a feature-length film, television film,
 relocated television production, television pilot or television  series,
 regardless  of the medium by means of which the film, pilot or series is
 created or conveyed. For the purposes of the  credit  provided  by  this
 section only, a "qualified film" whose majority of principal photography
 shooting  days in the production of the qualified film are shot in West-
 chester, Rockland, Nassau, or Suffolk county or any of the five New York
 City boroughs shall have a minimum budget  of  one  million  dollars.  A
 "qualified  film", whose majority of principal photography shooting days
 in the production of the qualified film are shot in any other county  of
 the state than those listed in the preceding sentence shall have a mini-
 mum budget of two hundred fifty thousand dollars. "Qualified film" shall
 not  include:  (i)  a documentary film, news or current affairs program,

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11610-08-4

 S. 7422--B                          2
 
 interview or  talk  program,  "how-to"  (i.e.,  instructional)  film  or
 program, film or program consisting primarily of stock footage, sporting
 event  or  sporting  program, game show, award ceremony, film or program
 intended primarily for industrial, corporate or institutional end-users,
 fundraising film or program, daytime drama (i.e., daytime "soap opera"),
 commercials,  music  videos  or "reality" program; (ii) a production for
 which records are required under section 2257 of title 18, United States
 code, to be maintained with respect to any performer in such  production
 (reporting  of  books,  films,  etc.  with  respect to sexually explicit
 conduct); [or] (iii) A PRODUCTION WHICH USES ARTIFICIAL INTELLIGENCE  OR
 AUTONOMOUS  VEHICLES  IN  A  MANNER WHICH RESULTS IN THE DISPLACEMENT OF
 EMPLOYEES WHOSE SALARIES ARE QUALIFIED EXPENSES, UNLESS SUCH REPLACEMENT
 IS PERMITTED BY A  CURRENT  COLLECTIVE  BARGAINING  AGREEMENT  IN  FORCE
 COVERING  SUCH  EMPLOYEES;  OR  (IV)  other  than a relocated television
 production, a television series commonly known as variety entertainment,
 variety sketch and variety talk, i.e.,  a  program  with  components  of
 improvisational  or scripted content (monologues, sketches, interviews),
 either exclusively or in combination with other  entertainment  elements
 such  as musical performances, dancing, cooking, crafts, pranks, stunts,
 and games and which may be further defined in regulations of the commis-
 sioner of economic development. However, a qualified film shall  include
 a  television  series  as described in subparagraph [(iii)] (IV) of this
 paragraph only if an application for such series has been deemed  condi-
 tionally  eligible  for the tax credit under this section prior to April
 first, two thousand twenty, such series remains in continuous production
 for each season, and an annual  application  for  each  season  of  such
 series  is  continually submitted for such series after April first, two
 thousand twenty. A series that changes either or both the title  of  the
 series  or  the principal cast prior to March thirty-first, two thousand
 twenty-three, shall be considered to remain in continuous production for
 each season, provided the series films at the  same  location  as  prior
 seasons,  is  produced  by  the same entity, and retains at least eighty
 percent of the staff from the prior season.
   § 2. This act shall take effect immediately.

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Senate Bill S7422B

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Sponsored By

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

Bill Amendments

co-Sponsors

2023-S7422 - Details

2023-S7422 - Summary

2023-S7422 - Sponsor Memo

2023-S7422 - Bill Text download pdf

co-Sponsors

2023-S7422A - Details

2023-S7422A - Summary

2023-S7422A - Sponsor Memo

2023-S7422A - Bill Text download pdf

co-Sponsors

2023-S7422B (ACTIVE) - Details

2023-S7422B (ACTIVE) - Summary

2023-S7422B (ACTIVE) - Sponsor Memo

2023-S7422B (ACTIVE) - Bill Text download pdf

Comments