NY State Senate Bill 2013-S5370A

Senate Bill S5370A

2013-2014 Legislative Session

Includes writer salaries and fees within production costs eligible for the empire state film production credit

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 28, 2014	reported and committed to finance
Jan 24, 2014	print number 5370a
Jan 24, 2014	amend and recommit to investigations and government operations
Jan 08, 2014	referred to investigations and government operations
May 16, 2013	referred to investigations and government operations

Votes

- May 28, 2014 - Investigations And Government Operations Committee Vote
  S5370A
  
  7
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Investigations And Government Operations Committee Vote: May 28, 2014
      
      aye (7)
      
      Carlucci
      
      Diaz
      
      Hoylman-Sigal
      
      Marcellino
      
      Nozzolio
      
      O'Mara
      
      Squadron
      
      aye wr (2)
      
      Golden
      
      Zeldin

Bill Amendments

Original

A (Active)

co-Sponsors

2013-S5370 - Details

See Assembly Version of this Bill:: A7373
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §24, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A3376
2017-2018: A5870
2019-2020: A556
2021-2022: A1390

2013-S5370 - Summary

Includes writer's salaries and fees within production costs eligible for the empire state film production credit.

2013-S5370 - Sponsor Memo

                                BILL NUMBER:S5370

TITLE OF BILL:  An act to amend the tax law, in relation to
eligibility for the empire state film production credit

PURPOSE:  Includes writer salaries and fees within production costs
eligible for the empire state film production credit.

SUMMARY OF PROVISIONS:

Section 1. provides for the allowance of credit.

Section 2. Modifies the definition of "qualified production costs" to
include writer's fees and services. Defines "writer" for purposes of
the Empire State Film Production Credit.

Section 3. Outlines criteria to qualify as eligible production costs
including requirements for writer residency, and a cap of 550,000 per
writer on the amount of the credit that may be claimed by a qualified
taxpayer where that writer is a minority group member or a woman.
Places a cap of 55 million of the Empire State Film Production that
may be used for writers.

Section 4. This bill shall take effect one hundred twentieth day after
it shall have become a law.

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 30% 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.

In 2008, there were 15 major television productions filming in New
York State. Collectively, these shows employed a total of 122 writers.
Of these 122 writers only 24 of them live 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.

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

LEGISLATIVE HISTORY: New bill.

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 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 years.

2013-S5370 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5370

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by  Sen.  HANNON -- 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 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.
  S  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 and a new paragraph 9 is 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
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10927-01-3

S. 5370                             2

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.
  (9) "WRITER" MEANS A WRITER EMPLOYED OR RETAINED TO  WRITE  OR  REVISE
SCRIPTS,   SCREENPLAYS,   TELEPLAYS,  DIALOGUE,  SKETCHES,  ROUTINES  OR
NARRATIONS.
  S 3. Subdivisions (c), (d) and (e) of section 24 of the  tax  law  are
relettered  subdivisions  (e),  (f)  and  (g),  respectively 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 IN FEES OR SALARY PER WRITER PER QUAL-
IFIED FILM AND PROVIDED THAT SUCH WRITER IS A MINORITY GROUP MEMBER,  AS
DEFINED  BY SUBDIVISION EIGHT OF SECTION THREE HUNDRED TEN OF THE EXECU-
TIVE LAW, OR A WOMAN.
  PROVIDED, FURTHER, THAT, NOTWITHSTANDING ANY OTHER PROVISION  OF  THIS
SECTION,  A  WRITER'S  FEES AND SALARY SHALL BE ELIGIBLE FOR THE MAXIMUM
AMOUNT OF THE CREDIT GRANTED BY THIS SUBDIVISION, IF SUCH  WRITER  IS  A
RESIDENT OF THIS STATE.
  (D) FOR EACH TAX YEAR, NOT MORE THAN FIVE MILLION DOLLARS IN TAX CRED-
ITS  FOR  WRITERS'  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.
  S 4. 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.

co-Sponsors

View additional co-sponsors

2013-S5370A (ACTIVE) - Details

See Assembly Version of this Bill:: A7373
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §24, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A3376
2017-2018: A5870
2019-2020: A556
2021-2022: A1390

2013-S5370A (ACTIVE) - Summary

Includes writer's salaries and fees within production costs eligible for the empire state film production credit.

2013-S5370A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5370A

TITLE OF BILL:  An act to amend the tax law, in relation to
eligibility for the empire state film production credit

PURPOSE:

Includes writer salaries and fees within production costs eligible for
the empire state film production credit.

SUMMARY OF PROVISIONS:

Section 1. Provides for the allowance of credit.

Section 2. Modifies the definition of "qualified production costs" to
include writer's fees and services. Defines "writer" for purposes of
the Empire State Film Production Credit.

Section 3. Outlines criteria to qualify as eligible production costs
including requirements for writer residency, and either a cap of
$50,000 per writer on the amount of the credit that may be claimed by
a qualified taxpayer where that writer is a minority group member or a
woman. Places a cap of $3.5 million of the Empire State Film
Production that may be used for writers.

Section 4. This act shall take effect one hundred twentieth day after

it shall have become a law.

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 30%
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.

In 2008 there were 15 major television productions filming.in New York
State. Collectively, these shows employed a total of 122 writers. Of
these 122 writers only 24 of them live 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.


The inclusion of writers as a qualified production cost would Create
new jobs and revenue with little fiscal impact. 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
writers.

LEGISLATIVE HISTORY:

New bill.

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 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 years.

2013-S5370A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5370--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by  Sens. HANNON, KRUEGER -- read twice and ordered printed,
  and when printed to be committed to the  Committee  on  Investigations
  and  Government Operations -- recommitted to the Committee on Investi-
  gations 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 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 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.
  S  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 and a new paragraph 9 is 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.
                                                           LBD10927-02-4

S. 5370--A                          2

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.
  (9)  "WRITER"  MEANS  A WRITER EMPLOYED OR RETAINED TO WRITE OR REVISE
SCRIPTS,  SCREENPLAYS,  TELEPLAYS,  DIALOGUE,  SKETCHES,   ROUTINES   OR
NARRATIONS.
  S  3.  Subdivisions  (c), (d) and (e) of section 24 of the tax law are
relettered subdivisions (e), (f)  and  (g),  respectively  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 IN FEES OR SALARY PER WRITER PER QUAL-
IFIED  FILM AND PROVIDED THAT SUCH WRITER IS A MINORITY GROUP MEMBER, AS
DEFINED BY SUBDIVISION EIGHT OF SECTION THREE HUNDRED TEN OF THE  EXECU-
TIVE LAW, OR A WOMAN.
  PROVIDED,  FURTHER,  THAT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS
SECTION, A WRITER'S FEES AND SALARY SHALL BE ELIGIBLE  FOR  THE  MAXIMUM
AMOUNT  OF  THE  CREDIT GRANTED BY THIS SUBDIVISION, IF SUCH WRITER IS A
RESIDENT OF THIS STATE.
  (D) FOR EACH TAX YEAR, NOT MORE THAN THREE MILLION FIVE HUNDRED  THOU-
SAND  DOLLARS  IN  TAX  CREDITS  FOR WRITERS' 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.
  S 4. 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.

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Senate Bill S5370A

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Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

Bill Amendments

co-Sponsors

2013-S5370 - Details

2013-S5370 - Summary

2013-S5370 - Sponsor Memo

2013-S5370 - Bill Text download pdf

co-Sponsors

2013-S5370A (ACTIVE) - Details

2013-S5370A (ACTIVE) - Summary

2013-S5370A (ACTIVE) - Sponsor Memo

2013-S5370A (ACTIVE) - Bill Text download pdf

Comments