S T A T E   O F   N E W   Y O R K
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                                 7373--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              May 14, 2013
                               ___________

Introduced by M. of A. WRIGHT -- read once and referred to the Committee
  on Ways and Means -- recommitted to the Committee on Ways and Means in
  accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10927-03-4
              

A. 7373--A                          2

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.