NY State Senate Bill 2015-S5448A

Senate Bill S5448A

2015-2016 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 10, 2016	reported and committed to finance
Jan 06, 2016	referred to investigations and government operations
Jun 04, 2015	print number 5448a
Jun 04, 2015	amend and recommit to investigations and government operations
May 14, 2015	referred to investigations and government operations

Votes

- May 10, 2016 - Investigations And Government Operations Committee Vote
  S5448A
  
  5
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Investigations And Government Operations Committee Vote: May 10, 2016
      
      aye (5)
      
      Carlucci
      
      Hoylman-Sigal
      
      Lanza
      
      Murphy
      
      Squadron
      
      aye wr (2)
      
      Golden
      
      O'Mara
      
      excused (2)
      
      Diaz
      
      Nozzolio

Bill Amendments

Original

A (Active)

2015-S5448 - Details

See Assembly Version of this Bill:: A3376
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §24, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: A7373
2017-2018: A5870
2019-2020: A556
2021-2022: A1390

2015-S5448 - Summary

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

2015-S5448 - Sponsor Memo

                                BILL NUMBER:S5448

TITLE OF BILL:

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

PURPOSE OR GENERAL IDEA OF BILL:

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

SUMMARY OF SPECIFIC 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.  Plac-
es 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 writ-
ers 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:

2013-2014: S5370-A

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.

2015-S5448 - Bill Text download pdf

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

                                  5448

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 14, 2015
                               ___________

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 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
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.
                                                           LBD04802-03-5

S. 5448                             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.
  (10) "DIRECTOR" MEANS THE INDIVIDUAL EMPLOYED OR  RETAINED  TO  DIRECT
THE  PRODUCTION,  AS  THE  WORD  "DIRECT" IS COMMONLY USED IN THE MOTION
PICTURE INDUSTRY.
  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: (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,  SEVENTY-FIVE THOUSAND DOLLARS PER SERIES OF
EPISODES AND PROVIDED THAT SUCH WRITER OR DIRECTOR IS A  MINORITY  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.
  (D) FOR EACH TAX YEAR, NOT MORE THAN FIVE MILLION DOLLARS IN TAX CRED-
ITS  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.
  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

2015-S5448A (ACTIVE) - Details

See Assembly Version of this Bill:: A3376
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §24, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: A7373
2017-2018: A5870
2019-2020: A556
2021-2022: A1390

2015-S5448A (ACTIVE) - Summary

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

2015-S5448A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5448A             Revised 05/12/16

 TITLE OF BILL :

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

 PURPOSE OR GENERAL IDEA OF BILL :

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

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1. Sets forth a legislative intent

Section 2. Provides for the allowance of credit.

Section 3. Modifies the definition of "qualified production costs" to
include writer's and director's fees and services. Defines "writer"
and "directors" for purposes of the Empire State Film Production
Credit.

Section 4. Outlines criteria to qualify as eligible production costs
Including limiting it to television productions, requirements for
writer and director residency, and a cap of 75,000 per episode for a

credited writer or director and 50,000 per series for an uncredited
writer or director 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 5 million of the Empire State Film Production
that may be used for writers and directors.

Section 5. This bill shall take effect one hundred twentieth day after
it shall have become a law.

 JUSTIFICATION :

Many 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 or directing for television.

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 writer and directors
working on television productions

 LEGISLATIVE HISTORY :

2013-2014: S5370-A

 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.

2015-S5448A (ACTIVE) - Bill Text download pdf

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

                                 5448--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 14, 2015
                               ___________

Introduced  by  Sen.  HANNON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  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. 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.
  S 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.
  S  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04802-05-5

S. 5448--A                          2

other  compensation  for  writers, directors, including music directors,
producers and performers (other than background actors with no  scripted
lines).  WRITERS'  AND  DIRECTORS'  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, LEVER-
AGED 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 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.
  S 4. 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 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.
  (D) FOR EACH TAX YEAR, NOT MORE THAN FIVE MILLION DOLLARS IN TAX CRED-
ITS 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.
  S 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.

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Senate Bill S5448A

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