S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11096
 
                           I N  A S S E M B L Y
 
                               June 4, 2018
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Crespo) --
   read once and referred to the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to a  television  writers'  and
   directors' fees and salaries credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The tax law is amended by adding a new section 24-b to read
 as follows:
   § 24-B. TELEVISION WRITERS' AND DIRECTORS' FEES AND  SALARIES  CREDIT.
 (A)(1)  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) OF THIS SECTION, TO BE COMPUTED
 AS HEREINAFTER PROVIDED.
   (2)  THE  AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA SHARE
 OF THE PRODUCT, IN THE CASE OF A MEMBER  OF  A  PARTNERSHIP)  OF  THIRTY
 PERCENT  AND  THE  QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES AND
 SALARIES COSTS PAID OR INCURRED IN THE PRODUCTION OF A  QUALIFIED  FILM,
 PROVIDED  THAT:  (I)  THE  CREDIT AMOUNT SHALL NOT EXCEED FIFTY THOUSAND
 DOLLARS FOR QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES AND  SALA-
 RIES  CLAIMED  FOR  SUCH EXPENSES INCURRED FOR THE EMPLOYMENT OF ANY ONE
 SPECIFIC WRITER OR DIRECTOR FOR THE PRODUCTION OF  A  SINGLE  TELEVISION
 PILOT  OR  A  SINGLE EPISODE OF A TELEVISION SERIES, AND (II) THE CREDIT
 AMOUNT SHALL NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS FOR QUALIFIED
 TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES  CLAIMED  FOR  SUCH
 EXPENSES  INCURRED  FOR  THE  EMPLOYMENT  OF  ANY ONE SPECIFIC WRITER OR
 DIRECTOR. THE CREDIT SHALL BE ALLOWED FOR THE TAXABLE YEAR IN WHICH  THE
 PRODUCTION OF SUCH QUALIFIED FILM IS COMPLETED.
   (3)  NO QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES
 USED BY A TAXPAYER EITHER AS THE BASIS FOR THE ALLOWANCE OF  THE  CREDIT
 PROVIDED  FOR PURSUANT TO THIS SECTION OR USED IN THE CALCULATION OF THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14849-03-8

 A. 11096                            2

 CREDIT PROVIDED PURSUANT TO THIS SECTION SHALL BE USED BY SUCH  TAXPAYER
 TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER.
   (B)  DEFINITIONS.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (1) "QUALIFIED FILM PRODUCTION COMPANY" IS A CORPORATION, PARTNERSHIP,
 LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL WHICH OR WHO IS PRIN-
 CIPALLY ENGAGED IN THE PRODUCTION OF A QUALIFIED FILM AND  CONTROLS  THE
 QUALIFIED FILM DURING PRODUCTION.
   (2)  "QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY" IS A CORPORATION,
 PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL, THAT OR
 WHO (I) IS PRINCIPALLY ENGAGED IN THE PRODUCTION  OF  A  QUALIFIED  FILM
 WITH  A  MAXIMUM  BUDGET  OF  FIFTEEN MILLION DOLLARS, (II) CONTROLS THE
 QUALIFIED FILM DURING PRODUCTION, AND (III) EITHER  IS  NOT  A  PUBLICLY
 TRADED  ENTITY, OR NO MORE THAN FIVE PERCENT OF THE BENEFICIAL OWNERSHIP
 OF WHICH IS OWNED, DIRECTLY OR INDIRECTLY, BY A PUBLICLY TRADED ENTITY.
   (3) "QUALIFIED FILM" MEANS A TELEVISION FILM, TELEVISION PILOT  AND/OR
 EACH  EPISODE  OF A TELEVISION SERIES, REGARDLESS OF THE MEDIUM BY MEANS
 OF WHICH THE FILM, PILOT OR EPISODE IS CREATED OR CONVEYED.
   (4) "QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES  AND  SALARIES"
 MEANS: (I) SALARIES OR FEES PAID TO A WRITER OR DIRECTOR WHO RECEIVES AN
 ON-AIR  CREDIT; (II) FOR A NON-CREDITED WRITER, UP TO SEVENTY-FIVE THOU-
 SAND DOLLARS IN SALARIES OR FEES PER SERIES OF EPISODES.  PROVIDED  THAT
 IN  EACH  CASE,  SUCH  WRITER OR DIRECTOR IS A MINORITY GROUP MEMBER, AS
 DEFINED IN SUBDIVISION EIGHT OF SECTION THREE HUNDRED TEN OF THE  EXECU-
 TIVE  LAW, OR A WOMAN, AND PROVIDED, FURTHER, THAT SALARIES OR FEES PAID
 TO ANY WRITER OR DIRECTOR WHO IS A PROFIT PARTICIPANT IN  THE  QUALIFIED
 FILM SHALL NOT BE ELIGIBLE.
   (5)  "WRITER"  MEANS  A PERSON WHO IS: (I) ENGAGED BY A QUALIFIED FILM
 PRODUCTION COMPANY OR A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY TO
 WRITE LITERARY MATERIAL (INCLUDING MAKING CHANGES OR REVISIONS IN LITER-
 ARY MATERIAL), WHEN THE COMPANY HAS THE RIGHT BY CONTRACT TO DIRECT  THE
 PERFORMANCE  OF  PERSONAL SERVICES IN WRITING OR PREPARING SUCH MATERIAL
 OR IN MAKING  REVISIONS,  MODIFICATIONS  OR  CHANGES  THEREIN;  OR  (II)
 ENGAGED  BY  THE  COMPANY  AND  WHO  PERFORMS SERVICES (AT THE COMPANY'S
 DIRECTION OR WITH ITS CONSENT) IN WRITING  OR  PREPARING  SUCH  LITERARY
 MATERIAL  OR MAKING REVISIONS, MODIFICATIONS, OR CHANGES IN SUCH MATERI-
 AL; AND (III) WHO REPORTS TO WORK REGULARLY IN A WRITERS ROOM LOCATED IN
 THE STATE.
   (6) "LITERARY MATERIAL" SHALL BE DEEMED TO  INCLUDE  STORIES,  ADAPTA-
 TIONS,  TREATMENTS,  ORIGINAL TREATMENTS, SCENARIOS, CONTINUITIES, TELE-
 PLAYS, SCREENPLAYS, DIALOGUE, SCRIPTS, SKETCHES, PLOTS, OUTLINES, NARRA-
 TIVE SYNOPSES, ROUTINES, NARRATIONS, AND FORMATS.
   (7) "WRITERS ROOM" MEANS A ROOM OR  PHYSICAL  LOCATION  WHERE  WRITERS
 EMPLOYED BY A QUALIFIED FILM PRODUCTION COMPANY OR QUALIFIED INDEPENDENT
 FILM PRODUCTION COMPANY WRITE OR REVISE LITERARY MATERIALS UTILIZED IN A
 QUALIFIED FILM.
   (8)  "DIRECTOR" MEANS AN INDIVIDUAL EMPLOYED OR RETAINED TO DIRECT THE
 PRODUCTION, AS THE WORD "DIRECT" IS COMMONLY USED IN THE MOTION  PICTURE
 INDUSTRY,  AND  WHO  WOULD  BE  CLASSIFIED AS A DIRECTOR UNDER THE BASIC
 AGREEMENT IN PLACE BETWEEN THE ASSOCIATION OF MOTION PICTURE  AND  TELE-
 VISION  PRODUCERS AND THE DIRECTOR'S GUILD OF AMERICA AND WHO IS A RESI-
 DENT OF NEW YORK.
   (9) "PROFIT PARTICIPANT" IS AN INDIVIDUAL WHO  HAS  NEGOTIATED  FOR  A
 PERCENTAGE  OF  PROFITS  GENERATED  BY  A QUALIFIED FILM. PROFIT PARTIC-
 IPATION DOES NOT INCLUDE MONIES CONTRACTUALLY REQUIRED  BY  COLLECTIVELY

 A. 11096                            3
 
 BARGAINED  AGREEMENTS  FOR  REUSE OF A QUALIFIED FILM ON DIFFERENT PLAT-
 FORMS OVER TIME.
   (C)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 53.
   (2) ARTICLE 22: SECTION 606: SUBSECTION (V).
   (D) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, (1)  EMPLOYEES  AND
 OFFICERS  OF  THE  DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT
 SHALL BE ALLOWED AND ARE DIRECTED  TO  SHARE  AND  EXCHANGE  INFORMATION
 REGARDING  THE CREDITS APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO THIS
 SECTION AND TAXPAYERS WHO ARE APPLYING FOR CREDITS OR WHO  ARE  CLAIMING
 CREDITS, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM
 FORMS  SUBMITTED  TO  THE  DEPARTMENT AND APPLICATIONS FOR CERTIFICATION
 SUBMITTED TO THE DEPARTMENT OF ECONOMIC DEVELOPMENT, AND (2) THE COMMIS-
 SIONER AND THE COMMISSIONER OF THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT
 MAY RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THIS CREDIT
 AND  THE AMOUNT OF THE CREDIT EARNED BY THE TAXPAYER. PROVIDED, HOWEVER,
 IF A TAXPAYER CLAIMS THIS CREDIT BECAUSE IT IS A  MEMBER  OF  A  LIMITED
 LIABILITY  COMPANY  OR  A  PARTNER  IN A PARTNERSHIP, ONLY THE AMOUNT OF
 CREDIT EARNED BY THE ENTITY AND NOT THE AMOUNT OF CREDIT CLAIMED BY  THE
 TAXPAYER MAY BE RELEASED.
   (E) MAXIMUM AMOUNT OF CREDITS. (1) THE AGGREGATE AMOUNT OF TAX CREDITS
 ALLOWED  UNDER  THIS  SECTION,  SUBDIVISION  FIFTY-THREE  OF SECTION TWO
 HUNDRED TEN-B AND SUBSECTION (V) OF SECTION  SIX  HUNDRED  SIX  OF  THIS
 CHAPTER  IN ANY CALENDAR YEAR SHALL BE FIVE MILLION DOLLARS. SUCH AGGRE-
 GATE AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE DEPARTMENT OF  ECONOMIC
 DEVELOPMENT  AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE OF
 FILING AN APPLICATION FOR ALLOCATION OF TELEVISION WRITERS'  AND  DIREC-
 TORS' FEES AND SALARIES CREDIT WITH SUCH DEPARTMENT. IF THE TOTAL AMOUNT
 OF  ALLOCATED  CREDITS  APPLIED  FOR  IN ANY PARTICULAR YEAR EXCEEDS THE
 AGGREGATE AMOUNT OF  TAX  CREDITS  ALLOWED  FOR  SUCH  YEAR  UNDER  THIS
 SECTION,  SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE
 FIRST DAY OF THE SUBSEQUENT YEAR.
   (2) THE COMMISSIONER OF ECONOMIC DEVELOPMENT,  AFTER  CONSULTING  WITH
 THE  COMMISSIONER, SHALL PROMULGATE REGULATIONS BY OCTOBER THIRTY-FIRST,
 TWO THOUSAND EIGHTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF  TAX
 CREDITS  AS  REQUIRED BY SUBDIVISION (A) OF THIS SECTION. SUCH RULES AND
 REGULATIONS SHALL INCLUDE PROVISIONS DESCRIBING THE APPLICATION PROCESS,
 THE DUE DATES FOR SUCH APPLICATIONS, THE STANDARDS WHICH SHALL  BE  USED
 TO EVALUATE THE APPLICATIONS, THE DOCUMENTATION THAT WILL BE PROVIDED TO
 TAXPAYERS  TO  SUBSTANTIATE  TO THE DEPARTMENT THE AMOUNT OF TAX CREDITS
 ALLOCATED TO SUCH TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED  NECES-
 SARY  AND  APPROPRIATE.  NOTWITHSTANDING  ANY  OTHER  PROVISIONS  TO THE
 CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND REGU-
 LATIONS MAY BE ADOPTED ON AN EMERGENCY BASIS IF NECESSARY TO  MEET  SUCH
 OCTOBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN DEADLINE.
   (F)  THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL SUBMIT TO THE GOVER-
 NOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  AND  THE  SPEAKER  OF  THE
 ASSEMBLY,  AN  ANNUAL  REPORT  TO BE SUBMITTED ON FEBRUARY FIRST OF EACH
 YEAR EVALUATING THE EFFECTIVENESS OF THE TELEVISION WRITERS' AND  DIREC-
 TORS' FEES AND SALARIES TAX CREDIT PROVIDED BY THIS SECTION IN STIMULAT-
 ING  THE  GROWTH  OF  DIVERSITY  IN THE FILM INDUSTRY IN THE STATE. SUCH
 REPORT SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, THE NUMBER  OF  QUALI-
 FIED   FILM  PRODUCTION  COMPANIES  AND/OR  QUALIFIED  INDEPENDENT  FILM
 PRODUCTION COMPANIES WHICH RECEIVED A TELEVISION WRITERS' AND DIRECTORS'
 FEES AND SALARIES CREDIT, THE CREDIT AMOUNTS CLAIMED BY  EACH  QUALIFIED

 A. 11096                            4
 
 FILM  PRODUCTION  COMPANY  AND/OR  QUALIFIED INDEPENDENT FILM PRODUCTION
 COMPANY, AS WELL AS THE IMPACT ON EMPLOYMENT  AND  THE  ECONOMY  OF  THE
 STATE. SUCH REPORT SHALL BE BASED ON DATA AVAILABLE FROM THE APPLICATION
 FILED  WITH  THE  DEPARTMENT  OF  ECONOMIC DEVELOPMENT FOR ALLOCATION OF
 TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDITS.   NOTWITH-
 STANDING ANY PROVISION OF LAW TO THE CONTRARY, THE INFORMATION CONTAINED
 IN  THE  REPORT SHALL BE PUBLIC INFORMATION. THE REPORT MAY ALSO INCLUDE
 ANY RECOMMENDATIONS OF CHANGES IN THE CALCULATION OR  ADMINISTRATION  OF
 THE  CREDIT,  AND  ANY  OTHER  RECOMMENDATION OF THE COMMISSIONER OF THE
 DEPARTMENT OF ECONOMIC DEVELOPMENT  REGARDING  CONTINUING  MODIFICATION,
 REPEAL  OF SUCH ACT, AND SUCH OTHER INFORMATION REGARDING THE ACT AS THE
 COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT MAY  FEEL  USEFUL
 AND APPROPRIATE.
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDIT.   (A)
 ALLOWANCE  OF  CREDIT.  A  TAXPAYER  WHO IS ELIGIBLE PURSUANT TO SECTION
 TWENTY-FOUR-B OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO  BE  COMPUTED
 AS PROVIDED IN SUCH SECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF  THE
 AMOUNT  OF  THE  CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
 YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE  TAXPAYER  OTHERWISE  PAYS
 TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, THE EXCESS SHALL BE TREAT-
 ED  AS  AN  OVERPAYMENT  OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE
 WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS  CHAPTER.
 PROVIDED, FURTHER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOU-
 SAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE
 PAID THEREON.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (v) to read as follows:
   (V)  TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDIT.  (1)
 ALLOWANCE OF CREDIT. A TAXPAYER WHO  IS  ELIGIBLE  PURSUANT  TO  SECTION
 TWENTY-FOUR-B  OF  THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED
 AS PROVIDED IN SUCH SECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF  THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xlix)  to  read  as
 follows:
 
 (XLIX) TELEVISION WRITERS'            AMOUNT OF CREDIT FOR THE SUM OF
 AND DIRECTORS' FEES AND SALARIES      QUALIFIED TELEVISION WRITERS' AND
 CREDIT UNDER SUBSECTION (V)           DIRECTORS' SALARIES CREDIT
                                       UNDER SUBDIVISION FIFTY-THREE OF
                                       SECTION TWO HUNDRED TEN-B
 
   §  5. This act shall take effect immediately, and shall apply to taxa-
 ble years beginning on or after January 1, 2019.