S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4999
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2017
                                ___________
 
 Introduced by Sen. ALCANTARA -- 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. 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.
   § 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.
   §  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  four  new paragraphs 9, 10, 11 and 12 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.
              

                                                            LBD10426-01-7

 S. 4999                             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 WHO IS EMPLOYED OR RETAINED  TO  WRITE  OR
 REVISE  SCRIPTS, SCREENPLAYS, TELEPLAYS, DIALOGUE, SKETCHES, ROUTINES OR
 NARRATIONS AND WHO REPORTS TO WORK REGULARLY IN A WRITERS  ROOM  LOCATED
 IN THE STATE.
   (10)  "DIRECTOR"  MEANS  THE INDIVIDUAL EMPLOYED OR RETAINED TO DIRECT
 THE PRODUCTION, AS THE WORD "DIRECT" IS  COMMONLY  USED  IN  THE  MOTION
 PICTURE INDUSTRY.
   (11) "WRITERS ROOM" MEANS A ROOM OR PHYSICAL LOCATION WHERE TELEVISION
 STORIES ARE CONCEIVED BY WRITERS.
   (12)  "PROFIT  PARTICIPANT"  IS AN INDIVIDUAL WHO HAS NEGOTIATED FOR A
 PERCENTAGE OF PROFITS GENERATED BY THEIR TELEVISION SHOW. PROFIT PARTIC-
 IPATION DOES NOT INCLUDE MONIES CONTRACTUALLY REQUIRED  BY  COLLECTIVELY
 BARGAINED  AGREEMENTS  FOR  REUSE  OF THE PROGRAM ON DIFFERENT PLATFORMS
 OVER TIME.
   § 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; (II) FOR  EACH
 NON-CREDITED   WRITER,  SEVENTY-FIVE  THOUSAND  DOLLARS  PER  SERIES  OF
 EPISODES; AND (III) FOR EACH ELIGIBLE WRITER  OR  DIRECTOR,  AN  OVERALL
 TOTAL  OF  ONE HUNDRED FIFTY THOUSAND DOLLARS PER SEASON.  PROVIDED THAT
 IN EACH CASE, SUCH WRITER OR DIRECTOR IS A  MINORITY  GROUP  MEMBER,  AS
 DEFINED  BY SUBDIVISION EIGHT OF SECTION THREE HUNDRED TEN OF THE EXECU-
 TIVE LAW, OR A WOMAN, AND PROVIDED, FURTHER, THAT ANY WRITER OR DIRECTOR
 WHO IS A PROFIT PARTICIPANT IN THE QUALIFIED  PRODUCTION  SHALL  NOT  BE
 ELIGIBLE.
   (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.
   § 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.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4999--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2017
                                ___________
 
 Introduced by Sen. ALCANTARA -- 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.
   §  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.
   § 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 four new paragraphs 9, 10, 11 and 12 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

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

                                                            LBD10426-02-7

 S. 4999--A                          2

 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).  TELEVISION  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, 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 tech-
 nical  and  crew  production  costs,  such  as  expenditures  for   film
 production  facilities,  or  any  part thereof, props, makeup, wardrobe,
 film processing, camera, sound recording,  set  construction,  lighting,
 shooting, editing and meals.
   (9)  "WRITER"  MEANS  A WRITER WHO IS EMPLOYED OR RETAINED TO WRITE OR
 REVISE SCRIPTS, SCREENPLAYS, TELEPLAYS, DIALOGUE, SKETCHES, ROUTINES  OR
 NARRATIONS  AND  WHO REPORTS TO WORK REGULARLY IN A WRITERS ROOM LOCATED
 IN THE STATE.
   (10) "DIRECTOR" MEANS THE INDIVIDUAL EMPLOYED OR  RETAINED  TO  DIRECT
 THE  PRODUCTION,  AS  THE  WORD  "DIRECT" IS COMMONLY USED IN THE MOTION
 PICTURE INDUSTRY.
   (11) "WRITERS ROOM" MEANS A ROOM OR PHYSICAL LOCATION WHERE TELEVISION
 STORIES ARE CONCEIVED BY WRITERS.
   (12) "PROFIT PARTICIPANT" IS AN INDIVIDUAL WHO HAS  NEGOTIATED  FOR  A
 PERCENTAGE OF PROFITS GENERATED BY THEIR TELEVISION SHOW. PROFIT PARTIC-
 IPATION  DOES  NOT INCLUDE MONIES CONTRACTUALLY REQUIRED BY COLLECTIVELY
 BARGAINED AGREEMENTS FOR REUSE OF THE  PROGRAM  ON  DIFFERENT  PLATFORMS
 OVER TIME.
   §  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; (II) FOR EACH
 NON-CREDITED  WRITER,  SEVENTY-FIVE  THOUSAND  DOLLARS  PER  SERIES   OF
 EPISODES;  AND  (III)  FOR  EACH ELIGIBLE WRITER OR DIRECTOR, AN OVERALL
 TOTAL OF ONE HUNDRED FIFTY  THOUSAND  DOLLARS  PER  SERIES  PER  SEASON.
 PROVIDED  THAT IN EACH CASE, 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, AND PROVIDED, FURTHER, THAT ANY WRITER OR
 DIRECTOR  WHO  IS A PROFIT PARTICIPANT IN THE QUALIFIED PRODUCTION SHALL
 NOT BE ELIGIBLE.
   (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.
   § 5. Paragraph 5 of subdivision (a) of section 24 of the tax  law,  as
 amended  by  chapter  420  of  the  laws  of 2016, is amended to read as
 follows:
   (5) For the period two thousand fifteen through two thousand nineteen,
 in addition to the amount of credit established in paragraph two of this
 subdivision, a taxpayer shall be allowed a credit equal to  the  product
 (or pro rata share of the product, in the case of a member of a partner-
 ship)  of  ten percent and the amount of wages or salaries paid to indi-
 viduals directly employed (excluding those employed as  writers,  direc-
 tors,  music  directors,  producers and performers, including background

 S. 4999--A                          3
 
 actors with no scripted lines) by a qualified film production company or
 a qualified independent film production company for  services  performed
 by  those individuals in one of the counties specified in this paragraph
 in  connection  with  a  qualified  film  with  a minimum budget of five
 hundred thousand dollars. For purposes of this  additional  credit,  the
 services  must  be  performed  in one or more of the following counties:
 Albany, Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung,
 Chenango,  Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex,
 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
 Livingston, Madison,  Monroe,  Montgomery,  Niagara,  Oneida,  Onondaga,
 Ontario,  Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga,
 Schenectady,  Schoharie,  Schuyler,  Seneca,  St.   Lawrence,   Steuben,
 Suffolk,  Sullivan,  Tioga, Tompkins, Ulster, Warren, Washington, Wayne,
 Wyoming, or Yates. The aggregate amount of tax credits allowed  pursuant
 to  the  authority  of this paragraph shall be five million dollars each
 year during the period two thousand fifteen through two  thousand  nine-
 teen  of the annual allocation made available to the program pursuant to
 paragraph four of subdivision [(e)] (G) of this section. Such  aggregate
 amount of credits shall be allocated by the governor's office for motion
 picture  and television development among taxpayers in order of priority
 based upon the date of filing an  application  for  allocation  of  film
 production  credit  with  such  office. If the total amount of allocated
 credits applied for under this paragraph in any year exceeds the  aggre-
 gate  amount  of tax credits allowed for such year under this paragraph,
 such excess shall be treated as having been applied for on the first day
 of the next year. If the total amount of allocated tax  credits  applied
 for under this paragraph at the conclusion of any year is less than five
 million  dollars,  the  remainder shall be treated as part of the annual
 allocation made available to the program pursuant to paragraph  four  of
 subdivision  [(e)]  (G)  of  this  section. However, in no event may the
 total of the credits allocated under  this  paragraph  and  the  credits
 allocated  under paragraph five of subdivision (a) of section thirty-one
 of this article exceed five million dollars in any year during the peri-
 od two thousand fifteen through two thousand nineteen.
   § 6. 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.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4999--B
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2017
                                ___________
 
 Introduced by Sen. ALCANTARA -- 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  --  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 incentives to enhance diversity in the ranks of television
 writers and directors will also enhance the  diversity  of  stories  and
 casts.
   §  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.
   § 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 four new paragraphs 9, 10, 11 and 12 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10426-04-7

 S. 4999--B                          2
 
 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).  TELEVISION  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, 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 tech-
 nical  and  crew  production  costs,  such  as  expenditures  for   film
 production  facilities,  or  any  part thereof, props, makeup, wardrobe,
 film processing, camera, sound recording,  set  construction,  lighting,
 shooting, editing and meals.
   (9)  "WRITER"  MEANS  A WRITER WHO IS EMPLOYED OR RETAINED TO WRITE OR
 REVISE SCRIPTS, SCREENPLAYS, TELEPLAYS, DIALOGUE, SKETCHES, ROUTINES  OR
 NARRATIONS  AND  WHO REPORTS TO WORK REGULARLY IN A WRITERS ROOM LOCATED
 IN THE STATE.
   (10) "DIRECTOR" MEANS THE INDIVIDUAL EMPLOYED OR  RETAINED  TO  DIRECT
 THE  PRODUCTION,  AS  THE  WORD  "DIRECT" IS COMMONLY USED IN THE MOTION
 PICTURE INDUSTRY.
   (11) "WRITERS ROOM" MEANS A ROOM OR PHYSICAL LOCATION WHERE TELEVISION
 STORIES ARE CONCEIVED BY WRITERS.
   (12) "PROFIT PARTICIPANT" IS AN INDIVIDUAL WHO HAS  NEGOTIATED  FOR  A
 PERCENTAGE OF PROFITS GENERATED BY THEIR TELEVISION SHOW. PROFIT PARTIC-
 IPATION  DOES  NOT INCLUDE MONIES CONTRACTUALLY REQUIRED BY COLLECTIVELY
 BARGAINED AGREEMENTS FOR REUSE OF THE  PROGRAM  ON  DIFFERENT  PLATFORMS
 OVER TIME.
   §  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; (II) FOR EACH
 NON-CREDITED  WRITER,  SEVENTY-FIVE  THOUSAND  DOLLARS  PER  SERIES   OF
 EPISODES;  AND  (III)  FOR  EACH ELIGIBLE WRITER OR DIRECTOR, AN OVERALL
 TOTAL OF ONE HUNDRED FIFTY  THOUSAND  DOLLARS  PER  SERIES  PER  SEASON.
 PROVIDED  THAT IN EACH CASE, 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, AND PROVIDED, FURTHER, THAT ANY WRITER OR
 DIRECTOR  WHO  IS A PROFIT PARTICIPANT IN THE QUALIFIED PRODUCTION SHALL
 NOT BE ELIGIBLE.
   (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.
   § 5. Paragraph 5 of subdivision (a) of section 24 of the tax  law,  as
 amended  by  section  1  of part M of chapter 59 of the laws of 2017, is
 amended to read as follows:
   (5) For the period two thousand fifteen through two  thousand  twenty-
 two, in addition to the amount of credit established in paragraph two of
 this  subdivision,  a  taxpayer  shall  be allowed a credit equal to the
 product (or pro rata share of the product, in the case of a member of  a
 partnership)  of ten percent and the amount of wages or salaries paid to

 S. 4999--B                          3
 
 individuals directly employed  (excluding  those  employed  as  writers,
 directors,  music  directors,  producers and performers, including back-
 ground actors with no scripted lines) by  a  qualified  film  production
 company  or a qualified independent film production company for services
 performed by those individuals in one of the counties specified in  this
 paragraph  in  connection with a qualified film with a minimum budget of
 five hundred thousand dollars. For purposes of this  additional  credit,
 the services must be performed in one or more of the following counties:
 Albany,  Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua, Chemung,
 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie,  Essex,
 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
 Livingston,  Madison,  Monroe,  Montgomery,  Niagara,  Oneida, Onondaga,
 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer,  Saratoga,
 Schenectady,  Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli-
 van, Tioga, Tompkins, Ulster, Warren,  Washington,  Wayne,  Wyoming,  or
 Yates.  The  aggregate  amount  of  tax  credits allowed pursuant to the
 authority of this paragraph shall be  five  million  dollars  each  year
 during  the  period two thousand fifteen through two thousand twenty-two
 of the annual allocation made available to the program pursuant to para-
 graph four of subdivision [(e)] (G)  of  this  section.  Such  aggregate
 amount of credits shall be allocated by the governor's office for motion
 picture  and television development among taxpayers in order of priority
 based upon the date of filing an  application  for  allocation  of  film
 production  credit  with  such  office. If the total amount of allocated
 credits applied for under this paragraph in any year exceeds the  aggre-
 gate  amount  of tax credits allowed for such year under this paragraph,
 such excess shall be treated as having been applied for on the first day
 of the next year. If the total amount of allocated tax  credits  applied
 for under this paragraph at the conclusion of any year is less than five
 million  dollars,  the  remainder shall be treated as part of the annual
 allocation made available to the program pursuant to paragraph  four  of
 subdivision  [(e)]  (G)  of  this  section. However, in no event may the
 total of the credits allocated under  this  paragraph  and  the  credits
 allocated  under paragraph five of subdivision (a) of section thirty-one
 of this article exceed five million dollars in any year during the peri-
 od two thousand fifteen through two thousand twenty-two.
   § 6. 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.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4999--C
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2017
                                ___________
 
 Introduced  by  Sens.  ALCANTARA,  ADDABBO,  CARLUCCI  -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Investigations and Government Operations -- committee discharged, bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee --  committee  discharged,  bill  amended,  ordered  reprinted  as
   amended  and  recommitted  to  said committee -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee
 
 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 (D) OF THIS SECTION, TO BE COMPUTED
 AS HEREINAFTER PROVIDED.
   (2) 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
 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10426-05-7
              

 S. 4999--C                          2
 
   (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 TELEVISION WRITERS' AND DIRECTORS' FEES  AND  SALARIES"
 MEANS:  (I)  FOR  EACH WRITER OR DIRECTOR WHO RECEIVES AN ON-AIR CREDIT,
 FIFTY THOUSAND DOLLARS IN FEES OR SALARY  PER  EPISODE;  (II)  FOR  EACH
 NON-CREDITED   WRITER,  SEVENTY-FIVE  THOUSAND  DOLLARS  PER  SERIES  OF
 EPISODES; AND (III) FOR EACH ELIGIBLE WRITER  OR  DIRECTOR,  AN  OVERALL
 TOTAL  OF  ONE  HUNDRED  FIFTY  THOUSAND  DOLLARS PER SERIES PER SEASON.
 PROVIDED THAT IN EACH CASE, 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, AND PROVIDED, FURTHER, THAT ANY WRITER OR
 DIRECTOR WHO IS A PROFIT PARTICIPANT IN THE QUALIFIED  PRODUCTION  SHALL
 NOT BE ELIGIBLE.
   (4)  "WRITER"  MEANS  A WRITER WHO IS EMPLOYED OR RETAINED TO WRITE OR
 REVISE SCRIPTS, SCREENPLAYS, TELEPLAYS, DIALOGUE, SKETCHES, ROUTINES  OR
 NARRATIONS  AND  WHO REPORTS TO WORK REGULARLY IN A WRITERS ROOM LOCATED
 IN THE STATE.
   (5) "DIRECTOR" MEANS THE INDIVIDUAL EMPLOYED OR RETAINED TO DIRECT THE
 PRODUCTION, AS THE WORD "DIRECT" IS COMMONLY USED IN THE MOTION  PICTURE
 INDUSTRY.
   (6)  "WRITERS ROOM" MEANS A ROOM OR PHYSICAL LOCATION WHERE TELEVISION
 STORIES ARE CONCEIVED BY WRITERS.
   (7) "PROFIT PARTICIPANT" IS AN INDIVIDUAL WHO  HAS  NEGOTIATED  FOR  A
 PERCENTAGE OF PROFITS GENERATED BY THEIR TELEVISION SHOW. PROFIT PARTIC-
 IPATION  DOES  NOT INCLUDE MONIES CONTRACTUALLY REQUIRED BY COLLECTIVELY
 BARGAINED AGREEMENTS FOR REUSE OF THE  PROGRAM  ON  DIFFERENT  PLATFORMS
 OVER TIME.
   (C)  FOR EACH TAX YEAR, NO MORE THAN FIVE MILLION DOLLARS IN TAX CRED-
 ITS FOR QUALIFIED WRITERS' AND DIRECTORS' FEES  AND  SALARIES  SHALL  BE
 GRANTED  PURSUANT  TO THIS SECTION. SUCH CREDITS SHALL ONLY BE AVAILABLE
 FROM CREDITS ALLOWED FOR  WRITERS'  AND  DIRECTORS'  FEES  AND  SALARIES
 PURSUANT TO THIS SECTION.
   (D)  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).
   (E) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, (I)  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  (II)  THE
 COMMISSIONER AND THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOP-
 MENT  MAY  RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THIS
 CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY  THE  TAXPAYER.  PROVIDED,

 S. 4999--C                          3
 
 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.
   (F) MAXIMUM AMOUNT OF CREDITS. (1) THE AGGREGATE AMOUNT OF TAX CREDITS
 ALLOWED  UNDER  THIS  SECTION,  SUBDIVISION  FORTY-SEVEN  OF SECTION TWO
 HUNDRED TEN-B AND SUBSECTION (U) OF SECTION  SIX  HUNDRED  SIX  OF  THIS
 CHAPTER  IN ANY CALENDAR YEAR SHALL BE FOUR 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 SEVENTEEN 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 SEVENTEEN DEADLINE.
   (G) 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
 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

 S. 4999--C                          4
 
 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, 2018.