S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    556
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  M. of A. CAHILL -- Multi-Sponsored by -- M. of A. AUBRY,
   BLAKE, ORTIZ, PRETLOW -- read once and referred to  the  Committee  on
   Ways and Means
 
 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 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.
                                                            LBD03115-01-9

 A. 556                              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.
   § 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.
   § 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.