NY State Senate Bill 2015-S2518A

Senate Bill S2518A

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 Investigations And Government Operations 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 14, 2016	print number 2518a
Jan 14, 2016	amend and recommit to investigations and government operations
Jan 06, 2016	referred to investigations and government operations
Jan 26, 2015	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2015-S2518 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §24, add §24-b, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S6101
2011-2012: S3378
2013-2014: S3191
2017-2018: S2256
2019-2020: S4227
2021-2022: S4799
2023-2024: S6031

2015-S2518 - Summary

Includes writer salaries and fees within production costs eligible for the empire state film production credit; defines "writer" as a person employed or retained to write or revise scripts, screenplays, teleplays, dialogue, sketches, routines or narrations.

2015-S2518 - Sponsor Memo

                                BILL NUMBER:S2518

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

PURPOSE:

To include writing fees as an eligible expense to receive a credit
under the Empire State Film Production Credit for a movie or
television show produced in New York State.

SUMMARY OF PROVISIONS:

Section 1. Modifies the definition of "qualified production costs" to
include writer's fees and services.

Section 2. Defines "writer" for purposes of the Empire State Film
Production Credit.

Section 3. Places a cap of $50,000 per writer on the amount of the
credit that may be claimed by a qualified taxpayer. Places a cap of
five million dollars on the amount of tax credit that may be disbursed
for writers.

Section 4. Requires of hiring of a minority or woman writer when more
than three writers are hired.

Section 5. This bill shall take effect on April 1, 2016.

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
301, 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 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. Both New York
State and the film industry have been committed to increasing the
presence of minorities and women in film and television. In this
light, this bill requires that when three or more writers are hired by
an entity seeking such a credit, at least one must be a minority or
woman.

The inclusion of writers as a qualified production cost would create
new jobs and revenue with little fiscal impact. Although 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: S.3191A - Investigations & Gov Ops
2011-2012: S.3378 -  Investigations & Gov Ops
2010: S.6101 - Investigations & Gov Ops; A.8144 - Ways & Means
2009: S.6101 - Rules; A.8144 - Ways & Means

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 April 1, 2016.

2015-S2518 - Bill Text download pdf

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

                                  2518

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 26, 2015
                               ___________

Introduced  by  Sen.  PARKER -- 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 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 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
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.
  S 2. Subdivision (b) of section 24 of the tax law is amended by adding
a new paragraph 9 to read as follows:
  (9)  "WRITER"  MEANS  A WRITER EMPLOYED OR RETAINED TO WRITE OR REVISE
SCRIPTS,  SCREENPLAYS,  TELEPLAYS,  DIALOGUE,  SKETCHES,   ROUTINES   OR
NARRATIONS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06956-01-5

S. 2518                             2

  S  3.  Subdivisions  (c), (d) and (e) of section 24 of the tax law are
relettered subdivisions (e), (f) and (g) 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  PER  WRITER  PER  QUALIFIED FILM.
PROVIDED, FURTHER, THAT NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  THIS
SECTION,  A WRITER'S SERVICES SHALL BE ELIGIBLE FOR THE CREDIT UP TO THE
MAXIMUM AMOUNTS OF THIS SUBDIVISION IF SUCH WRITER IS SUBJECT  TO  TAXA-
TION BY THIS STATE.
  (D) THE STATE ANNUALLY WILL DISBURSE NO MORE THAN FIVE MILLION DOLLARS
IN TAX CREDITS FOR PRODUCTION COSTS FOR WRITERS FEES AND SALARIES PURSU-
ANT  TO  THIS SECTION. SUCH CREDITS SHALL ONLY BE AVAILABLE FROM CREDITS
ALLOWED FOR PRODUCTION COSTS AS DEFINED AND GOVERNED BY THIS SECTION.
  S 4. The tax law is amended by adding a new section 24-b  to  read  as
follows:
  S 24-B. DIVERSITY IN HIRING FOR WRITERS. WHERE MORE THAN THREE WRITERS
ARE TO BE HIRED OR RETAINED FOR SERVICE ON AN ELIGIBLE PRODUCTION, CRED-
ITS  FOR WRITER COSTS AUTHORIZED PURSUANT TO SECTION TWENTY-FOUR OF THIS
ARTICLE SHALL ONLY BE GRANTED WHERE AT LEAST ONE SUCH WRITER IS A MINOR-
ITY GROUP MEMBER, AS DEFINED  BY  SUBDIVISION  EIGHT  OF  SECTION  THREE
HUNDRED TEN OF THE EXECUTIVE LAW, OR A WOMAN.
  S 5. This act shall take effect April 1, 2016.

2015-S2518A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §24, add §24-b, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S6101
2011-2012: S3378
2013-2014: S3191
2017-2018: S2256
2019-2020: S4227
2021-2022: S4799
2023-2024: S6031

2015-S2518A (ACTIVE) - Summary

2015-S2518A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2518A

 TITLE OF BILL :

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

 PURPOSE :

To include writing fees as an eligible expense to receive a credit
under the Empire State Film Production Credit for a movie or
television show produced in New York State.

 SUMMARY OF PROVISIONS :

Section 1. Modifies the definition of "qualified production costs" to
include writer's fees and services.

Section 2. Defines "writer" for purposes of the Empire State Film
Production Credit.

Section 3. Places a cap of $50,000 per writer on the amount of the
credit that may be claimed by a qualified taxpayer. Places a cap of
five million dollars on the amount of tax credit that may be disbursed
for writers.

Section 4. Requires of hiring of a minority or woman writer when more
than three writers are hired.

Section 5. This bill shall take effect on April 1, 2017.

 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
301, 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 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. Both New York
State and the film industry have been committed to increasing the
presence of minorities and women in film and television. In this
light, this bill requires that when three or more writers are hired by
an entity seeking such a credit, at least one must be a minority or
woman.

The inclusion of writers as a qualified production cost would create
new jobs and revenue with little fiscal impact. Although 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: S.3191A - Investigations & Gov Ops
2011-2012: S.3378 - Investigations & Gov Ops
2010: S.6101 - Investigations & Gov Ops; A.8144 - Ways & Means
2009: S.6101 - Rules; A.8144 - Ways & Means

 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 April 1, 2017.

2015-S2518A (ACTIVE) - Bill Text download pdf

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

                                 2518--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 26, 2015
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  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.  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 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
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.
  S 2. Subdivision (b) of section 24 of the tax law is amended by adding
a new paragraph 9 to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06956-02-6

S. 2518--A                          2

  (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) 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  PER  WRITER  PER  QUALIFIED FILM.
PROVIDED, FURTHER, THAT NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  THIS
SECTION,  A WRITER'S SERVICES SHALL BE ELIGIBLE FOR THE CREDIT UP TO THE
MAXIMUM AMOUNTS OF THIS SUBDIVISION IF SUCH WRITER IS SUBJECT  TO  TAXA-
TION BY THIS STATE.
  (D) THE STATE ANNUALLY WILL DISBURSE NO MORE THAN FIVE MILLION DOLLARS
IN TAX CREDITS FOR PRODUCTION COSTS FOR WRITERS FEES AND SALARIES PURSU-
ANT  TO  THIS SECTION. SUCH CREDITS SHALL ONLY BE AVAILABLE FROM CREDITS
ALLOWED FOR PRODUCTION COSTS AS DEFINED AND GOVERNED BY THIS SECTION.
  S 4. The tax law is amended by adding a new section 24-b  to  read  as
follows:
  S 24-B. DIVERSITY IN HIRING FOR WRITERS. WHERE MORE THAN THREE WRITERS
ARE TO BE HIRED OR RETAINED FOR SERVICE ON AN ELIGIBLE PRODUCTION, CRED-
ITS  FOR WRITER COSTS AUTHORIZED PURSUANT TO SECTION TWENTY-FOUR OF THIS
ARTICLE SHALL ONLY BE GRANTED WHERE AT LEAST ONE SUCH WRITER IS A MINOR-
ITY GROUP MEMBER, AS DEFINED  BY  SUBDIVISION  EIGHT  OF  SECTION  THREE
HUNDRED TEN OF THE EXECUTIVE LAW, OR A WOMAN.
  S 5. This act shall take effect April 1, 2017.

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