Bill Text: NY A06498 | 2019-2020 | General Assembly | Introduced


Bill Title: Provides a television writers' and directors' fees and salaries credit; to be eligible the writer or director is a minority group member, or a woman, and provided, further, that any writer or director who is a profit participant in the qualified production shall not be eligible.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Introduced) 2019-03-08 - referred to ways and means [A06498 Detail]

Download: New_York-2019-A06498-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          6498
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      March 8, 2019
                                       ___________
        Introduced  by  M. of A. CRESPO, DICKENS, PICHARDO, PERRY, DAVILA, PRET-
          LOW, SIMON, JAFFEE, LIFTON, MOSLEY, ARROYO -- Multi-Sponsored by -- M.
          of A. GALEF -- 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:
     1    Section 1. The tax law is amended by adding a new section 24-b to read
     2  as follows:
     3    §  24-b.  Television writers' and directors' fees and salaries credit.
     4  (a)(1) A taxpayer which is a qualified film  production  company,  or  a
     5  qualified  independent  film  production  company,  or  which  is a sole
     6  proprietor of or a member of a partnership which  is  a  qualified  film
     7  production  company  or a qualified independent film production company,
     8  and which is subject to tax under articles nine-A or twenty-two of  this
     9  chapter,  shall  be  allowed  a credit against such tax, pursuant to the
    10  provisions referenced in subdivision (d) of this section, to be computed
    11  as hereinafter provided.
    12    (2) No qualified television writers' and directors' fees and  salaries
    13  used  by  a taxpayer either as the basis for the allowance of the credit
    14  provided for pursuant to this section or used in the calculation of  the
    15  credit  provided pursuant to this section shall be used by such taxpayer
    16  to claim any other credit allowed pursuant to this chapter.
    17    (b) Definitions. As used in this section, the  following  terms  shall
    18  have the following meanings:
    19    (1) "Qualified film production company" is a corporation, partnership,
    20  limited partnership, or other entity or individual which or who is prin-
    21  cipally  engaged  in the production of a qualified film and controls the
    22  qualified film during production.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10303-01-9

        A. 6498                             2
     1    (2) "Qualified independent film production company" is a  corporation,
     2  partnership, limited partnership, or other entity or individual, that or
     3  who  (i)  is  principally  engaged in the production of a qualified film
     4  with a maximum budget of fifteen  million  dollars,  (ii)  controls  the
     5  qualified  film  during  production,  and (iii) either is not a publicly
     6  traded entity, or no more than five percent of the beneficial  ownership
     7  of which is owned, directly or indirectly, by a publicly traded entity.
     8    (3)  "Qualified  television writers' and directors' fees and salaries"
     9  means: (i) for each writer or director who receives  an  on-air  credit,
    10  fifty  thousand  dollars  in  fees  or salary per episode; (ii) for each
    11  non-credited  writer,  seventy-five  thousand  dollars  per  series   of
    12  episodes;  and  (iii)  for  each eligible writer or director, an overall
    13  total of one hundred fifty  thousand  dollars  per  series  per  season.
    14  Provided  that in each case, such writer or director is a minority group
    15  member, as defined by subdivision eight of section three hundred ten  of
    16  the executive law, or a woman, and provided, further, that any writer or
    17  director  who  is a profit participant in the qualified production shall
    18  not be eligible.
    19    (4) "Writer" means a writer who is employed or retained  to  write  or
    20  revise  scripts, screenplays, teleplays, dialogue, sketches, routines or
    21  narrations and who reports to work regularly in a writers  room  located
    22  in the state.
    23    (5) "Director" means the individual employed or retained to direct the
    24  production,  as the word "direct" is commonly used in the motion picture
    25  industry.
    26    (6) "Writers room" means a room or physical location where  television
    27  stories are conceived by writers.
    28    (7)  "Profit  participant"  is  an individual who has negotiated for a
    29  percentage of profits generated by their television show. Profit partic-
    30  ipation does not include monies contractually required  by  collectively
    31  bargained  agreements  for  reuse  of the program on different platforms
    32  over time.
    33    (c) Cross-references. For application of the credit  provided  for  in
    34  this section, see the following provisions of this chapter:
    35    (1) article 9-A: section 210-B: subdivision 53.
    36    (2) article 22: section 606: subsection (v).
    37    (d)  Notwithstanding  any provision of this chapter, (i) employees and
    38  officers of the department of economic development  and  the  department
    39  shall  be  allowed  and  are  directed to share and exchange information
    40  regarding the credits applied for, allowed, or claimed pursuant to  this
    41  section  and  taxpayers who are applying for credits or who are claiming
    42  credits, including information contained in or derived from credit claim
    43  forms submitted to the department  and  applications  for  certification
    44  submitted  to  the  department  of  economic  development,  and (ii) the
    45  commissioner and the commissioner of the department of economic develop-
    46  ment may release the names and addresses of any taxpayer  claiming  this
    47  credit  and  the  amount of the credit earned by the taxpayer. Provided,
    48  however, if a taxpayer claims this credit because it is a  member  of  a
    49  limited liability company or a partner in a partnership, only the amount
    50  of  credit  earned by the entity and not the amount of credit claimed by
    51  the taxpayer may be released.
    52    (e) Maximum amount of credits. (1) The aggregate amount of tax credits
    53  allowed under this  section,  subdivision  fifty-three  of  section  two
    54  hundred  ten-B  and  subsection  (v)  of section six hundred six of this
    55  chapter in any calendar year shall be five million dollars. Such  aggre-
    56  gate  amount of credits shall be allocated by the department of economic

        A. 6498                             3
     1  development among taxpayers in order of priority based upon the date  of
     2  filing  an  application for allocation of television writers' and direc-
     3  tors' fees and salaries credit with such department. If the total amount
     4  of  allocated  credits  applied  for  in any particular year exceeds the
     5  aggregate amount of  tax  credits  allowed  for  such  year  under  this
     6  section,  such excess shall be treated as having been applied for on the
     7  first day of the subsequent year.
     8    (2) The commissioner of economic development,  after  consulting  with
     9  the  commissioner, shall promulgate regulations by October thirty-first,
    10  two thousand nineteen to establish procedures for the allocation of  tax
    11  credits  as  required by subdivision (a) of this section. Such rules and
    12  regulations shall include provisions describing the application process,
    13  the due dates for such applications, the standards which shall  be  used
    14  to evaluate the applications, the documentation that will be provided to
    15  taxpayers  to  substantiate  to the department the amount of tax credits
    16  allocated to such taxpayers, and such other provisions as deemed  neces-
    17  sary  and  appropriate.  Notwithstanding  any  other  provisions  to the
    18  contrary in the state administrative procedure act, such rules and regu-
    19  lations may be adopted on an emergency basis if necessary to  meet  such
    20  October thirty-first, two thousand nineteen deadline.
    21    (f)  The department of economic development shall submit to the gover-
    22  nor, the temporary president of the  senate,  and  the  speaker  of  the
    23  assembly,  an  annual  report  to be submitted on February first of each
    24  year evaluating the effectiveness of the television writers' and  direc-
    25  tors' fees and salaries tax credit provided by this section in stimulat-
    26  ing  the  growth  of  diversity  in the film industry in the state. Such
    27  report shall include, but need not be limited to, the number  of  quali-
    28  fied   film  production  companies  and/or  qualified  independent  film
    29  production companies which received a television writers' and directors'
    30  fees and salaries credit, the credit amounts claimed by  each  qualified
    31  film  production  company  and/or  qualified independent film production
    32  company, as well as the impact on employment  and  the  economy  of  the
    33  state. Such report shall be based on data available from the application
    34  filed  with  the  department  of  economic development for allocation of
    35  television writers' and directors' fees and salaries credits.   Notwith-
    36  standing any provision of law to the contrary, the information contained
    37  in  the  report shall be public information. The report may also include
    38  any recommendations of changes in the calculation or  administration  of
    39  the  credit,  and  any  other  recommendation of the commissioner of the
    40  department of economic development  regarding  continuing  modification,
    41  repeal  of such act, and such other information regarding the act as the
    42  commissioner of the department of economic development may  feel  useful
    43  and appropriate.
    44    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    45  sion 53 to read as follows:
    46    53. Television writers' and directors' fees and salaries credit.   (a)
    47  Allowance  of  credit.  A  taxpayer  who is eligible pursuant to section
    48  twenty-four-b of this chapter shall be allowed a credit to  be  computed
    49  as provided in such section against the tax imposed by this article.
    50    (b)  Application  of credit. The credit allowed under this subdivision
    51  for any taxable year shall not reduce the tax due for such year to  less
    52  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    53  section two hundred ten of this article. Provided, however, that if  the
    54  amount  of  the  credit allowable under this subdivision for any taxable
    55  year reduces the tax to such amount or if the  taxpayer  otherwise  pays
    56  tax based on the fixed dollar minimum amount, the excess shall be treat-

        A. 6498                             4
     1  ed  as  an  overpayment  of tax to be credited or refunded in accordance
     2  with the provisions of section one thousand eighty-six of this  chapter.
     3  Provided, further, the provisions of subsection (c) of section one thou-
     4  sand  eighty-eight of this chapter notwithstanding, no interest shall be
     5  paid thereon.
     6    § 3. Section 606 of the tax law is amended by adding a new  subsection
     7  (v) to read as follows:
     8    (v)  Television writers' and directors' fees and salaries credit.  (1)
     9  Allowance of credit. A taxpayer who  is  eligible  pursuant  to  section
    10  twenty-four-b  of  this chapter shall be allowed a credit to be computed
    11  as provided in such section against the tax imposed by this article.
    12    (2) Application of credit. If the amount of the credit allowable under
    13  this subsection for any taxable year exceeds the taxpayer's tax for such
    14  year, the excess shall be treated as an overpayment of tax to be credit-
    15  ed or refunded as provided in section six  hundred  eighty-six  of  this
    16  article, provided, however, that no interest shall be paid thereon.
    17    §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    18  of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
    19  follows:
    20  (xliv) Television writers'            Amount of credit for the sum of
    21  and directors' fees and salaries      qualified television writers' and
    22  credit under subsection (v)           directors' salaries credit
    23                                        under subdivision fifty-three of
    24                                        section two hundred ten-B
    25    §  5. This act shall take effect immediately, and shall apply to taxa-
    26  ble years beginning on or after January 1, 2020.
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