Bill Text: NY A06683 | 2019-2020 | General Assembly | Introduced


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

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-15 - referred to ways and means [A06683 Detail]

Download: New_York-2019-A06683-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          6683
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     March 15, 2019
                                       ___________
        Introduced by 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:
     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 (c) of this section, to be computed
    11  as hereinafter provided.
    12    (2) The amount of the credit shall be the product (or pro  rata  share
    13  of  the  product,  in  the  case of a member of a partnership) of thirty
    14  percent and the qualified television writers' and  directors'  fees  and
    15  salaries  costs  paid or incurred in the production of a qualified film,
    16  provided that: (i) the credit amount shall  not  exceed  fifty  thousand
    17  dollars  for qualified television writers' and directors' fees and sala-
    18  ries claimed for such expenses incurred for the employment  of  any  one
    19  specific  writer  or  director for the production of a single television
    20  pilot or a single episode of a television series, and  (ii)  the  credit
    21  amount shall not exceed one hundred fifty thousand dollars for qualified
    22  television  writers'  and  directors' fees and salaries claimed for such
    23  expenses incurred for the employment  of  any  one  specific  writer  or
    24  director.  The credit shall be allowed for the taxable year in which the
    25  production of such qualified film is completed.
    26    (3) No qualified television writers' and directors' fees and  salaries
    27  used  by  a taxpayer either as the basis for the allowance of the credit
    28  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.
                                                                   LBD10593-01-9

        A. 6683                             2
     1  credit  provided pursuant to this section shall be used by such taxpayer
     2  to claim any other credit allowed pursuant to this chapter.
     3    (b)  Definitions.  As  used in this section, the following terms shall
     4  have the following meanings:
     5    (1) "Qualified film production company" is a corporation, partnership,
     6  limited partnership, or other entity or individual which or who is prin-
     7  cipally engaged in the production of a qualified film and  controls  the
     8  qualified film during production.
     9    (2)  "Qualified independent film production company" is a corporation,
    10  partnership, limited partnership, or other entity or individual, that or
    11  who (i) is principally engaged in the production  of  a  qualified  film
    12  with  a  maximum  budget  of  fifteen million dollars, (ii) controls the
    13  qualified film during production, and (iii) either  is  not  a  publicly
    14  traded  entity, or no more than five percent of the beneficial ownership
    15  of which is owned, directly or indirectly, by a publicly traded entity.
    16    (3) "Qualified film" means a television film, television pilot  and/or
    17  each  episode  of a television series, regardless of the medium by means
    18  of which the film, pilot or episode is created or conveyed.
    19    (4) "Qualified television writers' and directors' fees  and  salaries"
    20  means: (i) salaries or fees paid to a writer or director who receives an
    21  on-air  credit; (ii) for a non-credited writer, up to seventy-five thou-
    22  sand dollars in salaries or fees per series of episodes.  Provided  that
    23  in  each  case,  such  writer or director is a minority group member, as
    24  defined in subdivision eight of section three hundred ten of the  execu-
    25  tive  law, or a woman, and provided, further, that salaries or fees paid
    26  to any writer or director who is a profit participant in  the  qualified
    27  film shall not be eligible.
    28    (5)  "Writer"  means  a person who is: (i) engaged by a qualified film
    29  production company or a qualified independent film production company to
    30  write literary material (including making changes or revisions in liter-
    31  ary material), when the company has the right by contract to direct  the
    32  performance  of  personal services in writing or preparing such material
    33  or in making  revisions,  modifications  or  changes  therein;  or  (ii)
    34  engaged  by  the  company  and  who  performs services (at the company's
    35  direction or with its consent) in writing  or  preparing  such  literary
    36  material  or making revisions, modifications, or changes in such materi-
    37  al; and (iii) who reports to work regularly in a writers room located in
    38  the state.
    39    (6) "Literary material" shall be deemed to  include  stories,  adapta-
    40  tions,  treatments,  original treatments, scenarios, continuities, tele-
    41  plays, screenplays, dialogue, scripts, sketches, plots, outlines, narra-
    42  tive synopses, routines, narrations, and formats.
    43    (7) "Writers room" means a room or  physical  location  where  writers
    44  employed by a qualified film production company or qualified independent
    45  film production company write or revise literary materials utilized in a
    46  qualified film.
    47    (8)  "Director" means an individual employed or retained to direct the
    48  production, as the word "direct" is commonly used in the motion  picture
    49  industry,  and  who  would  be  classified as a director under the basic
    50  agreement in place between the Association of Motion Picture  and  Tele-
    51  vision  Producers and the Director's Guild of America and who is a resi-
    52  dent of New York.
    53    (9) "Profit participant" is an individual who  has  negotiated  for  a
    54  percentage  of  profits  generated  by  a qualified film. Profit partic-
    55  ipation does not include monies contractually required  by  collectively

        A. 6683                             3
     1  bargained  agreements  for  reuse of a qualified film on different plat-
     2  forms over time.
     3    (c)  Cross-references.  For  application of the credit provided for in
     4  this section, see the following provisions of this chapter:
     5    (1) article 9-A: section 210-B: subdivision 53.
     6    (2) article 22: section 606: subsection (v).
     7    (d) Notwithstanding any provision of this chapter, (1)  employees  and
     8  officers  of  the  department of economic development and the department
     9  shall be allowed and are directed  to  share  and  exchange  information
    10  regarding  the credits applied for, allowed, or claimed pursuant to this
    11  section and taxpayers who are applying for credits or who  are  claiming
    12  credits, including information contained in or derived from credit claim
    13  forms  submitted  to  the  department and applications for certification
    14  submitted to the department of economic development, and (2) the commis-
    15  sioner and the commissioner of the department  of  economic  development
    16  may release the names and addresses of any taxpayer claiming this credit
    17  and  the amount of the credit earned by the taxpayer. Provided, however,
    18  if a taxpayer claims this credit because it is a  member  of  a  limited
    19  liability  company  or  a  partner  in a partnership, only the amount of
    20  credit earned by the entity and not the amount of credit claimed by  the
    21  taxpayer may be released.
    22    (e) Maximum amount of credits. (1) The aggregate amount of tax credits
    23  allowed  under  this  section,  subdivision  fifty-three  of section two
    24  hundred ten-B and subsection (v) of section  six  hundred  six  of  this
    25  chapter  in any calendar year shall be five million dollars. Such aggre-
    26  gate amount of credits shall be allocated by the department of  economic
    27  development  among taxpayers in order of priority based upon the date of
    28  filing an application for allocation of television writers'  and  direc-
    29  tors' fees and salaries credit with such department. If the total amount
    30  of  allocated  credits  applied  for  in any particular year exceeds the
    31  aggregate amount of  tax  credits  allowed  for  such  year  under  this
    32  section,  such excess shall be treated as having been applied for on the
    33  first day of the subsequent year.
    34    (2) The commissioner of economic development,  after  consulting  with
    35  the  commissioner, shall promulgate regulations by October thirty-first,
    36  two thousand nineteen to establish procedures for the allocation of  tax
    37  credits  as  required by subdivision (a) of this section. Such rules and
    38  regulations shall include provisions describing the application process,
    39  the due dates for such applications, the standards which shall  be  used
    40  to evaluate the applications, the documentation that will be provided to
    41  taxpayers  to  substantiate  to the department the amount of tax credits
    42  allocated to such taxpayers, and such other provisions as deemed  neces-
    43  sary  and  appropriate.  Notwithstanding  any  other  provisions  to the
    44  contrary in the state administrative procedure act, such rules and regu-
    45  lations may be adopted on an emergency basis if necessary to  meet  such
    46  October thirty-first, two thousand nineteen deadline.
    47    (f)  The department of economic development shall submit to the gover-
    48  nor, the temporary president of the  senate,  and  the  speaker  of  the
    49  assembly,  an  annual  report  to be submitted on February first of each
    50  year evaluating the effectiveness of the television writers' and  direc-
    51  tors' fees and salaries tax credit provided by this section in stimulat-
    52  ing  the  growth  of  diversity  in the film industry in the state. Such
    53  report shall include, but need not be limited to, the number  of  quali-
    54  fied   film  production  companies  and/or  qualified  independent  film
    55  production companies which received a television writers' and directors'
    56  fees and salaries credit, the credit amounts claimed by  each  qualified

        A. 6683                             4
     1  film  production  company  and/or  qualified independent film production
     2  company, as well as the impact on employment  and  the  economy  of  the
     3  state. Such report shall be based on data available from the application
     4  filed  with  the  department  of  economic development for allocation of
     5  television writers' and directors' fees and salaries credits.   Notwith-
     6  standing any provision of law to the contrary, the information contained
     7  in  the  report shall be public information. The report may also include
     8  any recommendations of changes in the calculation or  administration  of
     9  the  credit,  and  any  other  recommendation of the commissioner of the
    10  department of economic development  regarding  continuing  modification,
    11  repeal  of such act, and such other information regarding the act as the
    12  commissioner of the department of economic development may  feel  useful
    13  and appropriate.
    14    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    15  sion 53 to read as follows:
    16    53. Television writers' and directors' fees and salaries credit.   (a)
    17  Allowance  of  credit.  A  taxpayer  who is eligible pursuant to section
    18  twenty-four-b of this chapter shall be allowed a credit to  be  computed
    19  as provided in such section against the tax imposed by this article.
    20    (b)  Application  of credit. The credit allowed under this subdivision
    21  for any taxable year shall not reduce the tax due for such year to  less
    22  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    23  section two hundred ten of this article. Provided, however, that if  the
    24  amount  of  the  credit allowable under this subdivision for any taxable
    25  year reduces the tax to such amount or if the  taxpayer  otherwise  pays
    26  tax based on the fixed dollar minimum amount, the excess shall be treat-
    27  ed  as  an  overpayment  of tax to be credited or refunded in accordance
    28  with the provisions of section one thousand eighty-six of this  chapter.
    29  Provided, further, the provisions of subsection (c) of section one thou-
    30  sand  eighty-eight of this chapter notwithstanding, no interest shall be
    31  paid thereon.
    32    § 3. Section 606 of the tax law is amended by adding a new  subsection
    33  (v) to read as follows:
    34    (v)  Television writers' and directors' fees and salaries credit.  (1)
    35  Allowance of credit. A taxpayer who  is  eligible  pursuant  to  section
    36  twenty-four-b  of  this chapter shall be allowed a credit to be computed
    37  as provided in such section against the tax imposed by this article.
    38    (2) Application of credit. If the amount of the credit allowable under
    39  this subsection for any taxable year exceeds the taxpayer's tax for such
    40  year, the excess shall be treated as an overpayment of tax to be credit-
    41  ed or refunded as provided in section six  hundred  eighty-six  of  this
    42  article, provided, however, that no interest shall be paid thereon.
    43    §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    44  of the tax law is amended by adding a  new  clause  (xlix)  to  read  as
    45  follows:
    46  (xlix) Television writers'            Amount of credit for the sum of
    47  and directors' fees and salaries      qualified television writers' and
    48  credit under subsection (v)           directors' salaries credit
    49                                        under subdivision fifty-three of
    50                                        section two hundred ten-B
    51    §  5. This act shall take effect immediately, and shall apply to taxa-
    52  ble years beginning on or after January 1, 2020.
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