Bill Text: NY A06789 | 2015-2016 | General Assembly | Introduced

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Bill Title: Includes writers' salaries and fees within production costs eligible for the empire state film production credit.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-01-06 - referred to ways and means [A06789 Detail]

Download: New_York-2015-A06789-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6789
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                     April 2, 2015
                                      ___________
       Introduced by M. of A. JAFFEE -- 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:
    1    Section  1.  Paragraph  1  of subdivision (a) of section 24 of the tax
    2  law, as amended by section 3 of part Q of chapter  57  of  the  laws  of
    3  2010, is amended to read as follows:
    4    (1)  Allowance  of  credit.  A  taxpayer  which  is  a  qualified film
    5  production company, or a qualified independent film production  company,
    6  or which is a sole proprietor of or a member of a partnership which is a
    7  qualified  film  production  company  or  a  qualified  independent film
    8  production company, and which is subject to tax under articles nine-A or
    9  twenty-two of this chapter, shall be allowed a credit against such  tax,
   10  pursuant  to  the provisions referenced in subdivision [(c)] (E) of this
   11  section, to be computed as [hereinafter] provided IN THIS SECTION.
   12    S 2. Paragraph 2 of subdivision (b) of section 24 of the tax  law,  as
   13  added  by  section  1  of  part  P of chapter 60 of the laws of 2004, is
   14  amended and a new paragraph 9 is added to read as follows:
   15    (2) "Production costs" means any costs for tangible property used  and
   16  services performed directly and predominantly in the production (includ-
   17  ing   pre-production   and   post   production)  of  a  qualified  film.
   18  "Production costs" shall not include [(i) costs for a story,  script  or
   19  scenario  to be used for a qualified film and (ii)] wages or salaries or
   20  other compensation for writers, directors,  including  music  directors,
   21  producers  and performers (other than background actors with no scripted
   22  lines). WRITERS' FEES AND SALARIES SHALL BE  ELIGIBLE  PRODUCTION  COSTS
   23  SUBJECT  TO THE PROVISIONS OF SUBDIVISION (C) OF THIS SECTION; PROVIDED,
   24  HOWEVER, THAT FEES THAT ARE  BASED  ON  DEFERRED,  LEVERAGED  OR  PROFIT
   25  PARTICIPATION  COSTS,  OR  ARE IN EXCESS OF THOSE OTHERWISE PERMITTED BY
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08480-01-5
       A. 6789                             2
    1  SUBDIVISION (C) OF THIS SECTION SHALL NOT BE ELIGIBLE PRODUCTION  COSTS.
    2  "Production  costs"  generally  include  technical  and  crew production
    3  costs, such as expenditures for film production facilities, or any  part
    4  thereof, props, makeup, wardrobe, film processing, camera, sound record-
    5  ing, set construction, lighting, shooting, editing and meals.
    6    (9)  "WRITER"  MEANS  A WRITER EMPLOYED OR RETAINED TO WRITE OR REVISE
    7  SCRIPTS,  SCREENPLAYS,  TELEPLAYS,  DIALOGUE,  SKETCHES,   ROUTINES   OR
    8  NARRATIONS.
    9    S  3.  Subdivisions  (c), (d) and (e) of section 24 of the tax law are
   10  relettered subdivisions (e), (f) and (g) and two  new  subdivisions  (c)
   11  and (d) are added to read as follows:
   12    (C)  FOR  A  FEATURE  FILM OR TELEVISION PRODUCTION, WRITERS' FEES AND
   13  SALARIES SHALL BE ELIGIBLE COSTS; PROVIDED, HOWEVER,  SUCH  COSTS  SHALL
   14  NOT EXCEED FIFTY THOUSAND DOLLARS IN FEES OR SALARY PER WRITER PER QUAL-
   15  IFIED FILM. PROVIDED, FURTHER, THAT, NOTWITHSTANDING ANY OTHER PROVISION
   16  OF  THIS  SECTION,  A WRITER'S FEES AND SALARY SHALL BE ELIGIBLE FOR THE
   17  MAXIMUM AMOUNT OF THE CREDIT GRANTED BY THIS SUBDIVISION, IF SUCH WRITER
   18  IS A RESIDENT OF THIS STATE.
   19    (D) FOR EACH TAX YEAR, NOT MORE THAN THREE MILLION FIVE HUNDRED  THOU-
   20  SAND  DOLLARS  IN  TAX  CREDITS  FOR WRITERS' FEES AND SALARIES SHALL BE
   21  GRANTED PURSUANT TO THIS SECTION.  SUCH CREDITS SHALL ONLY BE  AVAILABLE
   22  FROM CREDITS ALLOWED FOR PRODUCTION COSTS PURSUANT TO THIS SECTION.
   23    S 4. This act shall take effect on the one hundred twentieth day after
   24  it  shall  have become a law and shall apply to the tax year in which it
   25  takes effect and all subsequent tax years.