Bill Text: NY A07628 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Increases the available amount under the empire state film production credit available to taxpayers from five million to fifteen million.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A07628 Detail]

Download: New_York-2019-A07628-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          7628

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      May 14, 2019
                                       ___________

        Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
          Committee on Ways and Means

        AN ACT to amend the tax law, in relation to increasing the amount of the
          taxpayer 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  5  of subdivision (a) of section 24 of the tax
     2  law, as amended by section 1 of part SSS of chapter 59 of  the  laws  of
     3  2019, is amended to read as follows:
     4    (5)  For  the period two thousand fifteen through two thousand twenty-
     5  four, in addition to the amount of credit established in  paragraph  two
     6  of  this  subdivision, a taxpayer shall be allowed a credit equal to the
     7  product (or pro rata share of the product, in the case of a member of  a
     8  partnership)  of ten percent and the amount of wages or salaries paid to
     9  individuals directly employed  (excluding  those  employed  as  writers,
    10  directors,  music  directors,  producers and performers, including back-
    11  ground actors with no scripted lines) by  a  qualified  film  production
    12  company  or a qualified independent film production company for services
    13  performed by those individuals in one of the counties specified in  this
    14  paragraph  in  connection with a qualified film with a minimum budget of
    15  five hundred thousand dollars. For purposes of this  additional  credit,
    16  the services must be performed in one or more of the following counties:
    17  Albany,  Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua, Chemung,
    18  Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie,  Essex,
    19  Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
    20  Livingston,  Madison,  Monroe,  Montgomery,  Niagara,  Oneida, Onondaga,
    21  Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer,  Saratoga,
    22  Schenectady,  Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli-
    23  van, Tioga, Tompkins, Ulster, Warren,  Washington,  Wayne,  Wyoming,  or
    24  Yates.  The  aggregate  amount  of  tax  credits allowed pursuant to the
    25  authority of this paragraph shall be [five] fifteen million dollars each

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11503-01-9

        A. 7628                             2

     1  year during the period two thousand fifteen through two  thousand  twen-
     2  ty-four  of the annual allocation made available to the program pursuant
     3  to paragraph four of subdivision (e) of  this  section.  Such  aggregate
     4  amount of credits shall be allocated by the governor's office for motion
     5  picture  and television development among taxpayers in order of priority
     6  based upon the date of filing an  application  for  allocation  of  film
     7  production  credit  with such office.   If the total amount of allocated
     8  credits applied for under this paragraph in any year exceeds the  aggre-
     9  gate  amount  of tax credits allowed for such year under this paragraph,
    10  such excess shall be treated as having been applied for on the first day
    11  of the next year. If the total amount of allocated tax  credits  applied
    12  for under this paragraph at the conclusion of any year is less than five
    13  million  dollars,  the  remainder shall be treated as part of the annual
    14  allocation made available to the program pursuant to paragraph  four  of
    15  subdivision  (e)  of this section. However, in no event may the total of
    16  the credits allocated under this paragraph  and  the  credits  allocated
    17  under  paragraph  five  of subdivision (a) of section thirty-one of this
    18  article exceed [five] fifteen million dollars in  any  year  during  the
    19  period two thousand fifteen through two thousand twenty-four.
    20    §  2.  Paragraph 2 of subdivision (b) of section 24 of the tax law, as
    21  added by section 1 of part P of chapter 60  of  the  laws  of  2004,  is
    22  amended to read as follows:
    23    (2)  "Production costs" means any costs for tangible property used and
    24  services performed directly and predominantly in the production (includ-
    25  ing  pre-production  and  post  production)   of   a   qualified   film.
    26  "Production  costs"  shall  not include (i) costs for a story, script or
    27  scenario to be used for a qualified film and (ii) wages or  salaries  or
    28  other  compensation  for  writers, directors, including music directors,
    29  producers and performers (other than background actors with no  scripted
    30  lines)  provided,  however,  such costs otherwise excluded in this para-
    31  graph shall be eligible as production costs if such costs  are  no  more
    32  than  the standard compensation rates set either by the Writers Guild of
    33  America, the Directors Guild of America or the Screen Actors  Guild  and
    34  are  directly  related  to  the  service performed in one or more of the
    35  counties listed in paragraph five of subdivision (a)  of  this  section.
    36  "Production  costs"  generally  include  technical  and  crew production
    37  costs, such as expenditures for film production facilities, or any  part
    38  thereof, props, makeup, wardrobe, film processing, camera, sound record-
    39  ing, set construction, lighting, shooting, editing and meals.
    40    § 3. This act shall take effect April 1, 2020.
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