Bill Text: NY A09760 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to a television writers' and directors' fees and salaries credit; directs a study to be completed on the underutilization of minority and women screenwriters and directors.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-07-06 - enacting clause stricken [A09760 Detail]

Download: New_York-2019-A09760-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9760

                   IN ASSEMBLY

                                    February 10, 2020
                                       ___________

        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; and to amend  a  chapter  of  the
          laws  of  2019  amending the tax law relating to a television writers'
          and directors' fees and salaries credit, as  proposed  in  legislative
          bills  numbers  S.  5864-A  and A. 6683-B, in relation to a television
          writers' and directors' fees and salaries credit and the effectiveness
          thereof

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section 24-b of the tax law, as added by a chapter of the
     2  laws of 2019, amending the tax law relating to a television writers' and
     3  directors' fees and salaries credit, as proposed  in  legislative  bills
     4  numbers S. 5864-A and A. 6683-B, is amended to read as follows:
     5    §  24-b.  Television writers' and directors' fees and salaries credit.
     6  (a)(1) A taxpayer which is a qualified film  production  company,  or  a
     7  qualified  independent  film  production  company,  or  which  is a sole
     8  proprietor of or a member of a partnership which  is  a  qualified  film
     9  production  company  or a qualified independent film production company,
    10  and which is subject to tax under articles nine-A or twenty-two of  this
    11  chapter,  shall  be  allowed  a credit against such tax, pursuant to the
    12  provisions referenced in subdivision (c) of this section, to be computed
    13  as hereinafter provided.
    14    (2) The amount of the credit shall be the product (or pro  rata  share
    15  of  the  product,  in  the  case of a member of a partnership) of thirty
    16  percent and the qualified television writers' and  directors'  fees  and
    17  salaries  costs  paid or incurred in the production of a qualified film,
    18  provided that: (i) the credit amount shall  not  exceed  fifty  thousand
    19  dollars  for qualified television writers' and directors' fees and sala-
    20  ries claimed for such expenses incurred for the employment  of  any  one
    21  specific  writer  or  director for the production of a single television
    22  pilot or a single episode of a television series, and  (ii)  the  credit
    23  amount shall not exceed one hundred fifty thousand dollars for qualified

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10593-06-0
        A. 9760                             2

     1  television  writers'  and  directors' fees and salaries claimed for such
     2  expenses incurred for the employment  of  any  one  specific  writer  or
     3  director.    In addition, under no circumstances shall the credit amount
     4  include  fees  or  salaries  for more than one director per episode. The
     5  credit shall be allowed for the taxable year in which the production  of
     6  such qualified film is completed.
     7    (3)  No qualified television writers' and directors' fees and salaries
     8  used by a taxpayer either as the basis for the allowance of  the  credit
     9  provided  for pursuant to this section or used in the calculation of the
    10  credit provided pursuant to this section shall be used by such  taxpayer
    11  to claim any other credit allowed pursuant to this chapter.
    12    (b)  Definitions.  As  used in this section, the following terms shall
    13  have the following meanings:
    14    (1) "Qualified film production company" is a corporation, partnership,
    15  limited partnership, or other entity  or  individual  whose  project  is
    16  conditionally eligible to receive a tax credit under section twenty-four
    17  of this article which or who is principally engaged in the production of
    18  a qualified film and controls the qualified film during production.
    19    (2)  "Qualified independent film production company" is a corporation,
    20  partnership, limited partnership, or other entity  or  individual  whose
    21  project  is conditionally eligible to receive a tax credit under section
    22  twenty-four of this article, that or who (i) is principally  engaged  in
    23  the  production  of  a  qualified  film with a maximum budget of fifteen
    24  million dollars, (ii) controls the qualified film during production, and
    25  (iii) either is not a publicly traded  entity,  or  no  more  than  five
    26  percent of the beneficial ownership of which is owned, directly or indi-
    27  rectly, by a publicly traded entity.
    28    (3)  "Qualified film" means a television film, television pilot and/or
    29  each episode of a television series, regardless of the medium  by  means
    30  of which the film, pilot or episode is created or conveyed.
    31    (4)  "Qualified  television writers' and directors' fees and salaries"
    32  means[: (i)] salaries or fees paid to a writer or director who  receives
    33  an  on-air  credit[;  (ii) for a non-credited writer, up to seventy-five
    34  thousand dollars in salaries or fees per series of episodes.  Provided],
    35  provided  that in each case, such writer or director is a minority group
    36  member, as defined in subdivision eight of section three hundred ten  of
    37  the  executive  law, or a woman, and provided, further, that salaries or
    38  fees paid to any writer or director who is a profit participant  in  the
    39  qualified film shall not be eligible.  Such fees shall not include relo-
    40  cation  fees  or hotel costs and per diems. In addition, such fees shall
    41  not include salaries or fees paid to writers or directors for work  done
    42  on episodes of television series that were deemed conditionally eligible
    43  for  the  tax  credit under section twenty-four of this article prior to
    44  the tax year for which the credit is first available.
    45    (5) "Writer" means a person who is[: (i)] engaged by a qualified  film
    46  production company or a qualified independent film production company to
    47  write  [literary  material  (including  making  changes  or revisions in
    48  literary material), when the company has the right by contract to direct
    49  the performance of personal services in writing or preparing such  mate-
    50  rial  or  in making revisions, modifications or changes therein; or (ii)
    51  engaged by the company and  who  performs  services  (at  the  company's
    52  direction  or  with  its  consent) in writing or preparing such literary
    53  material or making revisions, modifications, or changes in such  materi-
    54  al;]  television  scripts, outlines, rewrites, stories, or teleplays for
    55  television series and [(iii)] who reports to work regularly in a writers
        A. 9760                             3

     1  room located in the state.  For the purposes of this definition,  "writ-
     2  er" shall not include showrunners or executive producers.
     3    (6)  ["Literary  material" shall be deemed to include stories, adapta-
     4  tions, treatments, original treatments, scenarios,  continuities,  tele-
     5  plays, screenplays, dialogue, scripts, sketches, plots, outlines, narra-
     6  tive synopses, routines, narrations, and formats.
     7    (7)]  "Writers  room"  means  a room or physical location in the state
     8  where writers employed by a qualified film production company or  quali-
     9  fied independent film production company write [or revise literary mate-
    10  rials] television scripts, outlines, rewrites, stories, or teleplays for
    11  television  series  utilized  in  a  qualified  film.  A writers room is
    12  located in the state only if it is in use in the state at  least  eighty
    13  percent of the time it is in existence.
    14    [(8)]  (7)  "Director"  means  an  individual  employed or retained to
    15  direct the production, as the word "direct"  is  commonly  used  in  the
    16  motion  picture  industry,  [and]  who would be classified as a director
    17  under the basic agreement in place between  the  Association  of  Motion
    18  Picture and Television Producers and the Director's Guild of America and
    19  who  [is a resident of New York] must meet the minimum criteria for work
    20  on qualified productions in New York state as established by the commis-
    21  sioner of economic development by regulation.
    22    [(9)] (8) "Profit participant" is an individual who has negotiated for
    23  a percentage of profits generated by a qualified  film.  Profit  partic-
    24  ipation  does  not include monies contractually required by collectively
    25  bargained agreements for reuse of a qualified film  on  different  plat-
    26  forms over time.
    27    (c)  Cross-references.  For  application of the credit provided for in
    28  this section, see the following provisions of this chapter:
    29    (1) article 9-A: section 210-B: subdivision 54.
    30    (2) article 22: section 606: subsection (v).
    31    (d) Notwithstanding any provision of this chapter, (1)  employees  and
    32  officers  of  the  department of economic development and the department
    33  shall be allowed and are directed  to  share  and  exchange  information
    34  regarding  the credits applied for, allowed, or claimed pursuant to this
    35  section and taxpayers who are applying for credits or who  are  claiming
    36  credits, including information contained in or derived from credit claim
    37  forms  submitted  to  the  department and applications for certification
    38  submitted to the department of economic development, and (2) the commis-
    39  sioner and the commissioner of the department  of  economic  development
    40  may release the names and addresses of any taxpayer claiming this credit
    41  and  the amount of the credit earned by the taxpayer. Provided, however,
    42  if a taxpayer claims this credit because it is a  member  of  a  limited
    43  liability  company  or  a  partner  in a partnership, only the amount of
    44  credit earned by the entity and not the amount of credit claimed by  the
    45  taxpayer may be released.
    46    (e) Maximum amount of credits. (1) The aggregate amount of tax credits
    47  allowed  under  this  section,  subdivision  fifty-four  of  section two
    48  hundred ten-B and subsection (v) of section  six  hundred  six  of  this
    49  chapter  in any calendar year shall be five million dollars. Such aggre-
    50  gate amount of credits shall be allocated by the department of  economic
    51  development  among taxpayers in order of priority based upon the date of
    52  filing an application for allocation of television writers'  and  direc-
    53  tors' fees and salaries credit with such department. If the total amount
    54  of  allocated  credits  applied  for  in any particular year exceeds the
    55  aggregate amount of  tax  credits  allowed  for  such  year  under  this
        A. 9760                             4

     1  section,  such excess shall be treated as having been applied for on the
     2  first day of the subsequent year.
     3    (2)  The  commissioner  of economic development, after consulting with
     4  the commissioner, shall promulgate regulations [by October thirty-first,
     5  two thousand nineteen] to establish procedures for the allocation of tax
     6  credits as required by subdivision (a) of this section. Such  rules  and
     7  regulations shall include provisions describing the application process,
     8  the  due  dates for such applications, the standards which shall be used
     9  to evaluate the applications, the documentation that will be provided to
    10  taxpayers to substantiate to the department the amount  of  tax  credits
    11  allocated  to such taxpayers, and such other provisions as deemed neces-
    12  sary and  appropriate.  Notwithstanding  any  other  provisions  to  the
    13  contrary in the state administrative procedure act, such rules and regu-
    14  lations  may be adopted on an emergency basis [if necessary to meet such
    15  October thirty-first, two thousand nineteen deadline].
    16    (f) The department of economic development shall submit to the  gover-
    17  nor,  the  temporary  president  of  the  senate, and the speaker of the
    18  assembly, an annual report to be submitted on  February  first  of  each
    19  year  evaluating the effectiveness of the television writers' and direc-
    20  tors' fees and salaries tax credit provided by this section in stimulat-
    21  ing the growth of diversity in the film  industry  in  the  state.  Such
    22  report  shall  include, but need not be limited to, the number of quali-
    23  fied  film  production  companies  and/or  qualified  independent   film
    24  production companies which received a television writers' and directors'
    25  fees  and  salaries credit, the credit amounts claimed by each qualified
    26  film production company and/or  qualified  independent  film  production
    27  company,  as  well  as  the  impact on employment and the economy of the
    28  state. Such report shall be based on data available from the application
    29  filed with the department of  economic  development  for  allocation  of
    30  television  writers' and directors' fees and salaries credits.  Notwith-
    31  standing any provision of law to the contrary, the information contained
    32  in the report shall be public information. The report may  also  include
    33  any  recommendations  of changes in the calculation or administration of
    34  the credit, and any other recommendation  of  the  commissioner  of  the
    35  department  of  economic  development regarding continuing modification,
    36  repeal of such act, and such other information regarding the act as  the
    37  commissioner  of  the department of economic development may feel useful
    38  and appropriate.
    39    § 2. Section 6 of a chapter of the laws of 2019, amending the tax  law
    40  relating to a television writers' and directors' fees and salaries cred-
    41  it, as proposed in legislative bills numbers S. 5864-A and A. 6683-B, is
    42  amended to read as follows:
    43    § 6. Study of the underutilization of minority and women screenwriters
    44  and  directors.  1.  Study.    Subject  to  an appropriation which shall
    45  provide sufficient funding necessary to complete such study, the depart-
    46  ment of economic development  shall  select,  through  the  request  for
    47  proposal  process,  an entity independent of such department which shall
    48  serve as such department's designee for  the  purpose  of  conducting  a
    49  study  to  investigate the statistical significance of the underutiliza-
    50  tion of minority and women screenwriters and directors. Such study shall
    51  conduct or provide for an examination of,  but  not  be  limited  to,  a
    52  comparison  of  available minority and women screenwriters and directors
    53  against the share  of  screenwriting  and  directing  work  such  groups
    54  receive  on  projects in New York state to demonstrate the statistically
    55  significant underutilization of that population.
        A. 9760                             5

     1    2. Report. (a) Upon the completion of the study conducted pursuant  to
     2  subdivision  one of this section, the department of economic development
     3  shall deliver a report of the findings of such study  to  the  governor,
     4  the  temporary  president of the senate, and the speaker of the assembly
     5  and post the study on the website of the department of economic develop-
     6  ment.  (b) If the department of economic development determines that the
     7  study has found statistically significant evidence of the  underutiliza-
     8  tion of minority and women screenwriters and directors against the share
     9  of  screenwriting  and directing work such groups receive on projects in
    10  the state, then the department of economic development shall  so  notify
    11  the  governor, the temporary president of the senate, the speaker of the
    12  assembly, the commissioner of taxation and finance and  the  legislative
    13  bill drafting commission.
    14    3.  Powers. All other departments or agencies of the state or subdivi-
    15  sions thereof, and local  governments  shall,  at  the  request  of  the
    16  department  of  economic  development or its designee chosen pursuant to
    17  subdivision one of this section, provide expertise,  assistance,  and/or
    18  data  that  are  relevant  or  material  to  the completion of the study
    19  directed to be completed by subdivision one  of  this  section  and  the
    20  report directed to be completed by subdivision two of this section.  The
    21  department  of  economic  development,  or  its  designee, shall also be
    22  authorized to obtain relevant information from any  recognized  entities
    23  representing  the  television  industry  or segments thereof towards the
    24  completion of such study.
    25    § 7. This act shall take effect immediately, [and shall apply to taxa-
    26  ble years beginning on or after January 1, 2020] provided, however, that
    27  the provisions of sections one, two, three, four, and five of  this  act
    28  shall  take  effect on the first of January next succeeding the date the
    29  department of economic development provides notice  to  the  legislative
    30  bill drafting commission of a determination pursuant to paragraph (b) of
    31  subdivision  two  of  section six of this act and shall apply to taxable
    32  years on and after such date; provided that the department  of  economic
    33  development  shall  notify the legislative bill drafting commission upon
    34  the occurrence of the submission of the report provided for in paragraph
    35  (b) of subdivision two of section six of this  act  in  order  that  the
    36  commission  may  maintain  an accurate and timely effective data base of
    37  the official text of the laws of the state of New York in furtherance of
    38  effectuating the provisions of section 44 of  the  legislative  law  and
    39  section  70-b  of  the public officers law.   Effective immediately, the
    40  addition, amendment and/or repeal of any rule  or  regulation  necessary
    41  for  the implementation of this act on its effective date are authorized
    42  to be made and completed on or before such effective date.
    43    § 3. This act shall take effect immediately;  provided,  however  that
    44  section  one of this act and section 6 of a chapter of the laws of 2019,
    45  amending the tax law relating to a television  writers'  and  directors'
    46  fees  and  salaries  credit, as proposed in legislative bills numbers S.
    47  5864-A and A. 6683-B, as amended by section two of this act  shall  take
    48  effect  on  the  same date and in the same manner as such chapter of the
    49  laws of 2019, takes effect.