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A07270 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7270--C
                                                                   R. R. 399
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 17, 2017
                                       ___________
 
        Introduced  by  M.  of  A.  CRESPO,  DICKENS,  PICHARDO,  PERRY, DAVILA,
          SEPULVEDA, PRETLOW, SIMON, JAFFEE, LIFTON, GJONAJ, MOSLEY,  ARROYO  --
          Multi-Sponsored  by -- M. of A. GALEF -- read once and referred to the
          Committee on Ways and Means --  committee  discharged,  bill  amended,
          ordered  reprinted  as  amended  and  recommitted to said committee --
          reported and referred to the Committee on  Rules  --  Rules  Committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  the  Committee  on  Rules -- amended on the special order of third
          reading, ordered reprinted as amended,  retaining  its  place  on  the
          special order of third reading
 
        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.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10426-08-7

        A. 7270--C                          2
 
     1    (b) Definitions. As used in this section, the  following  terms  shall
     2  have the following meanings:
     3    (1) "Qualified film production company" is a corporation, partnership,
     4  limited partnership, or other entity or individual which or who is prin-
     5  cipally  engaged  in the production of a qualified film and controls the
     6  qualified film during production.
     7    (2) "Qualified independent film production company" is a  corporation,
     8  partnership, limited partnership, or other entity or individual, that or
     9  who  (i)  is  principally  engaged in the production of a qualified film
    10  with a maximum budget of fifteen  million  dollars,  (ii)  controls  the
    11  qualified  film  during  production,  and (iii) either is not a publicly
    12  traded entity, or no more than five percent of the beneficial  ownership
    13  of which is owned, directly or indirectly, by a publicly traded entity.
    14    (3)  "Qualified  television writers' and directors' fees and salaries"
    15  means: (i) for each writer or director who receives  an  on-air  credit,
    16  fifty  thousand  dollars  in  fees  or salary per episode; (ii) for each
    17  non-credited  writer,  seventy-five  thousand  dollars  per  series   of
    18  episodes;  and  (iii)  for  each eligible writer or director, an overall
    19  total of one hundred fifty  thousand  dollars  per  series  per  season.
    20  Provided  that in each case, such writer or director is a minority group
    21  member, as defined by subdivision eight of section three hundred ten  of
    22  the executive law, or a woman, and provided, further, that any writer or
    23  director  who  is a profit participant in the qualified production shall
    24  not be eligible.
    25    (4) "Writer" means a writer who is employed or retained  to  write  or
    26  revise  scripts, screenplays, teleplays, dialogue, sketches, routines or
    27  narrations and who reports to work regularly in a writers  room  located
    28  in the state.
    29    (5) "Director" means the individual employed or retained to direct the
    30  production,  as the word "direct" is commonly used in the motion picture
    31  industry.
    32    (6) "Writers room" means a room or physical location where  television
    33  stories are conceived by writers.
    34    (7)  "Profit  participant"  is  an individual who has negotiated for a
    35  percentage of profits generated by their television show. Profit partic-
    36  ipation does not include monies contractually required  by  collectively
    37  bargained  agreements  for  reuse  of the program on different platforms
    38  over time.
    39    (c) Cross-references. For application of the credit  provided  for  in
    40  this section, see the following provisions of this chapter:
    41    (1) article 9-A: section 210-B: subdivision 53.
    42    (2) article 22: section 606: subsection (v).
    43    (d)  Notwithstanding  any provision of this chapter, (i) employees and
    44  officers of the department of economic development  and  the  department
    45  shall  be  allowed  and  are  directed to share and exchange information
    46  regarding the credits applied for, allowed, or claimed pursuant to  this
    47  section  and  taxpayers who are applying for credits or who are claiming
    48  credits, including information contained in or derived from credit claim
    49  forms submitted to the department  and  applications  for  certification
    50  submitted  to  the  department  of  economic  development,  and (ii) the
    51  commissioner and the commissioner of the department of economic develop-
    52  ment may release the names and addresses of any taxpayer  claiming  this
    53  credit  and  the  amount of the credit earned by the taxpayer. Provided,
    54  however, if a taxpayer claims this credit because it is a  member  of  a
    55  limited liability company or a partner in a partnership, only the amount

        A. 7270--C                          3
 
     1  of  credit  earned by the entity and not the amount of credit claimed by
     2  the taxpayer may be released.
     3    (e) Maximum amount of credits. (1) The aggregate amount of tax credits
     4  allowed  under  this  section,  subdivision  fifty-three  of section two
     5  hundred ten-B and subsection (v) of section  six  hundred  six  of  this
     6  chapter  in any calendar year shall be five million dollars. Such aggre-
     7  gate amount of credits shall be allocated by the department of  economic
     8  development  among taxpayers in order of priority based upon the date of
     9  filing an application for allocation of television writers'  and  direc-
    10  tors' fees and salaries credit with such department. If the total amount
    11  of  allocated  credits  applied  for  in any particular year exceeds the
    12  aggregate amount of  tax  credits  allowed  for  such  year  under  this
    13  section,  such excess shall be treated as having been applied for on the
    14  first day of the subsequent year.
    15    (2) The commissioner of economic development,  after  consulting  with
    16  the  commissioner, shall promulgate regulations by October thirty-first,
    17  two thousand seventeen to establish procedures for the allocation of tax
    18  credits as required by subdivision (a) of this section. Such  rules  and
    19  regulations shall include provisions describing the application process,
    20  the  due  dates for such applications, the standards which shall be used
    21  to evaluate the applications, the documentation that will be provided to
    22  taxpayers to substantiate to the department the amount  of  tax  credits
    23  allocated  to such taxpayers, and such other provisions as deemed neces-
    24  sary and  appropriate.  Notwithstanding  any  other  provisions  to  the
    25  contrary in the state administrative procedure act, such rules and regu-
    26  lations  may  be adopted on an emergency basis if necessary to meet such
    27  October thirty-first, two thousand seventeen deadline.
    28    (f) The department of economic development shall submit to the  gover-
    29  nor,  the  temporary  president  of  the  senate, and the speaker of the
    30  assembly, an annual report to be submitted on  February  first  of  each
    31  year  evaluating the effectiveness of the television writers' and direc-
    32  tors' fees and salaries tax credit provided by this section in stimulat-
    33  ing the growth of diversity in the film  industry  in  the  state.  Such
    34  report  shall  include, but need not be limited to, the number of quali-
    35  fied  film  production  companies  and/or  qualified  independent   film
    36  production companies which received a television writers' and directors'
    37  fees  and  salaries credit, the credit amounts claimed by each qualified
    38  film production company and/or  qualified  independent  film  production
    39  company,  as  well  as  the  impact on employment and the economy of the
    40  state. Such report shall be based on data available from the application
    41  filed with the department of  economic  development  for  allocation  of
    42  television  writers' and directors' fees and salaries credits.  Notwith-
    43  standing any provision of law to the contrary, the information contained
    44  in the report shall be public information. The report may  also  include
    45  any  recommendations  of changes in the calculation or administration of
    46  the credit, and any other recommendation  of  the  commissioner  of  the
    47  department  of  economic  development regarding continuing modification,
    48  repeal of such act, and such other information regarding the act as  the
    49  commissioner  of  the department of economic development may feel useful
    50  and appropriate.
    51    § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
    52  sion 53 to read as follows:
    53    53.  Television writers' and directors' fees and salaries credit.  (a)
    54  Allowance of credit. A taxpayer who  is  eligible  pursuant  to  section
    55  twenty-four-b  of  this chapter shall be allowed a credit to be computed
    56  as provided in such section against the tax imposed by this article.

        A. 7270--C                          4
 
     1    (b) Application of credit. The credit allowed under  this  subdivision
     2  for  any taxable year shall not reduce the tax due for such year to less
     3  than the amount prescribed  in  paragraph  (d)  of  subdivision  one  of
     4  section  two hundred ten of this article. Provided, however, that if the
     5  amount  of  the  credit allowable under this subdivision for any taxable
     6  year reduces the tax to such amount or if the  taxpayer  otherwise  pays
     7  tax based on the fixed dollar minimum amount, the excess shall be treat-
     8  ed  as  an  overpayment  of tax to be credited or refunded in accordance
     9  with the provisions of section one thousand eighty-six of this  chapter.
    10  Provided, further, the provisions of subsection (c) of section one thou-
    11  sand  eighty-eight of this chapter notwithstanding, no interest shall be
    12  paid thereon.
    13    § 3. Section 606 of the tax law is amended by adding a new  subsection
    14  (v) to read as follows:
    15    (v)  Television writers' and directors' fees and salaries credit.  (1)
    16  Allowance of credit. A taxpayer who  is  eligible  pursuant  to  section
    17  twenty-four-b  of  this chapter shall be allowed a credit to be computed
    18  as provided in such section against the tax imposed by this article.
    19    (2) Application of credit. If the amount of the credit allowable under
    20  this subsection for any taxable year exceeds the taxpayer's tax for such
    21  year, the excess shall be treated as an overpayment of tax to be credit-
    22  ed or refunded as provided in section six  hundred  eighty-six  of  this
    23  article, provided, however, that no interest shall be paid thereon.
    24    §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    25  of the tax law is amended by adding a  new  clause  (xlix)  to  read  as
    26  follows:
 
    27  (xlix) Television writers'            Amount of credit for the sum of
    28  and directors' fees and salaries      qualified television writers' and
    29  credit under subsection (v)           directors' salaries credit
    30                                        under subdivision fifty-three of
    31                                        section two hundred ten-B
 
    32    §  5. This act shall take effect immediately, and shall apply to taxa-
    33  ble years beginning on or after January 1, 2018.
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