Excludes a production using artificial intelligence or autonomous vehicles in a manner which results in the displacement of employees whose salaries are qualified expenses from the definition of qualified film for the purposes of the empire state film production credit.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7634B
SPONSOR: Meeks TITLE OF BILL:
An act to amend the tax law, in relation to excluding a production which
uses artificial intelligence or autonomous vehicles in a manner which
results in the displacement of employees whose salaries are qualified
expenses from the definition of qualified film for the purposes of the
empire state film production credit
PURPOSE:
Prohibits applicants of the empire state film production credit from
using artificial intelligence that would displace any natural person in
their productions
SUMMARY OF PROVISIONS:
Section one amends paragraph 3 of subdivision b of section 24 of the tax
law that adds a new exclusion to the definition a "Qualified Film" with-
in the empire state film production tax credit. Any productions that use
artificial intelligence or autonomous vehicles in a manner which results
in the displacement of employees whose salaries are qualified expenses,
unless the replacement is permitted by a current collective bargaining
agreement in force covering such employees will not be considered a
qualified film.
Section 2 is the effective date.
JUSTIFICATION:
First enacted in 2004, this tax credit was created as a part of the
State's Economic Development efforts to increase film and television
production and post production across New York State. This incentive is
a jobs creation program, intended to create well paying middle class
jobs with good benefits. To that end, a report on the economic impact of
this incentive indicates the growth in employment in the film industry
has grown by 54% since the tax credit's inception, supporting over
59,000 direct jobs in New York State.
New York State is unique among the states with a strong union tradition
dating back to the original labor movements created in the wake of the
excesses of powerful corporate interests during the Gilded Era. The
original pioneers for workers rights fought to protect workers from the
dangers generated by new industrial machines at that time and would work
to protect modern film and television workers from the infringement of
their creative and intellectual properties created by artificial intel-
ligence generated products.
Given the robust changes in this tax credit in the recently adopted
budget, and, in consideration of New York's storied history in the union
movement, it makes sense that taxpayer dollars continue to be used to
generate employment and not as an incentive to utilize artificial intel-
ligence to replace workers.
This bill aims to protect the very workers that support the film and
television industry through the prohibition of displacing workers in
favor of artificial intelligence or autonomous vehicles. There is a
place for artificial intelligence and technology, but the film tax cred-
it should not be used to replace the talented, specialized and creative
artists and workers in the film and television community.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
Immediately.
1 commercials, music videos or "reality" program; (ii) a production for
2 which records are required under section 2257 of title 18, United
States 3 code, to be maintained with respect to any performer in such
production 4 (reporting of books, films, etc. with respect to sexually
explicit
5 conduct); (or) (iii) a production which uses artificial intelligence
in 6 a manner which results in the displacement of employees whose sala-
ries 7 are qualified expenses, unless such replacement is permitted by a
8 current collective bargaining agreement in force covering such employ-
9 ees; or (iv) other than a relocated television production, a tele-
vision 10 series commonly known as variety entertainment, variety sketch
and vari-
11 ety talk, i.e., a program with components of improvisational or
scripted 12 content (monologues, sketches, interviews), either exclu-
sively or in 13 combination with other entertainment elements such as
musical perform- 14 ances, dancing, cooking, crafts, pranks, stunts, and
games and which may 15 be further defined in regulations of the commis-
sioner of economic devel-
16 opment. However, a qualified film shall include a television series
as 17 described in subparagraph
(iii) (iv) of this paragraph only if
an 18 application for such series has been deemed conditionally eligible
for 19 the tax credit under this section prior to April first, two thou-
sand 20 twenty, such series remains in continuous production for each
season, 21 and an annual application for each season of such series is
continually 22 submitted for such series after April first, two thousand
twenty. A 23 series that changes either or both the title of the series
or the prin- 24 cipal cast prior to March thirty-first, two thousand
twenty-three, shall 25 be considered to remain in continuous production
for each season, 26 provided the series films at the same location as
prior seasons, is 27 produced by the same entity, and retains at least
eighty percent of the 28 staff from the prior season.
29 § 2. This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7634--B
2023-2024 Regular Sessions
IN ASSEMBLY
May 25, 2023
___________
Introduced by M. of A. MEEKS, SANTABARBARA, MAMDANI, JACKSON, ANDERSON,
ZACCARO, GIBBS, CLARK, ARDILA, SOLAGES, CUNNINGHAM -- read once and
referred to the Committee on Ways and Means -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee -- recommitted to the Committee on Ways and Means in accord-
ance with Assembly Rule 3, sec. 2 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the tax law, in relation to excluding a production which
uses artificial intelligence or autonomous vehicles in a manner which
results in the displacement of employees whose salaries are qualified
expenses from the definition of qualified film for the purposes of 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 3 of subdivision (b) of section 24 of the tax
2 law, as amended by section 9-a of part D of chapter 59 of the laws of
3 2023, is amended to read as follows:
4 (3) "Qualified film" means a feature-length film, television film,
5 relocated television production, television pilot or television series,
6 regardless of the medium by means of which the film, pilot or series is
7 created or conveyed. For the purposes of the credit provided by this
8 section only, a "qualified film" whose majority of principal photography
9 shooting days in the production of the qualified film are shot in West-
10 chester, Rockland, Nassau, or Suffolk county or any of the five New York
11 City boroughs shall have a minimum budget of one million dollars. A
12 "qualified film", whose majority of principal photography shooting days
13 in the production of the qualified film are shot in any other county of
14 the state than those listed in the preceding sentence shall have a mini-
15 mum budget of two hundred fifty thousand dollars. "Qualified film" shall
16 not include: (i) a documentary film, news or current affairs program,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11610-09-4
A. 7634--B 2
1 interview or talk program, "how-to" (i.e., instructional) film or
2 program, film or program consisting primarily of stock footage, sporting
3 event or sporting program, game show, award ceremony, film or program
4 intended primarily for industrial, corporate or institutional end-users,
5 fundraising film or program, daytime drama (i.e., daytime "soap opera"),
6 commercials, music videos or "reality" program; (ii) a production for
7 which records are required under section 2257 of title 18, United States
8 code, to be maintained with respect to any performer in such production
9 (reporting of books, films, etc. with respect to sexually explicit
10 conduct); [or] (iii) a production which uses artificial intelligence or
11 autonomous vehicles in a manner which results in the displacement of
12 employees whose salaries are qualified expenses, unless such replacement
13 is permitted by a current collective bargaining agreement in force
14 covering such employees; or (iv) other than a relocated television
15 production, a television series commonly known as variety entertainment,
16 variety sketch and variety talk, i.e., a program with components of
17 improvisational or scripted content (monologues, sketches, interviews),
18 either exclusively or in combination with other entertainment elements
19 such as musical performances, dancing, cooking, crafts, pranks, stunts,
20 and games and which may be further defined in regulations of the commis-
21 sioner of economic development. However, a qualified film shall include
22 a television series as described in subparagraph [(iii)] (iv) of this
23 paragraph only if an application for such series has been deemed condi-
24 tionally eligible for the tax credit under this section prior to April
25 first, two thousand twenty, such series remains in continuous production
26 for each season, and an annual application for each season of such
27 series is continually submitted for such series after April first, two
28 thousand twenty. A series that changes either or both the title of the
29 series or the principal cast prior to March thirty-first, two thousand
30 twenty-three, shall be considered to remain in continuous production for
31 each season, provided the series films at the same location as prior
32 seasons, is produced by the same entity, and retains at least eighty
33 percent of the staff from the prior season.
34 § 2. This act shall take effect immediately.
