Includes writer salaries and fees within production costs eligible for the empire state film production credit

Title of bill

An act to amend the tax law, in relation to eligibility for the empire state film production credit and providing for the repeal of certain provisions upon expiration thereof

Purpose

To include writing fees as an eligible expense to receive a credit under the Empire State Film Production Credit for a movie or television show produced in New York State.

Summary of provisions

Section 1. Modifies the definition of "qualified production costs" to include writer's fees and services.

Section 2. Defines "writer" for purposes of the Empire State Film Production Credit.

Section 3. Places a cap of $50,000 per writer on the amount of the credit that may be claimed by a qualified taxpayer.

Section 4.Places a cap of five million dollars on the amount of tax credit that may be disbursed for writers.

Section 5. Requires of hiring of a minority or woman writer when more than 3 writers are hired.

Section 6. This bill shall take effect on April 1, 2010.

Justification

Many films and television shows are drawn to the unique urban and picturesque landscapes of New York. The Empire State Film Production Credit has created jobs and brought revenue to New York when productions move to or begin in New York and take advantage of the 30% tax credit on qualifying production costs. However, it has not created employment opportunities for the thousands of New York State residents who try to earn their living by writing for television and film.

In 2008 there were 15 major television productions filming in New York State. Collectively, these shows employed a total of 122 writers. Of these 122 writers only 24 of them live in New York. The remaining writers reside on the West Coast, many in Los Angeles. Some of these writers work on scripts for shows such as Ugly Betty and Law & Order: Special Victims Unit, where the City of New York is a main character, without even visiting New York prior to writing an episode. At the same time, many New Yorkers have found it impossible to maintain a career writing for television without leaving the state, uprooting their families and depriving the state of tax revenue.

Currently the Empire State Film Credit does not include writers as a qualified production cost, while Connecticut and Michigan do include writers in their film production tax credits. Canada, the biggest competitor for film and television productions, includes writers in their tax credit as well. Including writers as a qualified production cost will create jobs for New Yorkers as well as preserving New York's strong tradition as a creative center for entertainment.

Both New York State and the film industry have been committed to increasing the presence of minorities and women in film and television. In this light, this bill requires that when 3 or more writers are hired by an entity seeking a credit at least one must be a minority or woman.

The inclusion of writers as a qualified production cost would create new jobs and revenue with little fiscal impact. Funds for the Empire State Film Production Tax Credit are already allocated; this bill would carve out a small amount of those funds and devote them to writers.

Legislative history

This is a new bill.

Fiscal implications

This bill makes use of funds already allocated to the Empire Film Tax Credit. No additional allocation of funds is required.

Effective date

This act shall take effect April 1, 2010.