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

3 Co-sponsors

• Joseph P. Addabbo Jr.
• Martin Malavé Dilan
• Brad Hoylman-Sigal

Title of bill

An act to amend the tax law, in relation to eligibility for the empire state film production credit

Purpose or general idea of bill

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

Summary of specific provisions

Section 1. Sets forth a legislative intent

Section 2. Provides for the allowance of credit.

Section 3. Modifies the definition of "qualified production costs" to include writer's and director's fees and services. Defines "writer" and "directors" for purposes of the Empire State Film Production Credit.

Section 4. Outlines criteria to qualify as eligible production costs Including limiting it to television productions, requirements for writer and director residency, and a cap of 75,000 per episode for a credited writer or director and 50,000 per series for an uncredited writer or director on the amount of the credit that may be claimed by a qualified taxpayer where that writer is a minority group member or a woman. Places a cap of 5 million of the Empire State Film Production that may be used for writers and directors.

Section 5. This bill shall take effect one hundred twentieth day after it shall have become a law.

Justification

Many 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 or directing for television.

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. 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 writer and directors working on television productions

Legislative history

2013-2014: S5370-A

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 one hundred twentieth day after it shall have become a law.