N.Y.
Tax Law Section 24-B
Television writers’ and directors’ fees and salaries credit
(a)
(1) A taxpayer which is a qualified film production company, or a qualified independent film production company, or which is a sole proprietor of or a member of a partnership which is a qualified film production company or a qualified independent film production company, and which is subject to tax under articles nine-A or twenty-two of this chapter, shall be allowed a credit against such tax, pursuant to the provisions referenced in subdivision (c) of this section, to be computed as hereinafter provided.(2)
The amount of the credit shall be the product (or pro rata share of the product, in the case of a member of a partnership) of thirty percent and the qualified television writers’ and directors’ fees and salaries costs paid or incurred in the production of a qualified film, provided that:(i)
the credit amount shall not exceed fifty thousand dollars for qualified television writers’ and directors’ fees and salaries claimed for such expenses incurred for the employment of any one specific writer or director for the production of a single television pilot or a single episode of a television series, and(ii)
the credit amount shall not exceed one hundred fifty thousand dollars for qualified television writers’ and directors’ fees and salaries claimed for such expenses incurred for the employment of any one specific writer or director. In addition, under no circumstances shall the credit amount include fees or salaries for more than one director per episode. The credit shall be allowed for the taxable year in which the production of such qualified film is completed.(3)
No qualified television writers’ and directors’ fees and salaries used by a taxpayer either as the basis for the allowance of the credit provided for pursuant to this section or used in the calculation of the credit provided pursuant to this section shall be used by such taxpayer to claim any other credit allowed pursuant to this chapter.(b)
Definitions. As used in this section, the following terms shall have the following meanings:(1)
“Qualified film production company” is a corporation, partnership, limited partnership, or other entity or individual whose project is conditionally eligible to receive a tax credit under § 24 (Empire state film production credit)section twenty-four of this article which or who is principally engaged in the production of a qualified film and controls the qualified film during production.(2)
“Qualified independent film production company” is a corporation, partnership, limited partnership, or other entity or individual whose project is conditionally eligible to receive a tax credit under § 24 (Empire state film production credit)section twenty-four of this article, that or who (i) is principally engaged in the production of a qualified film with a maximum budget of fifteen million dollars, (ii) controls the qualified film during production, and(iii)
either is not a publicly traded entity, or no more than five percent of the beneficial ownership of which is owned, directly or indirectly, by a publicly traded entity.(3)
“Qualified film” means a television film, television pilot and/or each episode of a television series, regardless of the medium by means of which the film, pilot or episode is created or conveyed.(4)
“Qualified television writers’ and directors’ fees and salaries” means salaries or fees paid to a writer or director who receives an on-air credit, provided that in each case, such writer or director is a minority group member, as defined in subdivision eight of Executive Law § 310 (Definitions)section three hundred ten of the executive law, or a woman, and provided, further, that salaries or fees paid to any writer or director who is a profit participant in the qualified film shall not be eligible. Such fees shall not include relocation fees or hotel costs and per diems. In addition, such fees shall not include salaries or fees paid to writers or directors for work done on episodes of television series that were deemed conditionally eligible for the tax credit under § 24 (Empire state film production credit)section twenty-four of this article prior to the tax year for which the credit is first available.(5)
“Writer” means a person who is engaged by a qualified film production company or a qualified independent film production company to write television scripts, outlines, rewrites, stories, or teleplays for television series and who reports to work regularly in a writers room located in the state. For the purposes of this definition, “writer” shall not include showrunners or executive producers.(6)
“Writers room” means a room or physical location in the state where writers employed by a qualified film production company or qualified independent film production company write television scripts, outlines, rewrites, stories, or teleplays for television series utilized in a qualified film. A writers room is located in the state only if it is in use in the state at least eighty percent of the time it is in existence.(7)
“Director” means an individual employed or retained to direct the production, as the word “direct” is commonly used in the motion picture industry, who would be classified as a director under the basic agreement in place between the Association of Motion Picture and Television Producers and the Director’s Guild of America and who must meet the minimum criteria for work on qualified productions in New York state as established by the commissioner of economic development by regulation.(8)
“Profit participant” is an individual who has negotiated for a percentage of profits generated by a qualified film. Profit participation does not include monies contractually required by collectively bargained agreements for reuse of a qualified film on different platforms over time.(c)
Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter:(1)
article 9-A: section 210-B: subdivision 54.(2)
article 22: section 606: subsection (v).(d)
Notwithstanding any provision of this chapter, (1) employees and officers of the department of economic development and the department shall be allowed and are directed to share and exchange information regarding the credits applied for, allowed, or claimed pursuant to this section and taxpayers who are applying for credits or who are claiming credits, including information contained in or derived from credit claim forms submitted to the department and applications for certification submitted to the department of economic development, and(2)
the commissioner and the commissioner of the department of economic development may release the names and addresses of any taxpayer claiming this credit and the amount of the credit earned by the taxpayer. Provided, however, if a taxpayer claims this credit because it is a member of a limited liability company or a partner in a partnership, only the amount of credit earned by the entity and not the amount of credit claimed by the taxpayer may be released.(e)
Maximum amount of credits.(1)
The aggregate amount of tax credits allowed under this section, subdivision fifty-four of section two hundred ten-B and subsection (v) of § 606 (Credits against tax)section six hundred six of this chapter in any calendar year shall be five million dollars. Such aggregate amount of credits shall be allocated by the department of economic development among taxpayers in order of priority based upon the date of filing an application for allocation of television writers’ and directors’ fees and salaries credit with such department. If the total amount of allocated credits applied for in any particular year exceeds the aggregate amount of tax credits allowed for such year under this section, such excess shall be treated as having been applied for on the first day of the subsequent year.(2)
The commissioner of economic development, after consulting with the commissioner, shall promulgate regulations to establish procedures for the allocation of tax credits as required by subdivision (a) of this section. Such rules and regulations shall include provisions describing the application process, the due dates for such applications, the standards which shall be used to evaluate the applications, the documentation that will be provided to taxpayers to substantiate to the department the amount of tax credits allocated to such taxpayers, and such other provisions as deemed necessary and appropriate. Notwithstanding any other provisions to the contrary in the state administrative procedure act, such rules and regulations may be adopted on an emergency basis.(f)
The department of economic development shall submit to the governor, the temporary president of the senate, and the speaker of the assembly, an annual report to be submitted on February first of each year evaluating the effectiveness of the television writers’ and directors’ fees and salaries tax credit provided by this section in stimulating the growth of diversity in the film industry in the state. Such report shall include, but need not be limited to, the number of qualified film production companies and/or qualified independent film production companies which received a television writers’ and directors’ fees and salaries credit, the credit amounts claimed by each qualified film production company and/or qualified independent film production company, as well as the impact on employment and the economy of the state. Such report shall be based on data available from the application filed with the department of economic development for allocation of television writers’ and directors’ fees and salaries credits. Notwithstanding any provision of law to the contrary, the information contained in the report shall be public information. The report may also include any recommendations of changes in the calculation or administration of the credit, and any other recommendation of the commissioner of the department of economic development regarding continuing modification, repeal of such act, and such other information regarding the act as the commissioner of the department of economic development may feel useful and appropriate. * NB Effective on the first of January next succeeding the date the department of economic development provides notice to the legislative bill drafting commission of a determination pursuant to § 6 sb 2 (b) of chapter 683 of 2019
Source:
Section 24-B — Television writers' and directors' fees and salaries credit, https://www.nysenate.gov/legislation/laws/TAX/24-B (updated Apr. 17, 2020; accessed May 4, 2024).
