NY Tax L § 24-B (2021)
2021 New York Laws TAX - Tax Article 1 - Short Title; Definitions; Miscellaneous 24-B - Television Writers' and Directors' Fees and Salaries Credit.

* § 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 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  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 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   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 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