Excludes a production using artificial intelligence 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: A7634AREVISED 10/27/23
SPONSOR: Meeks TITLE OF BILL:
An act to amend the tax law, in relation to excluding a production which
uses artificial intelligence in a manner which results in the displace-
ment of employees whose salaries are qualified expenses from the defi-
nition 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 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
57,000 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. There is a place for artificial intel-
ligence and technology, but the film tax credit should not be used to
replace the talented and creative artists and workers in the film and
television community.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
7634--A
2023-2024 Regular Sessions
IN ASSEMBLY
May 25, 2023
___________
Introduced by M. of A. MEEKS -- read once and referred to the Committee
on Ways and Means -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to excluding a production which
uses artificial intelligence 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,
17 interview or talk program, "how-to" (i.e., instructional) film or
18 program, film or program consisting primarily of stock footage, sporting
19 event or sporting program, game show, award ceremony, film or program
20 intended primarily for industrial, corporate or institutional end-users,
21 fundraising film or program, daytime drama (i.e., daytime "soap opera"),
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11610-05-3
A. 7634--A 2
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 salaries
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 television
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 exclusively 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 commissioner 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 thousand
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.
