NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6096A
SPONSOR: Wright TITLE OF BILL: An act to amend the tax law, in relation to the
programs and shows which qualify for the empire state film production
credit
PURPOSE OR GENERAL IDEA OF BILL:
Provides for the inclusion of interview talk programs, game shows,
sporting event or sporting programs and daytime dramas within the defi-
nition of "qualified film."
SUMMARY OF SPECIFIC PROVISIONS:
Amends Section 1, Paragraph 3 of subdivision (b) of section 24 of the
law, as added by section 1 part P of chapter 60 of the laws of 2004.
Current law does not afford interview or talk programs, game shows,
sporting events / sporting programs or daytime dramas from taking advan-
tage of the film production tax credit. The proposed amendments would
create a level playing field for these types of broadcast.
JUSTIFICATION:
The Empire state film production tax credit law that first went into
effect in 2004, and amended numerous times since, has offered signif-
icant and appropriate tax incentives exclusively for the benefit of the
movie industry. Until recently, it has not been a concern of the tele-
vision networks and their union workers who reside in New York.
In 2010, Connecticut passed its 30% Film Production Tax Credit Law and
covered certain television productions that caused numerous television
shows, such as All My Children and One Life to Live, to leave NYS and
relocate to Connecticut. A sampling of other relocated shows that have
or will be produced in Connecticut due to the state's film tax credit
are: Deal or No Deal (NBC) ; The Maury Povich Show (NBC) ; Trisha, a new
talk show being launched this year out of Stamford; and the NBC Cable
Sports Operation. Their departures have had a major rippling effect on
the television industry in New York and its workers as well as the vari-
ous vendors that have been negatively affected.
In the face of the Connecticut law, the provisions of the NYC law rele-
vant to our television industry and require amendments to prevent more
departures from NYS with its loss of jobs and proliferation of vacant
NYS television studios. The law needs to be changed to be able to assist
' all TV productions, regardless of size and current fund must be made
available for all TV and film productions. Should the state not expand
the program, as recommended, it is likely that more TV productions of
this type will leave New York area and with them the employees who earn
between $1200 and $1500 per week, plus medical coverage, retirement
benefits, sick days, paid holidays, etc. which could have s significant
impact on future revenues.
PRIOR LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
