BILL NUMBER: S6751
SPONSOR: WEBB
 
TITLE OF BILL:
An act to amend the tax law, in relation to excluding a production which
uses artificial intelligence or autonomous vehicles 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
 
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"
within the empire state film production tax credit. Any productions that
use artificial intelligence or autonomous vehicles 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
59,000 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 or autonomous vehicles. There is a
place for artificial intelligence and technology, but the film tax cred-
it should not be used to replace the talented, specialized and creative
artists and workers in the film and television community.
 
LEGISLATIVE HISTORY:
03/27/24 AMEND (T) AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPER-
ATIONS
03/27/24 PRINT NUMBER 7422B
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
Immediately.

Statutes affected:
S6751: 24 tax law