by Lou Bertini

New York State now offers a Film Production Tax Credit program. After much haggling between the senate and the legislature over the exact form it would take, it was signed into law by Governor George Pataki on August 20 (see related story, page 64). “Qualified productions” will now receive a 10 percent tax credit on “qualified production costs.” The intent of the New York government is to stimulate film and television production in the state, and to compete with tax credit programs offered by other countries, most notably Canada.

This particular legislation began when Steiner Studios, a new facility occupying the old Brooklyn Navy Yards, sought a tax credit for itself and all work done within it under the New York “Empowerment Zone Program.” Silvercup, Kaufman-Astoria, and other studios found out about it and objected, citing what they saw as preferential treatment. New York’s Council of Motion Picture and TV Unions (COMPTU) and other entertainment industry Guilds began a campaign to extend the credit to cover the entire state. Political support grew, and real legislation soon began to take shape.

The staff and New York board members of the Editors Guild played a prominent role in the lobbying effort. A letter-writing campaign from the Guild membership to New York state representatives urging passage of this bill was highly influential in the final outcome. Assistant Executive Director Paul Moore received a personal letter of thanks from the State Senate Majority Leader Joseph Bruno, who also sent congratulations to Local 700 members for their efforts.

To be eligible for the credit at least 75 percent of all production costs must be incurred at a “qualified film production facility” in New York. “Qualified films” are features, television films, television series and pilots. At one point the inclusion of commercial production was considered, but ultimately left out. If the current law proves successful, commercials will likely be added at a later date. There was evidently a great deal of debate over the shape of this 75 percent “trigger.” Many lawmakers wanted it set at 65 percent, but in the end they did not prevail.

At press time another bill is also on the verge of passage in New York City, which will add an additional 5 percent tax credit for work done within the city limits, under the same formula as above. At a recent hearing at New York’s City Hall, testimony was given by Moore, who spoke of the employment problems caused by runaway productions and job outsourcing. He stressed the strength of the labor pool in New York, and its need for employment. He also spoke of the economic effects that are brought by film and television productions to the larger New York community, such as restaurants, hotels and support services.

Together these credits will offer producers a 15 percent tax incentive. Although still less than the subsidies offered in Canada, it is felt that they may be just enough of a push to get producers to work in New York. According to the Mayor’s Office of Film and Television, several productions originally scheduled for Toronto have already changed course, and will now shoot in the city, including the Fox TV series Johnny Zero.

Retirement Plan Statement

New York members may recall that I was a trustee of the eastern region pension and health plans for more than ten years–– until the time of our merger into the Hollywood Motion Picture Plan. In all that time the question I was asked most frequently by participants was “How can I find out how much my pension payments will be when I retire?” At that time a letter specifically requesting the information had to be sent to the plan office by regular mail.

Now, participants in the East should be receiving the first of what are to be annual statements of their Pension Account and Individual Account Plan in which all financial information is reported in detail. Western members have always received these statements, so for them this is old news. But for those of us in the East, this should come as a welcome new feature. The transfer of information to the West Coast office was not complete last year when the 2002 statements were sent out, so we did not receive any at that time. Now that it is complete we can expect to receive them every year.

You will notice that the statement is broken up into several parts. The pension section contains information on pension credits earned before and after the point of merger. This is because the benefits were structured under different formulas. One of the points negotiated during the merger was that participants should maintain all of their credits exactly as they earned them. The pension payment you receive at retirement will be a combination of the two. These amounts are broken down, and the totals are reported in the top right-hand corner of the statement. The “total accrued benefit” is the current amount of your monthly pension payment. This amount will grow as you continue to earn pension credits.

The second part reports the details of your Individual Account Plan to date. This is a new benefit for Easterners, and this report will give all participants their first look at what they have earned during the last two years. As a reminder, there are several different revenue streams, which combine to create the amount of your account:

• Investment income, which is based on the gains, or losses, of the fund as invested by the plan trustees.

• Hourly employer contribution, which is .305 cents per hour, multiplied by your number of hours worked or guaranteed per week.

• Employer percentage of minimum wage scale, which is 4.5 percent of contract scale wages per week.

These funds will be held in your name, and paid to you at your point of retirement as an annuity or a lump sum, or can be rolled over into an IRA account.