NY S07422: Excludes a production using artificial intelligence or autonomous vehicles in a manner which results in the displacement of employees whose salaries … Verified

Bill S07422 seeks to amend the definition of 'qualified film' under New York's tax law by excluding productions that employ artificial intelligence or autonomous vehicles in a manner that results in the displacement of employees whose salaries are considered qualified expenses. This exclusion is significant as it directly ties the eligibility for the Empire State Film Production Credit to the employment impact of such technologies. Productions that do not comply with this provision will not qualify for the tax credits, which could affect their financial viability. The bill also allows for exceptions if the displacement is permitted under a current collective bargaining agreement, indicating a consideration for labor relations in the film industry. The bill is currently in the legislative process and has not yet been enacted, but its implications for film production practices in New York are considerable, especially for those integrating AI and autonomous systems into their workflows.