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A02670 Summary:

BILL NOA02670B
 
SAME ASSAME AS S03159-A
 
SPONSORLentol
 
COSPNSRTitone, Colton, Brindisi, Niou, McDonald, Carroll, Cook, Jenne, Peoples-Stokes, Hevesi, Jaffee, D'Urso, Abbate, Blake, Crespo, Morelle
 
MLTSPNSRHyndman
 
Add 44 & 45, amd 210-B & 606, Tax L; rpld 352 sub 13, amd 353 & 352, add 243, Ec Dev L
 
Establishes the empire state music production credit and the empire state digital gaming media production credit; defines terms.
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A02670 Actions:

BILL NOA02670B
 
01/20/2017referred to ways and means
02/01/2017amend and recommit to ways and means
02/01/2017print number 2670a
06/12/2017amend (t) and recommit to ways and means
06/12/2017print number 2670b
01/03/2018referred to ways and means
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A02670 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         2670--B
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 20, 2017
                                       ___________
 
        Introduced  by  M. of A. LENTOL, TITONE, COLTON, BRINDISI, NIOU, HARRIS,
          McDONALD,  CARROLL,  COOK,  JENNE,  PEOPLES-STOKES,  HEVESI,   JAFFEE,
          D'URSO,  ABBATE, BLAKE, CRESPO, MORELLE -- Multi-Sponsored by -- M. of
          A. HYNDMAN -- read once and referred to  the  Committee  on  Ways  and
          Means  --  committee  discharged,  bill  amended, ordered reprinted as
          amended and recommitted to said committee -- again reported from  said
          committee  with amendments, ordered reprinted as amended and recommit-
          ted to said committee
 
        AN ACT to amend the  tax  law  and  the  economic  development  law,  in
          relation  to  the creation of the empire state music production credit
          and the empire state digital gaming media production credit; to repeal
          subdivision 13 of section 352 of the economic development law relating
          thereto; and providing for the repeal of certain provisions upon expi-
          ration thereof
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The tax law is amended by adding a new section 44 to read
     2  as follows:
     3    § 44. Empire state music production credit. (a) Allowance  of  credit.
     4  (1)  A  taxpayer which is a music production entity engaged in qualified
     5  music production, or who is a sole proprietor of or a member of a  part-
     6  nership,  which  is a music production entity engaged in qualified music
     7  production, and is subject to tax under article nine-A or twenty-two  of
     8  this  chapter, shall be allowed a credit against such tax to be computed
     9  as provided herein.
    10    (2) The amount of the credit shall be the product (or pro  rata  share
    11  of  the  product,  in  the  case of a member of a partnership or limited
    12  liability company) of twenty-five percent and  the  eligible  production
    13  costs of one or more qualified music productions.
    14    (3)  Eligible  production  costs  for  a  qualified  music  production
    15  incurred and paid in this state but outside such  metropolitan  commuter
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03921-07-7

        A. 2670--B                          2
 
     1  transportation district shall be eligible for a credit of ten percent of
     2  such  eligible  production  costs in addition to the credit specified in
     3  paragraph two of this subdivision.
     4    (4)  Eligible  production  costs shall not include those costs used by
     5  the taxpayer or another taxpayer as the basis calculation of  any  other
     6  tax credit allowed under this chapter or allowed in any other state.
     7    (b)  Allocation of credit. The aggregate amount of tax credits allowed
     8  under this section, subdivision fifty-three of section two hundred ten-B
     9  and subsection (iii) of section six hundred six of this chapter  in  any
    10  taxable  year  shall  be fifty million dollars.  The aggregate amount of
    11  credits for any taxable year shall be distributed on a regional basis as
    12  follows: fifty percent of the  aggregate  amount  of  credits  shall  be
    13  available  for  qualified  music  productions  that incur at least sixty
    14  percent of eligible production costs for a qualified music production in
    15  region one; twenty percent of the aggregate amount of credits  shall  be
    16  available  for  qualified  music  productions  that incur at least sixty
    17  percent of eligible production costs for a qualified music production in
    18  region two; and thirty percent of the aggregate amount of credits  shall
    19  be  available  for qualified music productions that incur at least sixty
    20  percent of eligible production costs for a qualified music production in
    21  region three. If such regional distribution is not  fully  allocated  in
    22  any  taxable  year, the remainder of such credits shall be available for
    23  allocation to any region in the subsequent tax year.   For the  purposes
    24  of  this  section  region one shall contain the city of New York; region
    25  two shall contain the counties  of  Westchester,  Rockland,  Nassau  and
    26  Suffolk;  and  region  three  shall  contain any county not contained in
    27  regions one and two.  Such credit shall be allocated by the empire state
    28  development corporation among taxpayers in order of priority based  upon
    29  the  date  of  filing  an application for allocation of music production
    30  credits with such office. If  the  total  amount  of  allocated  credits
    31  applied  for  in any particular year exceeds the aggregate amount of tax
    32  credits allowed for such year under this section, such excess  shall  be
    33  treated  as  having  been applied for on the first day of the subsequent
    34  taxable year.
    35    (c) Definitions. As used in this section:
    36    (1) "Music production" means the creation of a sound recording and any
    37  related music video, either of which is intended for commercial release.
    38  A "music production" does not  include  recordings  that  are  primarily
    39  spoken  word or wildlife or nature sounds, or produced for instructional
    40  use or advertising or promotional purposes.
    41    (2) "Qualified music production" is a music production in which eligi-
    42  ble production costs equal to or are in excess of  seven  thousand  five
    43  hundred  dollars if incurred and paid in this state in the twelve months
    44  preceding the date on which the credit is claimed. Provided, however, if
    45  such production costs are incurred and  paid  outside  the  metropolitan
    46  commuter  transportation  district  in this state, such production costs
    47  shall be equal to or in excess of three  thousand  seven  hundred  fifty
    48  dollars  to  be  a  qualified  music production for the purposes of this
    49  paragraph.
    50    (3) (A) "Eligible production costs for a qualified  music  production"
    51  are  costs  incurred  and  paid  in this state for tangible property and
    52  services used in the production of qualified music production, as deter-
    53  mined by the department of  economic  development,  including,  but  not
    54  limited  to:   (i) studio rental fees and related costs, (ii) instrument
    55  and equipment rental fees, (iii) production session fees for  musicians,

        A. 2670--B                          3
 
     1  programmers,  engineers,  and  technicians and (iv) mixing and mastering
     2  services.
     3    (B)  Eligible production costs shall not include: (i) costs for tangi-
     4  ble property or services used or performed outside of this  state,  (ii)
     5  performance  fees for featured artists or featured guest artists receiv-
     6  ing royalties or advances  on  royalties  or  special  performance  fees
     7  (other  than  those  that  would  normally  be collected by a performing
     8  rights organization) pursuant to an agreement directly with the producer
     9  or employer, (iii) salaries or related  compensation  for  producers  or
    10  songwriters,  (iv)  composer,  artist  or producer residual royalties or
    11  advances, (v) licensing fees for samples, (vi) interpolations  or  other
    12  music  clearance  costs, (vii) mastering or post-production expenditures
    13  for projects that were not principally  tracked  and  recorded  in  this
    14  state,  (viii)  any  costs  associated  with manufacturing, duplication,
    15  packaging, distribution, promotion, marketing  or  touring  not  specif-
    16  ically  outlined  in  this  subparagraph,  or  (ix) local transportation
    17  expenditures directly related to music production and provided at or  to
    18  the  site of such music production.  With respect to the production of a
    19  music video, eligible production costs are those  defined  in  paragraph
    20  two  of  subdivision  (b)  of  section twenty-four of this article. Such
    21  total production costs incurred and paid in this state shall be equal to
    22  or exceed seventy-five percent of total cost of an  eligible  production
    23  incurred and paid within and without this state.
    24    (d)  Cross-references.  For applications of the credit provided for in
    25  this section, see the following provisions of this chapter:
    26    (1) Article nine-A: section  two  hundred  ten-B,  subdivision  fifty-
    27  three.
    28    (2) Article twenty-two: section six hundred six, subsection (i), para-
    29  graph one, subparagraph (B), clause (xliv).
    30    (3) Article twenty-two: section six hundred six, subsection (iii).
    31    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    32  sion 53 to read as follows:
    33    53. Empire state music production credit. (a) Allowance of  credit.  A
    34  taxpayer  who is eligible pursuant to section forty-four of this chapter
    35  shall be allowed a credit to be computed as  provided  in  such  section
    36  forty-four against the tax imposed by this article.
    37    (b)  Application  of credit. The credit allowed under this subdivision
    38  for any taxable year shall not reduce the tax due for such year to  less
    39  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    40  section two hundred ten of this article. Provided, however, that if  the
    41  amount  of  the  credit allowable under this subdivision for any taxable
    42  year reduces the tax to such amount, the excess shall be treated  as  an
    43  overpayment  of  tax  to  be credited or refunded in accordance with the
    44  provisions of section one thousand eighty-six of this chapter, provided,
    45  however, no interest shall be paid thereon.
    46    § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    47  of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
    48  follows:
 
    49  (xliv) Empire state music               Amount of credit under
    50  production credit under                 subdivision fifty-three
    51  subsection (iii)                        of section two hundred ten-B
 
    52    § 4. Section 606 of the tax law is amended by adding a new  subsection
    53  (iii) to read as follows:

        A. 2670--B                          4
 
     1    (iii) Empire state music production credit. (1) Allowance of credit. A
     2  taxpayer  who is eligible pursuant to section forty-four of this chapter
     3  shall be allowed a credit to be computed as  provided  in  such  section
     4  forty-four against the tax imposed by this article.
     5    (2) Application of credit. If the amount of the credit allowable under
     6  this subsection for any taxable year exceeds the taxpayer's tax for such
     7  year, the excess shall be treated as an overpayment of tax to be credit-
     8  ed  or  refunded  as  provided in section six hundred eighty-six of this
     9  article, provided, however, that no interest shall be paid thereon.
    10    § 5. The tax law is amended by adding a new  section  45  to  read  as
    11  follows:
    12    §  45. Empire state digital gaming media production credit. (a) Allow-
    13  ance of  credit.  (1)  A  taxpayer  which  is  a  digital  gaming  media
    14  production  entity engaged in qualified digital gaming media production,
    15  or who is a sole proprietor of or a member of a partnership, which is  a
    16  digital  gaming  media  production  entity  engaged in qualified digital
    17  gaming media production, and is subject to tax under article  nine-A  or
    18  twenty-two  of  this chapter, shall be allowed a credit against such tax
    19  to be computed as provided herein.
    20    (2) The amount of the credit shall be the product (or pro  rata  share
    21  of  the  product,  in  the  case of a member of a partnership or limited
    22  liability company) of twenty-five percent and  the  eligible  production
    23  costs of one or more qualified digital gaming media productions.
    24    (3)  Eligible  digital  gaming  media production costs for a qualified
    25  digital gaming media production incurred and  paid  in  this  state  but
    26  outside  such  metropolitan  commuter  transportation  district shall be
    27  eligible for a credit of ten percent of such eligible  production  costs
    28  in  addition  to  the credit specified in paragraph two of this subdivi-
    29  sion.
    30    (4) Eligible production costs shall not include those  costs  used  by
    31  the  taxpayer  or another taxpayer as the basis calculation of any other
    32  tax credit allowed under this chapter or allowed in any other state.
    33    (b) Allocation of credit. The aggregate amount of tax credits  allowed
    34  under  this section, subdivision fifty-four of section two hundred ten-B
    35  and subsection (jjj) of section six hundred six of this chapter  in  any
    36  taxable  year  shall  be fifty million dollars.  The aggregate amount of
    37  credits for any taxable year must be distributed on a regional basis  as
    38  follows:  fifty  percent  of  the  aggregate  amount of credits shall be
    39  available for qualified digital gaming media productions that  incur  at
    40  least sixty percent of eligible production costs for a qualified digital
    41  gaming  media  production in region one; twenty percent of the aggregate
    42  amount of credits shall be available for qualified digital gaming  media
    43  productions  that  incur  at  least sixty percent of eligible production
    44  costs for a qualified digital gaming media production in region two; and
    45  thirty percent of the aggregate amount of credits shall be available for
    46  qualified digital gaming media productions that  incur  at  least  sixty
    47  percent  of  eligible  production  costs  for a qualified digital gaming
    48  media production in region three.  If such regional distribution is  not
    49  fully allocated in any taxable year, the remainder of such credits shall
    50  be  available  for  allocation to any region in the subsequent tax year.
    51  For the purposes of this section region one shall contain  the  city  of
    52  New  York;  region  two shall contain the counties of Westchester, Rock-
    53  land, Nassau and Suffolk; and region three shall contain any county  not
    54  contained in regions one and two.  Such credit shall be allocated by the
    55  empire state development corporation among taxpayers in order of priori-
    56  ty  based  upon  the  date  of  filing  an application for allocation of

        A. 2670--B                          5
 
     1  digital gaming media production credit with such office.  If  the  total
     2  amount  of  allocated credits applied for in any particular year exceeds
     3  the aggregate amount of tax credits allowed for  such  year  under  this
     4  section,  such excess shall be treated as having been applied for on the
     5  first day of the subsequent taxable year.
     6    (c) Definitions. As used in this section:
     7    (1) "Qualified digital gaming media production" means: (i) a  website,
     8  the  digital media production costs of which are paid or incurred predo-
     9  minately in connection  with  (A)  video  simulation,  animation,  text,
    10  audio,  graphics  or similar gaming related property embodied in digital
    11  format, and (B) interactive features of  digital  gaming  (e.g.,  links,
    12  message  boards,  communities  or  content  manipulation); (ii) video or
    13  interactive games produced primarily for distribution over the internet,
    14  wireless network or successors thereto; (iii) animation,  simulation  or
    15  embedded  graphics  digital gaming related software intended for commer-
    16  cial distribution regardless of medium; and (iv) a digital gaming  media
    17  production  in  which  qualified  digital  gaming media production costs
    18  equal to or are in excess of seven  thousand  five  hundred  dollars  if
    19  incurred  and  paid in this state in twelve months preceding the date on
    20  which the credit is claimed. Provided, however,  if  such  a  production
    21  costs  are incurred and paid outside the metropolitan commuter transpor-
    22  tation district in this state, such production costs shall be  equal  to
    23  or in excess of three thousand seven hundred fifty dollars to be a qual-
    24  ified  digital gaming media production for purposes of this paragraph. A
    25  qualified digital gaming media production does not  include  a  website,
    26  video,  interactive  game  or  software  that is used predominately for:
    27  electronic commerce (retail or wholesale purposes other than the sale of
    28  video or interactive games), gambling (including activities regulated by
    29  a New York gaming agency), exclusive local consumption for entities  not
    30  accessible  by  the general public including industrial or other private
    31  purposes, and political advocacy purposes.
    32    (2) "Digital gaming media production costs" means any costs for  prop-
    33  erty  used  and  wages or salaries paid to individuals directly employed
    34  for services performed by those individuals directly  and  predominately
    35  in  the  creation  of  a digital gaming media production or productions.
    36  Digital gaming media production costs include but shall not  be  limited
    37  to  to  payments  for  property used and services performed directly and
    38  predominately in the development (including concept  creation),  design,
    39  production  (including  concept creation), design, production (including
    40  testing), editing (including encoding) and  compositing  (including  the
    41  integration  of  digital  files for interaction by end users) of digital
    42  gaming media.  Digital gaming media production costs shall  not  include
    43  expenses  incurred for the distribution, marketing, promotion, or adver-
    44  tising content generated by end-users or other costs  not  directly  and
    45  predominately  related  to  the  creation, production or modification of
    46  digital gaming media. In addition, salaries or other income distribution
    47  related to the creation of digital  gaming  media  for  any  person  who
    48  serves  in the role of chief executive officer, chief financial officer,
    49  president, treasurer or  similar  position  shall  not  be  included  as
    50  digital  gaming media production costs. Furthermore, any income or other
    51  distribution to any individual who holds  an  ownership  interest  in  a
    52  digital  gaming media production entity shall not be included as digital
    53  gaming media production costs.
    54    (3) "Qualified digital gaming media production  costs"  means  digital
    55  gaming  media production costs only to the extent such costs are attrib-
    56  utable to the use of property or the  performance  of  services  by  any

        A. 2670--B                          6
 
     1  persons  within  the  state  directly and predominantly in the creation,
     2  production or modification of digital gaming related media.  Such  total
     3  production  costs  incurred  and paid in this state shall be equal to or
     4  exceed  seventy-five  percent  of  total  cost of an eligible production
     5  incurred and paid within and without this state.
     6    (d) Cross-references. For application of the credit  provided  for  in
     7  this section, see the following provisions of this chapter:
     8    (1) Article nine-A: section two hundred ten-B, subdivision fifty-four.
     9    (2) Article twenty-two: section six hundred six, subsection (i), para-
    10  graph one, subparagraph (B), clause (xlv).
    11    (3) Article twenty-two: section six hundred six, subsection (jjj).
    12    §  6. Section 210-B of the tax law is amended by adding a new subdivi-
    13  sion 54 to read as follows:
    14    54. Empire state digital gaming media production credit. (a) Allowance
    15  of credit. A taxpayer who is eligible pursuant to section forty-five  of
    16  this  chapter  shall  be  allowed a credit to be computed as provided in
    17  such section forty-five against the tax imposed by this article.
    18    (b) Application of credit. The credit allowed under  this  subdivision
    19  for  any taxable year shall not reduce the tax due for such year to less
    20  than the amount prescribed  in  paragraph  (d)  of  subdivision  one  of
    21  section  two hundred ten of this article. Provided, however, that if the
    22  amount of the credit allowable under this subdivision  for  any  taxable
    23  year  reduces  the tax to such amount, the excess shall be treated as an
    24  overpayment of tax to be credited or refunded  in  accordance  with  the
    25  provisions of section one thousand eighty-six of this chapter, provided,
    26  however, no interest shall be paid thereon.
    27    §  7. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    28  of the tax law is amended by adding  a  new  clause  (xlv)  to  read  as
    29  follows:
 
    30  (xlv) Empire state digital           Amount of credit
    31  gaming media production              under subdivision
    32  credit under subsection (jjj)        fifty-four of section
    33                                       two hundred ten-B
    34    §  8. Section 606 of the tax law is amended by adding a new subsection
    35  (jjj) to read as follows:
    36    (jjj) Empire state digital gaming media production credit. (1)  Allow-
    37  ance  of  credit.  A taxpayer who is eligible pursuant to section forty-
    38  five of this chapter shall  be  allowed  a  credit  to  be  computed  as
    39  provided  in  such  section  forty-five  against the tax imposed by this
    40  article.
    41    (2) Application of credit. If the amount of the credit allowable under
    42  this subsection for any taxable year exceeds the taxpayer's tax for such
    43  year, the excess shall be treated as an overpayment of tax to be credit-
    44  ed or refunded as provided in section six  hundred  eighty-six  of  this
    45  article, provided, however, that no interest shall be paid thereon.
    46    §  9. The state commissioner of economic development, after consulting
    47  with the state commissioner of taxation and  finance,  shall  promulgate
    48  regulations  by  December 31, 2017 to establish procedures for the allo-
    49  cation of tax credits as required by subdivision (a) of section  44  and
    50  subdivision (a) of section 45 of the tax law. Such rules and regulations
    51  shall  include  provisions  describing  the application process, the due
    52  dates for such applications, the standards which shall be used to evalu-
    53  ate the applications, the documentation that will be provided to taxpay-
    54  ers substantiate to the  New  York  state  department  of  taxation  and
    55  finance  the  amount  of  tax credits allocated to such taxpayers, under

        A. 2670--B                          7
 
     1  what conditions all or a portion of this tax credit may be revoked,  and
     2  such other provisions as deemed necessary and appropriate. Notwithstand-
     3  ing  any  other  provisions  to the contrary in the state administrative
     4  procedure act, such rules and regulations may be adopted on an emergency
     5  basis if necessary to meet such December 31, 2017 deadline.
     6    § 10. Subdivision 13 of section 352 of the economic development law is
     7  REPEALED.
     8    §  11. Subdivisions 1, 3 and 5 of section 353 of the economic develop-
     9  ment law, subdivisions 1 and 3 as amended by section  2  of  part  K  of
    10  chapter  59  of the laws of 2017, subdivision 3 as separately amended by
    11  section 2 of part ZZ of chapter 59 of the laws of 2017 and subdivision 5
    12  as amended by section 2 of part K of chapter 59 of the laws of 2015, are
    13  amended to read as follows:
    14    1. To be a participant in the excelsior jobs program, a business enti-
    15  ty shall operate in New York state predominantly:
    16    (a) as a financial services data center or a financial  services  back
    17  office operation;
    18    (b) in manufacturing;
    19    (c) in software development and new media;
    20    (d) in scientific research and development;
    21    (e) in agriculture;
    22    (f)  in  the  creation  or  expansion of back office operations in the
    23  state;
    24    (g) in a distribution center;
    25    (h) in an  industry  with  significant  potential  for  private-sector
    26  economic  growth  and  development  in  this state as established by the
    27  commissioner in regulations promulgated pursuant  to  this  article.  In
    28  promulgating  such  regulations  the  commissioner shall include job and
    29  investment criteria;
    30    (i) as an entertainment company; or
    31    (j) [in music production; or
    32    (k)] as a life sciences company.
    33    3. For the purposes of this article, in order to  participate  in  the
    34  excelsior  jobs  program,  a  business entity operating predominantly in
    35  manufacturing must create at least five net new jobs; a business  entity
    36  operating predominately in agriculture must create at least five net new
    37  jobs;  a  business entity operating predominantly as a financial service
    38  data center or financial services customer back  office  operation  must
    39  create  at  least  twenty-five net new jobs; a business entity operating
    40  predominantly in scientific research  and  development  must  create  at
    41  least  five  net  new jobs; a business entity operating predominantly in
    42  software development must create at least five net new jobs; a  business
    43  entity creating or expanding back office operations must create at least
    44  twenty-five  net new jobs; [a business entity operating predominately in
    45  music production must create at least five net  new  jobs;]  a  business
    46  entity  operating  predominantly as an entertainment company must create
    47  or obtain at least one hundred net new jobs; or a business entity  oper-
    48  ating predominantly as a distribution center in the state must create at
    49  least  fifty  net  new  jobs,  notwithstanding  subdivision five of this
    50  section; or a business entity operating predominately as a life sciences
    51  company must create at least five net new jobs;  or  a  business  entity
    52  must be a regionally significant project as defined in this article; or
    53    5.  A  not-for-profit business entity, a business entity whose primary
    54  function is the provision of services including personal services, busi-
    55  ness services, or the provision of  utilities,  and  a  business  entity
    56  engaged  predominantly  in  the  retail or entertainment industry, other

        A. 2670--B                          8
 
     1  than a business operating as an entertainment company as defined in this
     2  article [and other than a business entity engaged in music  production],
     3  and  a company engaged in the generation or distribution of electricity,
     4  the  distribution  of natural gas, or the production of steam associated
     5  with the generation of electricity are not eligible to receive  the  tax
     6  credit described in this article.
     7    §  12.  Subdivision 23 of section 352 of the economic development law,
     8  as amended by section 1 of part K of chapter 59 of the laws of 2017,  is
     9  amended to read as follows:
    10    23.  "Software  development"  means  the  creation  of  coded computer
    11  instructions [or  production  or  post-production  of  video  games,  as
    12  defined in subdivision one-a of section six hundred eleven of the gener-
    13  al  business  law,  other  than  those  embedded and used exclusively in
    14  advertising, promotional websites or microsites,]  and  [also]  includes
    15  new media as defined by the commissioner in regulations.
    16    §  13. The economic development law is amended by adding a new section
    17  243 to read as follows:
    18    § 243. Reports on the music and digital gaming industries in New York.
    19  1. The empire state development corporation shall file  a  report  on  a
    20  biannual  basis  with the director of the division of the budget and the
    21  chairpersons of the assembly ways and means committee and senate finance
    22  committee. The report shall be filed no later than  thirty  days  before
    23  the  mid-point  and  the  end of the state fiscal year. The first report
    24  shall cover the calendar half year that begins  on  January  first,  two
    25  thousand  nineteen.  Each  report must contain the following information
    26  for the covered calendar half year:
    27    (a) the total dollar amount of credits allocated pursuant to  sections
    28  forty-four  and  forty-five  of the tax law during the half year, broken
    29  down by month;
    30    (b) the number of music and digital gaming projects, which  have  been
    31  allocated  tax credits of less than one million dollars per project, and
    32  the total dollar amount of credits allocated to those projects  distrib-
    33  uted  by  region  pursuant to subdivision (b) of sections forty-four and
    34  forty-five of the tax law;
    35    (c) the number of music and digital gaming projects, which  have  been
    36  allocated  tax  credits  of more than one million dollars, and the total
    37  dollar amount of credits allocated  to  those  projects  distributed  by
    38  region pursuant to subdivision (b) of sections forty-four and forty-five
    39  of the tax law;
    40    (d)  a  list  of each eligible music and digital gaming project, which
    41  has been allocated a tax credit enumerated by region pursuant to  subdi-
    42  vision (b) of sections forty-four and forty-five of the tax law, and for
    43  each of those projects, (i) the estimated number of employees associated
    44  with  the project, (ii) the estimated qualifying costs for the projects,
    45  (iii) the estimated total costs of the project, (iv) the credit eligible
    46  employee hours for each project, and (v) total  wages  for  such  credit
    47  eligible employee hours for each project; and
    48    (e)  (i)  the  name  of  each taxpayer allocated a tax credit for each
    49  project and the county of residence or incorporation  of  such  taxpayer
    50  or,  if the taxpayer does not reside or is not incorporated in New York,
    51  the state of residence or incorporation; however, if the taxpayer claims
    52  a tax credit because the taxpayer is a member  of  a  limited  liability
    53  company,  a  partner in a partnership or a shareholder in a subchapter S
    54  corporation, the name of each limited liability company, partnership  or
    55  subchapter  S  corporation  earning  any  of  those  tax credits must be
    56  included in the report instead of information about the taxpayer  claim-

        A. 2670--B                          9
 
     1  ing  the  tax  credit,  (ii)  the amount of tax credit allocated to each
     2  taxpayer; provided however, if the taxpayer claims a tax credit  because
     3  the  taxpayer is a member of a limited liability company, a partner in a
     4  partnership  or  a shareholder in a subchapter S corporation, the amount
     5  of tax credit earned by each entity  must  be  included  in  the  report
     6  instead  of  information about the taxpayer claiming the tax credit, and
     7  (iii) information identifying the project associated with each  taxpayer
     8  for  which  a  tax credit was claimed under section forty-four or forty-
     9  five of the tax law.
    10    2. The empire state development corporation shall file a report  on  a
    11  triennial  basis with the director of the division of the budget and the
    12  chairpersons of the assembly ways and means committee and senate finance
    13  committee. The first report shall be filed no later  than  March  first,
    14  two  thousand  twenty-one. The report must be prepared by an independent
    15  third party auditor and include: (a) information  regarding  the  empire
    16  state  music  production  credit  and  the  empire  state digital gaming
    17  production credit programs including the efficiency of operations, reli-
    18  ability of financial reporting, compliance with laws and regulations and
    19  distribution of assets and funds; (b) and economic impact study prepared
    20  by an independent third party of the program with  special  emphasis  on
    21  the  regional  impact  by  region and the total dollar amount of credits
    22  allocated to those projects distributed by region pursuant  to  subdivi-
    23  sion  (b)  of sections forty-four and forty-five of the tax law; and (c)
    24  any other information or statistical information that  the  commissioner
    25  of  economic  development deems to be useful in analyzing the effects of
    26  the programs.
    27    § 14. This act shall take effect immediately and shall apply to  taxa-
    28  ble  years  beginning  on  January  1,  2018 and before January 1, 2023;
    29  provided that sections one through eight of this act shall expire and be
    30  deemed repealed December 31, 2022.
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