S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                10083--A

                          I N  A S S E M B L Y

                              May 10, 2016
                               ___________

Introduced by M. of A. LENTOL -- read once and referred to the Committee
  on  Ways  and  Means  --  committee  discharged, bill amended, ordered
  reprinted as amended and recommitted 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;  and  to
  repeal  subdivision  11 of section 352 of the economic development law
  relating thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The tax law is amended by adding a new section 43 to read
as follows:
  S 43. EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE  OF  CREDIT.
(1)  A  TAXPAYER WHICH IS A MUSIC PRODUCTION ENTITY ENGAGED IN QUALIFIED
MUSIC PRODUCTION, OR WHO IS A SOLE PROPRIETOR OF OR A MEMBER OF A  PART-
NERSHIP,  WHICH  IS A MUSIC PRODUCTION ENTITY ENGAGED IN QUALIFIED MUSIC
PRODUCTION, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO  OF
THIS  CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX TO BE COMPUTED
AS PROVIDED HEREIN.
  (2) THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO  RATA  SHARE
OF  THE  PRODUCT,  IN  THE  CASE OF A MEMBER OF A PARTNERSHIP OR LIMITED
LIABILITY COMPANY) OF TWENTY-FIVE PERCENT AND  THE  ELIGIBLE  PRODUCTION
COSTS OF ONE OR MORE QUALIFIED MUSIC PRODUCTIONS.
  (3)  ELIGIBLE  PRODUCTION  COSTS  FOR  A  QUALIFIED  MUSIC  PRODUCTION
INCURRED AND PAID IN THIS STATE BUT OUTSIDE SUCH  METROPOLITAN  COMMUTER
TRANSPORTATION DISTRICT SHALL BE ELIGIBLE FOR A CREDIT OF TEN PERCENT OF
SUCH  ELIGIBLE  PRODUCTION  COSTS IN ADDITION TO THE CREDIT SPECIFIED IN
PARAGRAPH TWO OF THIS SUBDIVISION.
  (4) NO ELIGIBLE PRODUCTION COSTS CLAIMED BY A TAXPAYER  AS  THE  BASIS
FOR  THE  CREDIT  UNDER  THIS  SECTION SHALL BE USED BY SUCH TAXPAYER TO
CLAIM ANY OTHER CREDIT PURSUANT TO THIS CHAPTER.
  (B) ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS  ALLOWED
UNDER  THIS  SECTION, SUBDIVISION FIFTY-TWO OF SECTION TWO HUNDRED TEN-B
AND SUBSECTION (FFF) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER  IN  ANY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15150-04-6

A. 10083--A                         2

TAXABLE YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS. SUCH AGGREGATE AMOUNT
OF  CREDITS  SHALL  BE  ALLOCATED BY THE EMPIRE STATE DEVELOPMENT CORPO-
RATION AMONG TAXPAYERS IN ORDER OF  PRIORITY  BASED  UPON  THE  DATE  OF
FILING  AN  APPLICATION  FOR ALLOCATION OR MUSIC PRODUCTION CREDITS WITH
SUCH OFFICE. IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY
PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED  FOR
SUCH  YEAR  UNDER  THIS  SECTION, SUCH EXCESS SHALL BE TREATED AS HAVING
BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT TAXABLE YEAR.
  (C) DEFINITIONS. AS USED IN THIS SECTION:
  (1) "MUSIC PRODUCTION" MEANS THE CREATION OF A SOUND RECORDING AND ANY
RELATED MUSIC VIDEO, EITHER OF WHICH IS INTENDED FOR COMMERCIAL RELEASE.
A "MUSIC PRODUCTION" DOES NOT  INCLUDE  RECORDINGS  THAT  ARE  PRIMARILY
SPOKEN  WORD OR WILDLIFE OR NATURE SOUNDS, OR PRODUCED FOR INSTRUCTIONAL
USE OR ADVERTISING OR PROMOTIONAL PURPOSES.
  (2) "QUALIFIED MUSIC PRODUCTION" IS A MUSIC PRODUCTION IN WHICH ELIGI-
BLE PRODUCTION COSTS EQUAL TO OR ARE IN EXCESS OF  SEVEN  THOUSAND  FIVE
HUNDRED  DOLLARS IF INCURRED AND PAID IN THIS STATE IN THE TWELVE MONTHS
PRECEDING THE DATE ON WHICH THE CREDIT IS CLAIMED. PROVIDED, HOWEVER, IF
SUCH PRODUCTION COSTS ARE INCURRED AND  PAID  OUTSIDE  THE  METROPOLITAN
COMMUTER  TRANSPORTATION  DISTRICT  IN THIS STATE, SUCH PRODUCTION COSTS
SHALL BE EQUAL TO OR IN EXCESS OF THREE  THOUSAND  SEVEN  HUNDRED  FIFTY
DOLLARS  TO  BE  A  QUALIFIED  MUSIC PRODUCTION FOR THE PURPOSES OF THIS
PARAGRAPH.
  (3) "ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC  PRODUCTION"  ARE
COSTS INCURRED AND PAID IN THIS STATE FOR TANGIBLE PROPERTY AND SERVICES
USED  IN  THE PRODUCTION OF QUALIFIED MUSIC PRODUCTION, AS DETERMINED BY
THE DEPARTMENT OF ECONOMIC DEVELOPMENT, INCLUDING, BUT NOT  LIMITED  TO:
(I)  STUDIO RENTAL FEES AND RELATED COSTS, (II) INSTRUMENT AND EQUIPMENT
RENTAL FEES, (III) PRODUCTION SESSION FEES FOR  MUSICIANS,  PROGRAMMERS,
ENGINEERS,  AND TECHNICIANS, (IV) MIXING AND MASTERING SERVICES, AND (V)
LOCAL TRANSPORTATION EXPENDITURES DIRECTLY RELATED TO  MUSIC  PRODUCTION
AND  PROVIDED  AT  OR  TO  THE  SITE  OF SUCH MUSIC PRODUCTION. ELIGIBLE
PRODUCTION COSTS SHALL NOT INCLUDE: (I) COSTS FOR TANGIBLE  PROPERTY  OR
SERVICES  USED OR PERFORMED OUTSIDE OF THIS STATE, (II) PERFORMANCE FEES
FOR FEATURED ARTISTS OR FEATURED GUEST ARTISTS  RECEIVING  ROYALTIES  OR
ADVANCES ON ROYALTIES OR SPECIAL PERFORMANCE FEES (OTHER THAN THOSE THAT
WOULD  NORMALLY BE COLLECTED BY A PERFORMING RIGHTS ORGANIZATION) PURSU-
ANT TO AN AGREEMENT DIRECTLY WITH THE PRODUCER OR EMPLOYER, (III)  SALA-
RIES  OR RELATED COMPENSATION FOR PRODUCERS OR SONGWRITERS, (IV) COMPOS-
ER, ARTIST OR PRODUCER RESIDUAL ROYALTIES  OR  ADVANCES,  (V)  LICENSING
FEES  FOR  SAMPLES,  (VI) INTERPOLATIONS OR OTHER MUSIC CLEARANCE COSTS,
(VII) MASTERING OR POST-PRODUCTION EXPENDITURES FOR PROJECTS  THAT  WERE
NOT  PRINCIPALLY TRACKED AND RECORDED IN THIS STATE, OR (VIII) ANY COSTS
ASSOCIATED WITH  MANUFACTURING,  DUPLICATION,  PACKAGING,  DISTRIBUTION,
PROMOTION,  MARKETING  OR  TOURING  NOT  SPECIFICALLY  OUTLINED  IN THIS
SUBPARAGRAPH. WITH RESPECT TO THE PRODUCTION OF A MUSIC VIDEO,  ELIGIBLE
PRODUCTION  COSTS  ARE THOSE DEFINED IN PARAGRAPH TWO OF SUBDIVISION (B)
OF SECTION TWENTY-FOUR OF THIS  ARTICLE.  SUCH  TOTAL  PRODUCTION  COSTS
INCURRED AND PAID IN THIS STATE SHALL BE EQUAL TO OR EXCEED SEVENTY-FIVE
PERCENT OF TOTAL COST OF AN ELIGIBLE PRODUCTION INCURRED AND PAID WITHIN
AND WITHOUT THIS STATE.
  (D)  REPORTING. THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL SUBMIT AN
ANNUAL REPORT, ON OR BEFORE DECEMBER FIRST OF EACH YEAR, TO  THE  GOVER-
NOR, THE DIRECTOR OF THE DIVISION OF THE BUDGET, THE TEMPORARY PRESIDENT
OF  THE  SENATE,  AND  THE  SPEAKER  OF THE ASSEMBLY, INCLUDING, BUT NOT
LIMITED TO, THE FOLLOWING INFORMATION REGARDING  THE  PREVIOUS  CALENDAR

A. 10083--A                         3

YEAR REGIONALLY, FOR ACTIVITY WITHIN AND WITHOUT THE METROPOLITAN COMMU-
TER  TRANSPORTATION  DISTRICT;  THE TOTAL DOLLAR AMOUNT OF CREDITS ALLO-
CATED, THE NAME AND ADDRESS OF EACH  ELIGIBLE  MUSIC  PRODUCTION  ENTITY
ALLOCATED  CREDITS  UNDER  THIS SECTION, AND THE TOTAL AMOUNT OF CREDITS
ALLOCATED TO EACH ELIGIBLE MUSIC PRODUCTION ENTITY. THE REPORT MAY  ALSO
INCLUDE  ANY  RECOMMENDATIONS FOR CHANGES IN THE CALCULATION OR ADMINIS-
TRATION OF THE CREDIT, AND ANY OTHER INFORMATION REGARDING  THIS  CREDIT
AS MAY BE USEFUL AND APPROPRIATE.
  (E)  CROSS-REFERENCES.  FOR APPLICATIONS OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE NINE-A: SECTION TWO HUNDRED TEN-B, SUBDIVISION FIFTY-TWO.
  (2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA-
GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLIII).
  (3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (FFF).
  S 2. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 52 to read as follows:
  52.  EMPIRE  STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT. A
TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-THREE OF THIS CHAPTER
SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS  PROVIDED  IN  SUCH  SECTION
FORTY-THREE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF  THE
AMOUNT  OF  THE  CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR REDUCES THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED  AS  AN
OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
HOWEVER, NO INTEREST SHALL BE PAID THEREON.
  S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended by adding a new clause (xliii) to read as
follows:

(XLIII) EMPIRE STATE MUSIC              AMOUNT OF CREDIT
PRODUCTION CREDIT UNDER                 UNDER SUBDIVISION
SUBSECTION (FFF)                        FIFTY-TWO OF SECTION TWO HUNDRED
                                        TEN-B

  S 4. Section 606 of the tax law is amended by adding a new  subsection
(fff) to read as follows:
  (FFF) EMPIRE STATE MUSIC PRODUCTION CREDIT. (1) ALLOWANCE OF CREDIT. A
TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-THREE OF THIS CHAPTER
SHALL  BE  ALLOWED  A  CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION
FORTY-THREE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF  THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S  5.  The  tax  law  is amended by adding a new section 44 to read as
follows:
  S 44. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (A)  ALLOW-
ANCE  OF  CREDIT.  (1)  A  TAXPAYER  WHICH  IS  A  DIGITAL  GAMING MEDIA
PRODUCTION ENTITY ENGAGED IN QUALIFIED DIGITAL GAMING MEDIA  PRODUCTION,
OR  WHO IS A SOLE PROPRIETOR OF OR A MEMBER OF A PARTNERSHIP, WHICH IS A
DIGITAL GAMING MEDIA PRODUCTION  ENTITY  ENGAGED  IN  QUALIFIED  DIGITAL

A. 10083--A                         4

GAMING  MEDIA  PRODUCTION, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR
TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST  SUCH  TAX
TO BE COMPUTED AS PROVIDED HEREIN.
  (2)  THE  AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA SHARE
OF THE PRODUCT, IN THE CASE OF A MEMBER  OF  A  PARTNERSHIP  OR  LIMITED
LIABILITY  COMPANY)  OF  TWENTY-FIVE PERCENT AND THE ELIGIBLE PRODUCTION
COSTS OF ONE OR MORE QUALIFIED DIGITAL GAMING MEDIA PRODUCTIONS.
  (3) ELIGIBLE DIGITAL GAMING MEDIA PRODUCTION  COSTS  FOR  A  QUALIFIED
DIGITAL  GAMING  MEDIA  PRODUCTION  INCURRED  AND PAID IN THIS STATE BUT
OUTSIDE SUCH METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT  SHALL  BE
ELIGIBLE  FOR  A CREDIT OF TEN PERCENT OF SUCH ELIGIBLE PRODUCTION COSTS
IN ADDITION TO THE CREDIT SPECIFIED IN PARAGRAPH TWO  OF  THIS  SUBDIVI-
SION.
  (4)  NO  ELIGIBLE  PRODUCTION COSTS CLAIMED BY A TAXPAYER AS THE BASIS
FOR THE CREDIT UNDER THIS SECTION SHALL BE  USED  BY  SUCH  TAXPAYER  TO
CLAIM ANY OTHER CREDIT PURSUANT TO THIS CHAPTER.
  (B)  ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
UNDER THIS SECTION, SUBDIVISION FIFTY-THREE OF SECTION TWO HUNDRED TEN-B
AND SUBSECTION (GGG) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER  IN  ANY
TAXABLE YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS. SUCH AGGREGATE AMOUNT
OF  CREDITS  SHALL  BE  ALLOCATED BY THE EMPIRE STATE DEVELOPMENT CORPO-
RATION AMONG TAXPAYERS IN ORDER OF  PRIORITY  BASED  UPON  THE  DATE  OF
FILING  AN APPLICATION FOR ALLOCATION OF DIGITAL GAMING MEDIA PRODUCTION
CREDIT WITH SUCH OFFICE.  IF  THE  TOTAL  AMOUNT  OF  ALLOCATED  CREDITS
APPLIED  FOR  IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX
CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS  SHALL  BE
TREATED  AS  HAVING  BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT
TAXABLE YEAR.
  (C) DEFINITIONS. AS USED IN THIS SECTION:
  (1) "QUALIFIED DIGITAL GAMING MEDIA PRODUCTION" MEANS: (I) A  WEBSITE,
THE  DIGITAL MEDIA PRODUCTION COSTS OF WHICH ARE PAID OR INCURRED PREDO-
MINATELY IN CONNECTION  WITH  (A)  VIDEO  SIMULATION,  ANIMATION,  TEXT,
AUDIO,  GRAPHICS  OR SIMILAR GAMING RELATED PROPERTY EMBODIED IN DIGITAL
FORMAT, AND (B) INTERACTIVE FEATURES OF  DIGITAL  GAMING  (E.G.,  LINKS,
MESSAGE  BOARDS,  COMMUNITIES  OR  CONTENT  MANIPULATION); (II) VIDEO OR
INTERACTIVE GAMES PRODUCED PRIMARILY FOR DISTRIBUTION OVER THE INTERNET,
WIRELESS NETWORK OR SUCCESSORS THERETO; (III) ANIMATION,  SIMULATION  OR
EMBEDDED  GRAPHICS  DIGITAL GAMING RELATED SOFTWARE INTENDED FOR COMMER-
CIAL DISTRIBUTION REGARDLESS OF MEDIUM; AND (IV) A DIGITAL GAMING  MEDIA
PRODUCTION  IN  WHICH  QUALIFIED  DIGITAL  GAMING MEDIA PRODUCTION COSTS
EQUAL TO OR ARE IN EXCESS OF SEVEN  THOUSAND  FIVE  HUNDRED  DOLLARS  IF
INCURRED  AND  PAID IN THIS STATE IN TWELVE MONTHS PRECEDING THE DATE ON
WHICH THE CREDIT IS CLAIMED. PROVIDED, HOWEVER,  IF  SUCH  A  PRODUCTION
COSTS  ARE INCURRED AND PAID OUTSIDE THE METROPOLITAN COMMUTER TRANSPOR-
TATION DISTRICT IN THIS STATE, SUCH PRODUCTION COSTS SHALL BE  EQUAL  TO
OR IN EXCESS OF THREE THOUSAND SEVEN HUNDRED FIFTY DOLLARS TO BE A QUAL-
IFIED  DIGITAL GAMING MEDIA PRODUCTION FOR PURPOSES OF THIS PARAGRAPH. A
QUALIFIED DIGITAL GAMING MEDIA PRODUCTION DOES NOT  INCLUDE  A  WEBSITE,
VIDEO,  INTERACTIVE  GAME  OR  SOFTWARE  THAT IS USED PREDOMINATELY FOR:
ELECTRONIC COMMERCE (RETAIL OR WHOLESALE PURPOSES OTHER THAN THE SALE OF
VIDEO OR INTERACTIVE GAMES), GAMBLING (INCLUDING ACTIVITIES REGULATED BY
A NEW YORK GAMING AGENCY), EXCLUSIVE LOCAL CONSUMPTION FOR ENTITIES  NOT
ACCESSIBLE  BY  THE GENERAL PUBLIC INCLUDING INDUSTRIAL OR OTHER PRIVATE
PURPOSES, AND POLITICAL ADVOCACY PURPOSES.
  (2) "DIGITAL GAMING MEDIA PRODUCTION COSTS" MEANS ANY COSTS FOR  PROP-
ERTY  USED  AND  SERVICES  PERFORMED  DIRECTLY  AND PREDOMINATELY IN THE

A. 10083--A                         5

CREATION OF A DIGITAL GAMING MEDIA PRODUCTION  OR  PRODUCTIONS.  DIGITAL
GAMING  MEDIA  PRODUCTION  COSTS  INCLUDE BUT SHALL NOT BE LIMITED TO TO
PAYMENTS FOR PROPERTY USED AND SERVICES PERFORMED DIRECTLY AND  PREDOMI-
NATELY   IN   THE  DEVELOPMENT  (INCLUDING  CONCEPT  CREATION),  DESIGN,
PRODUCTION (INCLUDING CONCEPT CREATION), DESIGN,  PRODUCTION  (INCLUDING
TESTING),  EDITING  (INCLUDING  ENCODING) AND COMPOSITING (INCLUDING THE
INTEGRATION OF DIGITAL FILES FOR INTERACTION BY END  USERS)  OF  DIGITAL
GAMING  MEDIA.   DIGITAL GAMING MEDIA PRODUCTION COSTS SHALL NOT INCLUDE
EXPENSES INCURRED FOR THE DISTRIBUTION, MARKETING, PROMOTION, OR  ADVER-
TISING  CONTENT  GENERATED  BY END-USERS OR OTHER COSTS NOT DIRECTLY AND
PREDOMINATELY RELATED TO THE CREATION,  PRODUCTION  OR  MODIFICATION  OF
DIGITAL GAMING MEDIA. IN ADDITION, SALARIES OR OTHER INCOME DISTRIBUTION
RELATED  TO  THE  CREATION  OF  DIGITAL  GAMING MEDIA FOR ANY PERSON WHO
SERVES IN THE ROLE OF CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL  OFFICER,
PRESIDENT,  TREASURER  OR  SIMILAR  POSITION  SHALL  NOT  BE INCLUDED AS
DIGITAL GAMING MEDIA PRODUCTION COSTS. FURTHERMORE, ANY INCOME OR  OTHER
DISTRIBUTION TO ANY INDIVIDUAL WHO HOLDS MORE THAN A FIVE PERCENT OWNER-
SHIP  INTEREST  IN A DIGITAL GAMING MEDIA PRODUCTION ENTITY SHALL NOT BE
INCLUDED AS DIGITAL GAMING MEDIA PRODUCTION COSTS.
  (3) "QUALIFIED DIGITAL GAMING MEDIA PRODUCTION  COSTS"  MEANS  DIGITAL
GAMING  MEDIA PRODUCTION COSTS ONLY TO THE EXTENT SUCH COSTS ARE ATTRIB-
UTABLE TO THE USE OF PROPERTY OR THE  PERFORMANCE  OF  SERVICES  BY  ANY
PERSONS  WITHIN  THE  STATE  DIRECTLY AND PREDOMINANTLY IN THE CREATION,
PRODUCTION OR MODIFICATION OF DIGITAL GAMING RELATED MEDIA.  SUCH  TOTAL
PRODUCTION  COSTS  INCURRED  AND PAID IN THIS STATE SHALL BE EQUAL TO OR
EXCEED SEVENTY-FIVE PERCENT OF TOTAL  COST  OF  AN  ELIGIBLE  PRODUCTION
INCURRED AND PAID WITHIN AND WITHOUT THIS STATE.
  (D)  REPORTING. THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL SUBMIT AN
ANNUAL REPORT, ON OR BEFORE DECEMBER FIRST OF EACH YEAR, TO  THE  GOVER-
NOR, THE DIRECTOR OF THE DIVISION OF THE BUDGET, THE TEMPORARY PRESIDENT
OF  THE  SENATE,  AND  THE  SPEAKER  OF THE ASSEMBLY, INCLUDING, BUT NOT
LIMITED TO, THE FOLLOWING INFORMATION REGARDING  THE  PREVIOUS  CALENDAR
YEAR REGIONALLY, FOR ACTIVITY WITHIN AND WITHOUT THE METROPOLITAN COMMU-
TER  TRANSPORTATION  DISTRICT;  THE TOTAL DOLLAR AMOUNT OF CREDITS ALLO-
CATED, THE NAME AND  ADDRESS  OF  EACH  ELIGIBLE  DIGITAL  GAMING  MEDIA
PRODUCTION  ENTITY  ALLOCATED  CREDITS UNDER THIS SECTION, AND THE TOTAL
AMOUNT OF CREDITS  ALLOCATED  TO  EACH  ELIGIBLE  DIGITAL  GAMING  MEDIA
PRODUCTION  ENTITY.  THE REPORT MAY ALSO INCLUDE ANY RECOMMENDATIONS FOR
CHANGES IN THE CALCULATION OR ADMINISTRATION  OF  THE  CREDIT,  AND  ANY
OTHER  INFORMATION  REGARDING THIS CREDIT AS MAY BE USEFUL AND APPROPRI-
ATE.
  (E) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1)   ARTICLE   NINE-A:   SECTION   TWO   HUNDRED  TEN-B,  SUBDIVISION
FIFTY-THREE.
  (2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA-
GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLIV).
  (3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (GGG).
  S 6. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 53 to read as follows:
  53. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (A) ALLOWANCE
OF  CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-FOUR OF
THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE  COMPUTED  AS  PROVIDED  IN
SUCH SECTION FORTY-FOUR AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS

A. 10083--A                         6

THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF  THE
AMOUNT  OF  THE  CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR  REDUCES  THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED AS AN
OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE  WITH  THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
HOWEVER, NO INTEREST SHALL BE PAID THEREON.
  S  7. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
follows:

(XLIV) EMPIRE STATE DIGITAL          AMOUNT OF CREDIT
GAMING MEDIA PRODUCTION              UNDER SUBDIVISION
CREDIT UNDER SUBSECTION (GGG)        FIFTY-THREE OF SECTION
                                     TWO HUNDRED TEN-B
  S  8. Section 606 of the tax law is amended by adding a new subsection
(ggg) to read as follows:
  (GGG) EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (1)  ALLOW-
ANCE  OF  CREDIT.  A  TAXPAYER  WHO  IS  ELIGIBLE  PURSUANT  TO  SECTION
FORTY-FOUR OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE  COMPUTED  AS
PROVIDED  IN  SUCH  SECTION  FORTY-FOUR  AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF  THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S  9. The state commissioner of economic development, after consulting
with the state commissioner of taxation and  finance,  shall  promulgate
regulations  by  December 31, 2016 to establish procedures for the allo-
cation of tax credits as required by subdivision (a) of section  43  and
subdivision (a) of section 44 of the tax law. Such rules and regulations
shall  include  provisions  describing  the application process, the due
dates for such applications, the standards which shall be used to evalu-
ate the applications, the documentation that will be provided to taxpay-
ers substantiate to the  New  York  state  department  of  taxation  and
finance  the  amount  of  tax credits allocated to such taxpayers, under
what conditions all or a portion of this tax credit may be revoked,  and
such other provisions as deemed necessary and appropriate. Notwithstand-
ing  any  other  provisions  to the contrary in the state administrative
procedure act, such rules and regulations may be adopted on an emergency
basis if necessary to meet such December 31, 2016 deadline.
  S 10. Subdivision 11 of section 352 of the economic development law is
REPEALED.
  S 11. Subdivisions 1, 3 and 5 of section 353 of the economic  develop-
ment law, as amended by section 2 of part K of chapter 59 of the laws of
2015, are amended to read as follows:
  1. To be a participant in the excelsior jobs program, a business enti-
ty shall operate in New York state predominantly:
  (a)  as  a financial services data center or a financial services back
office operation;
  (b) in manufacturing;
  (c) in software development and new media;
  (d) in scientific research and development;
  (e) in agriculture;

A. 10083--A                         7

  (f) in the creation or expansion of  back  office  operations  in  the
state;
  (g) in a distribution center;
  (h)  in  an  industry  with  significant  potential for private-sector
economic growth and development in this  state  as  established  by  the
commissioner  in  regulations  promulgated  pursuant to this article. In
promulgating such regulations the commissioner  shall  include  job  and
investment criteria; OR
  (i) as an entertainment company[; or
  (j) in music production].
  3.  For  the  purposes of this article, in order to participate in the
excelsior jobs program, a business  entity  operating  predominantly  in
manufacturing  must  create at least ten net new jobs; a business entity
operating predominately in agriculture must create at least five net new
jobs; a business entity operating predominantly as a  financial  service
data  center  or  financial services customer back office operation must
create at least fifty net new jobs; a business entity operating predomi-
nantly in scientific research and development must create at least  five
net  new  jobs;  a  business  entity operating predominantly in software
development must create at least five net new jobs;  a  business  entity
creating  or expanding back office operations must create at least fifty
net new jobs;  [a  business  entity  operating  predominately  in  music
production  must  create  at least five net new jobs;] a business entity
operating predominantly as  an  entertainment  company  must  create  or
obtain at least one hundred net new jobs; or a business entity operating
predominantly as a distribution center in the state must create at least
seventy-five  net  new  jobs,  notwithstanding  subdivision five of this
section; or a business entity must be a regionally  significant  project
as defined in this article; or
  5.  A  not-for-profit business entity, a business entity whose primary
function is the provision of services including personal services, busi-
ness services, or the provision of  utilities,  and  a  business  entity
engaged  predominantly  in  the  retail or entertainment industry, other
than a business operating as an entertainment company as defined in this
article [and other than a business entity engaged in music  production],
and  a company engaged in the generation or distribution of electricity,
the distribution of natural gas, or the production of  steam  associated
with  the  generation of electricity are not eligible to receive the tax
credit described in this article.
  S 12. Subdivision 21 of section 352 of the economic  development  law,
as  amended by section 1 of part K of chapter 59 of the laws of 2015, is
amended to read as follows:
  21. "Software  development"  means  the  creation  of  coded  computer
instructions  [or  production  or  post-production  of  video  games, as
defined in subdivision one-a of section six hundred eleven of the gener-
al business law, other than  those  embedded  and  used  exclusively  in
advertising,  promotional  websites  or microsites,] and [also] includes
new media as defined by the commissioner in regulations.
  S 13. This act shall take effect immediately and shall apply to  taxa-
ble years beginning on or after January 1, 2016.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                10083--B

                          I N  A S S E M B L Y

                              May 10, 2016
                               ___________

Introduced by M. of A. LENTOL -- read once and referred to the Committee
  on  Ways  and  Means  --  committee  discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee -- reported and
  referred to the Committee on Rules -- Rules Committee discharged, bill
  amended, ordered reprinted as amended and recommitted to the Committee
  on Rules

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 11 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:

  Section  1.  The tax law is amended by adding a new section 43 to read
as follows:
  S 43. EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE  OF  CREDIT.
(1)  A  TAXPAYER WHICH IS A MUSIC PRODUCTION ENTITY ENGAGED IN QUALIFIED
MUSIC PRODUCTION, OR WHO IS A SOLE PROPRIETOR OF OR A MEMBER OF A  PART-
NERSHIP,  WHICH  IS A MUSIC PRODUCTION ENTITY ENGAGED IN QUALIFIED MUSIC
PRODUCTION, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO  OF
THIS  CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX TO BE COMPUTED
AS PROVIDED HEREIN.
  (2) THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO  RATA  SHARE
OF  THE  PRODUCT,  IN  THE  CASE OF A MEMBER OF A PARTNERSHIP OR LIMITED
LIABILITY COMPANY) OF TWENTY-FIVE PERCENT AND  THE  ELIGIBLE  PRODUCTION
COSTS OF ONE OR MORE QUALIFIED MUSIC PRODUCTIONS.
  (3)  ELIGIBLE  PRODUCTION  COSTS  FOR  A  QUALIFIED  MUSIC  PRODUCTION
INCURRED AND PAID IN THIS STATE BUT OUTSIDE SUCH  METROPOLITAN  COMMUTER
TRANSPORTATION DISTRICT SHALL BE ELIGIBLE FOR A CREDIT OF TEN PERCENT OF
SUCH  ELIGIBLE  PRODUCTION  COSTS IN ADDITION TO THE CREDIT SPECIFIED IN
PARAGRAPH TWO OF THIS SUBDIVISION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15150-08-6

              

A. 10083--B                         2

  (4) ELIGIBLE PRODUCTION COSTS SHALL NOT INCLUDE THOSE  COSTS  USED  BY
THE  TAXPAYER  OR ANOTHER TAXPAYER AS THE BASIS CALCULATION OF ANY OTHER
TAX CREDIT ALLOWED UNDER THIS CHAPTER OR ALLOWED IN ANY OTHER STATE.
  (B)  ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
UNDER THIS SECTION, SUBDIVISION FIFTY-TWO OF SECTION TWO  HUNDRED  TEN-B
AND  SUBSECTION  (HHH) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY
TAXABLE YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS.  THE AGGREGATE AMOUNT
OF CREDITS FOR ANY TAXABLE YEAR SHALL BE DISTRIBUTED ON A REGIONAL BASIS
AS FOLLOWS: FIFTY PERCENT OF THE AGGREGATE AMOUNT OF  CREDITS  SHALL  BE
AVAILABLE  FOR  QUALIFIED  MUSIC  PRODUCTIONS  THAT INCUR AT LEAST SIXTY
PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION IN
REGION ONE; TWENTY PERCENT OF THE AGGREGATE AMOUNT OF CREDITS  SHALL  BE
AVAILABLE  FOR  QUALIFIED  MUSIC  PRODUCTIONS  THAT INCUR AT LEAST SIXTY
PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION IN
REGION TWO; AND THIRTY PERCENT OF THE AGGREGATE AMOUNT OF CREDITS  SHALL
BE  AVAILABLE  FOR QUALIFIED MUSIC PRODUCTIONS THAT INCUR AT LEAST SIXTY
PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION IN
REGION THREE. IF SUCH REGIONAL DISTRIBUTION IS NOT  FULLY  ALLOCATED  IN
ANY  TAXABLE  YEAR, THE REMAINDER OF SUCH CREDITS SHALL BE AVAILABLE FOR
ALLOCATION TO ANY REGION IN THE SUBSEQUENT TAX YEAR.   FOR THE  PURPOSES
OF  THIS  SECTION  REGION ONE SHALL CONTAIN THE CITY OF NEW YORK; REGION
TWO SHALL CONTAIN THE COUNTIES  OF  WESTCHESTER,  ROCKLAND,  NASSAU  AND
SUFFOLK;  AND  REGION  THREE  SHALL  CONTAIN ANY COUNTY NOT CONTAINED IN
REGIONS ONE AND TWO.  SUCH CREDIT SHALL BE ALLOCATED BY THE EMPIRE STATE
DEVELOPMENT CORPORATION AMONG TAXPAYERS IN ORDER OF PRIORITY BASED  UPON
THE  DATE  OF  FILING  AN APPLICATION FOR ALLOCATION OF MUSIC PRODUCTION
CREDITS WITH SUCH OFFICE. IF  THE  TOTAL  AMOUNT  OF  ALLOCATED  CREDITS
APPLIED  FOR  IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX
CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS  SHALL  BE
TREATED  AS  HAVING  BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT
TAXABLE YEAR.
  (C) DEFINITIONS. AS USED IN THIS SECTION:
  (1) "MUSIC PRODUCTION" MEANS THE CREATION OF A SOUND RECORDING AND ANY
RELATED MUSIC VIDEO, EITHER OF WHICH IS INTENDED FOR COMMERCIAL RELEASE.
A "MUSIC PRODUCTION" DOES NOT  INCLUDE  RECORDINGS  THAT  ARE  PRIMARILY
SPOKEN  WORD OR WILDLIFE OR NATURE SOUNDS, OR PRODUCED FOR INSTRUCTIONAL
USE OR ADVERTISING OR PROMOTIONAL PURPOSES.
  (2) "QUALIFIED MUSIC PRODUCTION" IS A MUSIC PRODUCTION IN WHICH ELIGI-
BLE PRODUCTION COSTS EQUAL TO OR ARE IN EXCESS OF  SEVEN  THOUSAND  FIVE
HUNDRED  DOLLARS IF INCURRED AND PAID IN THIS STATE IN THE TWELVE MONTHS
PRECEDING THE DATE ON WHICH THE CREDIT IS CLAIMED. PROVIDED, HOWEVER, IF
SUCH PRODUCTION COSTS ARE INCURRED AND  PAID  OUTSIDE  THE  METROPOLITAN
COMMUTER  TRANSPORTATION  DISTRICT  IN THIS STATE, SUCH PRODUCTION COSTS
SHALL BE EQUAL TO OR IN EXCESS OF THREE  THOUSAND  SEVEN  HUNDRED  FIFTY
DOLLARS  TO  BE  A  QUALIFIED  MUSIC PRODUCTION FOR THE PURPOSES OF THIS
PARAGRAPH.
  (3) (A) "ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED  MUSIC  PRODUCTION"
ARE  COSTS  INCURRED  AND  PAID  IN THIS STATE FOR TANGIBLE PROPERTY AND
SERVICES USED IN THE PRODUCTION OF QUALIFIED MUSIC PRODUCTION, AS DETER-
MINED BY THE DEPARTMENT OF  ECONOMIC  DEVELOPMENT,  INCLUDING,  BUT  NOT
LIMITED  TO:   (I) STUDIO RENTAL FEES AND RELATED COSTS, (II) INSTRUMENT
AND EQUIPMENT RENTAL FEES, (III) PRODUCTION SESSION FEES FOR  MUSICIANS,
PROGRAMMERS,  ENGINEERS,  AND  TECHNICIANS AND (IV) MIXING AND MASTERING
SERVICES.
  (B) ELIGIBLE PRODUCTION COSTS SHALL NOT INCLUDE: (I) COSTS FOR  TANGI-
BLE  PROPERTY  OR SERVICES USED OR PERFORMED OUTSIDE OF THIS STATE, (II)

A. 10083--B                         3

PERFORMANCE FEES FOR FEATURED ARTISTS OR FEATURED GUEST ARTISTS  RECEIV-
ING  ROYALTIES  OR  ADVANCES  ON  ROYALTIES  OR SPECIAL PERFORMANCE FEES
(OTHER THAN THOSE THAT WOULD  NORMALLY  BE  COLLECTED  BY  A  PERFORMING
RIGHTS ORGANIZATION) PURSUANT TO AN AGREEMENT DIRECTLY WITH THE PRODUCER
OR  EMPLOYER,  (III)  SALARIES  OR RELATED COMPENSATION FOR PRODUCERS OR
SONGWRITERS, (IV) COMPOSER, ARTIST OR  PRODUCER  RESIDUAL  ROYALTIES  OR
ADVANCES,  (V)  LICENSING FEES FOR SAMPLES, (VI) INTERPOLATIONS OR OTHER
MUSIC CLEARANCE COSTS, (VII) MASTERING OR  POST-PRODUCTION  EXPENDITURES
FOR  PROJECTS  THAT  WERE  NOT  PRINCIPALLY TRACKED AND RECORDED IN THIS
STATE, (VIII) ANY  COSTS  ASSOCIATED  WITH  MANUFACTURING,  DUPLICATION,
PACKAGING,  DISTRIBUTION,  PROMOTION,  MARKETING  OR TOURING NOT SPECIF-
ICALLY OUTLINED IN  THIS  SUBPARAGRAPH,  OR  (IX)  LOCAL  TRANSPORTATION
EXPENDITURES  DIRECTLY RELATED TO MUSIC PRODUCTION AND PROVIDED AT OR TO
THE SITE OF SUCH MUSIC PRODUCTION.  WITH RESPECT TO THE PRODUCTION OF  A
MUSIC  VIDEO,  ELIGIBLE  PRODUCTION COSTS ARE THOSE DEFINED IN PARAGRAPH
TWO OF SUBDIVISION (B) OF SECTION  TWENTY-FOUR  OF  THIS  ARTICLE.  SUCH
TOTAL PRODUCTION COSTS INCURRED AND PAID IN THIS STATE SHALL BE EQUAL TO
OR  EXCEED  SEVENTY-FIVE PERCENT OF TOTAL COST OF AN ELIGIBLE PRODUCTION
INCURRED AND PAID WITHIN AND WITHOUT THIS STATE.
  (D) CROSS-REFERENCES. FOR APPLICATIONS OF THE CREDIT PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE NINE-A: SECTION TWO HUNDRED TEN-B, SUBDIVISION FIFTY-TWO.
  (2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA-
GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLIII).
  (3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (HHH).
  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 52 to read as follows:
  52. EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF  CREDIT.  A
TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-THREE OF THIS CHAPTER
SHALL  BE  ALLOWED  A  CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION
FORTY-THREE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
SECTION  TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF THE
AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE
YEAR  REDUCES  THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED AS AN
OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE  WITH  THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
HOWEVER, NO INTEREST SHALL BE PAID THEREON.
  S  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xliii)  to  read  as
follows:

(XLIII) EMPIRE STATE MUSIC              AMOUNT OF CREDIT
PRODUCTION CREDIT UNDER                 UNDER SUBDIVISION
SUBSECTION (HHH)                        FIFTY-TWO OF SECTION TWO HUNDRED
                                        TEN-B

  S  4. Section 606 of the tax law is amended by adding a new subsection
(hhh) to read as follows:
  (HHH) EMPIRE STATE MUSIC PRODUCTION CREDIT. (1) ALLOWANCE OF CREDIT. A
TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-THREE OF THIS CHAPTER
SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS  PROVIDED  IN  SUCH  SECTION
FORTY-THREE AGAINST THE TAX IMPOSED BY THIS ARTICLE.

A. 10083--B                         4

  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED  OR  REFUNDED  AS  PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S  5.  The  tax  law  is amended by adding a new section 44 to read as
follows:
  S 44. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (A)  ALLOW-
ANCE  OF  CREDIT.  (1)  A  TAXPAYER  WHICH  IS  A  DIGITAL  GAMING MEDIA
PRODUCTION ENTITY ENGAGED IN QUALIFIED DIGITAL GAMING MEDIA  PRODUCTION,
OR  WHO IS A SOLE PROPRIETOR OF OR A MEMBER OF A PARTNERSHIP, WHICH IS A
DIGITAL GAMING MEDIA PRODUCTION  ENTITY  ENGAGED  IN  QUALIFIED  DIGITAL
GAMING  MEDIA  PRODUCTION, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR
TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST  SUCH  TAX
TO BE COMPUTED AS PROVIDED HEREIN.
  (2)  THE  AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA SHARE
OF THE PRODUCT, IN THE CASE OF A MEMBER  OF  A  PARTNERSHIP  OR  LIMITED
LIABILITY  COMPANY)  OF  TWENTY-FIVE PERCENT AND THE ELIGIBLE PRODUCTION
COSTS OF ONE OR MORE QUALIFIED DIGITAL GAMING MEDIA PRODUCTIONS.
  (3) ELIGIBLE DIGITAL GAMING MEDIA PRODUCTION  COSTS  FOR  A  QUALIFIED
DIGITAL  GAMING  MEDIA  PRODUCTION  INCURRED  AND PAID IN THIS STATE BUT
OUTSIDE SUCH METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT  SHALL  BE
ELIGIBLE  FOR  A CREDIT OF TEN PERCENT OF SUCH ELIGIBLE PRODUCTION COSTS
IN ADDITION TO THE CREDIT SPECIFIED IN PARAGRAPH TWO  OF  THIS  SUBDIVI-
SION.
  (4)  ELIGIBLE  PRODUCTION  COSTS SHALL NOT INCLUDE THOSE COSTS USED BY
THE TAXPAYER OR ANOTHER TAXPAYER AS THE BASIS CALCULATION OF  ANY  OTHER
TAX CREDIT ALLOWED UNDER THIS CHAPTER OR ALLOWED IN ANY OTHER STATE.
  (B)  ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
UNDER THIS SECTION, SUBDIVISION FIFTY-THREE OF SECTION TWO HUNDRED TEN-B
AND SUBSECTION (III) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER  IN  ANY
TAXABLE YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS.  THE AGGREGATE AMOUNT
OF  CREDITS FOR ANY TAXABLE YEAR MUST BE DISTRIBUTED ON A REGIONAL BASIS
AS FOLLOWS: FIFTY PERCENT OF THE AGGREGATE AMOUNT OF  CREDITS  SHALL  BE
AVAILABLE  FOR  QUALIFIED DIGITAL GAMING MEDIA PRODUCTIONS THAT INCUR AT
LEAST SIXTY PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED DIGITAL
GAMING MEDIA PRODUCTION IN REGION ONE; TWENTY PERCENT OF  THE  AGGREGATE
AMOUNT  OF CREDITS SHALL BE AVAILABLE FOR QUALIFIED DIGITAL GAMING MEDIA
PRODUCTIONS THAT INCUR AT LEAST SIXTY  PERCENT  OF  ELIGIBLE  PRODUCTION
COSTS FOR A QUALIFIED DIGITAL GAMING MEDIA PRODUCTION IN REGION TWO; AND
THIRTY PERCENT OF THE AGGREGATE AMOUNT OF CREDITS SHALL BE AVAILABLE FOR
QUALIFIED  DIGITAL  GAMING  MEDIA  PRODUCTIONS THAT INCUR AT LEAST SIXTY
PERCENT OF ELIGIBLE PRODUCTION COSTS  FOR  A  QUALIFIED  DIGITAL  GAMING
MEDIA  PRODUCTION IN REGION THREE.  IF SUCH REGIONAL DISTRIBUTION IS NOT
FULLY ALLOCATED IN ANY TAXABLE YEAR, THE REMAINDER OF SUCH CREDITS SHALL
BE AVAILABLE FOR ALLOCATION TO ANY REGION IN THE  SUBSEQUENT  TAX  YEAR.
FOR  THE  PURPOSES  OF THIS SECTION REGION ONE SHALL CONTAIN THE CITY OF
NEW YORK; REGION TWO SHALL CONTAIN THE COUNTIES  OF  WESTCHESTER,  ROCK-
LAND,  NASSAU AND SUFFOLK; AND REGION THREE SHALL CONTAIN ANY COUNTY NOT
CONTAINED IN REGIONS ONE AND TWO.  SUCH CREDIT SHALL BE ALLOCATED BY THE
EMPIRE STATE DEVELOPMENT CORPORATION AMONG TAXPAYERS IN ORDER OF PRIORI-
TY BASED UPON THE DATE  OF  FILING  AN  APPLICATION  FOR  ALLOCATION  OF
DIGITAL  GAMING  MEDIA  PRODUCTION CREDIT WITH SUCH OFFICE. IF THE TOTAL
AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR  YEAR  EXCEEDS
THE  AGGREGATE  AMOUNT  OF  TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS

A. 10083--B                         5

SECTION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON  THE
FIRST DAY OF THE SUBSEQUENT TAXABLE YEAR.
  (C) DEFINITIONS. AS USED IN THIS SECTION:
  (1)  "QUALIFIED DIGITAL GAMING MEDIA PRODUCTION" MEANS: (I) A WEBSITE,
THE DIGITAL MEDIA PRODUCTION COSTS OF WHICH ARE PAID OR INCURRED  PREDO-
MINATELY  IN  CONNECTION  WITH  (A)  VIDEO  SIMULATION, ANIMATION, TEXT,
AUDIO, GRAPHICS OR SIMILAR GAMING RELATED PROPERTY EMBODIED  IN  DIGITAL
FORMAT,  AND  (B)  INTERACTIVE  FEATURES OF DIGITAL GAMING (E.G., LINKS,
MESSAGE BOARDS, COMMUNITIES OR  CONTENT  MANIPULATION);  (II)  VIDEO  OR
INTERACTIVE GAMES PRODUCED PRIMARILY FOR DISTRIBUTION OVER THE INTERNET,
WIRELESS  NETWORK  OR SUCCESSORS THERETO; (III) ANIMATION, SIMULATION OR
EMBEDDED GRAPHICS DIGITAL GAMING RELATED SOFTWARE INTENDED  FOR  COMMER-
CIAL  DISTRIBUTION REGARDLESS OF MEDIUM; AND (IV) A DIGITAL GAMING MEDIA
PRODUCTION IN WHICH QUALIFIED  DIGITAL  GAMING  MEDIA  PRODUCTION  COSTS
EQUAL  TO  OR  ARE  IN  EXCESS OF SEVEN THOUSAND FIVE HUNDRED DOLLARS IF
INCURRED AND PAID IN THIS STATE IN TWELVE MONTHS PRECEDING THE  DATE  ON
WHICH  THE  CREDIT  IS  CLAIMED. PROVIDED, HOWEVER, IF SUCH A PRODUCTION
COSTS ARE INCURRED AND PAID OUTSIDE THE METROPOLITAN COMMUTER  TRANSPOR-
TATION  DISTRICT  IN THIS STATE, SUCH PRODUCTION COSTS SHALL BE EQUAL TO
OR IN EXCESS OF THREE THOUSAND SEVEN HUNDRED FIFTY DOLLARS TO BE A QUAL-
IFIED DIGITAL GAMING MEDIA PRODUCTION FOR PURPOSES OF THIS PARAGRAPH.  A
QUALIFIED  DIGITAL  GAMING  MEDIA PRODUCTION DOES NOT INCLUDE A WEBSITE,
VIDEO, INTERACTIVE GAME OR SOFTWARE  THAT  IS  USED  PREDOMINATELY  FOR:
ELECTRONIC COMMERCE (RETAIL OR WHOLESALE PURPOSES OTHER THAN THE SALE OF
VIDEO OR INTERACTIVE GAMES), GAMBLING (INCLUDING ACTIVITIES REGULATED BY
A  NEW YORK GAMING AGENCY), EXCLUSIVE LOCAL CONSUMPTION FOR ENTITIES NOT
ACCESSIBLE BY THE GENERAL PUBLIC INCLUDING INDUSTRIAL OR  OTHER  PRIVATE
PURPOSES, AND POLITICAL ADVOCACY PURPOSES.
  (2)  "DIGITAL GAMING MEDIA PRODUCTION COSTS" MEANS ANY COSTS FOR PROP-
ERTY USED AND WAGES OR SALARIES PAID TO  INDIVIDUALS  DIRECTLY  EMPLOYED
FOR  SERVICES  PERFORMED BY THOSE INDIVIDUALS DIRECTLY AND PREDOMINATELY
IN THE CREATION OF A DIGITAL GAMING  MEDIA  PRODUCTION  OR  PRODUCTIONS.
DIGITAL  GAMING  MEDIA PRODUCTION COSTS INCLUDE BUT SHALL NOT BE LIMITED
TO TO PAYMENTS FOR PROPERTY USED AND  SERVICES  PERFORMED  DIRECTLY  AND
PREDOMINATELY  IN  THE DEVELOPMENT (INCLUDING CONCEPT CREATION), DESIGN,
PRODUCTION (INCLUDING CONCEPT CREATION), DESIGN,  PRODUCTION  (INCLUDING
TESTING),  EDITING  (INCLUDING  ENCODING) AND COMPOSITING (INCLUDING THE
INTEGRATION OF DIGITAL FILES FOR INTERACTION BY END  USERS)  OF  DIGITAL
GAMING  MEDIA.   DIGITAL GAMING MEDIA PRODUCTION COSTS SHALL NOT INCLUDE
EXPENSES INCURRED FOR THE DISTRIBUTION, MARKETING, PROMOTION, OR  ADVER-
TISING  CONTENT  GENERATED  BY END-USERS OR OTHER COSTS NOT DIRECTLY AND
PREDOMINATELY RELATED TO THE CREATION,  PRODUCTION  OR  MODIFICATION  OF
DIGITAL GAMING MEDIA. IN ADDITION, SALARIES OR OTHER INCOME DISTRIBUTION
RELATED  TO  THE  CREATION  OF  DIGITAL  GAMING MEDIA FOR ANY PERSON WHO
SERVES IN THE ROLE OF CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL  OFFICER,
PRESIDENT,  TREASURER  OR  SIMILAR  POSITION  SHALL  NOT  BE INCLUDED AS
DIGITAL GAMING MEDIA PRODUCTION COSTS. FURTHERMORE, ANY INCOME OR  OTHER
DISTRIBUTION  TO  ANY  INDIVIDUAL  WHO  HOLDS AN OWNERSHIP INTEREST IN A
DIGITAL GAMING MEDIA PRODUCTION ENTITY SHALL NOT BE INCLUDED AS  DIGITAL
GAMING MEDIA PRODUCTION COSTS.
  (3)  "QUALIFIED  DIGITAL  GAMING MEDIA PRODUCTION COSTS" MEANS DIGITAL
GAMING MEDIA PRODUCTION COSTS ONLY TO THE EXTENT SUCH COSTS ARE  ATTRIB-
UTABLE  TO  THE  USE  OF  PROPERTY OR THE PERFORMANCE OF SERVICES BY ANY
PERSONS WITHIN THE STATE DIRECTLY AND  PREDOMINANTLY  IN  THE  CREATION,
PRODUCTION  OR  MODIFICATION OF DIGITAL GAMING RELATED MEDIA. SUCH TOTAL
PRODUCTION COSTS INCURRED AND PAID IN THIS STATE SHALL BE  EQUAL  TO  OR

A. 10083--B                         6

EXCEED  SEVENTY-FIVE  PERCENT  OF  TOTAL  COST OF AN ELIGIBLE PRODUCTION
INCURRED AND PAID WITHIN AND WITHOUT THIS STATE.
  (D)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1)  ARTICLE  NINE-A:   SECTION   TWO   HUNDRED   TEN-B,   SUBDIVISION
FIFTY-THREE.
  (2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA-
GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLIV).
  (3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (III).
  S  6. Section 210-B of the tax law is amended by adding a new subdivi-
sion 53 to read as follows:
  53. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (A) ALLOWANCE
OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-FOUR  OF
THIS  CHAPTER  SHALL  BE  ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SECTION FORTY-FOUR AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
SECTION  TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF THE
AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION  FOR  ANY  TAXABLE
YEAR  REDUCES  THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED AS AN
OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE  WITH  THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
HOWEVER, NO INTEREST SHALL BE PAID THEREON.
  S  7. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
follows:

(XLIV) EMPIRE STATE DIGITAL          AMOUNT OF CREDIT
GAMING MEDIA PRODUCTION              UNDER SUBDIVISION
CREDIT UNDER SUBSECTION (III)        FIFTY-THREE OF SECTION
                                     TWO HUNDRED TEN-B
  S  8. Section 606 of the tax law is amended by adding a new subsection
(iii) to read as follows:
  (III) EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (1)  ALLOW-
ANCE  OF  CREDIT.  A  TAXPAYER  WHO  IS  ELIGIBLE  PURSUANT  TO  SECTION
FORTY-FOUR OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE  COMPUTED  AS
PROVIDED  IN  SUCH  SECTION  FORTY-FOUR  AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF  THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S  9. The state commissioner of economic development, after consulting
with the state commissioner of taxation and  finance,  shall  promulgate
regulations  by  December 31, 2016 to establish procedures for the allo-
cation of tax credits as required by subdivision (a) of section  43  and
subdivision (a) of section 44 of the tax law. Such rules and regulations
shall  include  provisions  describing  the application process, the due
dates for such applications, the standards which shall be used to evalu-
ate the applications, the documentation that will be provided to taxpay-
ers substantiate to the  New  York  state  department  of  taxation  and
finance  the  amount  of  tax credits allocated to such taxpayers, under
what conditions all or a portion of this tax credit may be revoked,  and
such other provisions as deemed necessary and appropriate. Notwithstand-

A. 10083--B                         7

ing  any  other  provisions  to the contrary in the state administrative
procedure act, such rules and regulations may be adopted on an emergency
basis if necessary to meet such December 31, 2016 deadline.
  S 10. Subdivision 11 of section 352 of the economic development law is
REPEALED.
  S  11. Subdivisions 1, 3 and 5 of section 353 of the economic develop-
ment law, as amended by section 2 of part K of chapter 59 of the laws of
2015, are amended to read as follows:
  1. To be a participant in the excelsior jobs program, a business enti-
ty shall operate in New York state predominantly:
  (a) as a financial services data center or a financial  services  back
office operation;
  (b) in manufacturing;
  (c) in software development and new media;
  (d) in scientific research and development;
  (e) in agriculture;
  (f)  in  the  creation  or  expansion of back office operations in the
state;
  (g) in a distribution center;
  (h) in an  industry  with  significant  potential  for  private-sector
economic  growth  and  development  in  this state as established by the
commissioner in regulations promulgated pursuant  to  this  article.  In
promulgating  such  regulations  the  commissioner shall include job and
investment criteria; OR
  (i) as an entertainment company[; or
  (j) in music production].
  3. For the purposes of this article, in order to  participate  in  the
excelsior  jobs  program,  a  business entity operating predominantly in
manufacturing must create at least ten net new jobs; a  business  entity
operating predominately in agriculture must create at least five net new
jobs;  a  business entity operating predominantly as a financial service
data center or financial services customer back  office  operation  must
create at least fifty net new jobs; a business entity operating predomi-
nantly  in scientific research and development must create at least five
net new jobs; a business  entity  operating  predominantly  in  software
development  must  create  at least five net new jobs; a business entity
creating or expanding back office operations must create at least  fifty
net  new  jobs;  [a  business  entity  operating  predominately in music
production must create at least five net new jobs;]  a  business  entity
operating  predominantly  as  an  entertainment  company  must create or
obtain at least one hundred net new jobs; or a business entity operating
predominantly as a distribution center in the state must create at least
seventy-five net new jobs,  notwithstanding  subdivision  five  of  this
section;  or  a business entity must be a regionally significant project
as defined in this article; or
  5. A not-for-profit business entity, a business entity  whose  primary
function is the provision of services including personal services, busi-
ness  services,  or  the  provision  of utilities, and a business entity
engaged predominantly in the retail  or  entertainment  industry,  other
than a business operating as an entertainment company as defined in this
article  [and other than a business entity engaged in music production],
and a company engaged in the generation or distribution of  electricity,
the  distribution  of natural gas, or the production of steam associated
with the generation of electricity are not eligible to receive  the  tax
credit described in this article.

A. 10083--B                         8

  S  12.  Subdivision 21 of section 352 of the economic development law,
as amended by section 1 of part K of chapter 59 of the laws of 2015,  is
amended to read as follows:
  21.  "Software  development"  means  the  creation  of  coded computer
instructions [or  production  or  post-production  of  video  games,  as
defined in subdivision one-a of section six hundred eleven of the gener-
al  business  law,  other  than  those  embedded and used exclusively in
advertising, promotional websites or microsites,]  and  [also]  includes
new media as defined by the commissioner in regulations.
  S  13. The economic development law is amended by adding a new section
243 to read as follows:
  S 243. REPORTS ON THE MUSIC AND DIGITAL GAMING INDUSTRIES IN NEW YORK.
1. THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL FILE  A  REPORT  ON  A
BIANNUAL  BASIS  WITH THE DIRECTOR OF THE DIVISION OF THE BUDGET AND THE
CHAIRPERSONS OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND SENATE FINANCE
COMMITTEE. THE REPORT SHALL BE FILED NO LATER THAN  THIRTY  DAYS  BEFORE
THE  MID-POINT  AND  THE  END OF THE STATE FISCAL YEAR. THE FIRST REPORT
SHALL COVER THE CALENDAR HALF YEAR THAT BEGINS  ON  JANUARY  FIRST,  TWO
THOUSAND  EIGHTEEN.  EACH  REPORT MUST CONTAIN THE FOLLOWING INFORMATION
FOR THE COVERED CALENDAR HALF YEAR:
  (A) THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED PURSUANT TO  SECTIONS
FORTY-THREE  AND  FORTY-FOUR OF THE TAX LAW DURING THE HALF YEAR, BROKEN
DOWN BY MONTH;
  (B) THE NUMBER OF MUSIC AND DIGITAL GAMING PROJECTS, WHICH  HAVE  BEEN
ALLOCATED  TAX CREDITS OF LESS THAN ONE MILLION DOLLARS PER PROJECT, AND
THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED TO THOSE PROJECTS  DISTRIB-
UTED  BY  REGION PURSUANT TO SUBDIVISION (B) OF SECTIONS FORTY-THREE AND
FORTY-FOUR OF THE TAX LAW;
  (C) THE NUMBER OF MUSIC AND DIGITAL GAMING PROJECTS, WHICH  HAVE  BEEN
ALLOCATED  TAX  CREDITS  OF MORE THAN ONE MILLION DOLLARS, AND THE TOTAL
DOLLAR AMOUNT OF CREDITS ALLOCATED  TO  THOSE  PROJECTS  DISTRIBUTED  BY
REGION   PURSUANT   TO  SUBDIVISION  (B)  OF  SECTIONS  FORTY-THREE  AND
FORTY-FOUR OF THE TAX LAW;
  (D) A LIST OF EACH ELIGIBLE MUSIC AND DIGITAL  GAMING  PROJECT,  WHICH
HAS  BEEN ALLOCATED A TAX CREDIT ENUMERATED BY REGION PURSUANT TO SUBDI-
VISION (B) OF SECTIONS FORTY-THREE AND FORTY-FOUR OF THE  TAX  LAW,  AND
FOR  EACH OF THOSE PROJECTS, (I) THE ESTIMATED NUMBER OF EMPLOYEES ASSO-
CIATED WITH THE PROJECT, (II) THE ESTIMATED  QUALIFYING  COSTS  FOR  THE
PROJECTS, (III) THE ESTIMATED TOTAL COSTS OF THE PROJECT, (IV) THE CRED-
IT  ELIGIBLE  EMPLOYEE  HOURS  FOR EACH PROJECT, AND (V) TOTAL WAGES FOR
SUCH CREDIT ELIGIBLE EMPLOYEE HOURS FOR EACH PROJECT; AND
  (E) (I) THE NAME OF EACH TAXPAYER ALLOCATED  A  TAX  CREDIT  FOR  EACH
PROJECT  AND  THE  COUNTY OF RESIDENCE OR INCORPORATION OF SUCH TAXPAYER
OR, IF THE TAXPAYER DOES NOT RESIDE OR IS NOT INCORPORATED IN NEW  YORK,
THE STATE OF RESIDENCE OR INCORPORATION; HOWEVER, IF THE TAXPAYER CLAIMS
A  TAX  CREDIT  BECAUSE  THE TAXPAYER IS A MEMBER OF A LIMITED LIABILITY
COMPANY, A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER IN A  SUBCHAPTER  S
CORPORATION,  THE NAME OF EACH LIMITED LIABILITY COMPANY, PARTNERSHIP OR
SUBCHAPTER S CORPORATION EARNING  ANY  OF  THOSE  TAX  CREDITS  MUST  BE
INCLUDED  IN THE REPORT INSTEAD OF INFORMATION ABOUT THE TAXPAYER CLAIM-
ING THE TAX CREDIT, (II) THE AMOUNT OF  TAX  CREDIT  ALLOCATED  TO  EACH
TAXPAYER;  PROVIDED HOWEVER, IF THE TAXPAYER CLAIMS A TAX CREDIT BECAUSE
THE TAXPAYER IS A MEMBER OF A LIMITED LIABILITY COMPANY, A PARTNER IN  A
PARTNERSHIP  OR  A SHAREHOLDER IN A SUBCHAPTER S CORPORATION, THE AMOUNT
OF TAX CREDIT EARNED BY EACH ENTITY  MUST  BE  INCLUDED  IN  THE  REPORT
INSTEAD  OF  INFORMATION ABOUT THE TAXPAYER CLAIMING THE TAX CREDIT, AND

A. 10083--B                         9

(III) INFORMATION IDENTIFYING THE PROJECT ASSOCIATED WITH EACH  TAXPAYER
FOR  WHICH  A  TAX  CREDIT  WAS  CLAIMED  UNDER  SECTION  FORTY-THREE OR
FORTY-FOUR OF THE TAX LAW.
  2.  THE  EMPIRE STATE DEVELOPMENT CORPORATION SHALL FILE A REPORT ON A
TRIENNIAL BASIS WITH THE DIRECTOR OF THE DIVISION OF THE BUDGET AND  THE
CHAIRPERSONS OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND SENATE FINANCE
COMMITTEE.  THE  FIRST  REPORT SHALL BE FILED NO LATER THAN MARCH FIRST,
TWO THOUSAND TWENTY. THE REPORT MUST BE PREPARED BY AN INDEPENDENT THIRD
PARTY AUDITOR AND INCLUDE: (A) INFORMATION REGARDING  THE  EMPIRE  STATE
MUSIC  PRODUCTION  CREDIT AND THE EMPIRE STATE DIGITAL GAMING PRODUCTION
CREDIT PROGRAMS INCLUDING THE EFFICIENCY OF OPERATIONS,  RELIABILITY  OF
FINANCIAL  REPORTING,  COMPLIANCE WITH LAWS AND REGULATIONS AND DISTRIB-
UTION OF ASSETS AND FUNDS; (B) AND ECONOMIC IMPACT STUDY PREPARED BY  AN
INDEPENDENT  THIRD  PARTY  OF  THE  PROGRAM WITH SPECIAL EMPHASIS ON THE
REGIONAL IMPACT BY REGION AND THE TOTAL DOLLAR AMOUNT OF  CREDITS  ALLO-
CATED  TO  THOSE  PROJECTS DISTRIBUTED BY REGION PURSUANT TO SUBDIVISION
(B) OF SECTIONS FORTY-THREE AND FORTY-FOUR OF THE TAX LAW; AND  (C)  ANY
OTHER  INFORMATION  OR  STATISTICAL INFORMATION THAT THE COMMISSIONER OF
ECONOMIC DEVELOPMENT DEEMS TO BE USEFUL IN ANALYZING THE EFFECTS OF  THE
PROGRAMS.
  S  14. This act shall take effect immediately and shall apply to taxa-
ble years beginning on January 1,  2017  and  before  January  1,  2020;
provided that sections one through eight of this act shall expire and be
deemed repealed December 31, 2019.