S T A T E   O F   N E W   Y O R K
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                                 4549--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 27, 2015
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to amend the tax law, in relation to the creation of the empire
  state music production credit

  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 42 to read
as follows:
  S 42.  EMPIRE STATE MUSIC PRODUCTION CREDIT. (A)(1) ALLOWANCE OF CRED-
IT. A TAXPAYER WHICH IS A QUALIFIED MUSIC PRODUCTION COMPANY, OR A QUAL-
IFIED INDEPENDENT MUSIC PRODUCTION COMPANY, OR WHICH IS A SOLE  PROPRIE-
TOR  OF  OR  A  MEMBER  OF  A  PARTNERSHIP  WHICH  IS  A QUALIFIED MUSIC
PRODUCTION COMPANY OR A QUALIFIED INDEPENDENT MUSIC PRODUCTION  COMPANY,
AND  WHICH  IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS
CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX.
  (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) OF TWENTY-FIVE
PERCENT  AND  THE  QUALIFIED  PRODUCTION COSTS PAID IN THE PRODUCTION OF
MUSIC BY THE TAXPAYER.  QUALIFYING MUSIC PRODUCTIONS  SHALL  BE  COMMER-
CIALLY LICENSED SOUND RECORDING PROJECTS HAVING AS THEIR PRINCIPAL PLACE
OF  PRODUCTION  AND  RECORDING  THIS STATE AND REQUIRING EXPENDITURES IN
EXCESS OF TWENTY-FIVE THOUSAND DOLLARS.  IF  THE  ANNUAL  COST  OF  SUCH
PRODUCTIONS  TO  A TAXPAYER EXCEEDS ONE HUNDRED THOUSAND DOLLARS, BUT NO
SINGLE SUCH  PRODUCTION  EXCEEDS  ONE  HUNDRED  THOUSAND  DOLLARS,  SUCH
TAXPAYER  MAY  APPLY FOR THE CREDIT ALLOWED BY THIS SECTION ON AN AGGRE-
GATE BASIS PROVIDED SUCH TAXPAYER EMPLOYES TEN OR MORE RESIDENTS OF THIS
STATE. QUALIFIED PRODUCTION COSTS SHALL MEAN COSTS FOR TANGIBLE PROPERTY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01211-05-6
              

S. 4549--A                          2

USED AND SERVICES PERFORMED DIRECTLY AND PREDOMINANTLY IN THE PRODUCTION
OF  QUALIFIED  MUSIC  PRODUCTION  IN  THIS  STATE.    QUALIFYING   MUSIC
PRODUCTION  COSTS  SHALL  INCLUDE  STUDIO RENTAL FEES AND RELATED COSTS;
INSTRUMENT  AND EQUIPMENT RENTAL FEES; PRODUCTION SESSION FEES FOR MUSI-
CIANS, SONGWRITERS, COMPOSERS, ARRANGERS, MUSIC PRODUCERS,  PROGRAMMERS,
ENGINEERS  AND  TECHNICIANS; MIXING AND MASTERING SERVICES OF QUALIFYING
MUSIC PRODUCTIONS; AND HOTEL CATERING AND LOCAL TRANSPORTATION  EXPENDI-
TURES  DIRECTLY  RELATED  TO  MUSIC  PRODUCTION. COSTS SHALL NOT INCLUDE
RECORDING LIVE CONCERTS; ARTISTS AND  PRODUCER  ROYALTIES  OR  ADVANCES;
LICENSING  FEES  FOR  SAMPLES;  INTERPOLATIONS  OR OTHER MUSIC CLEARANCE
COSTS; MASTERING OR POST-PRODUCTION EXPENDITURES FOR PROJECTS THAT  WERE
NOT  PRINCIPALLY TRACKED AND RECORDED IN THIS STATE; NOR ANY COSTS ASSO-
CIATED  WITH  MANUFACTURING,   DUPLICATION,   PACKAGING,   DISTRIBUTION,
PROMOTION, MARKETING AND TOURING NOT SPECIFICALLY OUTLINED ABOVE.
  (3)  NO QUALIFIED PRODUCTION COSTS USED BY A TAXPAYER AS THE BASIS FOR
THE ALLOWANCE OF THE CREDIT PROVIDED FOR UNDER  THIS  SECTION  SHALL  BE
USED BY SUCH TAXPAYER TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS
CHAPTER.
  (B)  ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
UNDER THIS SECTION, SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED  TEN-B
AND  SUBSECTION  (CCC) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY
CALENDAR YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS AND ONE  MILLION  TWO
HUNDRED  FIFTY THOUSAND DOLLARS IN ANY GIVEN WEEK. 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  MUSIC  PRODUCTION  CREDIT  WITH
SUCH  OFFICE.   NO SINGLE TAXPAYER MAY CLAIM OR BE AWARDED MORE THAN TEN
PERCENT OF THE AGGREGATE  AMOUNT  OF  TAX  CREDITS  ALLOWED  UNDER  THIS
SECTION.    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 YEAR.
  (C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 49
  (2) ARTICLE 22: SECTION 606: SUBSECTION (CCC)
  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
  49. EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF  CREDIT.  A
TAXPAYER  WHO  IS ELIGIBLE PURSUANT TO SECTION FORTY-TWO OF THIS CHAPTER
SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS  PROVIDED  IN  SUCH  SECTION
FORTY-TWO 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, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
  S  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding  a  new  clause  (xli)  to  read  as
follows:

S. 4549--A                          3

(XLI) EMPIRE STATE MUSIC             AMOUNT OF CREDIT FOR
PRODUCTION CREDIT UNDER              QUALIFIED PRODUCTION CREDIT
SUBSECTION (CCC)                     MUSIC UNDER SUBDIVISION
                                     FORTY-NINE OF SECTION TWO
                                     HUNDRED TEN-B
  S  4. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) EMPIRE STATE MUSIC PRODUCTION CREDIT. (1) ALLOWANCE OF CREDIT. A
TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-TWO OF  THIS  CHAPTER
SHALL  BE  ALLOWED  A  CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION
FORTY-TWO 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  empire state development corporation shall conduct a study
analyzing the economic impact of the tax credit authorized  pursuant  to
section  one  of this act and shall report its findings, conclusions and
recommendations to the governor and the legislature  on  or  before  one
year  from  the  date this act shall become a law, and shall submit with
its report such legislative proposals as it deems necessary to implement
its recommendations.   The empire state  development  corporation  shall
list the recipients of the tax credit authorized pursuant to section one
of this act on their official internet website.
  S 6. This act shall take effect on the one hundred eightieth day after
it shall have become a law.