S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8758
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             November 25, 2019
                                ___________
 
 Introduced by M. of A. McDONALD, FAHY, WOERNER -- read once and referred
   to the Committee on Ways and Means
 
 AN  ACT  to  amend  the  tax  law  and  the economic development law, in
   relation to the creation of the  empire  state  digital  gaming  media
   production  credit; and providing for the repeal of certain provisions
   upon expiration 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 45 to read
 as follows:
   § 45. 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14111-02-9

 A. 8758                             2
 
   (B)  ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
 UNDER THIS SECTION, SUBDIVISION FIFTY-FOUR OF SECTION TWO HUNDRED  TEN-B
 AND  SUBSECTION  (KKK) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY
 TAXABLE YEAR SHALL BE FIFTY MILLION DOLLARS.   THE AGGREGATE  AMOUNT  OF
 CREDITS  FOR ANY TAXABLE YEAR MUST BE DISTRIBUTED ON A REGIONAL BASIS AS
 FOLLOWS: TWENTY-FIVE 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; TEN 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
 SIXTY-FIVE 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
 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 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
 DIGITAL GAMING MEDIA PRODUCTION FOR PURPOSES OF THIS PARAGRAPH. A QUALI-
 FIED 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 ACCES-
 SIBLE BY THE  GENERAL  PUBLIC  INCLUDING  INDUSTRIAL  OR  OTHER  PRIVATE
 PURPOSES, AND POLITICAL ADVOCACY PURPOSES.

 A. 8758                             3

   (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 PREDOMINANTLY
 IN THE CREATION OF A DIGITAL GAMING  MEDIA  PRODUCTION  OR  PRODUCTIONS.
 DIGITAL  GAMING  MEDIA PRODUCTION COSTS INCLUDE BUT SHALL NOT BE LIMITED
 TO PAYMENTS FOR  PROPERTY  USED  AND  SERVICES  PERFORMED  DIRECTLY  AND
 PREDOMINANTLY  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
 PREDOMINANTLY 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
 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-FOUR.
   (2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA-
 GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLV).
   (3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (KKK).
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 54 to read as follows:
   54. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (A) ALLOWANCE
 OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-FIVE  OF
 THIS  CHAPTER  SHALL  BE  ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
 SUCH SECTION FORTY-FIVE 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.
   §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding  a  new  clause  (xlv)  to  read  as
 follows:

 A. 8758                             4
 
 (XLV) EMPIRE STATE DIGITAL           AMOUNT OF CREDIT
 GAMING MEDIA PRODUCTION              UNDER SUBDIVISION
 CREDIT UNDER SUBSECTION (KKK)        FIFTY-FOUR OF SECTION
                                      TWO HUNDRED TEN-B
   §  4. Section 606 of the tax law is amended by adding a new subsection
 (kkk) to read as follows:
   (KKK) EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (1)  ALLOW-
 ANCE  OF  CREDIT.  A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-
 FIVE OF THIS CHAPTER SHALL  BE  ALLOWED  A  CREDIT  TO  BE  COMPUTED  AS
 PROVIDED  IN  SUCH  SECTION  FORTY-FIVE  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.
   §  5. The state commissioner of economic development, after consulting
 with the state commissioner of taxation and  finance,  shall  promulgate
 regulations  by  December 31, 2020 to establish procedures for the allo-
 cation of tax credits as required by subdivision (a) of  section  45  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  evaluate  the  applications,  the
 documentation that will be provided to taxpayers 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. Notwithstanding any other provisions  to  the
 contrary in the state administrative procedure act, such rules and regu-
 lations  may  be adopted on an emergency basis if necessary to meet such
 December 31, 2020 deadline.
   § 6. The economic development law is amended by adding a  new  section
 242 to read as follows:
   §  242.  REPORTS  ON THE 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 CHAIR-
 PERSONS 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 TWENTY-TWO.  EACH REPORT MUST CONTAIN THE FOLLOWING INFORMATION
 FOR THE COVERED CALENDAR HALF YEAR:
   (A) THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED PURSUANT  TO  SECTION
 FORTY-FIVE OF THE TAX LAW DURING THE HALF YEAR, BROKEN DOWN BY MONTH;
   (B)  THE  NUMBER OF 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 DISTRIBUTED BY
 REGION PURSUANT TO SUBDIVISION (B) OF SECTION FORTY-FIVE OF THE TAX LAW;
   (C) THE NUMBER OF 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 SECTION FORTY-FIVE OF THE TAX LAW;
   (D)  A  LIST  OF  EACH ELIGIBLE DIGITAL GAMING PROJECT, WHICH HAS BEEN
 ALLOCATED A TAX CREDIT ENUMERATED BY REGION PURSUANT TO SUBDIVISION  (B)
 OF  SECTION  FORTY-FIVE  OF THE TAX LAW, AND FOR EACH OF THOSE PROJECTS,
 (I) THE ESTIMATED NUMBER OF EMPLOYEES ASSOCIATED WITH THE PROJECT,  (II)

 A. 8758                             5
 
 THE  ESTIMATED  QUALIFYING  COSTS  FOR THE PROJECTS, (III) THE ESTIMATED
 TOTAL COSTS OF THE PROJECT, (IV) THE CREDIT 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
 (III)  INFORMATION IDENTIFYING THE PROJECT ASSOCIATED WITH EACH TAXPAYER
 FOR WHICH A TAX CREDIT WAS CLAIMED UNDER SECTION FORTY-FIVE 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-THREE. THE REPORT MUST BE PREPARED BY AN INDEPENDENT
 THIRD PARTY AUDITOR AND INCLUDE: (A) INFORMATION  REGARDING  THE  EMPIRE
 STATE  DIGITAL GAMING PRODUCTION CREDIT PROGRAM INCLUDING THE EFFICIENCY
 OF OPERATIONS, RELIABILITY OF FINANCIAL REPORTING, COMPLIANCE WITH  LAWS
 AND  REGULATIONS  AND  DISTRIBUTION OF ASSETS AND FUNDS; (B) AN 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 ALLOCATED TO  THOSE  PROJECTS  DISTRIBUTED  BY  REGION
 PURSUANT  TO  SUBDIVISION  (B) OF SECTION FORTY-FIVE OF THE TAX LAW; AND
 (C) ANY OTHER INFORMATION OR STATISTICAL INFORMATION  THAT  THE  COMMIS-
 SIONER  OF  ECONOMIC  DEVELOPMENT  DEEMS  TO  BE USEFUL IN ANALYZING THE
 EFFECTS OF THE PROGRAMS.
   § 7. This act shall take effect immediately and shall apply to taxable
 years beginning on January 1, 2020 and before January 1, 2025;  provided
 that  sections  one  through four of this act shall expire and be deemed
 repealed December 31, 2024.