NY State Senate Bill 2019-S6882

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to budget and revenue
Dec 04, 2019	referred to rules

2019-S6882 (ACTIVE) - Details

See Assembly Version of this Bill:: A8758
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Add §45, amd §§210-B & 606, Tax L; add §242, Ec Dev L
Versions Introduced in 2021-2022 Legislative Session:: S4107, A9194

2019-S6882 (ACTIVE) - Summary

Creates the empire state digital gaming media production credit for 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 in qualified digital gaming media production; requires the empire state development corporation to file a biannual report with the director of the division of the budget and the chairpersons of the assembly ways and means committee and the senate finance committee; makes related provisions.

2019-S6882 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6882

SPONSOR: BRESLIN
 
TITLE OF BILL:

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

 
PURPOSE OF THE BILL:

To remake the digital media gaming adopted in Part K of chapter 59 of
the laws of 2015 (Revenue Bill A.3009-B) into a "below-the-line"
production credit This will allow the industry to accurately calculate
the benefits of the programs, allow the State to better monitor the
credits, and to ease access to the incentives.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one creates a new section forty-four in the Tax Law to provide a

production incentive for the creation of video gaming in New York.

Subdivision (a) lays out eligibility criteria for companies that file
under the corporate franchise or personal income taxes.

Subdivision (b) limits the annual amount of refundable credits available
under the program to no more than $50 million a year, allocates the
available credits to three regions of the state, namely New York City,
the metro New York suburbs and Upstate. A project must perform at least
60 percent of eligible costs within a region to qualify for credits in
that region.

Subdivision (c) defines eligible "below the line" costs and qualified
productions. Sections 2, 3 and 4 establish the credit in Articles 9-A
and 22 of the Tax Law.

Section 5 authorizes the Commissioner of Economic Development to estab-
lish corresponding regulations and procedures to allow for the effective
administration of the credit.

Section 6 creates a new section 243 in the economic development law for
reporting requirements for the new program. Reports will be filed by
ESDC on a biannual basis to be sent to the Director of the Budget and
the fiscal chairs of the legislature. The reports must detail the amount
of credits claimed and paid, the number of projects by size and region,
and the name of the taxpayer or taxpaying entity receiving the credits.

In addition, every third year ESDC will be required to produce and pres-
ent a report to the Executive and the Legislature prepared by an inde-
pendent third party on how the programs are operating and the overall
economic impact of the program on the State economy.

Section 7 contains the effective date of the act and a five-year sunset
to the programs.

 
JUSTIFICATION:


This bill is designed to provide meaningful and effective incentives to
an industry critical to future economic development throughout the
State. The bill supports production activities occurring for digital
gaming in the State similar to the support New York provides to the film
industry. New York currently generates a small portion of the approxi-
mately $43 billion U.S. video and digital gaming market. It is fore-
casted that the global market will grow 27% by 2026, according to Zion
Market Research. If New York is to capture a larger share of this grow-
ing market a functioning incentive program is critical as other states
and counties offer aggressive incentives to this industry. Not only does
the video game industry have a substantial economic impact that is even
greater than the film industry, the industry is deeply rooted in the
communities throughout the state. Box office revenue for the United
States was $11.9 billion in 2018. The video game industry brought in
$43.4 billion in U.S. revenue for the same year (according to the Enter-
tainment Software Association).  This is an investment in the future of
the State of New York to make this state a leader throughout the country
in growing this rapidly growing industry.

New York is undoubtedly the home of the most creative individuals in the
industry, and graduates the finest game developers anywhere.  We need
robust and accessible programs to encourage these creative geniuses to
work and perform in the state, to call New York their home, and to aid
an industry that has a potential for exponential growth both in Down-
state and Upstate.

Aiding the video and other digital gaming industry through the Excelsior
program in practice had led to a limited use of the credit, if any. No
one in the industry is aware of any claims in credits for the industry
since it became eligible. Consequently, the industry has approached the
Legislature for a different, more strategic and accessible program.
Something that works for the industry but also, since it is a tax cred-
it, something that works for New Yorkers, knowing that a fraction of
revenue gained by the state of New York will be credited back to the
industry.

This bill has received support from the video and digital gaming indus-
try. The bill provides for true "below the line" production credits that
will drive industry growth in New York and create employment while not
providing taxpayer funds for "owners and directors".  It is important to
note that the video game credit is not intended to and does not benefit
executive level salaries and instead is focused on boosting employees at
a middle income. In recognition of State budget challenges, the credit
is capped at $50 million a year.

The bill also provides for stringent reporting requirements to determine
if the incentives will produce significant company revenue and permanent
employment growth in the State.

 
PRIOR LEGISLATIVE HISTORY:

2016: S.7485-B - veto memo 255.

 
FISCAL IMPLICATIONS:

Up to $50 million a year in tax expenditures.

 
EFFECTIVE DATE:
Immediately and shall apply to taxable years beginning on or after Janu-
ary 1, 2020, and will be deemed to expire and be repealed on December
31, 2024.

2019-S6882 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6882
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             December 4, 2019
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed 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 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

 S. 6882                             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.

 S. 6882                             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:

 S. 6882                             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)

 S. 6882                             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.

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Senate Bill S6882

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

2019-S6882 (ACTIVE) - Details

2019-S6882 (ACTIVE) - Summary

2019-S6882 (ACTIVE) - Sponsor Memo

2019-S6882 (ACTIVE) - Bill Text download pdf

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Senate Bill S6882

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Sponsored By

Neil D. Breslin

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

2019-S6882 (ACTIVE) - Details

2019-S6882 (ACTIVE) - Summary

2019-S6882 (ACTIVE) - Sponsor Memo

2019-S6882 (ACTIVE) - Bill Text download pdf

Comments