S T A T E O F N E W Y O R K
________________________________________________________________________
9194--A
I N A S S E M B L Y
February 9, 2022
___________
Introduced by M. of A. McDONALD, WOERNER, FAHY, BURGOS, DICKENS, JACOB-
SON, GRIFFIN, CLARK, BUTTENSCHON, BRONSON, ZEBROWSKI, ASHBY, BRABENEC
-- 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 digital gaming media
production credit; to amend the state finance law, in relation to
creating the empire state digital gaming diversity job training devel-
opment fund; 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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08744-04-2
A. 9194--A 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-FIVE OF SECTION TWO HUNDRED TEN-B
AND SUBSECTION (NNN) 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-
A. 9194--A 3
SIBLE 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 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-FIVE.
(2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA-
GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLVI).
(3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (NNN).
§ 2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 55 to read as follows:
55. 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 (xlvi) to read as
follows:
A. 9194--A 4
(XLVI) EMPIRE STATE DIGITAL AMOUNT OF CREDIT
GAMING MEDIA PRODUCTION UNDER SUBDIVISION
CREDIT UNDER SUBSECTION (NNN) FIFTY-FIVE OF SECTION
TWO HUNDRED TEN-B
§ 4. Section 606 of the tax law is amended by adding a new subsection
(nnn) to read as follows:
(NNN) 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.
(3) WITH REGARD TO CERTIFICATES OF TAX CREDIT ISSUED, THE COMMISSIONER
OF ECONOMIC DEVELOPMENT SHALL REDUCE BY ONE-HALF OF ONE PERCENT THE
AMOUNT OF CREDIT ALLOWED TO A TAXPAYER AND THIS REDUCED AMOUNT SHALL BE
REPORTED ON A CERTIFICATE OF TAX CREDIT ISSUED PURSUANT TO THIS SECTION
AND THE REGULATIONS PROMULGATED BY THE COMMISSIONER OF ECONOMIC DEVELOP-
MENT TO IMPLEMENT THIS CREDIT PROGRAM.
(4) BY JANUARY THIRTY-FIRST OF EACH YEAR, THE COMMISSIONER OF ECONOMIC
DEVELOPMENT SHALL REPORT TO THE COMPTROLLER THE TOTAL AMOUNT OF SUCH
REDUCTIONS OF TAX CREDIT DURING THE IMMEDIATELY PRECEDING CALENDAR YEAR.
ON OR BEFORE MARCH THIRTY-FIRST OF EACH YEAR, THE COMPTROLLER SHALL
TRANSFER WITHOUT APPROPRIATIONS FROM THE GENERAL FUND TO THE EMPIRE
STATE DIGITAL GAMING DIVERSITY JOB TRAINING DEVELOPMENT FUND ESTABLISHED
UNDER SECTION NINETY-SEVEN-BBBBB OF THE STATE FINANCE LAW AN AMOUNT
EQUAL TO THE TOTAL AMOUNT OF SUCH REDUCTIONS REPORTED BY THE COMMISSION-
ER OF ECONOMIC DEVELOPMENT FOR THE IMMEDIATELY PRECEDING CALENDAR YEAR.
§ 5. The state commissioner of economic development, after consulting
with the state commissioner of taxation and finance, shall promulgate
regulations by December 31, 2022 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, 2022 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
A. 9194--A 5
THOUSAND TWENTY-FOUR. EACH REPORT MUST CONTAIN THE FOLLOWING INFORMA-
TION 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)
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-FIVE. 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. The state finance law is amended by adding a new section 97-bbbbb
to read as follows:
A. 9194--A 6
§ 97-BBBBB. EMPIRE STATE DIGITAL GAMING DIVERSITY JOB TRAINING DEVEL-
OPMENT FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE
COMMISSIONER OF TAXATION AND FINANCE AND THE COMPTROLLER, A SPECIAL FUND
TO BE KNOWN AS THE EMPIRE STATE DIGITAL GAMING DIVERSITY JOB TRAINING
DEVELOPMENT FUND.
2. SUCH FUND SHALL CONSIST OF THE FUNDS TRANSFERRED BY THE COMPTROLLER
TO THE FUND FROM THE GENERAL FUND WITHOUT APPROPRIATION, AS DETERMINED
UNDER SUBSECTION (NNN) OF SECTION SIX HUNDRED SIX OF THE TAX LAW. NOTH-
ING CONTAINED HEREIN SHALL PREVENT THE STATE FROM RECEIVING GRANTS,
GIFTS, OR BEQUESTS FOR THE FUND AND DEPOSITING THEM INTO THE FUND
ACCORDING TO LAW.
3. MONIES IN THE FUND SHALL BE EXPENDED ONLY FOR JOB CREATION AND
TRAINING PROGRAMS APPROVED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT
THAT SUPPORT EFFORTS TO RECRUIT, HIRE, PROMOTE, RETAIN, DEVELOP AND
TRAIN A DIVERSE AND INCLUSIVE WORKFORCE AS PRODUCTION COMPANY EMPLOYEES
IN THE DIGITAL GAMING INDUSTRY WITHIN THE STATE OF NEW YORK INCLUDING,
BUT NOT LIMITED TO, THOSE PROGRAMS THAT PROMOTE DEVELOPMENT IN ECONOM-
ICALLY DISTRESSED AREAS OF THE STATE. THE COMMISSIONER OF ECONOMIC
DEVELOPMENT SHALL PROMULGATE REGULATIONS THAT SET FORTH RELEVANT DEFI-
NITIONS, MINIMUM STANDARDS, AND CRITERIA FOR SUCH FUND AND ELIGIBLE
TRAINING PROGRAMS.
4. MONIES SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
OF ECONOMIC DEVELOPMENT.
§ 8. This act shall take effect immediately and shall apply to taxable
years beginning on January 1, 2022 and before January 1, 2027; provided
that sections one through four of this act shall expire and be deemed
repealed December 31, 2026.