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.