NY State Senate Bill 2025-S4715A

Senate Bill S4715A

2025-2026 Legislative Session

Relates to the period during which the empire state digital gaming tax credit may be claimed, criteria for such tax credit, and allowing a rollover of such credit

download bill text pdf

Current 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 05, 2025	print number 4715a
Mar 05, 2025	amend (t) and recommit to budget and revenue
Feb 12, 2025	referred to budget and revenue

Bill Amendments

Original

A (Active)

co-Sponsors

2025-S4715 - Details

See Assembly Version of this Bill:: A3457
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§45, 210-B & 606, Tax L
Versions Introduced in 2023-2024 Legislative Session:: S6997, A7126

2025-S4715 - Summary

Extends the period during which the empire state digital gaming tax credit may be claimed to 01/01/2032; amends the eligibility criteria for game development companies by changing the yearly timeframe structure, lowering the dollar threshold per production, and removing the in-state cost incurred threshold to accurately fit current digital gaming industry models; allows unused credits to be rolled over to the following tax year.

2025-S4715 - Sponsor Memo

                                 
BILL NUMBER: S4715

SPONSOR: FAHY
 
TITLE OF BILL:

An act to amend the tax law, in relation to the eligibility criteria for
the digital gaming tax credit

 
PURPOSE OF THE BILL:

This bill would amend the Digital Gaming Media Production Credit by
enhancing the eligibility criteria to the credit to better allow the New
York gaming industry access to the incentives.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the eligibility criteria for game development compa-
nies by changing the yearly timeframe structure, lowering the dollar
threshold per production and by removing the in-state cost incurred
threshold to accurately fit current digital gaming industry models.

  Section 2 amends the credit by removing the annual single taxpayer cap

as it applies to section 210-B of the tax law.

  Section 3 amends the credit by removing the annual single taxpayer cap
as it applies to section 606 of the tax law.

  Section 4 contains the effective date of the bill.

 
JUSTIFICATION:

In  2022,  as part of the final state budget, the Legislature passed and
the Governor signed the empire state  digital  gaming  media  production
credit.  This  was a vital first step into recognizing the growing video
game development industry in the state and to help attract out of  state
developers  to  come  into  New York and take advantage of incentives to
grow the industry. The credit is  designed  to  provide  meaningful  and
effective incentives to an industry critical to future economic develop-
ment  throughout  the  State.  Unfortunately,  as  the  credit is in its
initial year of being implemented,  it  has  been  discovered  that  the
current  eligibility  requirements under the law are making it extremely
difficult for a significant number of New York gaming development compa-
nies to be eligible for the credit despite them falling under the intent
of the incentive. The current criteria does not fit the realities of the
gaming development industry and these changes are needed to  development
companies to locate in New York.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

Up to $5 million a year-in tax expenditures

 
EFFECTIVE DATE:
This  act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2024 and before January 1, 2028.

2025-S4715 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4715
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 12, 2025
                                ___________
 
 Introduced  by  Sen.  FAHY  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to the eligibility criteria for
   the digital gaming tax credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivisions (b) and (c) of section 45 of the tax law, as
 added by section 1 of part OO of chapter 59 of the  laws  of  2022,  are
 amended to read as follows:
   (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 five million dollars. Such credit shall  be  allo-
 cated  by  the  department  of economic development in order of priority
 based upon the date of filing an application for allocation  of  digital
 gaming  media  production  credit  with  such office. AN APPLICANT SHALL
 SUBMIT AN ANNUAL APPLICATION WHICH SHALL INCLUDE ALL  QUALIFIED  DIGITAL
 GAMING  MEDIA PRODUCTIONS FOR THE TAXABLE YEAR ALONG WITH AN ESTIMATE OF
 THE DIGITAL GAMING  MEDIA  PRODUCTION  COSTS.  THE  APPLICATION  CAN  BE
 SUBMITTED  NO  EARLIER  THAN  NINETY  DAYS PRIOR TO THE FIRST DAY OF THE
 APPLICABLE TAXABLE YEAR.  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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06207-01-5

 S. 4715                             2
 
 message  boards,  communities  or  content  manipulation); (ii) video or
 interactive games produced primarily for distribution over the internet,
 wireless network or successors thereto; and (iii) animation,  simulation
 or  embedded  graphics  digital  gaming  related  software  intended for
 commercial distribution regardless of medium;  provided,  however,  that
 the  qualified  digital  game development media productions described in
 subparagraphs (i) through (iii) of  this  paragraph  must  have  digital
 media  production  costs  equal  to  or in excess of [one hundred] FIFTY
 thousand dollars  per  production.  A  qualified  digital  gaming  media
 production  does not include a website, video, interactive game or soft-
 ware that is used predominately  for:  electronic  commerce  (retail  or
 wholesale  purposes  other  than  the  sale of video interactive games),
 gambling (including activities regulated by a New York  gaming  agency),
 or political advocacy purposes.
   (2)  "Digital gaming media production costs" means any costs for wages
 [or salaries] paid to  individuals,  [other  than  actors  or  writers,]
 directly  employed  for services performed by those individuals directly
 [and predominantly] in the creation of a digital gaming media production
 or productions. [Up to one hundred thousand dollars in wages  and  sala-
 ries  paid  to  such  employees, other than actors and writers, directly
 employed shall be used in  the  calculation  of  this  credit.]  Digital
 gaming  media  production  costs  include  but  shall  not be limited to
 payments for services performed  directly  [and  predominantly]  in  the
 development  (including concept creation), [design,] production (includ-
 ing 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  advertising
 content  generated  by end users, other costs not directly [and predomi-
 nantly] related to the creation, production or modification  of  digital
 gaming media or costs used by the taxpayer as a basis of the calculation
 of  any other tax credit allowed under this chapter. In addition, [sala-
 ries or other income distribution] WAGES  related  to  the  creation  of
 digital gaming media for any person who PREDOMINATELY serves in A CORPO-
 RATE  CAPACITY  IN  the role of chief executive officer, chief financial
 officer, president, treasurer or similar CORPORATE position AND  WHO  IS
 NOT  DIRECTLY  ENGAGED  IN SERVICES RELATED TO THE CREATION OF A DIGITAL
 GAMING MEDIA PRODUCTION OR PRODUCTIONS shall not be included as  digital
 gaming  media  production  costs  if the digital gaming media production
 entity has more then ten employees. [Salaries  or  other  income]  WAGES
 PAID  to  a  person  serving in such a role for the digital gaming media
 production entity shall also not be included if the person was  employed
 by a related person of the digital gaming media production entity within
 sixty  months  of  the  date  the digital gaming media production entity
 applied for the tax credit certificate described in subdivision  (d)  of
 this  section.  For purposes of the preceding sentence, a related person
 shall have the same meaning as the term "related person" in section four
 hundred sixty-five of  the  internal  revenue  code.  [Furthermore,  any
 income or other distribution to any individual including, but not limit-
 ed  to,  licensing or royalty fees, who holds an ownership interest in a
 digital gaming media production entity, whether or not  such  individual
 is serving in the role of chief executive officer, chief financial offi-
 cer,  president, treasurer or similar position for such an entity, shall
 not be included as digital gaming media production  costs.  Up  to  four
 million  dollars  in qualified digital gaming media production costs per
 S. 4715                             3

 production shall be used in the calculation  of  this  credit.]  Digital
 gaming  media 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.
   (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.]
   (4) "Digital gaming media  production  entity"  means  a  corporation,
 partnership,  limited  partnership or other entity or individual engaged
 in qualified digital game development media production.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2025 and before January 1, 2029.

co-Sponsors

2025-S4715A (ACTIVE) - Details

See Assembly Version of this Bill:: A3457
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§45, 210-B & 606, Tax L
Versions Introduced in 2023-2024 Legislative Session:: S6997, A7126

2025-S4715A (ACTIVE) - Summary

2025-S4715A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4715A

SPONSOR: FAHY
 
TITLE OF BILL:

An act to amend the tax law, in relation to extending the period during
which the empire state digital gaming media production tax credit may be
claimed, the eligibility criteria for such tax credit, and allowing
unused allowable credits to be rolled over to the following tax year

 
PURPOSE OF THE BILL:

This bill would amend the Digital Gaming Media Production Credit by
allowing unused amounts of the credit to be used in future years and by
enhancing the eligibility criteria to the credit to better allow the New
York gaming industry access to the incentives.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one extends the credit to 2032 and amends the eligibility crite-
ria for game development companies by changing the yearly timeframe
structure, lowering the dollar threshold per production, removing the

in-state cost incurred threshold, and by allowing for unused credits to
be carried over to the next taxable year.

Section 2 amends the credit by removing the annual single taxpayer cap
as it applies to section 210-B of the tax law.

Section 3 amends the credit by removing the annual single taxpayer cap
as it applies to section 606 of the tax law.

Section 4 contains the effective date of the bill.

 
JUSTIFICATION:

In 2022, as part of the final state budget, the Legislature passed and
the Governor signed the empire state digital gaming media production
credit. This was a vital first step into recognizing the growing video
game development industry in the state and to help attract out of state
developers to come into New York and take advantage of incentives to
grow the industry. The credit is designed to provide meaningful and
effective incentives to an industry critical to future economic develop-
ment throughout the State. Unfortunately, as the credit is in its
initial years of being implemented, it has been discovered that the
current eligibility requirements under the law are making it extremely
difficult for a significant number of New York gaming development compa-
nies to be eligible for the credit despite them falling under the intent
of the incentive. The current criteria does not fit the realities of the
gaming development industry and these changes are needed to development
companies to locate in New York.

 
PRIOR LEGISLATIVE HISTORY:

2024: A7126A/S6997A

 
FISCAL IMPLICATIONS:

Up to $5 million a year in tax expenditures

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2024 and before January 1, 2032.

2025-S4715A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4715--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 12, 2025
                                ___________
 
 Introduced  by Sens. FAHY, COONEY -- read twice and ordered printed, and
   when printed to be committed to the Committee on Budget and Revenue --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 AN  ACT to amend the tax law, in relation to extending the period during
   which the empire state digital gaming media production tax credit  may
   be claimed, the eligibility criteria for such tax credit, and allowing
   unused allowable credits to be rolled over to the following tax year
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subdivision (a) and subdivisions (b) and (c)
 of section 45 of the tax law, as added by section 1 of part OO of  chap-
 ter 59 of the laws of 2022, are amended to read as follows:
   (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  for  taxable  years  beginning on or after January
 first, two thousand twenty-three and before January first, two  thousand
 [twenty-eight] THIRTY-TWO.
   (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 five million dollars. Such credit shall  be  allo-
 cated  by  the  department  of economic development in order of priority
 based upon the date of filing an application for allocation  of  digital
 gaming  media  production  credit  with  such office. AN APPLICANT SHALL
 SUBMIT AN ANNUAL APPLICATION WHICH SHALL INCLUDE ALL  QUALIFIED  DIGITAL
 GAMING  MEDIA PRODUCTIONS FOR THE TAXABLE YEAR ALONG WITH AN ESTIMATE OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06207-05-5

 S. 4715--A                          2
 
 THE DIGITAL GAMING  MEDIA  PRODUCTION  COSTS.  THE  APPLICATION  CAN  BE
 SUBMITTED  NO  EARLIER  THAN  NINETY  DAYS PRIOR TO THE FIRST DAY OF THE
 APPLICABLE TAXABLE YEAR.  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.  PROVIDED, HOWEVER, THAT FOR TAXABLE YEARS BEGINNING ON OR
 AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, IF THE TOTAL  AMOUNT  OF
 ALLOCATED  CREDITS  APPLIED  FOR IN ANY PARTICULAR YEAR IS LESS THAN THE
 AGGREGATE AMOUNT OF  TAX  CREDITS  ALLOWED  FOR  SUCH  YEAR  UNDER  THIS
 SECTION,  ANY UNUSED PORTION MAY BE CARRIED OVER AND ADDED TO THE AGGRE-
 GATE AMOUNT OF CREDITS ALLOWED IN THE NEXT SUCCEEDING  TAXABLE  YEAR  OR
 YEARS.
   (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; and (iii) animation, simulation
 or embedded  graphics  digital  gaming  related  software  intended  for
 commercial  distribution  regardless  of medium; provided, however, that
 the qualified digital game development media  productions  described  in
 subparagraphs  (i)  through  (iii)  of  this paragraph must have digital
 media production costs equal to or in  excess  of  [one  hundred]  FIFTY
 thousand  dollars  per  production.  A  qualified  digital  gaming media
 production does not include a website, video, interactive game or  soft-
 ware  that  is  used  predominately  for: electronic commerce (retail or
 wholesale purposes other than the  sale  of  video  interactive  games),
 gambling  (including  activities regulated by a New York gaming agency),
 or political advocacy purposes.
   (2) "Digital gaming media production costs" means any costs for  wages
 [or  salaries]  paid  to  individuals,  [other  than actors or writers,]
 directly employed for services performed by those  individuals  directly
 [and predominantly] in the creation of a digital gaming media production
 or  productions.  [Up to one hundred thousand dollars in wages and sala-
 ries paid to such employees, other than  actors  and  writers,  directly
 employed  shall  be  used  in  the  calculation of this credit.] Digital
 gaming media production costs  include  but  shall  not  be  limited  to
 payments  for  services  performed  directly  [and predominantly] in the
 development (including concept creation), [design,] production  (includ-
 ing  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 advertising
 content generated by end users, other costs not directly  [and  predomi-
 nantly]  related  to the creation, production or modification of digital
 gaming media or costs used by the taxpayer as a basis of the calculation
 of any other tax credit allowed under this chapter. In addition,  [sala-
 ries  or  other  income  distribution]  WAGES related to the creation of
 digital gaming media for any person who PREDOMINATELY serves in A CORPO-
 RATE CAPACITY IN the role of chief executive  officer,  chief  financial
 officer,  president,  treasurer or similar CORPORATE position AND WHO IS
 S. 4715--A                          3
 
 NOT DIRECTLY ENGAGED IN SERVICES RELATED TO THE CREATION  OF  A  DIGITAL
 GAMING  MEDIA PRODUCTION OR PRODUCTIONS shall not be included as digital
 gaming media production costs if the  digital  gaming  media  production
 entity  has  more  then  ten employees. [Salaries or other income] WAGES
 PAID to a person serving in such a role for  the  digital  gaming  media
 production  entity shall also not be included if the person was employed
 by a related person of the digital gaming media production entity within
 sixty months of the date the  digital  gaming  media  production  entity
 applied  for  the tax credit certificate described in subdivision (d) of
 this section. For purposes of the preceding sentence, a  related  person
 shall have the same meaning as the term "related person" in section four
 hundred  sixty-five  of  the  internal  revenue  code. [Furthermore, any
 income or other distribution to any individual including, but not limit-
 ed to, licensing or royalty fees, who holds an ownership interest  in  a
 digital  gaming  media production entity, whether or not such individual
 is serving in the role of chief executive officer, chief financial offi-
 cer, president, treasurer or similar position for such an entity,  shall
 not  be  included  as  digital gaming media production costs. Up to four
 million dollars in qualified digital gaming media production  costs  per
 production  shall  be  used  in the calculation of this credit.] Digital
 gaming media 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.
   (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.]
   (4)  "Digital  gaming  media  production  entity" means a corporation,
 partnership, limited partnership or other entity or  individual  engaged
 in qualified digital game development media production.
   §  2. Paragraph (a) of subdivision 55 of section 210-B of the tax law,
 as added by section 2 of part OO of chapter 59 of the laws of  2022,  is
 amended to read as follows:
   (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. [Under no circumstances may a single  taxpayer  receive
 more  than  one million five hundred thousand dollars in tax credits per
 year.]
   § 3. Paragraph 1 of subsection (nnn) of section 606 of the tax law, as
 added by section 4 of part OO of chapter 59 of  the  laws  of  2022,  is
 amended to read as follows:
   (1)  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. [Under no circumstances may a single  taxpayer  receive
 more  than  one million five hundred thousand dollars in tax credits per
 year.]
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2025 and before January 1, 2032.

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Senate Bill S4715A

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Sponsored By

Patricia Fahy

Current Bill Status - In Senate Committee Budget And Revenue Committee

Bill Amendments

co-Sponsors

Jeremy Cooney

2025-S4715 - Details

2025-S4715 - Summary

2025-S4715 - Sponsor Memo

2025-S4715 - Bill Text download pdf

co-Sponsors

Jeremy Cooney

2025-S4715A (ACTIVE) - Details

2025-S4715A (ACTIVE) - Summary

2025-S4715A (ACTIVE) - Sponsor Memo

2025-S4715A (ACTIVE) - Bill Text download pdf

Comments