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A08702 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         8702

                                 I N  A S S E M B L Y

                                   February 4, 2014
                                      ___________

       Introduced by M. of A. LENTOL -- read once and referred to the Committee
         on Ways and Means

       AN  ACT  to amend the tax law, in relation to the creation of the empire
         state music production credit

         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section  1.  The tax law is amended by adding a new section 41 to read
    2  as follows:
    3    S 41.  EMPIRE STATE MUSIC PRODUCTION CREDIT. (A)(1) ALLOWANCE OF CRED-
    4  IT. A TAXPAYER WHICH IS A QUALIFIED MUSIC PRODUCTION COMPANY, OR A QUAL-
    5  IFIED INDEPENDENT MUSIC PRODUCTION COMPANY, OR WHICH IS A SOLE  PROPRIE-
    6  TOR  OF  OR  A  MEMBER  OF  A  PARTNERSHIP  WHICH  IS  A QUALIFIED MUSIC
    7  PRODUCTION COMPANY OR A QUALIFIED INDEPENDENT MUSIC PRODUCTION  COMPANY,
    8  AND  WHICH  IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS
    9  CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX.
   10    (2) THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO  RATA  SHARE
   11  OF  THE  PRODUCT,  IN  THE  CASE OF A MEMBER OF A PARTNERSHIP) OF TWENTY
   12  PERCENT AND THE QUALIFIED PRODUCTION  COSTS  PAID  OR  INCURRED  IN  THE
   13  PRODUCTION OF MUSIC BY THE TAXPAYER. SUCH COSTS SHALL INCLUDE: RECORDING
   14  PRODUCTION  COSTS,  ARTISTS' ROYALTIES, MUSICIAN SESSION FEES, GRAPHICS,
   15  DIGITAL SCANNING, PROGRAMMING AND TESTING, PRODUCTION  COSTS  FOR  MUSIC
   16  VIDEOS  MADE IN NEW YORK STATE AND DIRECT MARKETING EXPENDITURES INCLUD-
   17  ING CONSULTANT FEES AND COSTS TO LAUNCH THE RECORDING. COSTS  SHALL  NOT
   18  INCLUDE TOURING, PERFORMING, MANUFACTURING AND DISTRIBUTION COSTS.
   19    (3)  NO QUALIFIED PRODUCTION COSTS USED BY A TAXPAYER AS THE BASIS FOR
   20  THE ALLOWANCE OF THE CREDIT PROVIDED FOR UNDER  THIS  SECTION  SHALL  BE
   21  USED BY SUCH TAXPAYER TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS
   22  CHAPTER.
   23    (B)  ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
   24  UNDER THIS SECTION, SUBDIVISION FORTY-EIGHT OF SECTION TWO  HUNDRED  TEN
   25  AND  SUBSECTION  (XX)  OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY
   26  CALENDAR YEAR SHALL BE SIXTY MILLION DOLLARS. SUCH AGGREGATE  AMOUNT  OF
   27  CREDITS  SHALL  BE ALLOCATED BY THE EMPIRE STATE DEVELOPMENT CORPORATION
   28  AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE  OF  FILING  AN

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD13775-01-4
       A. 8702                             2

    1  APPLICATION  FOR ALLOCATION OF MUSIC PRODUCTION CREDIT WITH SUCH OFFICE.
    2  IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN  ANY  PARTICULAR
    3  YEAR  EXCEEDS  THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR
    4  UNDER  THIS SECTION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED
    5  FOR ON THE FIRST DAY OF THE SUBSEQUENT YEAR.
    6    (C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
    7  THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
    8    (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 48
    9    (2) ARTICLE 22: SECTION 606: SUBSECTION (XX)
   10    S 2. Section 210 of the tax law is amended by adding a new subdivision
   11  48 to read as follows:
   12    48.  EMPIRE  STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT. A
   13  TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-ONE OF  THIS  CHAPTER
   14  SHALL  BE  ALLOWED  A  CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION
   15  FORTY-ONE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   16    (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
   17  FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
   18  THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE  OF  THIS
   19  SECTION.  PROVIDED,  HOWEVER, THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE
   20  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE  TAX  TO  SUCH
   21  AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CRED-
   22  ITED  OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOU-
   23  SAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE  PROVISIONS  OF
   24  SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
   25  NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   26    S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
   27  of  the  tax  law  is amended by adding a new clause (xxxvii) to read as
   28  follows:
   29  (XXXVII) EMPIRE STATE MUSIC          AMOUNT OF CREDIT FOR
   30  PRODUCTION CREDIT UNDER              QUALIFIED PRODUCTION CREDIT
   31  SUBSECTION (XX)                      MUSIC UNDER SUBDIVISION
   32                                       FORTY-ONE OF SECTION TWO
   33                                       HUNDRED TEN
   34    S 4. Subsections (yy) and (zz) of section  606  of  the  tax  law,  as
   35  relettered  by section 5 of part H of chapter 1 of the laws of 2003, are
   36  relettered subsections (yyy) and (zzz) and  a  new  subsection  (xx)  is
   37  added to read as follows:
   38    (XX)  EMPIRE STATE MUSIC PRODUCTION CREDIT. (1) ALLOWANCE OF CREDIT. A
   39  TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-ONE OF  THIS  CHAPTER
   40  SHALL  BE  ALLOWED  A  CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION
   41  FORTY-ONE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   42    (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
   43  THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
   44  YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
   45  ED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF  THIS
   46  ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   47    S  5.  The  empire  state development corporation shall report, to the
   48  governor and the legislature, its findings, conclusions and  recommenda-
   49  tions  on  or before one year from the date this act shall become a law,
   50  and shall submit with its report such legislative proposals as it  deems
   51  necessary to implement its recommendations.
   52    S 6. This act shall take effect on the one hundred eightieth day after
   53  it shall have become a law.
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