STATE OF NEW YORK
________________________________________________________________________
1465--A
2015-2016 Regular Sessions
IN ASSEMBLY
January 12, 2015
___________
Introduced by M. of A. LENTOL, TITONE, ABBATE, THIELE, JAFFEE, COOK --
Multi-Sponsored by -- M. of A. PERRY -- 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, 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 42 to read
2 as follows:
3 § 42. 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-five
12 percent and the qualified production costs paid in the production of
13 music by the taxpayer. Qualifying music productions shall be commer-
14 cially licensed sound recording projects having as their principal place
15 of production and recording this state and requiring expenditures in
16 excess of twenty-five thousand dollars. If the annual cost of such
17 productions to a taxpayer exceeds one hundred thousand dollars, but no
18 single such production exceeds one hundred thousand dollars, such
19 taxpayer may apply for the credit allowed by this section on an aggre-
20 gate basis provided such taxpayer employes ten or more residents of this
21 state. Qualified production costs shall mean costs for tangible property
22 used and services performed directly and predominantly in the production
23 of qualified music production in this state. Qualifying music
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01211-03-5
A. 1465--A 2
1 production costs shall include studio rental fees and related costs;
2 instrument and equipment rental fees; production session fees for musi-
3 cians, songwriters, composers, arrangers, music producers, programmers,
4 engineers and technicians; mixing and mastering services of qualifying
5 music productions; and hotel catering and local transportation expendi-
6 tures directly related to music production. Costs shall not include
7 recording live concerts; artists and producer royalties or advances;
8 licensing fees for samples; interpolations or other music clearance
9 costs; mastering or post-production expenditures for projects that were
10 not principally tracked and recorded in this state; nor any costs asso-
11 ciated with manufacturing, duplication, packaging, distribution,
12 promotion, marketing and touring not specifically outlined above.
13 (3) No qualified production costs used by a taxpayer as the basis for
14 the allowance of the credit provided for under this section shall be
15 used by such taxpayer to claim any other credit allowed pursuant to this
16 chapter.
17 (b) Allocation of credit. The aggregate amount of tax credits allowed
18 under this section, subdivision fifty of section two hundred ten-B and
19 subsection (ccc) of section six hundred six of this chapter in any
20 calendar year shall be twenty-five million dollars and one million two
21 hundred fifty thousand dollars in any given week. Such aggregate amount
22 of credits shall be allocated by the empire state development corpo-
23 ration among taxpayers in order of priority based upon the date of
24 filing an application for allocation of music production credit with
25 such office. No single taxpayer may claim or be awarded more than ten
26 percent of the aggregate amount of tax credits allowed under this
27 section. If the total amount of allocated credits applied for in any
28 particular year exceeds the aggregate amount of tax credits allowed for
29 such year under this section, such excess shall be treated as having
30 been applied for on the first day of the subsequent year.
31 (c) Cross-references. For application of the credit provided for in
32 this section, see the following provisions of this chapter:
33 (1) article 9-A: section 210-B: subdivision 50
34 (2) article 22: section 606: subsection (ccc)
35 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
36 sion 50 to read as follows:
37 50. Empire state music production credit. (a) Allowance of credit. A
38 taxpayer who is eligible pursuant to section forty-two of this chapter
39 shall be allowed a credit to be computed as provided in such section
40 forty-two against the tax imposed by this article.
41 (b) Application of credit. The credit allowed under this subdivision
42 for any taxable year shall not reduce the tax due for such year to less
43 than the amount prescribed in paragraph (d) of subdivision one of
44 section two hundred ten of this article. Provided, however, that if the
45 amount of the credit allowable under this subdivision for any taxable
46 year reduces the tax to such amount, the excess shall be treated as an
47 overpayment of tax to be credited or refunded in accordance with the
48 provisions of section one thousand eighty-six of this chapter. Provided,
49 however, the provisions of subsection (c) of section one thousand eight-
50 y-eight of this chapter notwithstanding, no interest shall be paid ther-
51 eon.
52 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
53 of the tax law is amended by adding a new clause (xli) to read as
54 follows:
A. 1465--A 3
1 (xli) Empire state musicAmount of credit for
2 production credit underqualified production credit
3 subsection (ccc)music under subdivision
4 fifty of section two
5 hundred ten-B
6 § 4. Section 606 of the tax law is amended by adding a new subsection
7 (ccc) to read as follows:
8 (ccc) Empire state music production credit. (1) Allowance of credit. A
9 taxpayer who is eligible pursuant to section forty-two of this chapter
10 shall be allowed a credit to be computed as provided in such section
11 forty-two against the tax imposed by this article.
12 (2) Application of credit. If the amount of the credit allowable under
13 this subsection for any taxable year exceeds the taxpayer's tax for such
14 year, the excess shall be treated as an overpayment of tax to be credit-
15 ed or refunded as provided in section six hundred eighty-six of this
16 article, provided, however, that no interest shall be paid thereon.
17 § 5. The empire state development corporation shall conduct a study
18 analyzing the economic impact of the tax credit authorized pursuant to
19 section one of this act and shall report its findings, conclusions and
20 recommendations to the governor and the legislature on or before one
21 year from the date this act shall become a law, and shall submit with
22 its report such legislative proposals as it deems necessary to implement
23 its recommendations. The empire state development corporation shall
24 list the recipients of the tax credit authorized pursuant to section one
25 of this act on their official internet website.
26 § 6. This act shall take effect on the one hundred eightieth day after
27 it shall have become a law.
