Bill Text: NY A01465 | 2015-2016 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to the creation of the empire state music production tax credit.

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced - Dead) 2016-01-06 - referred to ways and means [A01465 Detail]

Download: New_York-2015-A01465-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1465
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 12, 2015
                                      ___________
       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 42 to read
    2  as follows:
    3    S 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
   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 FIFTY OF SECTION TWO HUNDRED  TEN-B  AND
   25  SUBSECTION  (CCC)  OF  SECTION  SIX  HUNDRED  SIX OF THIS CHAPTER IN ANY
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01211-01-5
       A. 1465                             2
    1  CALENDAR YEAR SHALL BE SIXTY MILLION DOLLARS. SUCH AGGREGATE  AMOUNT  OF
    2  CREDITS  SHALL  BE ALLOCATED BY THE EMPIRE STATE DEVELOPMENT CORPORATION
    3  AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE  OF  FILING  AN
    4  APPLICATION  FOR ALLOCATION OF MUSIC PRODUCTION CREDIT WITH SUCH OFFICE.
    5  IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN  ANY  PARTICULAR
    6  YEAR  EXCEEDS  THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR
    7  UNDER THIS SECTION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN  APPLIED
    8  FOR ON THE FIRST DAY OF THE SUBSEQUENT YEAR.
    9    (C)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
   10  THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   11    (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 50
   12    (2) ARTICLE 22: SECTION 606: SUBSECTION (CCC)
   13    S 2. Section 210-B of the tax law is amended by adding a new  subdivi-
   14  sion 50 to read as follows:
   15    50.  EMPIRE  STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT. A
   16  TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-TWO OF  THIS  CHAPTER
   17  SHALL  BE  ALLOWED  A  CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION
   18  FORTY-TWO AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   19    (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
   20  FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
   21  THAN THE AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
   22  SECTION TWO HUNDRED TEN OF THIS ARTICLE.  PROVIDED, HOWEVER, THAT IF THE
   23  AMOUNT  OF  THE  CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
   24  YEAR REDUCES THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED  AS  AN
   25  OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
   26  PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
   27  HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
   28  Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
   29  EON.
   30    S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
   31  of  the  tax  law  is  amended  by  adding a new clause (xli) to read as
   32  follows:
   33  (XLI) EMPIRE STATE MUSIC             AMOUNT OF CREDIT FOR
   34  PRODUCTION CREDIT UNDER              QUALIFIED PRODUCTION CREDIT
   35  SUBSECTION (CCC)                     MUSIC UNDER SUBDIVISION
   36                                       FIFTY OF SECTION TWO
   37                                       HUNDRED TEN-B
   38    S 4. Section 606 of the tax law is amended by adding a new  subsection
   39  (ccc) to read as follows:
   40    (CCC) EMPIRE STATE MUSIC PRODUCTION CREDIT. (1) ALLOWANCE OF CREDIT. A
   41  TAXPAYER  WHO  IS ELIGIBLE PURSUANT TO SECTION FORTY-TWO OF THIS CHAPTER
   42  SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS  PROVIDED  IN  SUCH  SECTION
   43  FORTY-TWO AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   44    (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
   45  THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
   46  YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
   47  ED  OR  REFUNDED  AS  PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
   48  ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   49    S 5. The empire state development corporation  shall  report,  to  the
   50  governor  and the legislature, its findings, conclusions and recommenda-
   51  tions on or before one year from the date this act shall become  a  law,
   52  and  shall submit with its report such legislative proposals as it deems
   53  necessary to implement its recommendations.
   54    S 6. This act shall take effect on the one hundred eightieth day after
   55  it shall have become a law.