Bill Text: NY S02851 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to the creation of the empire state music production tax credit.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S02851 Detail]
Download: New_York-2017-S02851-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2851 2017-2018 Regular Sessions IN SENATE January 17, 2017 ___________ Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations 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 43 to read 2 as follows: 3 § 43. 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 24 production costs shall include studio rental fees and related costs; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03415-01-7S. 2851 2 1 instrument and equipment rental fees; production session fees for musi- 2 cians, songwriters, composers, arrangers, music producers, programmers, 3 engineers and technicians; mixing and mastering services of qualifying 4 music productions; and hotel catering and local transportation expendi- 5 tures directly related to music production. Costs shall not include 6 recording live concerts; artists and producer royalties or advances; 7 licensing fees for samples; interpolations or other music clearance 8 costs; mastering or post-production expenditures for projects that were 9 not principally tracked and recorded in this state; nor any costs asso- 10 ciated with manufacturing, duplication, packaging, distribution, 11 promotion, marketing and touring not specifically outlined above. 12 (3) No qualified production costs used by a taxpayer as the basis for 13 the allowance of the credit provided for under this section shall be 14 used by such taxpayer to claim any other credit allowed pursuant to this 15 chapter. 16 (b) Allocation of credit. The aggregate amount of tax credits allowed 17 under this section, subdivision forty-nine of section two hundred ten-B 18 and subsection (ccc) of section six hundred six of this chapter in any 19 calendar year shall be twenty-five million dollars and one million two 20 hundred fifty thousand dollars in any given week. Such aggregate amount 21 of credits shall be allocated by the empire state development corpo- 22 ration among taxpayers in order of priority based upon the date of 23 filing an application for allocation of music production credit with 24 such office. No single taxpayer may claim or be awarded more than ten 25 percent of the aggregate amount of tax credits allowed under this 26 section. If the total amount of allocated credits applied for in any 27 particular year exceeds the aggregate amount of tax credits allowed for 28 such year under this section, such excess shall be treated as having 29 been applied for on the first day of the subsequent year. 30 (c) Cross-references. For application of the credit provided for in 31 this section, see the following provisions of this chapter: 32 (1) article 9-A: section 210-B: subdivision 49 33 (2) article 22: section 606: subsection (ccc) 34 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 35 sion 49 to read as follows: 36 49. Empire state music production credit. (a) Allowance of credit. A 37 taxpayer who is eligible pursuant to section forty-three of this chapter 38 shall be allowed a credit to be computed as provided in such section 39 forty-three against the tax imposed by this article. 40 (b) Application of credit. The credit allowed under this subdivision 41 for any taxable year shall not reduce the tax due for such year to less 42 than the amount prescribed in paragraph (d) of subdivision one of 43 section two hundred ten of this article. Provided, however, that if the 44 amount of the credit allowable under this subdivision for any taxable 45 year reduces the tax to such amount, the excess shall be treated as an 46 overpayment of tax to be credited or refunded in accordance with the 47 provisions of section one thousand eighty-six of this chapter. Provided, 48 however, the provisions of subsection (c) of section one thousand eight- 49 y-eight of this chapter notwithstanding, no interest shall be paid ther- 50 eon. 51 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 52 of the tax law is amended by adding a new clause (xliii) to read as 53 follows: 54 (xliii) Empire state music Amount of credit for 55 production credit under qualified production credit 56 subsection (ccc) music under subdivisionS. 2851 3 1 forty-nine of section two 2 hundred ten-B 3 § 4. Section 606 of the tax law is amended by adding a new subsection 4 (ccc) to read as follows: 5 (ccc) Empire state music production credit. (1) Allowance of credit. A 6 taxpayer who is eligible pursuant to section forty-three of this chapter 7 shall be allowed a credit to be computed as provided in such section 8 forty-three against the tax imposed by this article. 9 (2) Application of credit. If the amount of the credit allowable under 10 this subsection for any taxable year exceeds the taxpayer's tax for such 11 year, the excess shall be treated as an overpayment of tax to be credit- 12 ed or refunded as provided in section six hundred eighty-six of this 13 article, provided, however, that no interest shall be paid thereon. 14 § 5. The empire state development corporation shall conduct a study 15 analyzing the economic impact of the tax credit authorized pursuant to 16 section one of this act and shall report its findings, conclusions and 17 recommendations to the governor and the legislature on or before one 18 year from the date this act shall become a law, and shall submit with 19 its report such legislative proposals as it deems necessary to implement 20 its recommendations. The empire state development corporation shall 21 list the recipients of the tax credit authorized pursuant to section one 22 of this act on their official internet website. 23 § 6. This act shall take effect on the one hundred eightieth day after 24 it shall have become a law.
