Bill Text: NY S05226 | 2023-2024 | 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) 2024-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S05226 Detail]
Download: New_York-2023-S05226-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5226 2023-2024 Regular Sessions IN SENATE February 27, 2023 ___________ 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 48 to read 2 as follows: 3 § 48. 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 commercial- 14 ly licensed sound recording projects having as their principal place of 15 production and recording this state and requiring expenditures in excess 16 of twenty-five thousand dollars. If the annual cost of such productions 17 to a taxpayer exceeds one hundred thousand dollars, but no single such 18 production exceeds one hundred thousand dollars, such taxpayer may apply 19 for the credit allowed by this section on an aggregate basis provided 20 such taxpayer employs ten or more residents of this state. Qualified 21 production costs shall mean costs for tangible property used and 22 services performed directly and predominantly in the production of qual- 23 ified music production in this state. Qualifying music production costs 24 shall include studio rental fees and related costs; instrument and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07551-01-3S. 5226 2 1 equipment rental fees; production session fees for musicians, songwri- 2 ters, composers, arrangers, music producers, programmers, engineers and 3 technicians; mixing and mastering services of qualifying music 4 productions; and hotel catering and local transportation expenditures 5 directly related to music production. Costs shall not include recording 6 live concerts; artists and producer royalties or advances; licensing 7 fees for samples; interpolations or other music clearance costs; master- 8 ing or post-production expenditures for projects that were not princi- 9 pally tracked and recorded in this state; nor any costs associated with 10 manufacturing, duplication, packaging, distribution, promotion, market- 11 ing 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 fifty-nine of section two hundred ten-B 18 and subsection (bbb) 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 59 33 (2) article 22: section 606: subsection (bbb). 34 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 35 sion 59 to read as follows: 36 59. Empire state music production credit. (a) Allowance of credit. A 37 taxpayer who is eligible pursuant to section forty-eight of this chapter 38 shall be allowed a credit to be computed as provided in such section 39 forty-eight 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 (l) to read as follows: 53 (l) Empire state music Amount of credit for 54 production credit under qualified production credit 55 subsection (bbb) music under subdivision 56 fifty-nine of section twoS. 5226 3 1 hundred ten-B 2 § 4. Section 606 of the tax law is amended by adding a new subsection 3 (bbb) to read as follows: 4 (bbb) Empire state music production credit. (1) Allowance of credit. A 5 taxpayer who is eligible pursuant to section forty-eight of this chapter 6 shall be allowed a credit to be computed as provided in such section 7 forty-eight against the tax imposed by this article. 8 (2) Application of credit. If the amount of the credit allowable under 9 this subsection for any taxable year exceeds the taxpayer's tax for such 10 year, the excess shall be treated as an overpayment of tax to be credit- 11 ed or refunded as provided in section six hundred eighty-six of this 12 article, provided, however, that no interest shall be paid thereon. 13 § 5. The empire state development corporation shall conduct a study 14 analyzing the economic impact of the tax credit authorized pursuant to 15 section one of this act and shall report its findings, conclusions and 16 recommendations to the governor and the legislature on or before one 17 year from the date this act shall become a law, and shall submit with 18 its report such legislative proposals as it deems necessary to implement 19 its recommendations. The empire state development corporation shall 20 list the recipients of the tax credit authorized pursuant to section one 21 of this act on their official internet website. 22 § 6. This act shall take effect on the one hundred eightieth day after 23 it shall have become a law.
