S T A T E   O F   N E W   Y O R K
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                                  4054

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 26, 2015
                               ___________

Introduced  by Sens. GOLDEN, GALLIVAN, FUNKE, GRIFFO, ROBACH, VALESKY --
  read twice and ordered printed, and when printed to  be  committed  to
  the Committee on Commerce, Economic Development and Small Business

AN  ACT  to  amend  the  economic development law, the urban development
  corporation act and the tax law, in relation to establishing  the  New
  York state digital game development and incentive act

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

  Section 1. Legislative intent. The legislature hereby finds  that  the
educational and entertainment game industry makes up a large and rapidly
growing  share  of  the  national  and world economy, outselling movies,
music, and DVDs; that its diversity includes  entertainment  and  educa-
tional  games, triple-A games and apps, large and small companies, indi-
vidual entrepreneurs, and a strong higher education academic  component;
that it pays high annual average salaries to its employees; and that its
audience  is adult and large, with 58 percent of Americans playing video
games, 45 percent of whom are female players, and that the  average  age
of  a  game  player is 30 years old and the average age of most frequent
game purchasers is 35 years old.
  The legislature further finds that New  York's  game  development  and
publishing  companies are among the foremost in the country and that its
academic game design institutions are cited as among the country's best,
yet it lags other states in industry jobs, opportunities, and economics,
ranking 4th among states as of 2009 with a contribution of 268.8 million
dollars to the economy, and 5,474 direct and indirect jobs, behind Cali-
fornia, where the industry contributes 2.2 billion dollars to the econo-
my, Washington with a contribution of 480  million  dollars,  and  Texas
with a contribution of 492 million dollars; that many students leave New
York  to  seek opportunities for creative work in other states; and that
companies are moving employees to areas that make more economic sense to
their bottom lines, despite a stated desire to stay in New York.
  The legislature further finds and declares, based in  discussions  and
interviews  with  game  development  and  publishing  industry  leaders,
academics, entrepreneurs, and  students,  that  provisions  of  existing

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04543-01-5

S. 4054                             2

economic development programs and incentives can be targeted to increase
employment  and  economic activity in this industry in New York and that
new incentives and programs can also help the industry to achieve  crit-
ical mass which in turn will lead to more rapid growth.
  The  legislature  therefore  declares  that the provisions of this act
will help New York state reach its potential as a home to game  develop-
ment  and publishing companies and entrepreneurs, increasing employment,
growth and opportunity for all citizens of this state, and  raising  New
York's profile as a game development capital, and that enactment of this
act  is  therefore in every sense in the interests of the people of this
state.
  S 2. Section 433 of the economic development law is amended by  adding
a new subdivision 5 to read as follows:
  5. THE COMMISSIONER MAY ISSUE A CERTIFICATE OF ELIGIBILITY UPON APPLI-
CATION  BY  A  COMPANY  THAT  IS  AN  ANCHOR  TENANT PURSUANT TO SECTION
SIXTEEN-X OF THE URBAN DEVELOPMENT CORPORATION ACT THAT IS ENGAGED OR IS
ABOUT TO ENGAGE IN AN ELIGIBLE PRODUCTION. THE  COMMISSIONER  MAY  GRANT
APPROVAL OF SUCH CERTIFICATE OF ELIGIBILITY WHEN THE COMPANY PROVIDES AN
AUDIT BY A CERTIFIED PUBLIC ACCOUNTANT WHO MEETS CRITERIA ESTABLISHED BY
THE  COMMISSIONER  OF THE QUALIFIED PRODUCTION THAT INCLUDES AN ITEMIZED
REPORT OF QUALIFIED EXPENDITURES  AND  SUCH  OTHER  INFORMATION  AS  THE
COMMISSIONER  MAY  REQUIRE  SHOWING  THAT THE PRODUCTION MET ELIGIBILITY
REQUIREMENTS ESTABLISHED IN SECTION THIRTY-NINE-B OF THE TAX LAW.    FOR
PURPOSES  OF  THIS  SUBDIVISION,  AN ELIGIBLE PRODUCTION IS A PRODUCTION
WITH QUALIFIED EXPENDITURES OF FIVE HUNDRED THOUSAND DOLLARS OR MORE, OF
WHICH AT LEAST SIXTY PERCENT ARE INCURRED  IN  THIS  STATE.    QUALIFIED
EXPENDITURES  MUST  BE  CUSTOMARY  AND  REASONABLE PURCHASES OF TANGIBLE
PERSONAL PROPERTY OR SERVICES FROM A BUSINESS IN THIS STATE ON OR  AFTER
THE  DATE  ON  WHICH AN APPLICANT SUBMITS AN APPLICATION FOR THE CERTIF-
ICATE OF ELIGIBILITY, WHICH SHALL BE NOT EARLIER THAN JANUARY FIRST, TWO
THOUSAND SIXTEEN.  THE COMMISSIONER SHALL FORWARD A COPY OF ANY  CERTIF-
ICATE OF ELIGIBILITY AND ANY APPROVAL THEREOF TO THE COMMISSIONER OF THE
DEPARTMENT  OF  TAXATION  AND  FINANCE. SUCH CERTIFICATE SHALL INCLUDE A
CALCULATION OF THE AMOUNT AND SCHEDULE UNDER WHICH SUCH CREDITS  MAY  BE
CLAIMED BY THE ANCHOR TENANT OVER A FOUR YEAR PERIOD.  QUALIFIED EXPEND-
ITURES  FOR  AN  ELIGIBLE  PRODUCTION  INCLUDE: THE PAYROLL FOR NEW YORK
STATE RESIDENTS PROVIDING SERVICES IN THIS STATE TO THE  PRODUCTION  FOR
CODING  AND  DESIGN,  SET CONSTRUCTION AND OPERATION, PHOTOGRAPHY, SOUND
AND LIGHTING, FILMING, FILM PROCESSING AND FILM EDITING, EDITING,  SOUND
MIXING,  ART, DIGITAL PROGRAMMING, ONLINE PROGRAMMING, QUALITY ASSURANCE
TESTING, MOTION CAPTURE, SPECIAL EFFECTS, VISUAL EFFECTS AND OTHER POST-
PRODUCTION SERVICES, TO A MAXIMUM OF ONE HUNDRED  THOUSAND  DOLLARS  PER
SUCH  RESIDENT,  INDEXED FOR INFLATION; PAYMENT FOR BELOW-THE-LINE GOODS
OR SERVICES PROVIDED BY A NEW YORK BUSINESS RELATED TO  THE  PRODUCTION,
AS DEFINED FURTHER BY THE COMMISSIONER AFTER CONSULTATION WITH THE URBAN
DEVELOPMENT  CORPORATION AND THE NEW YORK DIGITAL GAME DEVELOPMENT ADVI-
SORY BOARD ESTABLISHED IN SECTION SIXTEEN-X  OF  THE  URBAN  DEVELOPMENT
CORPORATION  ACT;  AND ANY OTHER TRANSACTION, SERVICE OR ACTIVITY DEEMED
ESSENTIAL TO SUCH PRODUCTION AND AUTHORIZED BY THE COMMISSIONER.
  S 3. Section 1 of chapter 174 of the laws of  1968,  constituting  the
New York state urban development corporation act, is amended by adding a
new section 16-x to read as follows:
  S 16-X. THE NEW YORK STATE DIGITAL GAME DEVELOPMENT AND INCENTIVE ACT.
1. AS USED IN THIS SECTION:
  A.  "DIGITAL  GAME  DEVELOPMENT"  OR "DIGITAL GAME SOFTWARE" COMPANIES
(COLLECTIVELY, "DIGITAL GAME COMPANIES") AND  PUBLISHERS  ARE  COMPANIES

S. 4054                             3

ENGAGED  IN  DEVELOPING, PRODUCING, OR PUBLISHING ENTERTAINMENT SOFTWARE
FOR ONE OR MULTIPLE PLATFORMS OR PLAYING DEVICES THAT MAY OR MAY NOT  BE
DOWNLOADED  ELECTRONICALLY,  INCLUDING  COMPANIES  THAT  ARE OR WOULD BE
CLASSIFIED UNDER NAIC CODE 511210 OR ANY SUCCESSOR THERETO;
  B. THE "NEW YORK DIGITAL GAME DEVELOPMENT ADVISORY BOARD" OR "ADVISORY
BOARD" MEANS THE NEW YORK GAME DEVELOPMENT ADVISORY BOARD CREATED PURSU-
ANT TO THIS SECTION;
  C.  "NEW YORK STATE INCUBATOR" OR "NEW YORK STATE INNOVATION HOT SPOT"
HAVE THE SAME MEANINGS AS "NEW YORK  STATE  INCUBATORS"  AND  "NEW  YORK
STATE INNOVATION HOT SPOTS" AS USED IN SECTION SIXTEEN-V OF THIS ACT;
  D.  "ANCHOR  TENANT"  MEANS  ENTITIES  OR PERSONS SO DESIGNATED BY THE
COMMISSIONER OF ECONOMIC DEVELOPMENT THAT ARE DIGITAL GAME COMPANIES, OR
ARE SUBSIDIARIES OF OR NEW VENTURES OWNED WHOLLY OR IN PART  BY  DIGITAL
GAME COMPANIES. AN ENTITY OR PERSON CANNOT BE AN ANCHOR TENANT UNLESS IT
IS RESIDENT IN NEW YORK STATE AND ESTABLISHES OPERATIONS PURSUANT TO THE
START-UP NY PROGRAM AUTHORIZED UNDER ARTICLE 21 OF THE ECONOMIC DEVELOP-
MENT LAW IN AN INDUSTRY CLUSTER OF DIGITAL GAME COMPANIES.
  2.  THE  CORPORATION  SHALL  TAKE THE STEPS AUTHORIZED AND REQUIRED IN
THIS SECTION, IN ORDER TO ENHANCE ECONOMIC DEVELOPMENT  IN  THE  DIGITAL
GAME  INDUSTRY AND TO CREATE OPPORTUNITIES FOR EMPLOYMENT, JOB CREATION,
AND PRODUCT DEVELOPMENT IN NEW YORK STATE, AND RECOGNITION  OF  EMERGING
AND CURRENT TALENT. THOSE STEPS INCLUDE BUT ARE NOT LIMITED TO CREATION,
PLANNING, DEVELOPMENT, AND IMPLEMENTATION OF:
  A. THE NEW YORK STATE DIGITAL GAME DEVELOPMENT ADVISORY BOARD;
  B.  ADMINISTRATION  AND IMPLEMENTATION OF INDUSTRY CLUSTERS OF DIGITAL
GAME COMPANIES ESTABLISHED PURSUANT TO ARTICLE 21 OF THE ECONOMIC DEVEL-
OPMENT LAW;
  C. DEVELOPMENT OF COLLABORATIONS WITH  NEW  YORK  STATE-BASED  DIGITAL
GAME COMPANIES AND ENTREPRENEURS, GAME DESIGN ACADEMIC INSTITUTIONS, NEW
YORK  INCUBATORS AND NEW YORK INNOVATION HOT SPOTS TO FURTHER THE INTENT
OF THIS PROGRAM;
  D. TARGETED TAX INCENTIVES AND BENEFITS FOR THE DIGITAL GAME INDUSTRY;
  E. HIGH SPEED INTERNET CONNECTION GRANTS;
  F. ADMINISTRATION OF THE NEW YORK STATE DIGITAL GAME DEVELOPMENT FUND.
  3. THERE IS HEREBY CREATED THE NEW YORK STATE DIGITAL GAME DEVELOPMENT
ADVISORY BOARD, WHOSE PURPOSE SHALL BE TO ADVISE AND  CONSULT  WITH  THE
CORPORATION  ON  THE DEVELOPMENT OF THE PROGRAM CREATED BY THIS SECTION.
THE BOARD SHALL CONSIST OF TWELVE MEMBERS APPOINTED BY THE GOVERNOR;  OF
THE  TWELVE,  TWO  SHALL  BE ON THE RECOMMENDATION OF THE SPEAKER OF THE
ASSEMBLY, TWO BY THE TEMPORARY PRESIDENT AND MAJORITY COALITION  LEADERS
OF  THE  SENATE,  AND ONE EACH BY THE MINORITY LEADERS OF THE SENATE AND
THE ASSEMBLY. MEMBERS OF THE BOARD SHALL BE EXECUTIVES OF  DIGITAL  GAME
COMPANIES  RESIDENT  IN NEW YORK STATE, ACADEMICS OR DEANS FROM ACADEMIC
GAME DESIGN PROGRAMS, AND SUCCESSFUL ENTREPRENEURS WITH  AT  LEAST  FIVE
YEARS EXPERIENCE IN THE INDUSTRY AND ONE OR MORE SUCCESSFUL GAMES.
  4.  THE  CORPORATION  IS  AUTHORIZED  TO WORK WITH THE COMMISSIONER OF
ECONOMIC DEVELOPMENT TO  PROVIDE  SERVICES  TO  DESIGNATED  CLUSTERS  OF
DIGITAL  GAME  DEVELOPMENT  AND  DIGITAL  GAME  SOFTWARE  COMPANIES  AND
PUBLISHERS APPROVED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT PURSUANT
TO ARTICLE  21  OF  THE  ECONOMIC  DEVELOPMENT  LAW  AND  THE  FOLLOWING
PROVISIONS,  WHICH  SHALL  BE  CONTROLLING  IN  THE CASE OF ANY CONFLICT
REGARDING OR LIMITING THE SPONSORSHIP OF PLANS AND ELIGIBILITY OF  BUSI-
NESSES,  INCLUDING  ANY  PROVISIONS OF SUBDIVISION 2-A OF SECTION 433 OF
THE ECONOMIC DEVELOPMENT LAW LIMITING THE ELIGIBILITY OF  THE  TYPES  OF
BUSINESSES  THAT  MAY  PARTICIPATE IN THE START-UP NY PROGRAM AUTHORIZED
UNDER ARTICLE 21 OF THE  ECONOMIC  DEVELOPMENT  LAW  IN  NASSAU  COUNTY,

S. 4054                             4

SUFFOLK  COUNTY,  WESTCHESTER  COUNTY,  OR  ANY  PROVISIONS  OF SUCH LAW
REGARDING NEW YORK CITY.
  A.  THE  COMMISSIONER OF ECONOMIC DEVELOPMENT MAY APPROVE ELEVEN PLANS
FOR CLUSTERS OF DIGITAL GAME DEVELOPMENT OR DIGITAL GAME SOFTWARE COMPA-
NIES AND PUBLISHERS AND SUPPORT COMPANIES SUBMITTED OR  AMENDED  BY  THE
PRESIDENT  OR  CHIEF  EXECUTIVE  OFFICER OF ANY STATE UNIVERSITY CAMPUS,
COMMUNITY COLLEGE OR CITY  UNIVERSITY  CAMPUS,  OR  PRIVATE  COLLEGE  OR
UNIVERSITY,  THAT  IS ELIGIBLE TO SPONSOR A TAX-FREE NY AREA PURSUANT TO
SECTIONS 432 AND 435 OF THE  ECONOMIC  DEVELOPMENT  LAW  AND  THAT  ALSO
OFFERS  A  BACHELOR'S OR MASTER'S DEGREE IN GAME DESIGN OR A SPECIALIZA-
TION IN GAME PROGRAMMING AS PART OF ITS COMPUTER SCIENCE  BACHELOR'S  OR
MASTER'S  PROGRAM.  SUCH SUBMITTED OR AMENDED PLANS MAY INCLUDE ALL OR A
PORTION OF THE ELIGIBLE LAND OF SUCH STATE UNIVERSITY CAMPUS,  COMMUNITY
COLLEGE  OR CITY UNIVERSITY CAMPUS, OR PRIVATE COLLEGE OR UNIVERSITY. IN
EVERY CASE SUCH PLANS AND THE ELIGIBLE BUSINESSES  THAT  LOCATE  IN  THE
AREA  DESIGNATED  BY  THE PLAN AND APPROVED BY THE COMMISSIONER SHALL BE
DEEMED TO BE PART OF THE START-UP NY PROGRAM, AUTHORIZED BY SUCH ARTICLE
21 OF THE ECONOMIC DEVELOPMENT LAW, AND APPROVED PURSUANT TO  SUCH  LAW.
SUCH APPROVAL SHALL ALSO BE DEEMED SUFFICIENT TO QUALIFY FOR ELIGIBILITY
FOR  TAX  BENEFITS AVAILABLE TO BUSINESSES LOCATED IN A TAX-FREE NY AREA
PURSUANT TO SECTION 39 OF THE TAX LAW AND SUCH OTHER SECTIONS OF LAW  AS
ARE  DESCRIBED  IN  SUCH  SECTION,  PROVIDED THAT SUCH BUSINESS SHALL BE
SUBJECT TO THE REQUIREMENTS OF SUCH SECTION.
  B. APPROVALS OF SUCH PLANS SHALL INCLUDE AT LEAST ONE IN EACH ECONOMIC
DEVELOPMENT REGION OF THE STATE WHERE THERE IS AN APPLICANT, AND TWO  IN
THE NEW YORK CITY ZONE.
  C.  IN  SUCH  PLANS, THE TYPES OF ELIGIBLE BUSINESS OR BUSINESSES THAT
MAY LOCATE ON THAT TAX-FREE NY AREA OR SPACE SHALL INCLUDE DIGITAL  GAME
DEVELOPMENT  AND  DIGITAL  GAME  SOFTWARE  COMPANIES  AND PUBLISHERS AND
SUPPORT COMPANIES, WHICH FOR  PURPOSES  OF  THIS  SUBDIVISION  SHALL  BE
DEEMED TO INCLUDE DATA CENTERS, UTILITIES, MOTION CAPTURE STUDIOS, SOFT-
WARE  AND HARDWARE MANUFACTURERS, GAME-SPECIFIC SCRIPTWRITERS, ANIMATION
AND PROGRAMMING OUTSOURCERS, AUDIO FACILITIES AND RECRUITING AGENCIES OR
SIMILAR SERVICES.
  D. SUCH PLANS MAY INCLUDE, IN ADDITION TO OTHER  ELIGIBLE  BUSINESSES,
PROVISION FOR ONE OR MORE ANCHOR TENANTS THAT ARE SUBSIDIARIES OF OR NEW
VENTURES  OWNED  WHOLLY  OR  IN  PART  BY COMPANIES RESIDENT IN NEW YORK
STATE, NOTWITHSTANDING THAT THEY MAY BE RELATED PERSONS WITHIN THE MEAN-
ING OF SUBDIVISION 8 OF SECTION 431 OF  THE  ECONOMIC  DEVELOPMENT  LAW,
PROVIDED  THAT  THEY MEET THE CRITERIA OF ADDING NET NEW JOBS AS DEFINED
IN SUBDIVISION 5 OF SUCH SECTION AND REQUIRED PURSUANT TO SECTION 433 OF
SUCH LAW.
  E. SUCH PLANS MAY ALSO UTILIZE AN ELIGIBLE  SPACE  THAT  IS  OWNED  OR
CONTROLLED  BY SUCH COLLEGE, CAMPUS, OR UNIVERSITY IN AN URBAN CORE AREA
OR AN AREA DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION 1 OF SECTION 432 OF
THE ECONOMIC DEVELOPMENT LAW, NOTWITHSTANDING  ITS  LOCATION  IN  NASSAU
COUNTY, SUFFOLK COUNTY, OR WESTCHESTER COUNTY, OR IN NEW YORK CITY.
  F.  ANY  SUCH  PLAN  MUST INCLUDE AN AFFILIATION WITH A NEW YORK STATE
INCUBATOR OR NEW YORK STATE INNOVATION HOT SPOT, TO PROVIDE SERVICES  TO
ELIGIBLE COMPANIES THAT LOCATE IN THE TAX-FREE NY AREA.
  G.  SUCH  PLANS  MAY  ALSO  ALLOW  FOR  COLLABORATION OF SUCH COLLEGE,
CAMPUS, OR UNIVERSITY WITH ONE OR  MORE  OTHER  COLLEGES,  CAMPUSES,  OR
UNIVERSITIES.
  H.  IN NO CASE SHALL A PLAN AUTHORIZED PURSUANT TO THIS SECTION EXCEED
THE TOTAL SQUARE FOOTAGE REQUIREMENTS OF PLANS  AUTHORIZED  PURSUANT  TO

S. 4054                             5

SUCH ARTICLE 21 OF THE ECONOMIC DEVELOPMENT LAW, EXCEPT WITH THE PERMIS-
SION OF THE COMMISSIONER OF ECONOMIC DEVELOPMENT.
  I.  FOR  PURPOSES OF THIS SECTION AND SECTION THIRTY-NINE-B OF THE TAX
LAW, THE TERMS "COMPETITION" AND "WOULD COMPETE" IN SECTION 440  AND  IN
ARTICLE  21  OF THE ECONOMIC DEVELOPMENT LAW SHALL BE DEEMED IN THE CASE
OF DIGITAL GAME COMPANIES TO REFER SOLELY TO THE SAME  OR  SUBSTANTIALLY
SIMILAR ENTERTAINMENT SOFTWARE.
  5.  ANY OTHER PROVISION OF ANY OTHER LAW TO THE CONTRARY NOTWITHSTAND-
ING, DIGITAL GAME DEVELOPMENT AND DIGITAL GAME  SOFTWARE  COMPANIES  AND
PUBLISHERS  SHALL  BE  DEEMED  ELIGIBLE  BUSINESSES  FOR THE PURPOSES OF
SUBSECTIONS (G) AND (R) OF SECTION 606 OF THE TAX LAW, AND  OF  SUBDIVI-
SIONS 7 AND 8 OF SECTION 210-B OF SUCH LAW.
  6.  THE CORPORATION IS AUTHORIZED, WITHIN AMOUNTS MADE AVAILABLE TO IT
BY APPROPRIATION THEREFOR AND WITH SUCH OTHER PUBLIC AND  PRIVATE  FUNDS
AS SHALL ADDITIONALLY BE MADE AVAILABLE, TO PROVIDE MATCHING GRANT FUNDS
TO  COLLEGES,  CAMPUSES, AND UNIVERSITIES WHOSE PLANS HAVE BEEN APPROVED
PURSUANT TO SUBDIVISION 4 OF THIS SECTION OR TO NEW YORK  STATE  INCUBA-
TORS  OR  NEW  YORK STATE INNOVATION HOT SPOTS WHICH ARE AFFILIATED WITH
SUCH PLANS IN AMOUNTS NOT TO EXCEED ONE  HUNDRED  THOUSAND  DOLLARS  PER
SCHOOL  OR  INCUBATOR  FOR HIGH-SPEED INTERNET SERVICES AND DEVELOPMENT.
THIS SUBDIVISION SHALL EXPIRE AND BE OF NO FURTHER EFFECT ON  AND  AFTER
JANUARY FIRST, TWO THOUSAND SIXTEEN.
  7.  THE  CORPORATION  AND  THE NEW YORK STATE DIGITAL GAME DEVELOPMENT
ADVISORY BOARD SHALL DEVELOP A PLAN FOR A  DIGITAL  GAME  AND  INCUBATOR
OUTREACH  PROGRAM  TO DEVELOP GAMES THAT ADDRESS COURSE REQUIREMENTS FOR
USE IN SCHOOLS IN THIS STATE. SUCH PLAN SHALL BE PRESENTED TO THE GOVER-
NOR AND THE LEGISLATURE NOT LATER THAN JANUARY THIRTIETH,  TWO  THOUSAND
SIXTEEN.
  8.  THE CORPORATION SHALL PREPARE AN ANNUAL REPORT TO THE GOVERNOR AND
THE LEGISLATURE. SUCH REPORT SHALL INCLUDE THE FOLLOWING DATA CONCERNING
ACTIVITIES PURSUANT TO THIS SECTION: THE NUMBER OF BUSINESS  APPLICANTS,
NUMBER OF BUSINESSES APPROVED, THE NAMES AND ADDRESSES OF THE BUSINESSES
LOCATED  WITHIN THE TAX-FREE NY AREAS, TOTAL AMOUNT OF BENEFITS DISTRIB-
UTED, BENEFITS RECEIVED PER BUSINESS, NUMBER OF NET  NEW  JOBS  CREATED,
NET  NEW  JOBS  CREATED  PER  BUSINESS, NEW INVESTMENT PER BUSINESS, THE
TYPES OF INDUSTRIES  REPRESENTED  AND  SUCH  OTHER  INFORMATION  AS  THE
COMMISSIONER  DETERMINES  NECESSARY  TO  EVALUATE  THE  PROGRESS  OF THE
PROGRAM. THE REPORT SHALL ALSO PROVIDE INFORMATION  AND  RECOMMENDATIONS
ON  THE  NUMBER  OF PERSONS NEEDED TO APPROPRIATELY STAFF THE PROGRAM BY
THE CORPORATION.  THE FIRST REPORT SHALL BE DUE JANUARY THIRTY-FIRST  OF
THE SECOND CALENDAR YEAR AFTER THIS SECTION SHALL HAVE TAKEN EFFECT.
  S  4.  The  tax law is amended by adding a new section 39-b to read as
follows:
  S 39-B. DIGITAL GAME DEVELOPMENT TAX CREDIT.  (A) ALLOWANCE OF CREDIT.
A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A  OR  TWENTY-TWO  OF  THIS
CHAPTER  SHALL  BE ALLOWED A CREDIT AGAINST SUCH TAX.  THE AMOUNT OF THE
CREDIT, ALLOWABLE FOR FOUR CONSECUTIVE TAX YEARS, IS EQUAL TO THE AMOUNT
DETERMINED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT,  BUT  SHALL  NOT
EXCEED  NINETEEN  PERCENT  OF  QUALIFIED  EXPENDITURES,  INCLUDING BONUS
AMOUNTS AS HEREIN PROVIDED.  THE CREDIT ALLOWED UNDER THIS SECTION SHALL
BE ALLOWED IN ADDITION TO ANY OTHER CREDITS ALLOWED UNDER THIS CHAPTER.
  (B) ELIGIBILITY. TO BE ELIGIBLE FOR THE DIGITAL GAME  DEVELOPMENT  TAX
CREDIT,  THE  TAXPAYER  SHALL  BE  AN  ANCHOR TENANT PURSUANT TO SECTION
SIXTEEN-X OF THE URBAN DEVELOPMENT CORPORATION ACT AND SHALL  HAVE  BEEN
ISSUED  AN  APPROVED  CERTIFICATE  OF ELIGIBILITY BY THE COMMISSIONER OF
ECONOMIC DEVELOPMENT  PURSUANT  TO  SUBDIVISION  FIVE  OF  SECTION  FOUR

S. 4054                             6

HUNDRED THIRTY-THREE OF THE ECONOMIC DEVELOPMENT LAW. THE TAXPAYER SHALL
BE  ALLOWED  TO  CLAIM  ONLY THE AMOUNT LISTED ON THE CERTIFICATE OF TAX
CREDIT FOR EACH TAXABLE YEAR.
  (C) THE CREDIT AUTHORIZED BY THIS SECTION SHALL BE FOR FIFTEEN PERCENT
OF QUALIFIED EXPENDITURES. THE TAXPAYER SHALL RECEIVE AN ADDITIONAL FOUR
PERCENT  OF  QUALIFIED  EXPENDITURES IF MORE THAN TWENTY-FIVE PERCENT OF
SUCH EXPENDITURES OCCURRED FOR PURCHASE OF SERVICES, GOODS, AND  USE  OF
PERSONNEL FROM WITHIN THE CLUSTER OF DIGITAL GAME DEVELOPMENT OR DIGITAL
GAME  SOFTWARE  COMPANIES AND PUBLISHERS AND SUPPORT COMPANIES WHERE THE
ANCHOR TENANT IS RESIDENT.
  (D) CREDITS AUTHORIZED PURSUANT TO THIS SECTION  SHALL  NOT  EXCEED  A
TOTAL  AMOUNT  OF  SIX  MILLION  DOLLARS  FOR  ANY  INDIVIDUAL  ELIGIBLE
PRODUCTION UNDERTAKEN BY ANY  SUCH  ANCHOR  TENANT  TAXPAYER  AND  SHALL
EXPIRE FOUR YEARS AFTER THE DATE ON WHICH THE TAX CREDITS ARE ISSUED. IF
THE  AMOUNT  OF  THE  CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED UNDER
THIS SECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE  TAXPAYER'S  TAX  FOR
SUCH  YEAR,  ANY  AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT THUS NOT
DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED  OVER  TO  THE  FOLLOWING
YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAX FOR SUCH YEAR OR YEARS.
  (E) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, THE COMMISSIONER OR
THE  COMMISSIONER'S  DESIGNEE  IS AUTHORIZED TO RELEASE THE NAME OF EACH
TAXPAYER CLAIMING THE CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY EACH
TAXPAYER.  HOWEVER, IF THE TAXPAYER CLAIMS A CREDIT BECAUSE THE TAXPAYER
IS A MEMBER OF A LIMITED LIABILITY COMPANY, A PARTNER IN  A  PARTNERSHIP
OR  A  SHAREHOLDER  IN  A  SUBCHAPTER  S CORPORATION, ONLY THE NAME OF A
LIMITED LIABILITY COMPANY, PARTNERSHIP OR SUBCHAPTER S  CORPORATION  AND
THE AMOUNT OF CREDIT EARNED BY THAT ENTITY MAY BE RELEASED.
  (F)  CREDIT  RECAPTURE.  IF A CERTIFICATE OF ELIGIBILITY ISSUED BY THE
COMMISSIONER OF ECONOMIC DEVELOPMENT IS REVOKED, THE  AMOUNT  OF  CREDIT
DESCRIBED  IN  THIS  SECTION  AND  CLAIMED BY THE TAXPAYER PRIOR TO THAT
REVOCATION SHALL BE ADDED BACK TO TAX IN THE TAXABLE YEAR IN  WHICH  ANY
SUCH REVOCATION BECOMES FINAL.
  (G)  ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
UNDER THIS SUBDIVISION, IN ANY  CALENDAR  YEAR  SHALL  BE  FIVE  MILLION
DOLLARS IN TWO THOUSAND SIXTEEN, TWO THOUSAND SEVENTEEN AND TWO THOUSAND
EIGHTEEN,  AND SEVEN MILLION DOLLARS IN TWO THOUSAND NINETEEN AND THERE-
AFTER. SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE  ALLOCATED  BASED  UPON
THE DATE OF FILING AN APPLICATION FOR ALLOCATION OF CREDIT. IF THE TOTAL
AMOUNT  OF  ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS
THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR  SUCH  YEAR  UNDER  THIS
SECTION,  SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE
FIRST DAY OF THE SUBSEQUENT YEAR.
  S 5. Severability. If any clause,  sentence,  paragraph,  subdivision,
section  or part of this act shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect,  impair,  or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, paragraph, subdivision, section or part thereof
directly  involved  in the controversy in which such judgment shall have
been rendered. It is hereby declared to be the intent of the legislature
that this act would have been enacted even if  such  invalid  provisions
had not been included herein.
  S  6.  This  act shall take effect on the ninetieth day after it shall
have become a law; provided that section four of  this  act  shall  take
effect January 1, 2016.