Relates to enacting the New York state digital game development and incentive act to enhance opportunities in the gaming industry through grants and tax incentives.
TITLE OF BILL: 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
PURPOSE: To incentivize rapid growth and job creation in the digital game development industry
SUMMARY OF PROVISIONS:
Section 1. Legislative intent
§ 2. New section 433 of the economic development law to allow the commissioner to issue a certificate of eligibility for an eligible production by an anchor tenant in a game cluster. The credit (detailed later) is for 15% of eligible costs.
§ 3. New 16-w in the urban development corporation act, the NYS digital game development and incentive act. Key provisions:
Development using existing & new incentives
* Create NYS Digital Game development Advisory Board 12 members from the industry, the academy, and entrepreneurs, appointed by the Governor and the Legislature.
* Create 11 game clusters as all or part of STARTUP-NY zones, one in each economic development zone, and two in NYC Sponsors are limited to colleges and universities that offer a BA or or master's degree in game design or a specialization in game programming as part of its computer science bachelor's or master's program. Eligible companies include digital game development and software companies and publishers and support companies, and one or more anchor tenants that are subsidiaries of or new ventures owned wholly or in part by companies resident in New York state. Clusters can be located in an eligible space in an urban core area or economical challenged area. Limits the competitive requirement to the development, production, or publishing of the same or substantially similar games.
* Entrepreneurial training - Clusters must include an affiliation with a NYS incubator or innovation hot spot, to provide services to eligible companies.
* High Speed Internet development - grants of up to $100,000, expiring in two years, to STARTUP zones and incubators.
* Digital game development tax credit - available to anchors in game clusters. Credit is 15% of eligible expenditures, over a four year period, for an eligible project. Credit amount can increase to 19% if anchor spends more than 25% on services, goods, and use of personnel from within the cluster. Credit is capped at $5 million for an individual through
2017, and raises to $7 million thereafter. It takes effect January 1, 2015.
EXISTING LAW: New bill.
JUSTIFICATION: The digital game industry is $21 billion domestically (2012), greater than the music industry ($16.5 billion), the movie industry ($10.44 billion) and the DVD industry ($18 billion), growing at 10% per year, with an average salary for direct employees of $90,000.
New York ranks 4th among the top states, with 71 developers and publishers and 5,474 direct and indirect jobs. Average compensation is $96,602. Top states are California, Washington, Texas, with Massachusetts coming up behind.
The changes in this legislation will dramatically increase New York's share of the industry they are based on recommendations and discussions conducted with the industry in all-day roundtables and other discussions.
FISCAL IMPLICATIONS: To be determined, but minimal in the current fiscal year, and then limited thereafter to appropriations and tax credit caps.
EFFECTIVE DATE: 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, 2015.
STATE OF NEW YORK ________________________________________________________________________ 6792 IN SENATE March 11, 2014 ___________Introduced by Sens. GOLDEN, GALLIVAN, BALL, 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 existingEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14394-01-4 S. 6792 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-W 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-C 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 FIFTEEN. 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-W 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-w to read as follows: S 16-W. 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 COMPANIESS. 6792 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. 6792 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 TOS. 6792 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-C 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 12-E AND 12-F OF SECTION 210 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 FIFTEEN. 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 FIFTEEN. 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-c to read as follows: S 39-C. 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-W 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 FOURS. 6792 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 FIFTEEN, TWO THOUSAND SIXTEEN AND TWO THOUSAND SEVENTEEN, AND SEVEN MILLION DOLLARS IN TWO THOUSAND EIGHTEEN 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, 2015.