senate Bill S6548A

Relates to enacting the New York state digital game development and incentive act

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 04 / Feb / 2014
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 10 / Feb / 2014
    • AMEND AND RECOMMIT TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 10 / Feb / 2014
    • PRINT NUMBER 6548A
  • 29 / Apr / 2014
    • REPORTED AND COMMITTED TO FINANCE

Summary

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.

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Bill Details

Versions:
S6548
S6548A
Legislative Cycle:
2013-2014
Current Committee:
Senate Finance
Law Section:
Economic Development Law
Laws Affected:
Amd §433, Ec Dev L; add §16-w, UDC Act; add §99-v, St Fin L; add §39-c, Tax L

Votes

Sponsor Memo

BILL NUMBER:S6548A

TITLE OF BILL: An act to amend the economic development law, the
urban development corporation act, the state finance law 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

Raise NYS profile

* NYS digital game development advisory board - 12 member board of
executives of NYS companies, academics from game design programs, and
entrepreneurs with at least five years experience in the industry,
appointed by Governor & Legislature.

* NYS digital game summit, regional events, & representation at
national events. The summit will be a celebration of New York's
industry sponsored by one or more private groups, and regional support
is to include support of regional and local events. The purpose is to
create an ecosystem of related gatherings, meetings, and competitions.
Representation at events will entail ESDC organizing and/or
participating in representation of New York digital game companies,
entrepreneurs, academics, and others at major game events and venues.

* NYS digital game development competition, a three stage judged
competition for prizes over a 24-month period. Judges are from
industry, academia, and economic development. Competitors must be
residents of the state, new and emerging talent, and early seed stage
startup entrepreneurs. The competition is as follows:

- First competition - 10 winners from each NYS 10 economic development
regions. Prize is $10,000 Requires conceptualization, design document,
and at least a digital prototype. Winners use the prizes to link with
incubators and to develop business attributes and product completion
necessary for the next phase of the competition.

- Second competition - 10 winners from the winners of the first
competition, scheduled at different venues around the state. Prize is
matching funds of up to $100,000. Entrants should be in
pre-production, with a vertical slice, and have raised funds for
match. Prizes will include access to incubator space and mentoring.

- Final competition - two winners from the ten, selected at the NYS
digital game summit. Prize is $500,000. Entrants must have a completed
game, and update the information required in the second competition.


- Competition 2 and 3 winners must agree to remain resident in the
state for game development purposes for three years, and to return the
award to the state should they leave or sell the game or the game
company prior to that. Winners must also agree to contribute one
percent of profits of the game to the New York state digital game
development fund for three years after publication of the game, or
until the amount contributed matches the amount of the award received,
whichever time period is less.

Development using existing & new incentives

* 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: January 1, 2015

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6548--A

                            I N  S E N A T E

                            February 4, 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 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to  amend  the  economic development law, the urban development
  corporation act, the state finance law 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13392-05-4

S. 6548--A                          2

  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
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. 6548--A                          3

  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  COMPANIES
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. THE NEW YORK DIGITAL GAME SUMMIT AND SUPPORT OF EVENTS;
  C. THE NEW YORK DIGITAL GAME DEVELOPMENT COMPETITION;
  D. ADMINISTRATION AND IMPLEMENTATION OF INDUSTRY CLUSTERS  OF  DIGITAL
GAME COMPANIES ESTABLISHED PURSUANT TO ARTICLE 21 OF THE ECONOMIC DEVEL-
OPMENT LAW;
  E.  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;
  F. TARGETED TAX INCENTIVES AND BENEFITS FOR THE DIGITAL GAME INDUSTRY;
  G. HIGH SPEED INTERNET CONNECTION GRANTS;
  H. 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 AND  DIRECTED,  WITHIN  AMOUNTS  MADE
AVAILABLE  TO  IT  BY  APPROPRIATION  THEREFOR AND SUCH OTHER PUBLIC AND
PRIVATE FUNDS AS SHALL ADDITIONALLY BE MADE AVAILABLE, TO PROVIDE  LOANS
AND  GRANTS FOR SERVICES AND EXPENSES RELATED TO PLANNING AND IMPLEMENT-
ING A NEW YORK STATE DIGITAL GAME SUMMIT, TO SUPPORT AND  PROMOTE  OTHER

S. 6548--A                          4

LOCAL  AND REGIONAL DIGITAL GAME EVENTS, AND TO ORGANIZE STATE REPRESEN-
TATION AT NATIONAL DIGITAL GAME EVENTS DEEMED  AFTER  CONSULTATION  WITH
THE NEW YORK STATE DIGITAL GAME DEVELOPMENT ADVISORY BOARD TO BE SIGNIF-
ICANT  AND  APPROPRIATE  TO RAISING NEW YORK'S PROFILE AND STATUS IN THE
GAME DEVELOPMENT INDUSTRY. PRIOR TO TAKING SUCH ACTIONS, THE CORPORATION
SHALL CONSULT WITH AND DEVELOP A PLAN TO MAXIMIZE  THE  EFFECT  OF  SUCH
ACTIVITIES  WITH  THE  NEW YORK DIGITAL GAME DEVELOPMENT ADVISORY BOARD.
GENERAL REQUIREMENTS AND PARAMETERS FOR THESE  ACTIVITIES  SHALL  BE  AS
FOLLOWS:
  A.  NEW  YORK  STATE  GAME  SUMMIT SHALL BE A MULTI-DAY CONVENTION AND
CELEBRATION OF NEW YORK'S DIGITAL  GAME  INDUSTRY,  INCLUDING  ENTREPRE-
NEURS, STUDENTS, ACADEMIC INSTITUTIONS, AND COMPANIES, TO BE HELD IN NEW
YORK  CITY  AT A TIME WHEN THERE IS THE LEAST AMOUNT OF COMPETITION FROM
OTHER NATIONAL AND IN-STATE EVENTS, AT A VENUE WITH A HISTORY AND INTER-
EST IN DIGITAL GAMING OR IN CONVENTIONS WHICH  ARE  ABLE  TO  HOUSE  THE
LAUNCH  OF A GROWING EVENT. THE GAME SUMMIT WILL ALSO INCLUDE THE FINALS
OF THE NEW  YORK  DIGITAL  GAME  DEVELOPMENT  COMPETITION,  CREATED  AND
AUTHORIZED  BY  THIS  SECTION,  AND  SHALL  INCLUDE  DEMONSTRATIONS  AND
DISCUSSIONS OF GAMES, EDUCATIONAL FORUMS IN WHICH  EDUCATORS  CAN  LEARN
ABOUT  USING  GAMES IN THE CLASSROOM, AND OTHER ACTIVITIES DEEMED APPRO-
PRIATE BY THE CORPORATION TO SUCH AN EVENT.  THE CORPORATION SHALL PART-
NER WITH AND SUPPORT ONE OR MORE PRIVATE ENTITIES AND TRADE ASSOCIATIONS
THAT CREATE AND IMPLEMENT THE SUMMIT.
  B. REGIONAL SUPPORT SHALL INCLUDE SUPPORT OF AND  COLLABORATIONS  WITH
REGIONAL AND LOCAL DIGITAL GAME PUBLISHERS AND DEVELOPER EVENTS, FOR THE
PURPOSE  OF  CREATING  AN ECOSYSTEM OF RELATED GATHERINGS, MEETINGS, AND
COMPETITIONS IN THIS STATE.
  C. REPRESENTATION AT EVENTS WILL  ENTAIL  THE  CORPORATION  ORGANIZING
AND/OR  PARTICIPATING  IN REPRESENTATION OF NEW YORK DIGITAL GAME COMPA-
NIES, ENTREPRENEURS, ACADEMICS, AND OTHERS  AT  MAJOR  GAME  EVENTS  AND
VENUES.
  5.  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 PLAN AND IMPLEMENT THE NEW
YORK STATE DIGITAL GAME DEVELOPMENT COMPETITION, THE  PURPOSE  OF  WHICH
SHALL  BE  TO  ANNUALLY  RECOGNIZE AND ENCOURAGE EMERGING TALENT IN GAME
DEVELOPMENT IN THIS STATE THROUGH A THREE STAGE JUDGED  COMPETITION  FOR
PRIZES OVER A PERIOD NOT LONGER THAN TWENTY-FOUR MONTHS. THE CORPORATION
SHALL  CONSULT WITH AND DEVELOP A PLAN FOR THE GAME DEVELOPMENT COMPETI-
TION WITH THE NEW YORK DIGITAL GAME DEVELOPMENT ADVISORY BOARD.  GENERAL
REQUIREMENTS AND PARAMETERS FOR THESE ACTIVITIES ARE AS FOLLOWS:
  A.  THE FIRST COMPETITION SHALL TAKE PLACE WITHIN EACH ECONOMIC DEVEL-
OPMENT REGION IN THE STATE, AND SHALL RESULT IN TEN WINNERS PER  REGION.
NOTHING  CONTAINED HEREIN SHALL PREVENT TWO OR MORE REGIONS FROM COLLAB-
ORATING IN THIS STAGE OF THE  COMPETITION,  AND  THE  CORPORATION  SHALL
ESTABLISH  RULES OR GUIDELINES TO GOVERN SUCH COLLABORATIONS. THE SECOND
COMPETITION SHALL TAKE PLACE AMONG THE WINNERS OF THE FIRST COMPETITION,
AND SHALL RESULT IN TEN WINNERS. THIS COMPETITION SHALL BE SCHEDULED  AT
DIFFERENT  VENUES  WITHIN  THE  STATE  EACH  YEAR TO ASSURE GEOGRAPHICAL
BALANCE. THE FINAL COMPETITION SHALL RESULT IN TWO WINNERS AND SHALL  BE
CONDUCTED  AS PART OF THE NEW YORK STATE DIGITAL GAME SUMMIT. WINNERS OF
THE FIRST COMPETITION SHALL RECEIVE PRIZES OF TEN THOUSAND DOLLARS EACH.
WINNERS OF THE SECOND COMPETITION SHALL RECEIVE MATCHING FUND PRIZES  OF
UP  TO  ONE HUNDRED THOUSAND DOLLARS EACH. WINNERS OF THE THIRD COMPETI-
TION SHALL RECEIVE PRIZES OF FIVE HUNDRED THOUSAND DOLLARS EACH.

S. 6548--A                          5

  B. EACH COMPETITION SHALL BE JUDGED BY A SEVEN-MEMBER PANEL OF  INDUS-
TRY  OFFICIALS, ENTREPRENEURS, ACADEMICS, AND ECONOMIC DEVELOPMENT OFFI-
CIALS IN THE REGION OR IN THE STATE AS APPROPRIATE TO THE LEVEL  OF  THE
COMPETITION,  SELECTED  BY THE CORPORATION BASED ON RECOMMENDATIONS FROM
THE  COMMUNITY,  THE GAMING INDUSTRY, AND GOVERNMENT AND OTHER OFFICIALS
IN THE REGION. THE PANELS SHOULD INCLUDE A PREPONDERANCE OF  JUDGES  WHO
ARE INDUSTRY OFFICIALS, ENTREPRENEURS, ACADEMICS, AND SUCH JUDGES SHOULD
HAVE A BACKGROUND IN OR KNOWLEDGE OF DIGITAL GAMES, GAME PUBLISHING, AND
GAME  DEVELOPMENT AND AN UNDERSTANDING OF COMMERCIAL APPEAL AND MARKETA-
BILITY OF GAMES.
  C. THE CORPORATION SHALL ESTABLISH CRITERIA FOR ELIGIBILITY OF  COMPE-
TITION  ENTRANTS  THAT  REQUIRE  RESIDENCY  IN THIS STATE AND THAT LIMIT
ENTRANTS TO NEW AND EMERGING TALENT AND EARLY SEED STAGE STARTUP  ENTRE-
PRENEURS  AS  EVIDENCED  BY  FACTORS  SUCH  AS  THAT THE ENTRANT HAS NOT
PUBLISHED A GAME PREVIOUSLY OR, IF SUCH ENTRANT HAS PUBLISHED A GAME  IT
HAS EARNED A SMALL AMOUNT AS DETERMINED BY THE CORPORATION, OR THAT SUCH
ENTRANT  IS CURRENTLY A CLIENT OF A NEW YORK STATE INCUBATOR OR NEW YORK
STATE INNOVATION HOT SPOT, AND THE COMPANY HAS  BEEN  IN  EXISTENCE  FOR
LESS THAN THREE YEARS, AND OTHER SIMILAR FACTORS.
  D. FACTORS TO BE INCLUDED IN JUDGING EACH PHASE OF THE COMPETITION ARE
AS FOLLOWS:
  (I)  FOR  THE  FIRST  PHASE  ENTRANTS SHOULD SHOW CONCEPTUALIZATION, A
DESIGN DOCUMENT, AND PRE-PRODUCTION WITH CODING COMPLETED TO AT LEAST  A
DIGITAL  PROTOTYPE THAT SHOWS HOW THE GAME WOULD WORK. ADDITIONALLY, THE
JUDGES SHALL CONSIDER THE QUALITY OF THE GAME CONCEPT, THE PITCH OF  THE
INDIVIDUAL  TEAMS, THE TEAM DYNAMIC, AND THE LEVEL OF REAL, SUBSTANTIAL,
AND CONTINUING CONTROL OF THE I.P. WINNERS SHALL USE THE FUNDS  TO  LINK
WITH  NEW  YORK  STATE  INCUBATORS  FOR  COUNSELING AND MENTORING AND TO
DEVELOP THE NECESSARY BUSINESS ATTRIBUTES AS WELL AS ADDITIONAL  PRODUCT
COMPLETION NECESSARY FOR THE NEXT PHASE OF THE COMPETITION;
  (II)  FOR  THE SECOND PHASE COMPETITION AMONG THE WINNERS OF THE FIRST
PHASE, ENTRANTS SHOULD BE IN  PRE-PRODUCTION,  AND  SHOULD  HAVE  RAISED
FUNDS FROM INVESTORS OR FUNDING SITES OR OTHER SOURCES. PRIZES WILL BE A
MATCH  TO SUCH FUNDS, UP TO ONE HUNDRED THOUSAND DOLLARS, PLUS ACCESS TO
INCUBATOR SPACE AND MENTORING, SKILL BUILDING, AND OTHER SERVICES AVAIL-
ABLE TO BEING AN INCUBATOR CLIENT, AS NEGOTIATED AND  DEVELOPED  BY  THE
CORPORATION.  JUDGES  WILL LOOK AT ASPECTS OF THE PRODUCT AS WELL AS THE
BUSINESS PROPOSAL.  COMPETITORS  SHOULD  HAVE  COMPLETED  AND  SUBMITTED
EVIDENCE SATISFACTORY TO THE CORPORATION OF:
  (A) A BUSINESS TEAM (BAIL TEAM) AND A BUSINESS AND MARKETING PLAN;
  (B) A STRATEGIC MONETIZATION INVESTMENT AND FUNDING PLAN;
  (C)  A BUSINESS (INCLUDING A DBA, OR ANY OTHER FORM OF BUSINESS ORGAN-
IZATION);
  (D) A COMPLETED PRODUCT PLAN FOR MARKETING AND FINAL DEVELOPMENT;
  (E) PROOF OF CONCEPT CONSISTING AT LEAST OF A "VERTICAL SLICE" OF  THE
GAME,  MEANING  AT  LEAST ONE LEVEL OF PLAY, POLISH AND FINISH, WITH THE
INFRASTRUCTURE LARGELY COMPLETED;
  (F) PUBLIC TESTING OR ACCEPTANCE OR OTHER EVIDENCE OF MARKETING  VALUE
OF THE GAME;
  (III)  FOR  THE  THIRD  PHASE  COMPETITION AMONG WINNERS OF THE SECOND
PHASE, ENTRANTS MUST HAVE A COMPLETED GAME SUBMITTED  FOR  JUDGING,  AND
UPDATE THE INFORMATION REQUIRED IN PHASE TWO OF THE COMPETITION. CONTES-
TANTS  SHOULD ALSO REVEAL WHAT THEY INTEND TO DO WITH THE AWARD MONEY IF
THEY WIN.
  E. AS A CONDITION OF RECEIPT OF AWARDS  RECEIVED  IN  PHASES  TWO  AND
THREE,  CONTESTANTS SHALL AGREE TO REMAIN RESIDENT IN THE STATE FOR GAME

S. 6548--A                          6

DEVELOPMENT PURPOSES FOR A PERIOD OF FIVE YEARS, AND TO RETURN THE AWARD
TO THE STATE SHOULD THEY LEAVE OR SELL THE  GAME  OR  THE  GAME  COMPANY
PRIOR TO THAT FIVE-YEAR PERIOD. WINNERS IN PHASES ONE AND TWO SHALL ALSO
AGREE, AS A CONDITION OF RECEIPT OF THE AWARD, TO CONTRIBUTE ONE PERCENT
OF  PROFITS  OF  THE GAME TO THE NEW YORK STATE DIGITAL GAME DEVELOPMENT
FUND CREATED PURSUANT TO SECTION NINETY-NINE-V OF THE STATE FINANCE LAW,
FOR A PERIOD OF THREE YEARS AFTER PUBLICATION OF THE GAME, OR UNTIL  THE
AMOUNT  CONTRIBUTED  MATCHES THE AMOUNT OF THE AWARD RECEIVED, WHICHEVER
TIME PERIOD IS LESS.
  F. THE CORPORATION SHALL TAKE SUCH STEPS AS ARE NECESSARY  OR  CONVEN-
IENT  IN  ASSOCIATION  WITH GAME PUBLISHERS TO PROVIDE OPPORTUNITIES FOR
PHASE TWO AWARD RECIPIENTS TO OBTAIN  CONSIDERATION  OF  PUBLICATION  OF
THEIR GAMES.
  6.  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,
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

S. 6548--A                          7

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
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.
  7. 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.
  8. 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 6 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 1, TWO THOUSAND FIFTEEN.
  9. 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.
  10. 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-

S. 6548--A                          8

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 state finance law is amended by adding a new section 99-v to
read as follows:
  S 99-V. NEW YORK STATE DIGITAL GAME DEVELOPMENT FUND.    1.  THERE  IS
HEREBY  ESTABLISHED  IN  THE  JOINT  CUSTODY  OF THE COMPTROLLER AND THE
COMMISSIONER OF ECONOMIC DEVELOPMENT AN  ACCOUNT  IN  THE  MISCELLANEOUS
SPECIAL  REVENUE  FUND  TO  BE KNOWN AS THE "NEW YORK STATE DIGITAL GAME
DEVELOPMENT FUND".
  2. SUCH ACCOUNT SHALL CONSIST OF MONIES DEPOSITED  INTO  IT  FROM  THE
REQUIREMENTS  ESTABLISHED PURSUANT TO PARAGRAPH E OF SUBDIVISION FIVE OF
SECTION SIXTEEN-W OF THE URBAN DEVELOPMENT CORPORATION ACT.
  3. ALL MONIES IN THE ACCOUNT SHALL BE AVAILABLE, SUBJECT TO  APPROPRI-
ATION,  FOR  THE  PAYMENT OF EXPENSES AND PRIZES OF THE NEW YORK DIGITAL
GAME DEVELOPMENT COMPETITION.
  S 5. 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 FOUR
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.

S. 6548--A                          9

  (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  6.  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 7. This act shall take effect on the ninetieth day  after  it  shall
have  become  a  law;  provided that section five of this act shall take
effect January 1, 2015.

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