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

                                  6716

                            I N  S E N A T E

                              March 3, 2014
                               ___________

Introduced  by  Sen.  GOLDEN -- 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:

  Section 1. The tax law is amended by adding a new section 41  to  read
as follows:
  S 41.  EMPIRE STATE MUSIC PRODUCTION CREDIT. (A)(1) ALLOWANCE OF CRED-
IT. A TAXPAYER WHICH IS A QUALIFIED MUSIC PRODUCTION COMPANY, OR A QUAL-
IFIED  INDEPENDENT MUSIC PRODUCTION COMPANY, OR WHICH IS A SOLE PROPRIE-
TOR OF OR  A  MEMBER  OF  A  PARTNERSHIP  WHICH  IS  A  QUALIFIED  MUSIC
PRODUCTION  COMPANY OR A QUALIFIED INDEPENDENT MUSIC PRODUCTION COMPANY,
AND WHICH IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO  OF  THIS
CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX.
  (2)  THE  AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA SHARE
OF THE PRODUCT, IN THE CASE OF A MEMBER  OF  A  PARTNERSHIP)  OF  TWENTY
PERCENT  AND  THE  QUALIFIED  PRODUCTION  COSTS  PAID OR INCURRED IN THE
PRODUCTION OF MUSIC BY THE TAXPAYER. SUCH COSTS SHALL INCLUDE: RECORDING
PRODUCTION COSTS, ARTISTS' ROYALTIES, MUSICIAN SESSION  FEES,  GRAPHICS,
DIGITAL  SCANNING,  PROGRAMMING  AND TESTING, PRODUCTION COSTS FOR MUSIC
VIDEOS MADE IN NEW YORK STATE AND DIRECT MARKETING EXPENDITURES  INCLUD-
ING  CONSULTANT  FEES AND COSTS TO LAUNCH THE RECORDING. COSTS SHALL NOT
INCLUDE TOURING, PERFORMING, MANUFACTURING AND DISTRIBUTION COSTS.
  (3) NO QUALIFIED PRODUCTION COSTS USED BY A TAXPAYER AS THE BASIS  FOR
THE  ALLOWANCE  OF  THE  CREDIT PROVIDED FOR UNDER THIS SECTION SHALL BE
USED BY SUCH TAXPAYER TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS
CHAPTER.
  (B) ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS  ALLOWED
UNDER  THIS  SECTION, SUBDIVISION FORTY-EIGHT OF SECTION TWO HUNDRED TEN
AND SUBSECTION (XX) OF SECTION SIX HUNDRED SIX OF THIS  CHAPTER  IN  ANY
CALENDAR  YEAR  SHALL BE SIXTY MILLION DOLLARS. SUCH AGGREGATE AMOUNT OF
CREDITS SHALL BE ALLOCATED BY THE EMPIRE STATE  DEVELOPMENT  CORPORATION

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

                                                           LBD13775-01-4

S. 6716                             2

AMONG  TAXPAYERS  IN  ORDER OF PRIORITY BASED UPON THE DATE OF FILING AN
APPLICATION FOR ALLOCATION OF MUSIC PRODUCTION CREDIT WITH SUCH  OFFICE.
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.
  (C)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210: SUBDIVISION 48
  (2) ARTICLE 22: SECTION 606: SUBSECTION (XX)
  S 2. Section 210 of the tax law is amended by adding a new subdivision
48 to read as follows:
  48. EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF  CREDIT.  A
TAXPAYER  WHO  IS ELIGIBLE PURSUANT TO SECTION FORTY-ONE OF THIS CHAPTER
SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS  PROVIDED  IN  SUCH  SECTION
FORTY-ONE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN  THE  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS
SECTION. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE  CREDIT  ALLOWABLE
UNDER  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CRED-
ITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE  THOU-
SAND  EIGHTY-SIX  OF  THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause  (xxxvii)  to  read  as
follows:
(XXXVII) EMPIRE STATE MUSIC          AMOUNT OF CREDIT FOR
PRODUCTION CREDIT UNDER              QUALIFIED PRODUCTION CREDIT
SUBSECTION (XX)                      MUSIC UNDER SUBDIVISION
                                     FORTY-ONE OF SECTION TWO
                                     HUNDRED TEN
  S  4.  Subsections  (yy)  and  (zz)  of section 606 of the tax law, as
relettered by section 5 of part H of chapter 1 of the laws of 2003,  are
relettered  subsections  (yyy)  and  (zzz)  and a new subsection (xx) is
added to read as follows:
  (XX) EMPIRE STATE MUSIC PRODUCTION CREDIT. (1) ALLOWANCE OF CREDIT.  A
TAXPAYER  WHO  IS ELIGIBLE PURSUANT TO SECTION FORTY-ONE OF THIS CHAPTER
SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS  PROVIDED  IN  SUCH  SECTION
FORTY-ONE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED  OR  REFUNDED  AS  PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 5. The empire state development corporation  shall  report,  to  the
governor  and the legislature, its findings, conclusions and recommenda-
tions on or before one year from the date this act shall become  a  law,
and  shall submit with its report such legislative proposals as it deems
necessary to implement its recommendations.
  S 6. This act shall take effect on the one hundred eightieth day after
it shall have become a law.