S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8629
 
                             I N  S E N A T E
 
                              March 23, 2022
                                ___________
 
 Introduced  by  Sen.  JORDAN -- 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  and  the  economic  development  law,  in
   relation to enacting the "Growing the Advanced Media Economy Act"; and
   to  provide  for  the repeal of certain provisions upon the expiration
   thereof

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act shall be known and may be cited as the "Growing
 the Advanced Media Economy Act".
   § 2. The tax law is amended by adding a new  section  45  to  read  as
 follows:
   §  45. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (A) ALLOW-
 ANCE OF  CREDIT.  (1)  A  TAXPAYER  WHICH  IS  A  DIGITAL  GAMING  MEDIA
 PRODUCTION  ENTITY ENGAGED IN QUALIFIED DIGITAL GAMING MEDIA PRODUCTION,
 OR WHO IS A SOLE PROPRIETOR OF OR A MEMBER OF A PARTNERSHIP, WHICH IS  A
 DIGITAL  GAMING  MEDIA  PRODUCTION  ENTITY  ENGAGED IN QUALIFIED DIGITAL
 GAMING MEDIA PRODUCTION, AND IS SUBJECT TO TAX UNDER ARTICLE  NINE-A  OR
 TWENTY-TWO  OF  THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX
 TO BE COMPUTED AS PROVIDED HEREIN.
   (2) (I) 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 OR LIMIT-
 ED LIABILITY COMPANY) OF TWENTY-FIVE PERCENT AND THE ELIGIBLE PRODUCTION
 COSTS OF ONE OR MORE QUALIFIED DIGITAL GAMING MEDIA PRODUCTIONS.
   (II)  NOTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARA-
 GRAPH, 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 OR LIMITED
 LIABILITY COMPANY) OF THIRTY PERCENT AND THE ELIGIBLE  PRODUCTION  COSTS
 OF ONE OR MORE QUALIFIED DIGITAL GAMING MEDIA PRODUCTIONS FOR A TAXPAYER
 QUALIFYING  FOR  A  CREDIT  UNDER THIS SECTION WHO: (A) IS THE PRINCIPAL
 PERSON OR SOLE PROPRIETOR OF THE BUSINESS; (B) HAS GRADUATED WITHIN  THE
 PAST  FIVE YEARS FROM A COLLEGE LOCATED IN NEW YORK; AND (C) ESTABLISHES
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15140-02-2
              

 S. 8629                             2
 
 AND MAINTAINS SUCH BUSINESS IN THE REGIONAL ECONOMIC DEVELOPMENT COUNCIL
 REGION IN WHICH THE COLLEGE WAS LOCATED.
   (3)  ELIGIBLE  DIGITAL  GAMING  MEDIA PRODUCTION COSTS FOR A QUALIFIED
 DIGITAL GAMING MEDIA PRODUCTION INCURRED AND  PAID  IN  THIS  STATE  BUT
 OUTSIDE  SUCH  METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT SHALL BE
 ELIGIBLE FOR A CREDIT OF TEN PERCENT OF SUCH ELIGIBLE  PRODUCTION  COSTS
 IN  ADDITION  TO  THE CREDIT SPECIFIED IN PARAGRAPH TWO OF THIS SUBDIVI-
 SION.
   (4) ELIGIBLE PRODUCTION COSTS SHALL NOT INCLUDE THOSE  COSTS  USED  BY
 THE  TAXPAYER  OR ANOTHER TAXPAYER AS THE BASIS CALCULATION OF ANY OTHER
 TAX CREDIT ALLOWED UNDER THIS CHAPTER OR ALLOWED IN ANY OTHER STATE.
   (B) ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS  ALLOWED
 UNDER  THIS SECTION, SUBDIVISION FIFTY-FIVE OF SECTION TWO HUNDRED TEN-B
 AND SUBSECTION (NNN) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER  IN  ANY
 TAXABLE  YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS. THE AGGREGATE AMOUNT
 OF CREDITS FOR ANY TAXABLE YEAR MUST BE DISTRIBUTED ON A REGIONAL  BASIS
 AS FOLLOWS: TWENTY-FIVE PERCENT OF THE AGGREGATE AMOUNT OF CREDITS SHALL
 BE  AVAILABLE  FOR QUALIFIED DIGITAL GAMING MEDIA PRODUCTIONS THAT INCUR
 AT LEAST SIXTY PERCENT OF ELIGIBLE  PRODUCTION  COSTS  FOR  A  QUALIFIED
 DIGITAL  GAMING  MEDIA  PRODUCTION  IN REGION ONE; TWENTY PERCENT OF THE
 AGGREGATE AMOUNT OF CREDITS SHALL BE  AVAILABLE  FOR  QUALIFIED  DIGITAL
 GAMING  MEDIA  PRODUCTIONS THAT INCUR AT LEAST SIXTY PERCENT OF ELIGIBLE
 PRODUCTION COSTS FOR A QUALIFIED  DIGITAL  GAMING  MEDIA  PRODUCTION  IN
 REGION  TWO;  AND  FIFTY-FIVE PERCENT OF THE AGGREGATE AMOUNT OF CREDITS
 SHALL BE AVAILABLE FOR QUALIFIED DIGITAL GAMING MEDIA  PRODUCTIONS  THAT
 INCUR  AT  LEAST SIXTY PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALI-
 FIED DIGITAL GAMING MEDIA PRODUCTION IN REGION THREE. IF  SUCH  REGIONAL
 DISTRIBUTION  IS  NOT FULLY ALLOCATED IN ANY TAXABLE YEAR, THE REMAINDER
 OF SUCH CREDITS SHALL BE AVAILABLE FOR ALLOCATION TO ANY REGION  IN  THE
 SUBSEQUENT  TAX YEAR. FOR THE PURPOSES OF THIS SECTION, REGION ONE SHALL
 CONTAIN THE CITY OF NEW YORK; REGION TWO SHALL CONTAIN THE  COUNTIES  OF
 WESTCHESTER,  ROCKLAND,  NASSAU  AND  SUFFOLK;  AND  REGION  THREE SHALL
 CONTAIN ANY COUNTY NOT CONTAINED IN REGIONS ONE  AND  TWO.  SUCH  CREDIT
 SHALL  BE  ALLOCATED  BY  THE EMPIRE STATE DEVELOPMENT CORPORATION AMONG
 TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE OF FILING AN APPLICA-
 TION FOR ALLOCATION OF DIGITAL GAMING MEDIA 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 TAXABLE YEAR.
   (C) DEFINITIONS. AS USED IN THIS SECTION:
   (1) "QUALIFIED DIGITAL GAMING MEDIA PRODUCTION" MEANS:
   (I) A WEBSITE, THE DIGITAL MEDIA PRODUCTION COSTS OF WHICH ARE PAID OR
 INCURRED PREDOMINATELY IN CONNECTION WITH:
   (A) VIDEO SIMULATION, ANIMATION,  TEXT,  AUDIO,  GRAPHICS  OR  SIMILAR
 GAMING RELATED PROPERTY EMBODIED IN DIGITAL FORMAT; AND
   (B)  INTERACTIVE  FEATURES  OF  DIGITAL  GAMING  (E.G., LINKS, MESSAGE
 BOARDS, COMMUNITIES OR CONTENT MANIPULATION);
   (II) VIDEO OR INTERACTIVE GAMES PRODUCED  PRIMARILY  FOR  DISTRIBUTION
 OVER THE INTERNET, WIRELESS NETWORK OR SUCCESSORS THERETO;
   (III)  ANIMATION,  SIMULATION  OR  EMBEDDED  GRAPHICS  DIGITAL  GAMING
 RELATED SOFTWARE INTENDED  FOR  COMMERCIAL  DISTRIBUTION  REGARDLESS  OF
 MEDIUM; AND
   (IV)  A  DIGITAL  GAMING  MEDIA  PRODUCTION IN WHICH QUALIFIED DIGITAL
 GAMING MEDIA PRODUCTION COSTS EQUAL TO OR ARE IN EXCESS OF  SEVEN  THOU-
 SAND  FIVE  HUNDRED DOLLARS IF INCURRED AND PAID IN THIS STATE IN TWELVE
 S. 8629                             3

 MONTHS PRECEDING THE DATE ON WHICH  THE  CREDIT  IS  CLAIMED.  PROVIDED,
 HOWEVER,  IF  SUCH  A PRODUCTION COSTS ARE INCURRED AND PAID OUTSIDE THE
 METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT  IN  THIS  STATE,  SUCH
 PRODUCTION  COSTS SHALL BE EQUAL TO OR IN EXCESS OF THREE THOUSAND SEVEN
 HUNDRED FIFTY DOLLARS TO BE A QUALIFIED DIGITAL GAMING MEDIA  PRODUCTION
 FOR  PURPOSES  OF  THIS  PARAGRAPH.  A  QUALIFIED  DIGITAL  GAMING MEDIA
 PRODUCTION DOES NOT INCLUDE A WEBSITE, VIDEO, INTERACTIVE GAME OR  SOFT-
 WARE  THAT  IS  USED  PREDOMINATELY  FOR: ELECTRONIC COMMERCE (RETAIL OR
 WHOLESALE PURPOSES OTHER THAN THE SALE OF VIDEO OR  INTERACTIVE  GAMES),
 GAMBLING  (INCLUDING  ACTIVITIES REGULATED BY A NEW YORK GAMING AGENCY),
 EXCLUSIVE LOCAL CONSUMPTION FOR ENTITIES NOT ACCESSIBLE BY  THE  GENERAL
 PUBLIC  INCLUDING  INDUSTRIAL  OR  OTHER PRIVATE PURPOSES, AND POLITICAL
 ADVOCACY PURPOSES.
   (2) "DIGITAL GAMING MEDIA PRODUCTION COSTS" MEANS ANY COSTS FOR  PROP-
 ERTY  USED  AND  WAGES OR SALARIES PAID TO INDIVIDUALS DIRECTLY EMPLOYED
 FOR SERVICES PERFORMED BY THOSE INDIVIDUALS DIRECTLY  AND  PREDOMINATELY
 IN  THE  CREATION  OF  A DIGITAL GAMING MEDIA PRODUCTION OR PRODUCTIONS.
 DIGITAL GAMING MEDIA PRODUCTION COSTS INCLUDE BUT SHALL NOT  BE  LIMITED
 TO PAYMENTS FOR PROPERTY USED AND SERVICES PERFORMED DIRECTLY AND PREDO-
 MINATELY  IN  THE  DEVELOPMENT  (INCLUDING  CONCEPT  CREATION),  DESIGN,
 PRODUCTION (INCLUDING CONCEPT CREATION), DESIGN,  PRODUCTION  (INCLUDING
 TESTING),  EDITING  (INCLUDING  ENCODING) AND COMPOSITING (INCLUDING THE
 INTEGRATION OF DIGITAL FILES FOR INTERACTION BY END  USERS)  OF  DIGITAL
 GAMING  MEDIA.  DIGITAL  GAMING MEDIA PRODUCTION COSTS SHALL NOT INCLUDE
 EXPENSES INCURRED FOR THE DISTRIBUTION, MARKETING, PROMOTION, OR  ADVER-
 TISING  CONTENT  GENERATED  BY END-USERS OR OTHER COSTS NOT DIRECTLY AND
 PREDOMINATELY RELATED TO THE CREATION,  PRODUCTION  OR  MODIFICATION  OF
 DIGITAL GAMING MEDIA. IN ADDITION, SALARIES OR OTHER INCOME DISTRIBUTION
 RELATED  TO  THE  CREATION  OF  DIGITAL  GAMING MEDIA FOR ANY PERSON WHO
 SERVES IN THE ROLE OF CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL  OFFICER,
 PRESIDENT,  TREASURER  OR  SIMILAR  POSITION  SHALL  NOT  BE INCLUDED AS
 DIGITAL GAMING MEDIA PRODUCTION COSTS. FURTHERMORE, ANY INCOME OR  OTHER
 DISTRIBUTION  TO  ANY  INDIVIDUAL  WHO  HOLDS AN OWNERSHIP INTEREST IN A
 DIGITAL GAMING MEDIA PRODUCTION ENTITY SHALL NOT BE INCLUDED AS  DIGITAL
 GAMING MEDIA PRODUCTION COSTS.
   (3)  "QUALIFIED  DIGITAL  GAMING MEDIA PRODUCTION COSTS" MEANS DIGITAL
 GAMING MEDIA PRODUCTION COSTS ONLY TO THE EXTENT SUCH COSTS ARE  ATTRIB-
 UTABLE  TO  THE  USE  OF  PROPERTY OR THE PERFORMANCE OF SERVICES BY ANY
 PERSONS WITHIN THE STATE DIRECTLY AND  PREDOMINANTLY  IN  THE  CREATION,
 PRODUCTION  OR  MODIFICATION OF DIGITAL GAMING RELATED MEDIA. SUCH TOTAL
 PRODUCTION COSTS INCURRED AND PAID IN THIS STATE SHALL BE  EQUAL  TO  OR
 EXCEED  SEVENTY-FIVE  PERCENT  OF  TOTAL  COST OF AN ELIGIBLE PRODUCTION
 INCURRED AND PAID WITHIN AND WITHOUT THIS STATE.
   (D) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE NINE-A: SECTION TWO HUNDRED TEN-B, SUBDIVISION FIFTY-FIVE.
   (2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA-
 GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLVI).
   (3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (NNN).
   §  3. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 55 to read as follows:
   55. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT.   (A)  ALLOW-
 ANCE  OF  CREDIT.  A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-
 FIVE OF THIS CHAPTER SHALL  BE  ALLOWED  A  CREDIT  TO  BE  COMPUTED  AS
 PROVIDED  IN  SUCH  SECTION  FORTY-FIVE  AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
 S. 8629                             4
 
   (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
 SECTION  TWO HUNDRED TEN OF THIS ARTICLE. 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  CREDITED  OR  REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
 SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED,  HOWEVER,  NO
 INTEREST SHALL BE PAID THEREON.
   §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xlvi)  to  read  as
 follows:
 (XLVI) EMPIRE STATE DIGITAL          AMOUNT OF CREDIT UNDER SUBDIVISION
 GAMING MEDIA PRODUCTION              FIFTY-FIVE OF SECTION TWO HUNDRED
 CREDIT                               TEN-B
   §  5. Section 606 of the tax law is amended by adding a new subsection
 (nnn) to read as follows:
   (NNN) EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (1)  ALLOW-
 ANCE  OF  CREDIT.  A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-
 FIVE OF THIS CHAPTER SHALL  BE  ALLOWED  A  CREDIT  TO  BE  COMPUTED  AS
 PROVIDED  IN  SUCH  SECTION  FORTY-FIVE  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.
   §  6. The state commissioner of economic development, after consulting
 with the state commissioner of taxation and  finance,  shall  promulgate
 regulations  by  December 31, 2022 to establish procedures for the allo-
 cation of tax credits as required by subdivision (a) of  section  45  of
 the  tax  law.  Such  rules  and  regulations  shall  include provisions
 describing the application process, the due dates for such applications,
 the standards which shall be used  to  evaluate  the  applications,  the
 documentation that will be provided to taxpayers substantiate to the New
 York  state department of taxation and finance the amount of tax credits
 allocated to such taxpayers, under what conditions all or a  portion  of
 this  tax  credit  may  be  revoked, and such other provisions as deemed
 necessary and appropriate. Notwithstanding any other provisions  to  the
 contrary in the state administrative procedure act, such rules and regu-
 lations  may  be adopted on an emergency basis if necessary to meet such
 December 31, 2022 deadline.
   § 7. The economic development law is amended by adding a  new  section
 242 to read as follows:
   §  242.  REPORTS  ON THE DIGITAL GAMING INDUSTRIES IN NEW YORK. 1. THE
 EMPIRE STATE DEVELOPMENT CORPORATION SHALL FILE A REPORT ON  A  BIANNUAL
 BASIS  WITH  THE  DIRECTOR  OF THE DIVISION OF THE BUDGET AND THE CHAIR-
 PERSONS AND RANKING MEMBERS OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND
 SENATE FINANCE COMMITTEE. THE REPORT SHALL BE FILED NO LATER THAN THIRTY
 DAYS BEFORE THE MID-POINT AND THE END OF THE STATE  FISCAL  YEAR.    THE
 FIRST  REPORT  SHALL COVER THE CALENDAR HALF YEAR THAT BEGINS ON JANUARY
 FIRST, TWO THOUSAND TWENTY-FOUR.  EACH REPORT MUST CONTAIN THE FOLLOWING
 INFORMATION FOR THE COVERED CALENDAR HALF YEAR:
   (A) THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED PURSUANT  TO  SECTION
 FORTY-FIVE OF THE TAX LAW DURING THE HALF YEAR, BROKEN DOWN BY MONTH;
 S. 8629                             5
 
   (B)  THE  NUMBER OF DIGITAL GAMING PROJECTS, WHICH HAVE BEEN ALLOCATED
 TAX CREDITS OF LESS THAN ONE MILLION DOLLARS PER PROJECT, AND THE  TOTAL
 DOLLAR  AMOUNT  OF  CREDITS  ALLOCATED  TO THOSE PROJECTS DISTRIBUTED BY
 REGION PURSUANT TO SUBDIVISION (B) OF SECTION FORTY-FIVE OF THE TAX LAW;
   (C)  THE  NUMBER OF DIGITAL GAMING PROJECTS, WHICH HAVE BEEN ALLOCATED
 TAX CREDITS OF MORE THAN ONE  MILLION  DOLLARS,  AND  THE  TOTAL  DOLLAR
 AMOUNT  OF  CREDITS  ALLOCATED  TO  THOSE PROJECTS DISTRIBUTED BY REGION
 PURSUANT TO SUBDIVISION (B) OF SECTION FORTY-FIVE OF THE TAX LAW;
    (D) A LIST OF EACH ELIGIBLE DIGITAL GAMING PROJECT,  WHICH  HAS  BEEN
 ALLOCATED  A TAX CREDIT ENUMERATED BY REGION PURSUANT TO SUBDIVISION (B)
 OF SECTION FORTY-FIVE OF THE TAX LAW, AND FOR EACH  OF  THOSE  PROJECTS,
 (I)  THE ESTIMATED NUMBER OF EMPLOYEES ASSOCIATED WITH THE PROJECT, (II)
 THE ESTIMATED QUALIFYING COSTS FOR THE  PROJECTS,  (III)  THE  ESTIMATED
 TOTAL  COSTS OF THE PROJECT, (IV) THE CREDIT ELIGIBLE EMPLOYEE HOURS FOR
 EACH PROJECT, AND (V) TOTAL WAGES  FOR  SUCH  CREDIT  ELIGIBLE  EMPLOYEE
 HOURS FOR EACH PROJECT; AND
   (E)  (I)  THE  NAME  OF  EACH TAXPAYER ALLOCATED A TAX CREDIT FOR EACH
 PROJECT AND THE COUNTY OF RESIDENCE OR INCORPORATION  OF  SUCH  TAXPAYER
 OR,  IF THE TAXPAYER DOES NOT RESIDE OR IS NOT INCORPORATED IN NEW YORK,
 THE STATE OF RESIDENCE OR INCORPORATION; HOWEVER, IF THE TAXPAYER CLAIMS
 A TAX 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, THE NAME OF EACH LIMITED LIABILITY COMPANY, PARTNERSHIP  OR
 SUBCHAPTER  S  CORPORATION  EARNING  ANY  OF  THOSE  TAX CREDITS MUST BE
 INCLUDED IN THE REPORT INSTEAD OF INFORMATION ABOUT THE TAXPAYER  CLAIM-
 ING  THE  TAX  CREDIT,  (II)  THE AMOUNT OF TAX CREDIT ALLOCATED TO EACH
 TAXPAYER; PROVIDED HOWEVER, IF THE TAXPAYER CLAIMS A TAX 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,  THE  AMOUNT
 OF  TAX  CREDIT  EARNED  BY  EACH  ENTITY MUST BE INCLUDED IN THE REPORT
 INSTEAD OF INFORMATION ABOUT THE TAXPAYER CLAIMING THE TAX  CREDIT,  AND
 (III)  INFORMATION IDENTIFYING THE PROJECT ASSOCIATED WITH EACH TAXPAYER
 FOR WHICH A TAX CREDIT WAS CLAIMED UNDER SECTION FORTY-FIVE OF  THE  TAX
 LAW.
   2.  THE  EMPIRE STATE DEVELOPMENT CORPORATION SHALL FILE A REPORT ON A
 TRIENNIAL BASIS WITH THE DIRECTOR OF THE DIVISION OF THE BUDGET AND  THE
 CHAIRPERSONS OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND SENATE FINANCE
 COMMITTEE.  THE  FIRST  REPORT SHALL BE FILED NO LATER THAN MARCH FIRST,
 TWO THOUSAND TWENTY-FIVE. THE REPORT MUST BE PREPARED BY AN  INDEPENDENT
 THIRD PARTY AUDITOR AND INCLUDE:
   (A)  INFORMATION  REGARDING THE EMPIRE STATE DIGITAL GAMING PRODUCTION
 CREDIT PROGRAM INCLUDING THE EFFICIENCY OF  OPERATIONS,  RELIABILITY  OF
 FINANCIAL  REPORTING,  COMPLIANCE WITH LAWS AND REGULATIONS AND DISTRIB-
 UTION OF ASSETS AND FUNDS;
   (B) AN ECONOMIC IMPACT STUDY PREPARED BY AN INDEPENDENT THIRD PARTY OF
 THE PROGRAM WITH SPECIAL EMPHASIS ON THE REGIONAL IMPACT BY  REGION  AND
 THE  TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED TO THOSE PROJECTS DISTRIB-
 UTED BY REGION PURSUANT TO SUBDIVISION (B) OF SECTION FORTY-FIVE OF  THE
 TAX LAW; AND
   (C)  ANY OTHER INFORMATION OR STATISTICAL INFORMATION THAT THE COMMIS-
 SIONER OF ECONOMIC DEVELOPMENT DEEMS  TO  BE  USEFUL  IN  ANALYZING  THE
 EFFECTS OF THE PROGRAMS.
   §  8.  a. The commissioner of the empire state development corporation
 shall undertake a market  study  to  examine  and  make  recommendations
 regarding  reducing  barriers  of entry and improving the state economic
 climate for game developers in the State of New York. For  the  purposes
 S. 8629                             6
 
 of  this  section,  "game  developer"  shall mean any sole proprietor or
 partnership which creates content defined under paragraph (ii) of subdi-
 vision (c) of section 45 of the tax law.
   b. Such study shall examine differentials in the regulatory and statu-
 tory  obligations for game developers compared to those in other states,
 possible costs incurred by game developers for regulatory and  statutory
 compliance,  availability  of  qualified  software developers within New
 York State, possible agreements between developers and  institutions  of
 higher  education within the State including the state university of New
 York, potential marketing efforts by the  corporation  and  other  state
 agencies, and any other relevant topic as determined by the commissioner
 of the empire state development corporation.
   c. In conducting such study and preparing recommendations, the commis-
 sioner shall seek the input of members of the game developer industry.
   d. On or before November 1, 2022, the commissioner of the empire state
 development  corporation shall report to the governor and legislature on
 the results of such study, together with  recommendations  for  removing
 barriers of entry and improving economic opportunity for game developers
 in the state of New York.
   § 9. This act shall take effect immediately and shall apply to taxable
 years  beginning on January 1, 2022 and before January 1, 2027; provided
 that sections two through five of this act shall expire  and  be  deemed
 repealed December 31, 2026.