NY State Senate Bill 2023-S6997A

Current Bill Status - On Floor Calendar

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 28, 2024	ordered to third reading cal.1484 committee discharged and committed to rules
May 16, 2024	print number 6997b
May 16, 2024	amend and recommit to budget and revenue
Jan 22, 2024	print number 6997a
Jan 22, 2024	amend and recommit to budget and revenue
Jan 03, 2024	referred to budget and revenue
May 16, 2023	referred to budget and revenue

Bill Amendments

Original

B (Active)

2023-S6997 - Details

See Assembly Version of this Bill:: A7126
Law Section:: Tax Law
Laws Affected:: Amd §§45, 210-b & 606, Tax L

2023-S6997 - Summary

Amends the eligibility criteria for game development companies by changing the yearly timeframe structure, lowering the dollar threshold per production, and removing the in-state cost incurred threshold to accurately fit current digital gaming industry models.

2023-S6997 - Sponsor Memo

                                 
BILL NUMBER: S6997

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the tax law, in relation to the eligibility criteria for
the digital gaming tax credit

 
PURPOSE OF THE BILL:

To amend the eligibility criteria to the digital media gaming credit to
better allow the New York gaming industry access.. to the incentives.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the eligibility criteria for game development compa-
nies by changing the yearly timeframe structure, lowering the dollar
threshold per production and by removing the in-state cost incurred
threshold to accurately fit current digital gaming industry models.

Section 2 contains the effective date of the bill.

 
JUSTIFICATION:

In 2022, as part of the final state budget, the Legislature passed and
the Governor signed the empire state digital gaming media production
credit. This was a vital first step into recognizing the growing video
game development industry in the state and to help attract out of state
developers to come into New York and take advantage of incentives to
grow the industry. The credit is designed to provide meaningful and
effective incentives to an industry critical to future economic develop-
ment throughout the State. Unfortunately, as the credit is in its
initial year of being implemented, it has been discovered that the
current eligibility requirements under the law is making it extremely
difficult for a significant number of New York gaming development compa-
nies to be eligible for the credit despite them falling under the intent
of the incentive. The current criteria does not fit the realities of the
gaming development industry and these changes are needed to ensure the
credit is utilized to its maximum potential. This bill does not change
the amount of the credit and only amends the eligibility criteria.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S6997 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6997
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to the eligibility criteria for
   the digital gaming tax credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivisions (b) and (c) of section 45 of the tax law, as
 added by section 1 of part OO of chapter 59 of  the  laws  of  2022,  is
 amended to read as follows:
   (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 five million dollars. Such credit shall  be  allo-
 cated  by  the  department  of economic development in order of priority
 based upon the date of filing an application for allocation  of  digital
 gaming  media  production  credit  with  such office. AN APPLICANT SHALL
 SUBMIT AN ANNUAL APPLICATION WHICH SHALL INCLUDE ALL  QUALIFIED  DIGITAL
 GAMING  MEDIA PRODUCTIONS FOR THE TAXABLE YEAR ALONG WITH AN ESTIMATE OF
 THE DIGITAL GAMING MEDIA PRODUCTION  COSTS.  THE  APPLICATION  SHALL  BE
 SUBMITTED  NO  LATER THAN THE END OF THE APPLICABLE TAXABLE YEAR. 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 predo-
 minately 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11262-01-3

 S. 6997                             2
 
 interactive games produced primarily for distribution over the internet,
 wireless network or successors thereto; and (iii) animation,  simulation
 or  embedded  graphics  digital  gaming  related  software  intended for
 commercial  distribution  regardless  of medium; provided, however, that
 the qualified digital game development media  productions  described  in
 subparagraphs  (i)  through  (iii)  of  this paragraph must have digital
 media production costs equal to or in  excess  of  [one  hundred]  FIFTY
 thousand  dollars  per  production.  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  interactive  games),
 gambling  (including  activities regulated by a New York gaming agency),
 or political advocacy purposes.
   (2) "Digital gaming media production costs" means any costs for  wages
 or  salaries paid to individuals, other than actors or writers, directly
 employed for  services  performed  by  those  individuals  directly  and
 predominantly  in  the  creation of a digital gaming media production or
 productions. Up to one hundred thousand dollars in  wages  and  salaries
 paid to such employees, other than actors and writers, directly employed
 shall  be  used  in the calculation of this credit. Digital gaming media
 production costs include but  shall  not  be  limited  to  payments  for
 services   performed  directly  and  predominantly  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 advertising content generated by
 end users, other costs not directly and  predominantly  related  to  the
 creation,  production  or  modification of digital gaming media or costs
 used by the taxpayer as a basis of the  calculation  of  any  other  tax
 credit allowed under this chapter. 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  finan-
 cial  officer,  president,  treasurer  or  similar position shall not be
 included as digital gaming media production costs if the digital  gaming
 media  production  entity has more then ten employees. Salaries or other
 income to a person serving in such a role for the digital  gaming  media
 production  entity shall also not be included if the person was employed
 by a related person of the digital gaming media production entity within
 sixty months of the date the  digital  gaming  media  production  entity
 applied  for  the tax credit certificate described in subdivision (d) of
 this section. For purposes of the preceding sentence, a  related  person
 shall have the same meaning as the term "related person" in section four
 hundred sixty-five of the internal revenue code. Furthermore, any income
 or  other  distribution to any individual including, but not limited to,
 licensing or royalty fees, who holds an ownership interest in a  digital
 gaming  media production entity, whether or not such individual is serv-
 ing in the role of chief executive  officer,  chief  financial  officer,
 president,  treasurer  or similar position for such an entity, shall not
 be included as digital gaming media production costs. Up to four million
 dollars  in  qualified  digital  gaming  media  production   costs   per
 production  shall  be  used  in  the calculation of this credit. Digital
 gaming media 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.
 S. 6997                             3
 
   (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.]
   (4) "Digital gaming media  production  entity"  means  a  corporation,
 partnership,  limited  partnership or other entity or individual engaged
 in qualified digital game development media production.
   § 2. This act shall take effect immediately.

co-Sponsors

2023-S6997A - Details

See Assembly Version of this Bill:: A7126
Law Section:: Tax Law
Laws Affected:: Amd §§45, 210-b & 606, Tax L

2023-S6997A - Summary

2023-S6997A - Sponsor Memo

                                 
BILL NUMBER: S6997A

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the tax law, in relation to the eligibility criteria for
the digital gaming tax credit

 
PURPOSE OF THE BILL:

This bill would amend the Digital Gaming Media Production Credit by
enhancing the eligibility criteria to the credit to better allow the New
York gaming industry access to the incentives. This bill would also
amend the credit to increase the annual funding cap to better incentiv-
ize the industry to locate in New York State.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the eligibility criteria for game development compa-
nies by changing the yearly timeframe structure, lowering the dollar
threshold per production and by removing the in-state cost incurred
threshold to accurately fit current digital gaming industry models. It

also increases the annual allocation from five million dollars to one
hundred million dollars.

Section 2 amends the credit by removing the annual single taxpayer cap
as it applies to section 210-B of the tax law.

Section 3 amends the credit by removing the annual single taxpayer cap
as it applies to section 606 of the tax law.

Section 4 contains the effective date of the bill.

 
JUSTIFICATION:

In 2022, as part of the final state budget, the Legislature passed and
the Governor signed the empire state digital gaming media production
credit. This was a vital first step into recognizing the growing video
game development industry in the state and to help attract out of state
developers to come into New York and take advantage of incentives to
grow the industry. The credit is designed to provide meaningful and
effective incentives to an industry critical to future economic develop-
ment throughout the State. Unfortunately, as the credit is in its
initial year of being implemented, -it has been discovered that the
current eligibility requirements under the law are making it extremely
difficult for a significant number of New York gaming development
companie8 to be eligible for the credit despite them falling under the
intent of the incentive. The current criteria does not fit the realities
of the gaming development industry and these changes are needed to
development companies to locate in New York.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

Up to $100 million a year in tax expenditur

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2023 and before January 1, 2030.

2023-S6997A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6997--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   recommitted  to the Committee on Budget and Revenue in accordance with
   Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
   reprinted as amended and recommitted to said committee

 AN ACT to amend the tax law, in relation to the eligibility criteria for
   the digital gaming tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subdivision (a) and subdivision (b) and  (c)
 of  section 45 of the tax law, as added by section 1 of part OO of chap-
 ter 59 of the laws of 2022, are amended to read as follows:
   (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 for taxable  years  beginning  on  or  after  January
 first,  two thousand twenty-three and before January first, two thousand
 [twenty-eight] THIRTY.
   (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 [five] ONE HUNDRED million dollars. Such credit
 shall be allocated by the department of economic development in order of
 priority based upon the date of filing an application for allocation  of
 digital  gaming  media  production credit with such office. AN APPLICANT
 SHALL SUBMIT AN ANNUAL APPLICATION WHICH  SHALL  INCLUDE  ALL  QUALIFIED
 DIGITAL  GAMING  MEDIA  PRODUCTIONS  FOR  THE TAXABLE YEAR ALONG WITH AN
 ESTIMATE OF THE DIGITAL GAMING MEDIA PRODUCTION COSTS.  THE  APPLICATION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11262-03-4

 S. 6997--A                          2
 
 CAN  BE  SUBMITTED NO EARLIER THAN NINETY DAYS PRIOR TO THE FIRST DAY OF
 THE APPLICABLE TAXABLE YEAR. 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  predo-
 minately  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; and (iii) animation, simulation
 or embedded  graphics  digital  gaming  related  software  intended  for
 commercial  distribution  regardless  of medium; provided, however, that
 the qualified digital game development media  productions  described  in
 subparagraphs  (i)  through  (iii)  of  this paragraph must have digital
 media production costs equal to or in  excess  of  [one  hundred]  FIFTY
 thousand  dollars  per  production.  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  interactive  games),
 gambling  (including  activities regulated by a New York gaming agency),
 or political advocacy purposes.
   (2) "Digital gaming media production costs" means any costs for  wages
 [or  salaries]  paid  to  individuals,  [other  than actors or writers,]
 directly employed for services performed by those  individuals  directly
 [and predominantly] in the creation of a digital gaming media production
 or  productions.  [Up to one hundred thousand dollars in wages and sala-
 ries paid to such employees, other than  actors  and  writers,  directly
 employed  shall  be  used  in  the  calculation of this credit.] Digital
 gaming media production costs  include  but  shall  not  be  limited  to
 payments  for  services  performed  directly  [and predominantly] in the
 development (including concept creation), [design,] production  (includ-
 ing  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 advertising
 content generated by end users, other costs not directly  [and  predomi-
 nantly]  related  to the creation, production or modification of digital
 gaming media or costs used by the taxpayer as a basis of the calculation
 of any other tax credit allowed under this chapter. In addition,  [sala-
 ries  or  other  income  distribution]  WAGES related to the creation of
 digital gaming media for any person who PREDOMINATELY serves in A CORPO-
 RATE CAPACITY IN the role of chief executive  officer,  chief  financial
 officer,  president,  treasurer or similar CORPORATE position AND WHO IS
 NOT DIRECTLY ENGAGED IN SERVICES RELATED TO THE CREATION  OF  A  DIGITAL
 GAMING  MEDIA PRODUCTION OR PRODUCTIONS shall not be included as digital
 gaming media production costs if the  digital  gaming  media  production
 entity  has  more  then  ten employees. [Salaries or other income] WAGES
 PAID to a person serving in such a role for  the  digital  gaming  media
 production  entity shall also not be included if the person was employed
 by a related person of the digital gaming media production entity within
 S. 6997--A                          3
 
 sixty months of the date the  digital  gaming  media  production  entity
 applied  for  the tax credit certificate described in subdivision (d) of
 this section. For purposes of the preceding sentence, a  related  person
 shall have the same meaning as the term "related person" in section four
 hundred  sixty-five  of  the  internal  revenue  code. [Furthermore, any
 income or other distribution to any individual including, but not limit-
 ed to, licensing or royalty fees, who holds an ownership interest  in  a
 digital  gaming  media production entity, whether or not such individual
 is serving in the role of chief executive officer, chief financial offi-
 cer, president, treasurer or similar position for such an entity,  shall
 not  be  included  as  digital gaming media production costs. Up to four
 million dollars in qualified digital gaming media production  costs  per
 production  shall  be  used  in the calculation of this credit.] Digital
 gaming media 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.
   (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.]
   (4)  "Digital  gaming  media  production  entity" means a corporation,
 partnership, limited partnership or other entity or  individual  engaged
 in qualified digital game development media production.
   §  2. Paragraph (a) of subdivision 55 of section 210-b of the tax law,
 as added by section 2 of part OO of chapter 59 of the laws of  2022,  is
 amended to read as follows:
   (a)  Allowance  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. [Under no circumstances may a single  taxpayer  receive
 more  than  one million five hundred thousand dollars in tax credits per
 year.]
   § 3. Paragraph 1 of subsection (nnn) of section 606 of the tax law, as
 added by section 4 of part OO of chapter 59 of  the  laws  of  2022,  is
 amended to read as follows:
   (1)  Allowance  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. [Under no circumstances may a single  taxpayer  receive
 more  than  one million five hundred thousand dollars in tax credits per
 year.]
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2023 and before January 1, 2030.

co-Sponsors

2023-S6997B (ACTIVE) - Details

See Assembly Version of this Bill:: A7126
Law Section:: Tax Law
Laws Affected:: Amd §§45, 210-b & 606, Tax L

2023-S6997B (ACTIVE) - Summary

2023-S6997B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6997B

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the tax law, in relation to the eligibility criteria for
the digital gaming tax credit

 
PURPOSE OF THE BILL:

This bill would amend the Digital Gaming Media Production Credit by
enhancing the eligibility criteria to the credit to better allow the New
York gaming industry access to the incentives.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the eligibility criteria for game development compa-
nies by changing the yearly timeframe structure, lowering the dollar
threshold per production and by removing the in-state cost incurred
threshold to accurately fit current digital gaming industry models.

Section 2 amends the credit by removing the annual single taxpayer cap

as it applies to section 210-B of the tax law.

Section 3 amends the credit by removing the annual single taxpayer cap
as it applies to section 606 of the tax law.

Section 4 contains the effective date of the bill.

 
JUSTIFICATION:

In 2022, as part of the final state budget, the Legislature passed and
the Governor signed the empire state digital gaming media production
credit. This was a vital first step into recognizing the growing video
game development industry in the state and to help attract out of state
developers to come into New York and take advantage of incentives to
grow the industry. The credit is designed to provide meaningful and
effective incentives to an industry critical to future economic develop-
ment throughout the State. Unfortunately, as the credit is in its
initial year of being implemented, it has been discovered that the
current eligibility requirements under the law are making it extremely
difficult for a significant number of New York gaming development compa-
nies to be eligible for the credit despite them falling under the intent
of the incentive. The current criteria does not fit the realities of the
gaming development industry and these changes are needed to development
companies to locate in New York.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

Up to $5 million a year in tax expenditures

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2024 and before January 1, 2028.

2023-S6997B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6997--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2023
                                ___________
 
 Introduced  by  Sens. BRESLIN, COONEY -- read twice and ordered printed,
   and when printed to be committed to the Committee on Budget and Reven-
   ue -- recommitted to the Committee on Budget and Revenue in accordance
   with Senate Rule 6, sec. 8  --  committee  discharged,  bill  amended,
   ordered  reprinted  as  amended  and  recommitted to said committee --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 AN ACT to amend the tax law, in relation to the eligibility criteria for
   the digital gaming tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions (b) and (c) of section 45 of the tax  law,  as
 added  by  section  1  of part OO of chapter 59 of the laws of 2022, are
 amended to read as follows:
   (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 five million dollars. Such credit shall be allo-
 cated by the department of economic development  in  order  of  priority
 based  upon  the date of filing an application for allocation of digital
 gaming media production credit with  such  office.  AN  APPLICANT  SHALL
 SUBMIT  AN  ANNUAL APPLICATION WHICH SHALL INCLUDE ALL QUALIFIED DIGITAL
 GAMING MEDIA PRODUCTIONS FOR THE TAXABLE YEAR ALONG WITH AN ESTIMATE  OF
 THE  DIGITAL  GAMING  MEDIA  PRODUCTION  COSTS.  THE  APPLICATION CAN BE
 SUBMITTED NO EARLIER THAN NINETY DAYS PRIOR TO  THE  FIRST  DAY  OF  THE
 APPLICABLE  TAXABLE  YEAR.  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:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11262-06-4

 S. 6997--B                          2
 
   (1)  "Qualified digital gaming media production" means: (i) a website,
 the digital media production costs of which are paid or incurred  predo-
 minately  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; and (iii) animation, simulation
 or embedded  graphics  digital  gaming  related  software  intended  for
 commercial  distribution  regardless  of medium; provided, however, that
 the qualified digital game development media  productions  described  in
 subparagraphs  (i)  through  (iii)  of  this paragraph must have digital
 media production costs equal to or in  excess  of  [one  hundred]  FIFTY
 thousand  dollars  per  production.  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  interactive  games),
 gambling  (including  activities regulated by a New York gaming agency),
 or political advocacy purposes.
   (2) "Digital gaming media production costs" means any costs for  wages
 [or  salaries]  paid  to  individuals,  [other  than actors or writers,]
 directly employed for services performed by those  individuals  directly
 [and predominantly] in the creation of a digital gaming media production
 or  productions.  [Up to one hundred thousand dollars in wages and sala-
 ries paid to such employees, other than  actors  and  writers,  directly
 employed  shall  be  used  in  the  calculation of this credit.] Digital
 gaming media production costs  include  but  shall  not  be  limited  to
 payments  for  services  performed  directly  [and predominantly] in the
 development (including concept creation), [design,] production  (includ-
 ing  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 advertising
 content generated by end users, other costs not directly  [and  predomi-
 nantly]  related  to the creation, production or modification of digital
 gaming media or costs used by the taxpayer as a basis of the calculation
 of any other tax credit allowed under this chapter. In addition,  [sala-
 ries  or  other  income  distribution]  WAGES related to the creation of
 digital gaming media for any person who PREDOMINATELY serves in A CORPO-
 RATE CAPACITY IN the role of chief executive  officer,  chief  financial
 officer,  president,  treasurer or similar CORPORATE position AND WHO IS
 NOT DIRECTLY ENGAGED IN SERVICES RELATED TO THE CREATION  OF  A  DIGITAL
 GAMING  MEDIA PRODUCTION OR PRODUCTIONS shall not be included as digital
 gaming media production costs if the  digital  gaming  media  production
 entity  has  more  then  ten employees. [Salaries or other income] WAGES
 PAID to a person serving in such a role for  the  digital  gaming  media
 production  entity shall also not be included if the person was employed
 by a related person of the digital gaming media production entity within
 sixty months of the date the  digital  gaming  media  production  entity
 applied  for  the tax credit certificate described in subdivision (d) of
 this section. For purposes of the preceding sentence, a  related  person
 shall have the same meaning as the term "related person" in section four
 hundred  sixty-five  of  the  internal  revenue  code. [Furthermore, any
 income or other distribution to any individual including, but not limit-
 ed to, licensing or royalty fees, who holds an ownership interest  in  a
 S. 6997--B                          3

 digital  gaming  media production entity, whether or not such individual
 is serving in the role of chief executive officer, chief financial offi-
 cer, president, treasurer or similar position for such an entity,  shall
 not  be  included  as  digital gaming media production costs. Up to four
 million dollars in qualified digital gaming media production  costs  per
 production  shall  be  used  in the calculation of this credit.] Digital
 gaming media 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.
   (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.]
   (4)  "Digital  gaming  media  production  entity" means a corporation,
 partnership, limited partnership or other entity or  individual  engaged
 in qualified digital game development media production.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2024 and before January 1, 2028.

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Senate Bill S6997A

Sponsored By

Current Bill Status - On Floor Calendar

Bill Amendments

2023-S6997 - Details

2023-S6997 - Summary

2023-S6997 - Sponsor Memo

2023-S6997 - Bill Text download pdf

co-Sponsors

2023-S6997A - Details

2023-S6997A - Summary

2023-S6997A - Sponsor Memo

2023-S6997A - Bill Text download pdf

co-Sponsors

2023-S6997B (ACTIVE) - Details

2023-S6997B (ACTIVE) - Summary

2023-S6997B (ACTIVE) - Sponsor Memo

2023-S6997B (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6997A

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Sponsored By

Neil D. Breslin

Current Bill Status - On Floor Calendar

Bill Amendments

2023-S6997 - Details

2023-S6997 - Summary

2023-S6997 - Sponsor Memo

2023-S6997 - Bill Text download pdf

co-Sponsors

Jeremy A. Cooney

2023-S6997A - Details

2023-S6997A - Summary

2023-S6997A - Sponsor Memo

2023-S6997A - Bill Text download pdf

co-Sponsors

Jeremy A. Cooney

2023-S6997B (ACTIVE) - Details

2023-S6997B (ACTIVE) - Summary

2023-S6997B (ACTIVE) - Sponsor Memo

2023-S6997B (ACTIVE) - Bill Text download pdf

Comments