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

5 Co-sponsors

• Patrick M. Gallivan
• Greg Ball
• Joseph A. Griffo
• Joseph E. Robach
• David J. Valesky

BILL NUMBER:S6792

Title of bill

An act to amend the economic development law, the urban development corporation act and the tax law, in relation to establishing the New York state digital game development and incentive act

Purpose

To incentivize rapid growth and job creation in the digital game development industry

Summary of provisions

Section 1. Legislative intent

§ 2. New section 433 of the economic development law to allow the commissioner to issue a certificate of eligibility for an eligible production by an anchor tenant in a game cluster. The credit (detailed later) is for 15% of eligible costs.

§ 3. New 16-w in the urban development corporation act, the NYS digital game development and incentive act. Key provisions:

Development using existing & new incentives

* Create NYS Digital Game development Advisory Board 12 members from the industry, the academy, and entrepreneurs, appointed by the Governor and the Legislature.

* Create 11 game clusters as all or part of STARTUP-NY zones, one in each economic development zone, and two in NYC Sponsors are limited to colleges and universities that offer a BA or or master's degree in game design or a specialization in game programming as part of its computer science bachelor's or master's program. Eligible companies include digital game development and software companies and publishers and support companies, and one or more anchor tenants that are subsidiaries of or new ventures owned wholly or in part by companies resident in New York state. Clusters can be located in an eligible space in an urban core area or economical challenged area. Limits the competitive requirement to the development, production, or publishing of the same or substantially similar games.

* Entrepreneurial training - Clusters must include an affiliation with a NYS incubator or innovation hot spot, to provide services to eligible companies.

* High Speed Internet development - grants of up to $100,000, expiring in two years, to STARTUP zones and incubators.

* Digital game development tax credit - available to anchors in game clusters. Credit is 15% of eligible expenditures, over a four year peri- od, for an eligible project. Credit amount can increase to 19% if anchor spends more than 25% on services, goods, and use of personnel from with- in 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 publish- ers and 5,474 direct and indirect jobs. Average compensation is $96,602. Top states are California, Washington, Texas, with Massachusetts coming up behind.

The changes in this legislation will dramatically increase New York's share of the industry they are based on recommendations and discussions conducted with the industry in all-day roundtables and other discussions.

Fiscal implications

To be determined, but minimal in the current fiscal year, and then limited thereafter to appropriations and tax credit caps.

Effective date

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