What's happening
This bill creates a tax credit for music production companies in New York to incentivize music production and related expenditures within the state.
Why it matters
Targets New York-based music production. The bill specifically incentivizes music production where the principal place of production and recording is in New York State, requiring significant in-state spending, thus aiming to anchor more music industry activity locally.
Direct support for production-related jobs and expenditures. The credit covers tangible expenses like studio and equipment rentals, payments to musicians and technicians, and local logistics (hotel, catering, transportation), but excludes costs tied to promotion, distribution, royalties, and out-of-state work—focusing the benefit on actual in-state production jobs and services.
Imposes annual and weekly caps to ensure broad access. With a $25 million annual cap and a $1.25 million weekly cap, plus a single-taxpayer limit (no more than 10% of total credits), the bill is designed to prevent a few large companies from consuming all the benefits, encouraging wider industry participation.
Mandates transparency and economic review. The Empire State Development Corporation must publish recipient information online and conduct an economic impact study within a year, providing oversight and data to assess whether the credit is meeting its goals and informing future policy adjustments.
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Who cares
Music production companies and independent producers
The bill would offer eligible taxpayers a refundable credit equal to 25% of qualified New York production costs for commercially licensed recording projects costing more than $25,000.
Recording studios, musicians and audio engineers
Studio rentals, production session fees, mixing and mastering would qualify as costs eligible for the credit, potentially encouraging producers to purchase their services in New York.
Hotels, caterers and local transportation providers
Expenditures for their services directly related to music production would count toward qualified production costs.
Empire State Development Corporation
The corporation would allocate credits by application filing date under annual and weekly caps, publish recipients online and study the credit’s economic impact.
Headline styles
Create Music Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2851
2017-2018 Regular Sessions
IN SENATE
January 17, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government 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 Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 43 to read as follows:
§ 43. Empire state music production credit. (a)(1) Allowance of credit. A taxpayer which is a qualified music production company, or a qualified independent music production company, or which is a sole proprietor 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-five percent and the qualified production costs paid in the production of music by the taxpayer. Qualifying music productions shall be commercially licensed sound recording projects having as their principal place of production and recording this state and requiring expenditures in excess of twenty-five thousand dollars. If the annual cost of such productions to a taxpayer exceeds one hundred thousand dollars, but no single such production exceeds one hundred thousand dollars, such taxpayer may apply for the credit allowed by this section on an aggregate basis provided such taxpayer employes ten or more residents of this state. Qualified production costs shall mean costs for tangible property used and services performed directly and predominantly in the production of qualified music production in this state. Qualifying music production costs shall include studio rental fees and related costs;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03415-01-7
S. 2851 2
instrument and equipment rental fees; production session fees for musicians, songwriters, composers, arrangers, music producers, programmers, engineers and technicians; mixing and mastering services of qualifying music productions; and hotel catering and local transportation expenditures directly related to music production. Costs shall not include recording live concerts; artists and producer royalties or advances; licensing fees for samples; interpolations or other music clearance costs; mastering or post-production expenditures for projects that were not principally tracked and recorded in this state; nor any costs associated with manufacturing, duplication, packaging, distribution, promotion, marketing and touring not specifically outlined above.
(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-nine of section two hundred ten-B and subsection (ccc) of section six hundred six of this chapter in any calendar year shall be twenty-five million dollars and one million two hundred fifty thousand dollars in any given week. Such aggregate amount of credits shall be allocated by the empire state development corporation among taxpayers in order of priority based upon the date of filing an application for allocation of music production credit with such office. No single taxpayer may claim or be awarded more than ten percent of the aggregate amount of tax credits allowed under this section. 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-B: subdivision 49
(2) article 22: section 606: subsection (ccc)
§ 2. Section 210-B of the tax law is amended by adding a new subdivision 49 to read as follows:
49. Empire state music production credit. (a) Allowance of credit. A taxpayer who is eligible pursuant to section forty-three of this chapter shall be allowed a credit to be computed as provided in such section forty-three 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 section two hundred ten of this article. 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 credited or refunded in accordance with the provisions of section one thousand 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.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliii) to read as follows: (xliii) Empire state music Amount of credit for production credit under qualified production credit subsection (ccc) music under subdivision
S. 2851 3
forty-nine of section two
hundred ten-B
§ 4. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Empire state music production credit. (1) Allowance of credit. A taxpayer who is eligible pursuant to section forty-three of this chapter shall be allowed a credit to be computed as provided in such section forty-three 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 credited or refunded as provided in section six hundred eighty-six of this article, provided, however, that no interest shall be paid thereon.
§ 5. The empire state development corporation shall conduct a study analyzing the economic impact of the tax credit authorized pursuant to section one of this act and shall report its findings, conclusions and recommendations to the governor and the legislature 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. The empire state development corporation shall list the recipients of the tax credit authorized pursuant to section one of this act on their official internet website.
§ 6. This act shall take effect on the one hundred eightieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to the creation of the empire state music production credit
Purpose or general idea of bill
Relates to the creation of the empire state music production tax credit.
Summary of specific provisions
The tax law is amended by adding a new section 42.
Section 210-B of the tax law is amended by adding a new subdivision 49. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xli).
Section 606 of the Tax Law is amended by adding a new subsection (ccc).
Justification
The music industry in New York State continues to drive the creative economy to new post-recession heights. Other states have taken notice. Georgia, Tennessee and Louisiana have passed legislation that would provide production tax credits and incentives. Provinces in Canada have also introduced production tax credits. New York artists are increasingly faced with a choice of producing their music locally or traveling to other places in search of more affordable production services.
A production tax credit will provide a strong stimulus to New York's music industry statewide. The tax credit will promote hiring in all areas of the music industry. It will also encourage out of state artists to create works "Made in New York".
Prior legislative history
2015-16: S.4549A - Amend and Recommit to Investigations and Government Operations 2014: A.8702 - Referred to Ways and Means
Fiscal implications
To be determined
Effective date
This act shall take effect on the one hundred eightieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.