The
Empire State Music Production Tax Credit, which proponents believe will
attract more music production jobs across New York State, passed in
both the Assembly and Senate on Thursday in Albany. If signed into law
by Gov. Andrew Cuomo, the bill will provide a 25 percent tax credit for
eligible production costs downstate (NYC), and a 35 percent break for
upstate music businesses.
The
program is capped at $25 million per year. To be eligible, costs must
be related to job creation, rental fees, session fees for
musicians/engineers, etc., mixing and mastering services,
transportation, or for music video production. The bill, sponsored by
Sen. Martin Golden and Assemblyman Joseph Lentol, received widespread
support from the local music industry, which has been looking for ways
to keep jobs and productions from shipping off to places like Canada.
"For
too long, we have all watched as iconic recording studios, retail
outlets and other businesses necessary for a healthy New York music
economy have shuttered," said RIAA chairman and CEO Cary Sherman in a
statement. "Jobs have been lost to other countries, other states or lost
altogether. That's a shame and an outrage. New York once was -- and
should again be -- a vibrant epicenter of music… This legislation
provides an opportunity for New York to regain its footing and reclaim
its status as an economic engine of music industry growth. We urge
Governor Cuomo to sign this vital bill into law."
Justin
Kalifowitz, CEO of Downtown Music Publishing and the co-founder of the
New York is Music coalition, which lobbied hard for the bill, said that
"whether it's a local recording studio in Buffalo or an upstart
entrepreneur in Utica, more than 100,000 New Yorkers who work in music
will benefit from this important credit."
The
tax credit had broad bipartisan support in both the Assembly (118-24)
and Senate (60-2). Gov. Cuomo has not indicated whether he'll sign the
bill into law when it reaches his desk; a message left at his press
office was not immediately returned.
New
York State previously introduced the Empire State Music and Theatrical
Production Tax Credit Program, designed to encourage music and
theatrical production companies to conduct pre-tour activities and
perform shows in upstate New York.
"New York Lawmakers Pass Tax Credit to Boost Music Production in State."
Yahoo Music/Billboard. June 17, 2016. Accessed July 07, 2016.
https://www.yahoo.com/music/york-lawmakers-pass-tax-credit-boost-music-production-145641719.html.
