A bill that will provide a tax credit of at least 25 percent for music production is headed to New York Gov. Andrew Cuomo‘s desk after Senate and Assembly lawmakers passed the incentive to boost the state’s recording industry.
The legislation provides as 25 percent tax credit for production costs in downstate New York, and a 35 percent credit for upstate music production. The program is capped at $25 million per year.
The recording industry, music publishers and unions supported the legislation, which was sponsored by Sen. Martin Golden and Assemblyman Joseph Lentol.
The intent of the legislation is to reverse the flight of production to Toronto, Los Angeles, New Orleans and Nashville, Tennessee.
Cary Sherman, chairman and CEO of the Recording Industry Assn. of America, said in a statement that “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. 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.”
The expenses covered by the credit include salaries of session musicians, as well as programmers, engineers and technicians and other expenses like studio rental fees and local transportation.