Assemblyman Lentol Announces Inclusion Of Empire State Music Production Tax Credit In Assembly's One-House Budget

Assemblyman Joe Lentol (D-North Brooklyn) announced today the inclusion of the Empire State Music Production Tax Credit in the Assembly’s one-house budget. The program will provide a tax credit to companies that record and produce music in New York State and create jobs for music industry workers, from musicians to engineers and sound mixers.

“As we come out of the recession, states have looked back to the arts as economic engines. New York began offering tax credits to support the film and television industry in 2004, which has brought over $7 billion in spending to the state. Unfortunately, the arts have not historically been looked at as an industry that can create significant revenue for a state, but the times are changing,” Lentol said. “By looking at the film industry in New York, we know that the arts are definitely an economic engine.”

Under the Empire State Music Production Tax Credit a credit of 25% for downstate and 35% for upstate will be available to music production companies. To qualify for the credit, the majority of production and recording costs must be spent in New York. Production costs that will be covered by the tax credit range from studio and equipment rental fees to hotel and transportation expenditures directly related to music production. The total amount allocated in the one-house Assembly budget for the program this year is $25 million.

Looking to support the next generation of artists, the program will also include a provision for emerging artists, who have never previously released a record. This provision provides an additional 10% credit for their debut album or EP.

“We must bring the music industry in New York back to its heyday by bringing music production back, by promoting emerging artists and ultimately, by creating and retaining jobs,” added Assemblyman Lentol, architect of A.1465 which was the prototype for the Assembly’s budget resolution language. “Not only will this program directly create jobs in the music production industry, it will also have indirect effects on a multitude of other music related industries.

“While talking about creating jobs is great, we are also going to quantify and report this data every year to show the real results,” he said.

The Empire State Music Production Tax Credit will be one of the most transparent tax credit programs in history. The Empire State Development Corporation, who will administer the program, will create a public annual report outlining the various companies that received the credit along with their corresponding projects, as well as quantifiable data relating to job creation and retention. The report will also provide recommendations and determinations regarding the continued viability of the program.

The program was crafted with the help of New York is Music (http://nyismusic.org), a newly formed coalition of over 200 businesses and organizations working together to support the growth of New York’s music industry.

“We'd like to thank Assemblyman Lentol and are thrilled to be working with him on this important measure,” said Justin Kalifowitz, Co-Founder of New York Is Music and CEO of Downtown Music Publishing. “New York's music production workforce has a long history of crafting some of the most beloved music of all time. From session musicians in Buffalo, studio technicians in Rochester, songwriters in the Hudson Valley and recording engineers in Brooklyn, tens of thousands of behind the scenes professionals working as independent contractors and small business owners define the entrepreneurial and creative spirit of the Empire State. This program is designed to defend them and their livelihoods, will have an unquestionable impact on New York's economy and insure that music remains a vital component of our culture for years to come.”

“New York is home to thousands of the best musicians and has a storied recording industry tradition, and we need to make sure that the jobs and economic benefits that this activity has brought our state remain here,” said Associated Musicians of Greater New York, Local 802 AFM President Tino Gagliardi. “The Music Production Tax Credit will encourage producers to engage the nation’s top players, and help recapture jobs for the talented New York musicians who work hard to support themselves and their families. We thank Assembly Member Lentol for this important effort to bring more recording projects to the city and provide good jobs for skilled recording industry workers in New York."