New York endorses tax offset to benefit music industry

Image: New York’s Electric Lady Studios

A Brooklyn Democrat’s proposal to offset tax for the music industry in New York has been endorsed by New York lawmakers.

The bill to extend the state’s entertainment tax credits to cover music producers and digital games has been given a $50 million endorsement in annual tax credits.

If the bill passes, producers could offset 25% of their expenses, like studio costs and paying for session musicians.

The $50 million in tax credits for producers and digital game creators would be on top of the $420 million in yearly offsets given to television and movie producers under New York’s entertainment tax incentives.

Commercial music production in New York makes up less than 4% of the estimated at $17 billion it generates nationally. Globally commercial music production generates $55 billion.

According to Associated Press, the bill goes to Gov. Andrew Cuomo whose office has said it is among ‘hundreds’ of bills passed by lawmakers that are currently under review.

Assemblyman Joseph Lentol, a Brooklyn Democrat, who first proposed the extension of the state’s entertainment tax credits, said: “New York was once the epicenter for music production, and we have lost much of this business to other states’ aggressive tax incentive programs. We need this business back.”

In February, Australia’s copyright collecting societyAPRA AMCOS and Ernst & Young (EY)released research that showed venues would host more live music if they were to receive a taxation offset.

Specifically, the research found such tax offsets would result in up to 31.1 million additional attendances, an 87% increase in live music performances and a $40.2 million windfall for the Australian economy due to increased spending.

APRA AMCOS, along with Australia Council, PPCA, Australia Hotels Association and the Restaurant & Catering association, who commissioned the research, are pushing for a cash offset of $40,000 for new live music venues, and a 20% expenses offset for existing live music venues.