THE INCENTIVES PROGRAM - TIP

Assembly Bill 10694 proposes to create the electronic sporting event (Esports) credit program as follows:

• Creates a refundable tax credit equal to 25 percent of the Esports event’s qualifying payroll and nonpayroll expenditures;
• Establishes a per event incentive cap of $25 million for any one Esports event;
• Qualifies the 1^st million of wages paid to each resident and nonresident;
•  Requirements:
  • Spend a minimum $250k in qualifying expenses;
  • Incur and pay at least 75 percent of total production costs within New York;
  • Pay one-half of one percent of the credit as an administrative fee; and,

• Establishes a sunset date of December 31, 2028.

If enacted, this act shall apply to taxable years beginning on or after January 1, 2023.