NY S07534

Expands the Empire State commercial production tax credit to include digital gaming media production costs incurred in New York State, effective for taxable years beginning on or after January 1, 2012.

Maintains the $7 million annual tax credit allocation split into three categories: $1 million for growth-based credits (capped at $300,000 per company), $3 million for production within the metropolitan commuter transportation district, and $3 million for production outside the district.

Defines "digital gaming media" to include websites with gaming-related content, interactive games distributed over the internet or wireless networks, and gaming-related animation or software for commercial distribution, while excluding gambling, retail e-commerce, and adult-rated products.

Requires 75 percent of production costs (excluding post-production) to be incurred directly in New York State, with qualified digital gaming media production costs limited to those attributable to property use and services performed in the state during creation, production, or modification of the digital gaming project.

Prohibits digital gaming media production companies from using the same costs to claim multiple credits and prevents entities formed solely to obtain credit benefits from qualifying as new businesses.