Bill > H2606

This bill expands and modifies tax credits for companies involved in the design, development, and production of video games and interactive digital media, which are defined as software that users can interact with to achieve goals and includes text, sound, images, or 3-D geometry. It introduces new provisions and amends existing ones within Chapter 63 of the General Laws, offering credits based on eligible labor expenditures (compensation and benefits for employees working on these products) and additional workforce credits tied to maintaining or increasing full-time equivalent employees compared to a previous year. The bill also provides a workforce training credit for on-the-job training wages and an additional credit for companies located in "gateway municipalities," which are economically distressed areas. Importantly, it allows these tax credits to be transferred, sold, or assigned to other taxpayers, and a portion of credits earned is directed to the Massachusetts Digital Games Institute for educational programs. The bill also includes provisions for recapturing credits if a company discontinues operations in the commonwealth within a certain timeframe, though waivers may be granted in cases of hardship, and mandates annual reporting on the effectiveness of these recapture provisions.