Velan Studios’ $25M investment in Capital Region gaming hinges on state tax credit approval:
https://www.timesunion.com/business/...ness-spotlight
From the article: "Velan Studios is prepared to invest $25 million in the Capital Region’s gaming cluster, but only if the state passes a proposed video gaming tax credit.
The Senate and Assembly bills proposing the credit, which are still in committee, would provide an annual, refundable $20 million tax credit to the industry’s game makers.
This credit would help cover a percentage of studios’ production costs with an added bonus available to companies located in upstate New York.
Guha Bala, president of Velan Studios, said passing the credit could “dramatically accelerate” the presence of video gaming studios in the region while enticing new ones and fresh talent to take up residence here.
Bala said there was an “exodus” of STEM (science, technology, engineering and math) graduates and workers from the area during the pandemic. Some of his employees also relocated to other parts of the country.
Velan Studios continues supporting their remote work because of their “great” contributions, he said. Although, Bala acknowledged it’s a “general disadvantage” for local companies because of the diffusion.
“If we can get young, skilled people to come together to do projects in New York, they stay here and build their futures in New York as well. And that's what's most important,” he said.
Bala sees the incentive as not only a catalyst to propel the cluster’s growth but as an engine to encourage economic development by getting more people to spend their money in the Capital Region He pointed to places like Austin, Texas and Quebec in Canada where similar measures were approved and spurred growth for the local industries.
The region’s cluster has recently shown similar growth with the potential for more. A report from the Center for Economic Growth determined the number of video game patents from the area doubled in the past three years. The Capital Region is home to seven large gaming companies and over a dozen smaller, independent firms.
As of January, the region’s cluster saw a 5.5 percent growth in employment totaling over 500 workers compared to the previous year, the report indicated.
The video game developer believes the credit could increase jobs tenfold. He’s hopeful that if ratified, and done right over the next 10 years, the credit will forge thousands of jobs that will make job-hunters want to relocate and stay.
But if the credit isn’t passed, the region is at risk of losing Velan Studios’ millions in capital and more. Bala said it’s not likely he would pledge the $25 million without the tax credit, which would push him to take his investment elsewhere, probably to somewhere like Montreal or Quebec City.
“We would really have to find the most efficient way to invest,” he said.
Bala began advocating and lobbying for the credit in 2010. While the current version of the legislation is moving through the process, he remains unsure that it will passed.
“I feel like Charlie Brown with the football at the last minute when it comes down to the budget resolution process,” he said. “You can never say you're done until it's done, until the gavel hits on April 1.”
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
