NY Tax L § 24-C (2021)
2021 New York Laws TAX - Tax Article 1 - Short Title; Definitions; Miscellaneous 24-C - New York City Musical and Theatrical Production Tax Credit.

* §  24-c. New York city musical and theatrical production tax credit. (a) (1) Allowance of credit. A taxpayer that is  a  qualified  New  York city  musical and theatrical production company, or is a sole proprietor of or a member of a partnership  that  is  a  qualified  New  York  city musical  and  theatrical  production company, and that is subject to tax under article nine-A or twenty-two of this chapter, shall be  allowed  a credit  against  such  tax,  pursuant  to  the provisions referred to in subdivision (d) of this section, and to be computed as provided in  this section.  (2)  The  amount of the credit shall be the product (or pro rata share of the product, in the case of a member of a partnership) of twenty-five percent and the sum of the qualified production  expenditures  paid  for during  the  qualified New York city musical and theatrical production's credit period. Provided however that the amount  of  the  credit  cannot exceed  three  million  dollars  per qualified New York city musical and theatrical production for productions whose first performance is  during the first year in which applications are accepted. For productions whose first  performance  is  during the second year in which applications are accepted, such cap shall decrease to one million five  hundred  thousand dollars  per  qualified  New York city musical and theatrical production unless the New York city tourism economy has not sufficiently recovered, as determined by the department of economic development in  consultation with  the  division  of  the budget. In determining whether the New York city tourism economy  has  sufficiently  recovered,  the  department  of economic  development  will  perform  an  analysis  of key New York city economic indicators which shall include, but not be  limited  to,  hotel occupancy   rates   and  travel  metrics.  The  department  of  economic development's analysis shall also be  informed  by  the  status  of  any remaining  COVID-19  restrictions  affecting  New  York city musical and theatrical productions. In no event shall  a  qualified  New  York  city musical  and  theatrical production be eligible for more than one credit under this program.  (3) No qualified production expenditures used by a taxpayer either  as the  basis  for  the  allowance  of the credit provided pursuant to this section or used in the calculation of the credit  provided  pursuant  to this  section  shall  be used by such taxpayer to claim any other credit allowed pursuant to this chapter.  (b) Definitions. As used in this section, the  following  terms  shall have the following meanings:  (1)  "Qualified  musical and theatrical production" means a for-profit live, dramatic stage presentation that,  in  its  original  or  adaptive version,  is performed in a qualified New York city production facility, whether or not such production was performed in  a  qualified  New  York city  production facility prior to the state disaster emergency pursuant to executive order two hundred two of two thousand twenty.  (2) "Qualified production expenditure" means any  costs  for  tangible property  used  and services performed directly and predominantly in the production of a qualified musical and theatrical production  within  the state  of New York, including: (i) expenditures for design, construction and operation, including sets, special  and  visual  effects,  costumes, wardrobes,   make-up,  accessories  and  costs  associated  with  sound, lighting, and  staging;  (ii)  all  salaries,  wages,  fees,  and  other compensation  including related benefits for services performed of which the total allowable  expense  shall  not  exceed  two  hundred  thousand dollars per week; and (iii) technical and crew production costs, such as expenditures  for  a qualified New York city production facility, or any part thereof, props, make-up, wardrobe,  costumes,  equipment  used  for special  and  visual  effects,  sound  recording,  set construction, and  lighting. Qualified production expenditure does not  include  any  costs incurred prior to the credit period of a qualified New York city musical and theatrical production company.  (3)  "Qualified  New  York  city production facility" means a facility located within the city  of  New  York  (i)  in  which  live  theatrical productions  are  or  are  intended to be primarily presented, (ii) that contains at least one stage, a seating capacity of five hundred or  more seats,  and dressing rooms, storage areas, and other ancillary amenities necessary for the qualified musical and theatrical production, and (iii) for which receipts attributable to ticket sales constitute  seventy-five percent or more of gross receipts of the facility.  (4)  "Qualified  New  York  city  musical  and  theatrical  production company" is a corporation, partnership, limited  partnership,  or  other entity  or  individual  which  or  who  is  principally  engaged  in the production of a qualified musical or theatrical production that is to be performed in a qualified New York city production facility.  (5) (i) "The credit period of a qualified New York  city  musical  and theatrical  production company" is the period starting on the production start date and ending on the earlier of the date the  qualified  musical and  theatrical  production has expended sufficient qualified production expenditures to reach its credit cap, March thirty-first,  two  thousand twenty-three or the date the qualified musical and theatrical production closes.  (ii)  "The  production  start  date"  is the date that is up to twelve weeks prior to the  first  performance  of  the  qualified  musical  and theatrical production.  (c)  The  credit shall be allowed for the taxable year beginning on or after January first, two thousand twenty-one but before  January  first, two  thousand  twenty-four.  A  qualified  New  York  city  musical  and theatrical production company shall claim the  credit  in  the  year  in which its credit period ends.  (d)  Cross-references.  For  application of the credit provided for in this section, see the following provisions of this chapter:  (1) article 9-A: section 210-B: subdivision 57;  (2) article 22: section 606: subsection (mmm).  (e) Notwithstanding any provision of this chapter, (i)  employees  and officers  of  the  department of economic development and the department shall be allowed and are directed  to  share  and  exchange  information regarding  the credits applied for, allowed, or claimed pursuant to this section and taxpayers who are applying for credits or who  are  claiming credits, including information contained in or derived from credit claim forms  submitted  to  the  department and applications for certification submitted to the  department  of  economic  development,  and  (ii)  the commissioner   and  the  commissioner  of  the  department  of  economic development may release the names and addresses  of  any  qualified  New York  city  musical  and theatrical production company entitled to claim this credit and the amount of the credit earned by such company.  (f) Maximum amount of credits. (1) The aggregate amount of tax credits allowed under this  section,  subdivision  fifty-seven  of  section  two hundred  ten-B  and  subsection (mmm) of section six hundred six of this chapter shall be one hundred million dollars. Such aggregate  amount  of credits  shall  be  allocated  by the department of economic development among taxpayers based on the date of first performance of the  qualified musical and theatrical production.  (2)  The  commissioner  of economic development, after consulting with the commissioner, shall promulgate regulations to  establish  procedures for  the  allocation  of  tax  credits as required by this section. Such rules  and  regulations  shall   include   provisions   describing   the  application  process, the due dates for such applications, the standards that will be used to evaluate the applications, the  documentation  that will  be  provided  by  applicants to substantiate to the department the amount of qualified production expenditures of such applicants, and such other  provisions  as  deemed necessary and appropriate. Notwithstanding any other  provisions  to  the  contrary  in  the  state  administrative procedure act, such rules and regulations may be adopted on an emergency basis.  In  no  event  shall  a  qualified  New  York  city  musical and theatrical production submit  an  application  for  this  program  after December thirty-first, two thousand twenty-two.  (g)  Any  qualified  New  York  city musical and theatrical production company that performs in a qualified New York city  production  facility and applies to receive a credit under this section shall be required to: (1)  participate  in  a  New  York state diversity and arts job training program; (2) create and implement a plan to ensure that their production is available and  accessible  for  low-or  no-cost  to  low  income  New Yorkers;  and  (3) contribute to the New York state council on the arts, cultural program fund an amount up to fifty percent of the total credits received if its production earns ongoing revenue prospectively after the end of the credit period that is at least equal to two  hundred  percent of   its  ongoing  production  costs,  with  such  amount  payable  from twenty-five percent of net operating profits, such amounts payable on  a monthly basis, up until such fifty percent of the total credit amount is reached.  Any  funds  deposited pursuant to this subdivision may be used for arts and cultural educational and workforce development programs.   * NB Repealed January 1, 2024