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

* §  24-a.  Musical and theatrical production credit. (a)(1) Allowance of credit. A taxpayer  which  is  a  qualified  musical  and  theatrical production  company,  or  which is a sole proprietor of or a member of a partnership which is  a  qualified  musical  and  theatrical  production company,  and which 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 (c) 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 and the transportation expenditures.  (3)   No   qualified   production   expenditures   or   transportation expenditures used by a taxpayer either as the basis for the allowance of the  credit  provided  for  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 in a qualified production facility, certified  pursuant  to  rules  and  regulations  promulgated   by   the department of economic development, as a qualified touring production.  (2)  "Qualified  touring  production"  means  a  live,  dramatic stage production that, in its original or adaptive version, is performed in  a qualified  production  facility,  and  has  begun  or will begin a tour, consisting of eight or more shows in three or more localities.  (3) "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   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  qualified production facilities, or any part thereof, props, make-up, wardrobe,  costumes,  equipment  used  for  special  and visual effects, sound recording, set construction, and lighting.  (4)  "Qualified  production  facility" means a facility located in the state but outside 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 one thousand or  more seats,  and dressing rooms, storage areas, and other ancillary amenities necessary for the qualified musical and theatrical production, (iii) for which receipts attributable  to  ticket  sales  constitute  seventy-five percent or more of gross receipts of the facility, and (iv) which is not a  licensee, or affiliated with a licensee, of the New York state gaming commission under the racing, pari-mutuel wagering and breeding law.  (5)  "Qualified  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 and performs in a qualified production facility.  (6)   (i)   "Transportation   expenditures"    means    transportation expenditures  incurred  and  paid  directly  and  predominantly  in  the  production of  a  qualified  musical  and  theatrical  production.  Such expenditures  shall  include  the packaging, crating, and transportation within the state for use in a  qualified  theater  production  of  sets, costumes,  or other tangible property constructed or manufactured in and out of state, and the transportation of the cast  and  crew  within  the state.  Such term shall include the packaging, crating, and transporting within the state of property and equipment used for special  and  visual effects,  sound,  lighting and staging, costumes, wardrobes, make-up and related accessories and materials, as well as any other  performance  or production-related property and equipment.  (ii)  Transportation  expenditures  shall  not  include  any  costs to transport property and equipment to be used only for filming and not  in a  qualified  theater  production,  any indirect costs, and expenditures that are later reimbursed by a third party, or any amounts that are paid to persons or entities as a result of  their  participation  in  profits from the exploitation of the production.  (c)  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 47.  (2) article 22: section 606: subsection (u).  (d) 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 taxpayer claiming this credit and the  amount  of  the  credit  earned  by  the  taxpayer. Provided,  however,  if  a  taxpayer  claims this credit because it is a member of a limited liability company or a  partner  in  a  partnership, only  the  amount  of  credit earned by the entity and not the amount of credit claimed by the taxpayer may be released.  (e) Maximum amount of credits.  (1)  The  aggregate  amount  of  tax credits  allowed  under this section, subdivision forty-seven of section two hundred ten-B and subsection (u) of section six hundred six of  this chapter  in  any  calendar  year  shall  be  eight million dollars. Such aggregate amount of credits shall be  allocated  by  the  department  of economic development among taxpayers in order of priority based upon the date  of  filing an application for allocation of musical and theatrical production credit with such department. If the total amount of allocated credits applied for in any particular year exceeds the aggregate  amount of  tax  credits  allowed  for such year under this section, such excess shall be treated as having been applied for on  the  first  day  of  the subsequent year.  (2)  The  commissioner  of economic development, after consulting with the commissioner, shall promulgate regulations by October  thirty-first, two  thousand fourteen to establish procedures for the allocation of tax credits as required by subdivision (a) of this section. Such  rules  and regulations shall include provisions describing the application process, the  due  dates for such applications, the standards which shall be used to evaluate the applications, the documentation that will be provided to taxpayers to substantiate to the department the amount  of  tax  credits allocated  to  such  taxpayers,  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 if  necessary  to  meet such October thirty-first, two thousand fourteen deadline.  (f)  The  department  of  economic  development  shall  submit  to the governor, the temporary president of the senate, and the speaker of  the assembly,  an  annual  report  to be submitted on February first of each year  evaluating  the  effectiveness  of  the  musical  and   theatrical production tax credit provided by this section in stimulating the growth of  the  musical and theatrical industry in the state. Such report shall include, but need not be limited to, in total and by  qualified  musical and   theatrical   production,  the  number  of  qualified  musical  and theatrical  productions  which  received  a   musical   and   theatrical production   credit,   the   qualified   production   expenditures,  the transportation expenditures, the qualified  production  facilities,  and the  credit  amounts  claimed  by  each qualified musical and theatrical production, as well as the impact on employment and the economy  of  the state.  Such  report shall include (1) the credit-eligible man hours for each project and the total wages for such credit-eligible man hours  for each project as well as the name of each taxpayer allocated a tax credit for  each  project  and the county of residence or incorporation of such taxpayer or, if the taxpayer does not reside or is not  incorporated  in New  York,  then  the  state  of  residence  or  incorporation; provided however, if the taxpayer claims a tax credit because the taxpayer  is  a member  of  a limited liability company, a partner in a partnership or a shareholder in a subchapter S corporation,  the  name  of  each  limited liability  company,  partnership or subchapter S corporation earning any of those  tax  credits  must  be  included  in  the  report  instead  of information  about  the  taxpayer  claiming  the tax credit; and (2) the amount of tax credit allocated to each taxpayer; provided,  however,  if the  taxpayer  claims a tax credit because the taxpayer is a member of a limited liability company, a partner in a partnership or  a  shareholder in  a  subchapter S corporation, the amount of tax credit earned by each entity must be included in the report instead of information  about  the taxpayer  claiming  the  tax  credit,  and  information  identifying the project associated with each taxpayer for which a tax credit was claimed under this section, including the name of  the  musical  and  theatrical production  and  county  in  which  the  production is performed must be included in such report.  Such report shall be based on  data  available from  the  application filed with the department of economic development for  allocation  of   musical   and   theatrical   production   credits. Notwithstanding  any  provision  of law to the contrary, the information contained in the report shall be public information. The report may also include  any  recommendations  of  changes   in   the   calculation   or administration  of  the  credit,  and  any  other  recommendation of the commissioner  of  the  department  of  economic  development   regarding continuing  modification, repeal of such act, and such other information regarding the act as the commissioner  of  the  department  of  economic development may feel useful and appropriate.   * NB Repealed January 1, 2026