2023 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