2023 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 hundred fifty thousand dollars per qualified New York city
musical and theatrical production in a level two qualified New York city
production facility and three million dollars  per  qualified  New  York
city musical and theatrical production in a level one qualified New York
city  production  facility.  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 New York city musical and theatrical production"  means
a  for-profit live, dramatic stage presentation that, in its original or
adaptive version, is performed in a level one or level two qualified New
York city production  facility,  whether  or  not  such  production  was
performed in a level one or level two qualified New York city production
facility  prior  to  the  state disaster emergency pursuant to executive
order two hundred two of two thousand twenty,  provided,  however,  that
productions performing in a level two qualified New York city production
facility  shall  have a production budget greater than or equal to seven
hundred  fifty  thousand  dollars   and   incur   qualified   production
expenditures  greater  than  or  equal  to  seven hundred fifty thousand
dollars.
(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  level  one  or  level  two 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)  (i) "Level one qualified New York city production facility" means
a facility located within the (A) borough of Manhattan, bounded  by  and
including  forty-first  street and fifty-fourth street and between sixth
avenue and ninth avenue in which live theatrical productions are or  are
intended  to  be  primarily  presented,  (B)  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 (C) for which  receipts
attributable  to  live  theatrical  productions  constitute seventy-five
percent or more of gross receipts of the facility.
(ii) "Level two qualified New York city production facility"  means  a
facility  located  within  the  borough  of  Manhattan (A) in which live
theatrical productions are or are intended to  be  primarily  presented,
(B)  that contains at least one stage, a seating capacity of one hundred
or more seats, and dressing rooms, storage areas,  and  other  ancillary
amenities necessary for the qualified musical and theatrical production,
and  (C)  for which receipts attributable to live theatrical productions
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 level one or level two 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, September thirtieth, two  thousand
twenty-five  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.
(6) "Production budget" means all estimated costs to  be  incurred  or
paid before the first public appearance.
(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-six.  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  three  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 June
thirtieth, two thousand twenty-five.
(g) Any qualified New York  city  musical  and  theatrical  production
company  that  performs  in  a level one or level two 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 grant programs of the New
York state council on the arts  as  specified  in  subdivision  five  of
section ninety-nine-ll of the state finance law.
* NB Repealed January 1, 2026