N.Y. Tax Law § 24-C — New York city musical and theatrical production tax credit

* § 24-c. New York city musical and theatrical production tax credit.\n(a) (1) Allowance of credit. A taxpayer that is a qualified New York\ncity musical and theatrical production company, or is a sole proprietor\nof or a member of a partnership that is a qualified New York city\nmusical and theatrical production company, and that is subject to tax\nunder article nine-A or twenty-two of this chapter, shall be allowed a\ncredit against such tax, pursuant to the provisions referred to in\nsubdivision (d) of this section, and to be computed as provided in this\nsection.\n (2) The amount of the credit shall be the product (or pro rata share\nof the product, in the case of a member of a partnership) of twenty-five\npercent and the sum of the qualified production expenditures paid for\nduring the qualified New York city musical and theatrical production's\ncredit period. Provided however that the amount of the credit cannot\nexceed three hundred fifty thousand dollars per qualified New York city\nmusical and theatrical production in a level two qualified New York city\nproduction facility and three million dollars per qualified New York\ncity musical and theatrical production in a level one qualified New York\ncity production facility. In no event shall a qualified New York city\nmusical and theatrical production be eligible for more than one credit\nunder this program.\n (3) No qualified production expenditures used by a taxpayer either as\nthe basis for the allowance of the credit provided pursuant to this\nsection or used in the calculation of the credit provided pursuant to\nthis section shall be used by such taxpayer to claim any other credit\nallowed pursuant to this chapter.\n (b) Definitions. As used in this section, the following terms shall\nhave the following meanings:\n (1) "Qualified New York city musical and theatrical production" means\na for-profit live, dramatic stage presentation that, in its original or\nadaptive version, is performed in a level one or level two qualified New\nYork city production facility, whether or not such production was\nperformed in a level one or level two qualified New York city production\nfacility prior to the state disaster emergency pursuant to executive\norder two hundred two of two thousand twenty, provided, however, that\nproductions performing in a level two qualified New York city production\nfacility shall have a production budget greater than or equal to seven\nhundred fifty thousand dollars and incur qualified production\nexpenditures greater than or equal to seven hundred fifty thousand\ndollars.\n (2) "Qualified production expenditure" means any costs for tangible\nproperty used and services performed directly and predominantly in the\nproduction of a qualified musical and theatrical production within the\nstate of New York, including: (i) expenditures for design, construction\nand operation, including sets, special and visual effects, costumes,\nwardrobes, make-up, accessories and costs associated with sound,\nlighting, and staging; (ii) all salaries, wages, fees, and other\ncompensation including related benefits for services performed of which\nthe total allowable expense shall not exceed two hundred thousand\ndollars per week; and (iii) technical and crew production costs, such as\nexpenditures for a level one or level two qualified New York city\nproduction facility, or any part thereof, props, make-up, wardrobe,\ncostumes, equipment used for special and visual effects, sound\nrecording, set construction, and lighting. Qualified production\nexpenditure does not include any costs incurred prior to the credit\nperiod of a qualified New York city musical and theatrical production\ncompany.\n (3) (i) "Level one qualified New York city production facility" means\na facility located within the (A) borough of Manhattan, bounded by and\nincluding forty-first street and fifty-fourth street and between sixth\navenue and ninth avenue in which live theatrical productions are or are\nintended to be primarily presented, (B) that contains at least one\nstage, a seating capacity of five hundred or more seats, and dressing\nrooms, storage areas, and other ancillary amenities necessary for the\nqualified musical and theatrical production, and (C) for which receipts\nattributable to live theatrical productions constitute seventy-five\npercent or more of gross receipts of the facility.\n (ii) "Level two qualified New York city production facility" means a\nfacility located within the borough of Manhattan (A) in which live\ntheatrical productions are or are intended to be primarily presented,\n(B) that contains at least one stage, a seating capacity of one hundred\nor more seats, and dressing rooms, storage areas, and other ancillary\namenities necessary for the qualified musical and theatrical production,\nand (C) for which receipts attributable to live theatrical productions\nconstitute seventy-five percent or more of gross receipts of the\nfacility.\n (4) "Qualified New York city musical and theatrical production\ncompany" is a corporation, partnership, limited partnership, or other\nentity or individual which or who is principally engaged in the\nproduction of a qualified musical or theatrical production that is to be\nperformed in a level one or level two qualified New York city production\nfacility.\n (5) (i) "The credit period of a qualified New York city musical and\ntheatrical production company" is the period starting on the production\nstart date and ending on the earlier of the date the qualified musical\nand theatrical production has expended sufficient qualified production\nexpenditures to reach its credit cap, September thirtieth, two thousand\ntwenty-seven or the date the qualified musical and theatrical production\ncloses.\n (ii) "The production start date" is the date that is up to twelve\nweeks prior to the first performance of the qualified musical and\ntheatrical production.\n (6) "Production budget" means all estimated costs to be incurred or\npaid before the first public appearance.\n (c) The credit shall be allowed for the taxable year beginning on or\nafter January first, two thousand twenty-one but before January first,\ntwo thousand twenty-eight. A qualified New York city musical and\ntheatrical production company shall claim the credit in the year in\nwhich its credit period ends.\n (d) Cross-references. For application of the credit provided for in\nthis section, see the following provisions of this chapter:\n (1) article 9-A: section 210-B: subdivision 57;\n (2) article 22: section 606: subsection (mmm).\n (e) Notwithstanding any provision of this chapter, (i) employees and\nofficers of the department of economic development and the department\nshall be allowed and are directed to share and exchange information\nregarding the credits applied for, allowed, or claimed pursuant to this\nsection and taxpayers who are applying for credits or who are claiming\ncredits, including information contained in or derived from credit claim\nforms submitted to the department and applications for certification\nsubmitted to the department of economic development, and (ii) the\ncommissioner and the commissioner of the department of economic\ndevelopment may release the names and addresses of any qualified New\nYork city musical and theatrical production company entitled to claim\nthis credit and the amount of the credit earned by such company.\n (f) Maximum amount of credits. (1) The aggregate amount of tax credits\nallowed under this section, subdivision fifty-seven of section two\nhundred ten-B and subsection (mmm) of section six hundred six of this\nchapter shall be four hundred million dollars. Such aggregate amount of\ncredits shall be allocated by the department of economic development\namong taxpayers based on the date of first performance of the qualified\nmusical and theatrical production.\n (2) The commissioner of economic development, after consulting with\nthe commissioner, shall promulgate regulations to establish procedures\nfor the allocation of tax credits as required by this section. Such\nrules and regulations shall include provisions describing the\napplication process, the due dates for such applications, the standards\nthat will be used to evaluate the applications, the documentation that\nwill be provided by applicants to substantiate to the department the\namount of qualified production expenditures of such applicants, and such\nother provisions as deemed necessary and appropriate. Notwithstanding\nany other provisions to the contrary in the state administrative\nprocedure act, such rules and regulations may be adopted on an emergency\nbasis. In no event shall a qualified New York city musical and\ntheatrical production submit an application for this program after June\nthirtieth, two thousand twenty-seven.\n (g) Any qualified New York city musical and theatrical production\ncompany that performs in a level one or level two qualified New York\ncity production facility and applies to receive a credit under this\nsection shall be required to: (1) participate in a New York state\ndiversity and arts job training program; (2) create and implement a plan\nto ensure that their production is available and accessible for low-or\nno-cost to low income New Yorkers; and (3) contribute to the New York\nstate council on the arts, cultural program fund an amount up to fifty\npercent of the total credits received if its production earns ongoing\nrevenue prospectively after the end of the credit period that is at\nleast equal to two hundred percent of its ongoing production costs, with\nsuch amount payable from twenty-five percent of net operating profits,\nsuch amounts payable on a monthly basis, up until such fifty percent of\nthe total credit amount is reached. Any funds deposited pursuant to this\nsubdivision may be used for arts and cultural grant programs of the New\nYork state council on the arts as specified in subdivision five of\nsection ninety-nine-ll of the state finance law.\n * NB Repealed January 1, 2028\n