S T A T E O F N E W Y O R K
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8730--A
I N A S S E M B L Y
February 5, 2014
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Introduced by M. of A. SANTABARBARA -- read once and referred to the
Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to establishing business fran-
chise and personal income tax credits for certain musical and theatri-
cal production expenses
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The tax law is amended by adding a new section 24-a to read
as follows:
S 24-A. MUSICAL AND THEATRICAL PRODUCTION CREDIT. (A) (1) ALLOWANCE OF
CREDIT. A TAXPAYER WHICH IS A QUALIFIED THEATER PRODUCTION COMPANY, OR
WHICH IS A SOLE PROPRIETOR OF OR A MEMBER OF A PARTNERSHIP WHICH IS A
QUALIFIED THEATER PRODUCTION COMPANY, AND WHICH 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 PRODUCTION AND PERFORMANCE EXPENDITURES AND
THE TRANSPORTATION EXPENDITURES. IF THE AMOUNT OF THE CREDIT IS AT LEAST
ONE MILLION DOLLARS BUT LESS THAN FIVE MILLION DOLLARS, THE CREDIT SHALL
BE CLAIMED OVER A TWO YEAR PERIOD BEGINNING IN THE FIRST TAXABLE YEAR IN
WHICH THE CREDIT MAY BE CLAIMED AND IN THE NEXT SUCCEEDING TAXABLE YEAR,
WITH ONE-HALF OF THE AMOUNT OF CREDIT ALLOWED BEING CLAIMED IN EACH
YEAR. IF THE AMOUNT OF THE CREDIT IS AT LEAST FIVE MILLION DOLLARS, THE
CREDIT SHALL BE CLAIMED OVER A THREE YEAR PERIOD BEGINNING IN THE FIRST
TAXABLE YEAR IN WHICH THE CREDIT MAY BE CLAIMED AND IN THE NEXT TWO
SUCCEEDING TAXABLE YEARS, WITH ONE-THIRD OF THE AMOUNT OF THE CREDIT
ALLOWED BEING CLAIMED IN EACH YEAR.
(3) NO PRODUCTION AND PERFORMANCE 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 CALCU-
LATION OF THE CREDIT PROVIDED PURSUANT TO THIS SECTION SHALL BE USED BY
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09449-06-4
A. 8730--A 2
SUCH TAXPAYER TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAP-
TER.
(B) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
(1) "QUALIFIED THEATER PRODUCTION COMPANY" MEANS ANY INDIVIDUAL,
CORPORATION, PARTNERSHIP OR LIMITED LIABILITY COMPANY ENGAGED IN PRODUC-
ING QUALIFIED LIVE THEATER PRODUCTIONS FOR COMMERCIAL PURPOSE. SUCH
COMPANY, OR ITS DESIGNATED PARTY, SHALL BE RESPONSIBLE FOR THE DIRECT
PRODUCTION AND PERFORMANCE COSTS, AND BE THE SIGNATORY TO CONTRACTS WITH
PAYROLL SERVICES, FACILITIES AND VENDORS, UTILIZED IN THE PRODUCTION OF
QUALIFIED THEATER PRODUCTIONS.
(2) "THEATER PRODUCTION" MEANS A FOR-PROFIT LIVE STAGE PRESENTATION IN
A QUALIFIED PRODUCTION FACILITY AND CERTIFIED BY THE GOVERNOR'S OFFICE
OF MOTION PICTURE AND TELEVISION DEVELOPMENT THAT IS EITHER: (I) A PRE-
BROADWAY PRODUCTION, OR (II) A POST-BROADWAY PRODUCTION.
(3) "ADVERTISING AND PUBLIC RELATIONS EXPENDITURE" MEANS COSTS
INCURRED WITHIN THE STATE BY THE ACCREDITED THEATER PRODUCTIONS FOR
GOODS OR SERVICES RELATED TO THE NATIONAL MARKETING, PUBLIC RELATIONS,
CREATION AND PLACEMENT OF PRINT, ELECTRONIC, TELEVISION, BILLBOARDS AND
OTHER FORMS OF ADVERTISING TO PROMOTE THE ACCREDITED THEATER PRODUCTION.
(4) "PAYROLL" MEANS ALL SALARIES, WAGES, FEES, AND OTHER COMPENSATION
INCLUDING RELATED BENEFITS FOR SERVICES PERFORMED AND COSTS INCURRED
WITHIN THE STATE.
(5) "PRE-BROADWAY PRODUCTION" MEANS A LIVE STAGE PRODUCTION THAT, IN
ITS ORIGINAL OR ADAPTIVE VERSION, IS PERFORMED IN A QUALIFIED PRODUCTION
FACILITY HAVING A PRESENTATION SCHEDULED FOR BROADWAY'S THEATER DISTRICT
IN THE CITY OF NEW YORK WITHIN TWELVE MONTHS AFTER ITS PRESENTATION
OUTSIDE OF THE CITY OF NEW YORK.
(6) "POST-BROADWAY PRODUCTION" MEANS A LIVE STAGE PRODUCTION THAT, IN
ITS ORIGINAL OR ADAPTIVE VERSION, IS PERFORMED IN A QUALIFIED PRODUCTION
FACILITY AND OPENS ITS NATIONAL TOUR IN THIS STATE, BUT OUTSIDE OF THE
CITY OF NEW YORK, AFTER A PRESENTATION SCHEDULED FOR BROADWAY'S THEATER
DISTRICT IN THE CITY OF NEW YORK.
(7) "PRODUCTION AND PERFORMANCE EXPENDITURES" MEANS A CONTEMPORANEOUS
EXCHANGE OF CASH OR CASH EQUIVALENT FOR GOODS OR SERVICES RELATED TO
DEVELOPMENT, PRODUCTION, PERFORMANCE OR OPERATING EXPENDITURES INCURRED
IN THIS STATE FOR A QUALIFIED THEATER PRODUCTION INCLUDING, BUT NOT
LIMITED TO, EXPENDITURES FOR DESIGN, CONSTRUCTION AND OPERATION, INCLUD-
ING SETS, SPECIAL AND VISUAL EFFECTS, COSTUMES, WARDROBES, MAKE-UP,
ACCESSORIES, COSTS ASSOCIATED WITH SOUND, LIGHTING, STAGING, PAYROLL,
TRANSPORTATION EXPENDITURES, ADVERTISING AND PUBLIC RELATIONS EXPENDI-
TURES, FACILITY EXPENSES, RENTALS, PER DIEMS, ACCOMMODATIONS AND OTHER
RELATED COSTS.
(8) "QUALIFIED PRODUCTION FACILITY" MEANS A FACILITY LOCATED IN THE
STATE IN WHICH LIVE THEATRICAL PRODUCTIONS ARE, OR ARE INTENDED TO BE,
EXCLUSIVELY PRESENTED THAT CONTAINS AT LEAST ONE STAGE, A SEATING CAPAC-
ITY OF ONE THOUSAND FIVE HUNDRED OR MORE SEATS, AND DRESSING ROOMS,
STORAGE AREAS, AND OTHER ANCILLARY AMENITIES NECESSARY FOR THE ACCRED-
ITED THEATER PRODUCTION.
(9) (I) "TRANSPORTATION EXPENDITURES" MEANS EXPENDITURES FOR THE PACK-
AGING, CRATING, AND TRANSPORTATION BOTH TO THE STATE FOR USE IN A QUALI-
FIED THEATER PRODUCTION OF SETS, COSTUMES, OR OTHER TANGIBLE PROPERTY
CONSTRUCTED OR MANUFACTURED OUT OF STATE, AND/OR FROM THE STATE AFTER
USE IN A QUALIFIED THEATER PRODUCTION OF SETS, COSTUMES, OR OTHER TANGI-
BLE PROPERTY CONSTRUCTED OR MANUFACTURED IN THIS STATE AND THE TRANSPOR-
TATION OF THE CAST AND CREW TO AND FROM THE STATE. SUCH TERM SHALL
A. 8730--A 3
INCLUDE THE PACKAGING, CRATING, AND TRANSPORTING OF PROPERTY AND EQUIP-
MENT 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 EQUIP-
MENT.
(II) TRANSPORTATION EXPENDITURES SHALL NOT INCLUDE ANY COSTS TO TRANS-
PORT 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: SUBDIVISION 36-A.
(2) ARTICLE 22: SECTION 606: SUBSECTION (U).
(D) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, EMPLOYEES AND OFFI-
CERS OF THE GOVERNOR'S OFFICE OF MOTION PICTURE AND TELEVISION DEVELOP-
MENT 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 GOVERNOR'S OFFICE OF
MOTION PICTURE AND TELEVISION DEVELOPMENT.
S 2. Section 210 of the tax law is amended by adding a new subdivision
36-a to read as follows:
36-A. MUSICAL AND THEATRICAL PRODUCTION CREDIT. (A) ALLOWANCE OF CRED-
IT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION TWENTY-FOUR-A OF
THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT
PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION.
PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS
SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THE
EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, FURTHER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xxxvii) to read as
follows:
(XXXVII) MUSICAL AND THEATRICAL AMOUNT OF CREDIT FOR
PRODUCTION CREDIT UNDER THE SUM OF THE PRODUCTION AND
SUBSECTION (U) PERFORMANCE EXPENDITURES AND
THE TRANSPORTATION EXPENDITURES
IN AN ACCREDITED THEATRE
PRODUCTION UNDER SUBDIVISION
THIRTY-SIX-A OF SECTION TWO
HUNDRED TEN
S 4. Section 606 of the tax law is amended by adding a new subsection
(u) to read as follows:
(U) MUSICAL AND THEATRICAL PRODUCTION CREDIT. (1) ALLOWANCE OF CREDIT.
A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION TWENTY-FOUR-A OF THIS
A. 8730--A 4
CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH
SECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED OR REFUNDED AS PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
S 5. This act shall take effect January 1, 2015.