Senate Bill S10460

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10460
 
                             I N  S E N A T E
 
                               May 15, 2026
                                ___________
 
 Introduced  by Sen. BOTTCHER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend subpart B of part PP of chapter 59 of the laws  of  2021
   amending  the tax law and the state finance law relating to establish-
   ing the New York city musical and theatrical production tax credit and
   establishing the New York state council on the arts  cultural  program
   fund,  in relation to the effectiveness thereof; to amend the tax law,
   in relation to the New York city musical and theatrical production tax
   credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.    Section  6 of subpart B of part PP of chapter 59 of the
 laws of 2021 amending the tax law and the state finance law relating  to
 establishing  the  New  York  city musical and theatrical production tax
 credit and establishing the New York state council on the arts  cultural
 program  fund,  as  amended  by section 1 of part L of chapter 59 of the
 laws of 2025, is amended to read as follows:
   § 6. This act shall take effect immediately;  provided  however,  that
 sections  one,  two,  three  and four of this act shall apply to taxable
 years beginning on or after January  1,  2021,  and  before  January  1,
 [2028]  2031  and  shall expire and be deemed repealed January 1, [2028]
 2031; provided further, however that the obligations under  paragraph  3
 of  subdivision  (g) of section 24-c of the tax law, as added by section
 one of this act, shall remain in effect until December 31, [2029] 2032.
   § 2. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as
 amended by section 2 of subpart E of part I of chapter 59 of the laws of
 2023, is amended to read as follows:
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09235-04-6
 S. 10460                            2
 
 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.    PROVIDED  HOWEVER, IF A PRODUCTION LOCATED IN A
 LEVEL TWO PRODUCTION FACILITY  IS  APPROVED  FOR  A  CREDIT  UNDER  THIS
 SECTION  AND  SUCH  PRODUCTION MOVES TO A LEVEL ONE PRODUCTION FACILITY,
 ANY CREDIT AMOUNT PREVIOUSLY APPROVED FOR THE LEVEL TWO PRODUCTION SHALL
 REDUCE ANY  APPROVED  LEVEL  ONE  CREDIT  AMOUNT  BY  SUCH  AMOUNT.    A
 PRODUCTION  SHALL  NOT HAVE TO WITHDRAW A PREVIOUS CREDIT APPLICATION IF
 SUCH PRODUCTION MOVES FROM A LEVEL TWO PRODUCTION FACILITY  TO  A  LEVEL
 ONE PRODUCTION FACILITY.
   §  3.  Subparagraph  (i) of paragraph 3 of subdivision (b)  of section
 24-c of the tax law, as amended by section 2-a of subpart E of part I of
 chapter 59 of the laws of 2023, is amended to read as follows:
   (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] FIFTY-SEVENTH street and
 between sixth avenue and  [ninth]  TENTH  avenue,  AND  BOUNDED  BY  AND
 INCLUDING  SIXTY-SECOND  STREET  AND SIXTY-FIFTH STREET BETWEEN COLUMBUS
 AVENUE AND AMSTERDAM 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.
   § 4. Subparagraph (i) of paragraph 5 of  subdivision  (b)  of  section
 24-c  of the tax law, as amended by section 2 of part L of chapter 59 of
 the laws of 2025, is amended to read as follows:
   (i) "The credit period of a qualified New York city musical and theat-
 rical 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-seven]  THIRTY  or the date the qualified musical and theatrical
 production closes.
   § 5. Subdivision (c) of section 24-c of the tax  law,  as  amended  by
 section  3  of  part  L of chapter 59 of the laws of 2025, is amended to
 read as follows:
   (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-eight]  THIRTY-ONE.  A  qualified  New  York  city
 musical  and theatrical production company shall claim the credit in the
 year in which its credit period ends.
   § 6. Subdivision (f) of section 24-c of the tax  law,  as  amended  by
 section  4  of  part  L of chapter 59 of the laws of 2025, is amended to
 read as follows:
   (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 [four] EIGHT 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.
 S. 10460                            3
 
   (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  applica-
 tion  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-seven] THIRTY.
   §  7.  Subdivision  (g)  of section 24-c of the tax law, as amended by
 section 5-a of subpart E of part I of chapter 59 of the laws of 2023, is
 amended to read as follows:
   (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 diver-
 sity  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) AFTER THE TAX CREDIT FUNDS
 HAVE BEEN RECEIVED BY THE PRODUCTION, 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, PROVIDED THAT FOR PRODUCTIONS LOCATED IN LEVEL
 ONE PRODUCTION FACILITIES, UP TO FIVE HUNDRED THOUSAND DOLLARS IN AGGRE-
 GATE CONTRIBUTIONS IN THE AMOUNT OF TWENTY-FIVE HUNDRED DOLLARS PER PAID
 PERFORMANCE  WEEK,  PRO-RATED  UP OR DOWN IN INCREMENTS OF ONE EIGHTH ON
 THE BASIS OF EIGHT PERFORMANCES PER WEEK, SHALL BE PAYABLE PROSPECTIVELY
 UPON SUCH PRODUCTION FOR PRODUCTIONS LOCATED  IN  LEVEL  ONE  PRODUCTION
 FACILITIES  HAVING  PRESENTED PAID PUBLIC PERFORMANCES FOR A CONSECUTIVE
 TWENTY-FOUR MONTH (I.E. ONE HUNDRED FOUR PAID PERFORMANCE WEEKS) PERIOD,
 WITH SUCH  CONTRIBUTIONS  DEEMED  A  CREDIT  AGAINST  ANY  CONTRIBUTIONS
 REQUIRED  ON  THE BASIS OF NET OPERATING PROFITS IN THIS PARAGRAPH.  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.
   § 8. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2027; provided, however, that the
 amendments  to  section 24-c of the tax law made by sections two, three,
 four, five, six and seven of this act shall not  affect  the  repeal  of
 such section and shall be deemed repealed therewith.