S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5256
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 20, 2025
                                ___________
 
 Introduced  by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
   when printed to be committed to the Committee  on  Investigations  and
   Government 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 subpart E of part I of  chapter
 59 of the laws of 2023, 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,
 [2026] 2031 and shall expire and be deemed repealed  January  1,  [2026]
 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, [2027] 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09235-02-5
              

 S. 5256                             2
 
 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.   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 3 of subpart E of part  I  of
 chapter 59 of the laws of 2023, 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-five] 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 4 of subpart E of part I of chapter 59 of the laws of  2023,  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-six] 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. Paragraphs 1 and 2 of subdivision (f) of section 24-c of the  tax
 law, as amended by section 5 of subpart E of part I of chapter 59 of the
 laws of 2023, are amended to read as follows:
   (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] EIGHT
 hundred million dollars. Such aggregate amount of credits shall be allo-
 S. 5256                             3
 
 cated 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  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-five] 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, 2026; 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.