Legislation

Search OpenLegislation Statutes
This entry was published on 2022-04-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 24-C
New York city musical and theatrical production tax credit
Tax (TAX) CHAPTER 60, ARTICLE 1
* § 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 million dollars per qualified New York city musical and
theatrical production for productions whose first performance is prior
to January first, two thousand twenty-three. For productions whose first
performance is on or after January first, two thousand twenty-three,
such cap shall decrease to one million five hundred thousand dollars per
qualified New York city musical and theatrical production unless the New
York city tourism economy has not sufficiently recovered, as determined
by the department of economic development in consultation with the
division of the budget. In determining whether the New York city tourism
economy has sufficiently recovered, the department of economic
development will perform an analysis of key New York city economic
indicators which shall include, but not be limited to, hotel occupancy
rates and travel metrics. The department of economic development's
analysis shall also be informed by the status of any remaining COVID-19
restrictions affecting New York city musical and theatrical productions.
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 musical and theatrical production" means a for-profit
live, dramatic stage presentation that, in its original or adaptive
version, is performed in a qualified New York city production facility,
whether or not such production was performed in a qualified New York
city production facility prior to the state disaster emergency pursuant
to executive order two hundred two of two thousand twenty.

(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 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) "Qualified New York city production facility" means a facility
located within the city of New York (i) in which live theatrical
productions are or are intended to be primarily presented, (ii) 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 (iii)
for which receipts attributable to ticket sales 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 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-three 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.

(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-four. 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 two 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-three.

(g) Any qualified New York city musical and theatrical production
company that performs in a 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, 2024