Amd Part PP subpart B §6, Chap 59 of 2021; amd §24-c, Tax L
Extends provisions 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; relates to the New York city musical and theatrical production tax credit.
STATE OF NEW YORK
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5256
2025-2026 Regular Sessions
IN SENATE
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:
1 Section 1. Section 6 of subpart B of part PP of chapter 59 of the
2 laws of 2021 amending the tax law and the state finance law relating to
3 establishing the New York city musical and theatrical production tax
4 credit and establishing the New York state council on the arts cultural
5 program fund, as amended by section 1 of subpart E of part I of chapter
6 59 of the laws of 2023, is amended to read as follows:
7 § 6. This act shall take effect immediately; provided however, that
8 sections one, two, three and four of this act shall apply to taxable
9 years beginning on or after January 1, 2021, and before January 1,
10 [2026] 2031 and shall expire and be deemed repealed January 1, [2026]
11 2031; provided further, however that the obligations under paragraph 3
12 of subdivision (g) of section 24-c of the tax law, as added by section
13 one of this act, shall remain in effect until December 31, [2027] 2032.
14 § 2. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as
15 amended by section 2 of subpart E of part I of chapter 59 of the laws of
16 2023, is amended to read as follows:
17 (2) The amount of the credit shall be the product (or pro rata share
18 of the product, in the case of a member of a partnership) of twenty-five
19 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
1 during the qualified New York city musical and theatrical production's
2 credit period. Provided however that the amount of the credit cannot
3 exceed three hundred fifty thousand dollars per qualified New York city
4 musical and theatrical production in a level two qualified New York city
5 production facility and three million dollars per qualified New York
6 city musical and theatrical production in a level one qualified New York
7 city production facility. In no event shall a qualified New York city
8 musical and theatrical production be eligible for more than one credit
9 under this program. Provided however, if a production located in a
10 level two production facility is approved for a credit under this
11 section and such production moves to a level one production facility,
12 any credit amount previously approved for the level two production shall
13 reduce any approved level one credit amount by such amount. A
14 production shall not have to withdraw a previous credit application if
15 such production moves from a level two production facility to a level
16 one production facility.
17 § 3. Subparagraph (i) of paragraph 3 of subdivision (b) of section
18 24-c of the tax law, as amended by section 2-a of subpart E of part I of
19 chapter 59 of the laws of 2023, is amended to read as follows:
20 (i) "Level one qualified New York city production facility" means a
21 facility located within the (A) borough of Manhattan, bounded by and
22 including forty-first street and [fifty-fourth] fifty-seventh street and
23 between sixth avenue and [ninth] tenth avenue, and bounded by and
24 including sixty-second street and sixty-fifth street between Columbus
25 Avenue and Amsterdam Avenue in which live theatrical productions are or
26 are intended to be primarily presented, (B) that contains at least one
27 stage, a seating capacity of five hundred or more seats, and dressing
28 rooms, storage areas, and other ancillary amenities necessary for the
29 qualified musical and theatrical production, and (C) for which receipts
30 attributable to live theatrical productions constitute seventy-five
31 percent or more of gross receipts of the facility.
32 § 4. Subparagraph (i) of paragraph 5 of subdivision (b) of section
33 24-c of the tax law, as amended by section 3 of subpart E of part I of
34 chapter 59 of the laws of 2023, is amended to read as follows:
35 (i) "The credit period of a qualified New York city musical and theat-
36 rical production company" is the period starting on the production start
37 date and ending on the earlier of the date the qualified musical and
38 theatrical production has expended sufficient qualified production
39 expenditures to reach its credit cap, September thirtieth, two thousand
40 [twenty-five] thirty or the date the qualified musical and theatrical
41 production closes.
42 § 5. Subdivision (c) of section 24-c of the tax law, as amended by
43 section 4 of subpart E of part I of chapter 59 of the laws of 2023, is
44 amended to read as follows:
45 (c) The credit shall be allowed for the taxable year beginning on or
46 after January first, two thousand twenty-one but before January first,
47 two thousand [twenty-six] thirty-one. A qualified New York city musical
48 and theatrical production company shall claim the credit in the year in
49 which its credit period ends.
50 § 6. Paragraphs 1 and 2 of subdivision (f) of section 24-c of the tax
51 law, as amended by section 5 of subpart E of part I of chapter 59 of the
52 laws of 2023, are amended to read as follows:
53 (1) The aggregate amount of tax credits allowed under this section,
54 subdivision fifty-seven of section two hundred ten-B and subsection
55 (mmm) of section six hundred six of this chapter shall be [three] eight
56 hundred million dollars. Such aggregate amount of credits shall be allo-
S. 5256 3
1 cated by the department of economic development among taxpayers based on
2 the date of first performance of the qualified musical and theatrical
3 production.
4 (2) The commissioner of economic development, after consulting with
5 the commissioner, shall promulgate regulations to establish procedures
6 for the allocation of tax credits as required by this section. Such
7 rules and regulations shall include provisions describing the applica-
8 tion process, the due dates for such applications, the standards that
9 will be used to evaluate the applications, the documentation that will
10 be provided by applicants to substantiate to the department the amount
11 of qualified production expenditures of such applicants, and such other
12 provisions as deemed necessary and appropriate. Notwithstanding any
13 other provisions to the contrary in the state administrative procedure
14 act, such rules and regulations may be adopted on an emergency basis. In
15 no event shall a qualified New York city musical and theatrical
16 production submit an application for this program after June thirtieth,
17 two thousand [twenty-five] thirty.
18 § 7. Subdivision (g) of section 24-c of the tax law, as amended by
19 section 5-a of subpart E of part I of chapter 59 of the laws of 2023, is
20 amended to read as follows:
21 (g) Any qualified New York city musical and theatrical production
22 company that performs in a level one or level two qualified New York
23 city production facility and applies to receive a credit under this
24 section shall be required to: (1) participate in a New York state diver-
25 sity and arts job training program; (2) create and implement a plan to
26 ensure that their production is available and accessible for low-or
27 no-cost to low income New Yorkers; and (3) after the tax credit funds
28 have been received by the production, contribute to the New York state
29 council on the arts, cultural program fund an amount up to fifty percent
30 of the total credits received if its production earns ongoing revenue
31 prospectively after the end of the credit period that is at least equal
32 to two hundred percent of its ongoing production costs, with such amount
33 payable from twenty-five percent of net operating profits, such amounts
34 payable on a monthly basis, up until such fifty percent of the total
35 credit amount is reached, provided that for productions located in level
36 one production facilities, up to five hundred thousand dollars in aggre-
37 gate contributions in the amount of twenty-five hundred dollars per paid
38 performance week, pro-rated up or down in increments of one eighth on
39 the basis of eight performances per week, shall be payable prospectively
40 upon such production for productions located in level one production
41 facilities having presented paid public performances for a consecutive
42 twenty-four month (i.e. one hundred four paid performance weeks) period,
43 with such contributions deemed a credit against any contributions
44 required on the basis of net operating profits in this paragraph. Any
45 funds deposited pursuant to this subdivision may be used for arts and
46 cultural grant programs of the New York state council on the arts as
47 specified in subdivision five of section ninety-nine-ll of the state
48 finance law.
49 § 8. This act shall take effect immediately and shall apply to taxable
50 years beginning on or after January 1, 2026; provided, however, that the
51 amendments to section 24-c of the tax law made by sections two, three,
52 four, five, six and seven of this act shall not affect the repeal of
53 such section and shall be deemed repealed therewith.
