Establishes a musical and theatrical production credit against business franchise and personal income taxes for certain pre-Broadway and post-Broadway productions

Summary of provisions

Section 1 amends the tax law by adding a new section 24-a to provide for a musical and theatrical production credit. The amount of the credit is twenty-five percent of qualified production costs incurred in New York State. For credits that are at least one million dollars but less than five million dollars the credit will 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 the 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 seceding taxable years, with one-third of the amount of the credit allowed being claimed each year.

An accredited theater production is defined as 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 a pre-Broadway production or is a post-Broadway production. The bill defines a qualified production facility as 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 capacity of one thousand five hundred or more seats, and dressing rooms, storage areas, and other ancillary amenities necessary for the accredited theater productions.

Section 2 amends section 210 of the tax law to state that the credit allowed under this subdivision for any taxable year shall not reduce the tax due for each 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 the tax to be credited or refunded.

Section 3 (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xxxvii) to include the musical and theatrical production credit.

Section 4 amends section 606 of the tax law by adding a new subsection (u) to included the musical and theatrical production tax credit.

Section 5 contains the effective date.

Existing law

Under current law, New York State provides for a production tax credit for film and television.

Justification

Modeled after the successful Rhode Island musical and theatrical production tax credit for pre and post- Broadway productions, this bill aims to encourage investment in live events and further spur investment and tourism in both the Mid and Upstate regions of the State. Further, New York will also be able to compete with a growing number of other states that offer similar incentives for investors in live theater, such as Louisiana, Illinois and Rhode Island.

Across this state, from Buffalo to the capital region and from Poughkeepsie to Binghamton to Elmira; upstate cities can boast incredible economic activity due to the drive of New York's famous Broadway at theaters like Shea's, Proctors, the Clemens Center and the newly opened Landmark in Syracuse.

This tax credit will boost investment in these Upstate New York Cities increasing production and ultimately jobs and the economy.

Legislative history

2013: S.5163 Referred to Investigation and Government Operations

Fiscal implications

To be determined

Effective date

This act shall take effect January 1, 2015