New York Laws
Article 1 - Short Title; Definitions; Miscellaneous
24-A - Musical and Theatrical Production Credit.

(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 and the
transportation expenditures.
(3) No qualified production expenditures or transportation
expenditures used by a taxpayer either as the basis for the allowance of
the credit provided for 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 in a qualified production facility,
certified pursuant to rules and regulations promulgated by the
department of economic development, as a qualified touring production.
(2) "Qualified touring production" means a live, dramatic stage
production that, in its original or adaptive version, is performed in a
qualified production facility, and has begun or will begin a tour,
consisting of eight or more shows in three or more localities.
(3) "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 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 qualified production facilities, or any part thereof,
props, make-up, wardrobe, costumes, equipment used for special and
visual effects, sound recording, set construction, and lighting.
(4) "Qualified production facility" means a facility located in the
state but outside 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 one thousand or more
seats, and dressing rooms, storage areas, and other ancillary amenities
necessary for the qualified musical and theatrical production, (iii) for
which receipts attributable to ticket sales constitute seventy-five
percent or more of gross receipts of the facility, and (iv) which is not
a licensee, or affiliated with a licensee, of the New York state gaming
commission under the racing, pari-mutuel wagering and breeding law.
(5) "Qualified 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 and performs in a qualified
production facility.
(6) (i) "Transportation expenditures" means transportation
expenditures incurred and paid directly and predominantly in the

production of a qualified musical and theatrical production. Such
expenditures shall include the packaging, crating, and transportation
within the state for use in a qualified theater production of sets,
costumes, or other tangible property constructed or manufactured in and
out of state, and the transportation of the cast and crew within the
state. Such term shall include the packaging, crating, and transporting
within the state of property and equipment used for special and visual
effects, sound, lighting and staging, costumes, wardrobes, make-up and
related accessories and materials, as well as any other performance or
production-related property and equipment.
(ii) Transportation expenditures shall not include any costs to
transport property and equipment to be used only for filming and not in
a qualified theater production, any indirect costs, and expenditures
that are later reimbursed by a third party, or any amounts that are paid
to persons or entities as a result of their participation in profits
from the exploitation of the production.
(c) 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 47.
(2) article 22: section 606: subsection (u).
(d) 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 taxpayer claiming
this credit and the amount of the credit earned by the taxpayer.
Provided, however, if a taxpayer claims this credit because it is a
member of a limited liability company or a partner in a partnership,
only the amount of credit earned by the entity and not the amount of
credit claimed by the taxpayer may be released.
(e) Maximum amount of credits.
(1) The aggregate amount of tax
credits allowed under this section, subdivision forty-seven of section
two hundred ten-B and subsection (u) of section six hundred six of this
chapter in any calendar year shall be eight million dollars. Such
aggregate amount of credits shall be allocated by the department of
economic development among taxpayers in order of priority based upon the
date of filing an application for allocation of musical and theatrical
production credit with such department. If the total amount of allocated
credits applied for in any particular year exceeds the aggregate amount
of tax credits allowed for such year under this section, such excess
shall be treated as having been applied for on the first day of the
subsequent year.
(2) The commissioner of economic development, after consulting with
the commissioner, shall promulgate regulations by October thirty-first,
two thousand fourteen to establish procedures for the allocation of tax
credits as required by subdivision (a) of this section. Such rules and
regulations shall include provisions describing the application process,
the due dates for such applications, the standards which shall be used
to evaluate the applications, the documentation that will be provided to
taxpayers to substantiate to the department the amount of tax credits
allocated to such taxpayers, 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 if necessary to meet
such October thirty-first, two thousand fourteen deadline.
(f) The department of economic development shall submit to the
governor, the temporary president of the senate, and the speaker of the
assembly, an annual report to be submitted on February first of each
year evaluating the effectiveness of the musical and theatrical
production tax credit provided by this section in stimulating the growth
of the musical and theatrical industry in the state. Such report shall
include, but need not be limited to, in total and by qualified musical
and theatrical production, the number of qualified musical and
theatrical productions which received a musical and theatrical
production credit, the qualified production expenditures, the
transportation expenditures, the qualified production facilities, and
the credit amounts claimed by each qualified musical and theatrical
production, as well as the impact on employment and the economy of the
state. Such report shall include (1) the credit-eligible man hours for
each project and the total wages for such credit-eligible man hours for
each project as well as the name of each taxpayer allocated a tax credit
for each project and the county of residence or incorporation of such
taxpayer or, if the taxpayer does not reside or is not incorporated in
New York, then the state of residence or incorporation; provided
however, if the taxpayer claims a tax credit because the taxpayer is a
member of a limited liability company, a partner in a partnership or a
shareholder in a subchapter S corporation, the name of each limited
liability company, partnership or subchapter S corporation earning any
of those tax credits must be included in the report instead of
information about the taxpayer claiming the tax credit; and (2) the
amount of tax credit allocated to each taxpayer; provided, however, if
the taxpayer claims a tax credit because the taxpayer is a member of a
limited liability company, a partner in a partnership or a shareholder
in a subchapter S corporation, the amount of tax credit earned by each
entity must be included in the report instead of information about the
taxpayer claiming the tax credit, and information identifying the
project associated with each taxpayer for which a tax credit was claimed
under this section, including the name of the musical and theatrical
production and county in which the production is performed must be
included in such report. Such report shall be based on data available
from the application filed with the department of economic development
for allocation of musical and theatrical production credits.
Notwithstanding any provision of law to the contrary, the information
contained in the report shall be public information. The report may also
include any recommendations of changes in the calculation or
administration of the credit, and any other recommendation of the
commissioner of the department of economic development regarding
continuing modification, repeal of such act, and such other information
regarding the act as the commissioner of the department of economic
development may feel useful and appropriate.
* NB Repealed January 1, 2026

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