New York City Musical and Theatrical Production Tax Credit

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Overview

The $100 million New York City Musical and Theatrical Production Tax Credit is a two-year program jump-starting the entertainment industry and support tourism in New York City. The Program will offset some of the costs associated with producing a show as New York’s economy recovers from the COVID 19 pandemic. 

Companies can receive tax credits of 25% of qualified production expenditures. First-year program applicants can receive up to $3 million per production. Companies applying in the second year are capped at $1.5 million, subject to economic indicators assessing the tourism industry’s recovery. If indicators show that the tourism economy in New York City is not fully recovered, the cap would remain at $3 million per production.

Productions must occur in a qualified production facility in New York City.

Companies must implement a New York State-approved diversity and arts jobs training plan and take actions to increase access to productions for low-income residents. Highly successful productions, those showing ongoing revenues more than two times their ongoing production costs after receiving a tax credit, will be required to contribute to the NYS Council for The Arts Cultural Program Fund, up to 50% of the tax credit.    

The Program is a two-year program and companies can receive credits for tax years beginning on or after January 1, 2021 but before January 1, 2024.  Initial applications must be submitted by December 31, 2022 and final applications no later than 90 days after the production closes or 90 days following the program end date of March 31, 2023, whichever comes first.

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Eligibility

To qualify, a Musical and Theatrical Production generally must be a live, scripted performance with one or multiple performers that, in its original or adaptive version, is performed in a qualified production facility in New York City

Ballet, opera, musical solo, group, band or orchestra performances, or stand-up comedy performances are not eligible.

Eligible expenditures for qualified productions include:

  • Production costs for sets, costumes, wardrobes, makeup, accessories and costs associated with sound, lighting and staging.
  • Salaries, wages, fees, and other compensation, including related benefits for services performed. Total allowable expenses are not to exceed $200,000 per week.
  • Technical and crew production costs, such as expenditures for qualified production facilities.
  • Up to 50% of the advertising and marketing costs incurred and paid in NYS by the applicant.

The credit period of a qualified production begins on the production start date and ends on the earliest of the following options:

  1. the credit cap has been reached;
  2. the production closes; or
  3. March 31, 2023 – the program end date.
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How To Apply

Applications must be submitted prior to the first paid performance. Submission no later than 10 days prior to such performance is highly encouraged.

The initial application consists of:

  • Project Summary
  • Production and operating budgets
  • Weekly Payroll Report
  • A diversity and arts job training program plan outlining proposed method(s) of participating in a New York state diversity and arts job training program  
  • A public access and availability plan outlining the ways the applicant will ensure that their production is available and accessible for low-or no-cost to low income New Yorkers 
  •  The applicant must agree (on Project Summary) to contribute to the New York State Council on the Arts Cultural Program Fund if ongoing revenues are more than two times ongoing production costs after receiving a tax credit.

Applicants should review the Program Guidelines carefully and consult the Chart of Application Materials before submission of an application. Guidelines contain detailed information about eligibility, qualified costs, application process, materials and regulations that govern the Program.

Click here to download, complete and submit an initial application.

A final application is being developed and will be posted when available.  Final applications are due no later than 90 days after the production closes or 90 days following the program end date of March 31, 2023, whichever comes first.

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Regulations

New York City Musical and Theatrical Production Tax Credit Program Regulations

The above is the link to the New York City Musical and Theatrical Production Tax Credit proposed regulations. Please submit any public comment on these regulations via email to Thomas Regan, Associate Counsel at [email protected]. The Department will be accepting public comment until Monday, September 27 at 5PM. Thank you.

 

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Contact

If you have questions about the Program, please contact the NYC Musical and Theatrical Tax Credit Program at (212) 803-2328 or via email at [email protected].