Sponsored by:
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Co-Sponsored by:
Senator Diegnan
SYNOPSIS
Provides corporation business and gross income tax credit for certain Pre-Broadway and Post-Broadway theater productions.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a tax credit for certain theater productions and supplementing P.L.1945, c.162 and chapter 4 of Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A taxpayer that is a production company shall be allowed a credit against the tax due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) in an amount equal to 35 percent of the production and performance expenditures incurred by the taxpayer for an accredited theater production.
b. (1) The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period shall be as prescribed by the Director of the Division of Taxation in the Department of the Treasury.
(2) The amount of the credit applied pursuant to this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) shall not reduce a taxpayer's tax liability for a privilege period to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).
(3) The amount of the credit otherwise allowed under this section that cannot be applied for the privilege period due to the limitations of this subsection, or under other provisions of P.L.1945, c.162 (C.54:10A-1 et seq.), may be carried forward, if necessary, to the three privilege periods following the privilege period for which the tax credit was allowed.
c. To receive the tax credit allowed pursuant to this section, a taxpayer that is a production company of an accredited theater production shall apply to the authority in such form and manner as prescribed by the authority. In addition to any other information that the authority deems appropriate, the application shall include information detailing:
(1) the accredited theater production, including the dates on which the production was performed at a qualified production facility and New York City's Broadway theater district, respectively;
(2) the qualified production facility at which such production was performed; and
(3) the production and performance expenditures incurred for the accredited theater production.
d. The authority may approve applications on a rolling basis, subject to the availability of authorized credits. If the authority approves an application, the authority shall issue a notice of initial certification to the taxpayer and the director. The director shall make a determination, no later than 30 days after receiving the initial certification, concerning the issuance of a final certification of tax credits to the taxpayer.
e. The total value of tax credits approved by the director pursuant to this section and section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not exceed a cumulative total of $10 million in any one fiscal year.
f. No later than 12 months following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and annually thereafter, the authority shall prepare and submit a report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature that, at a minimum, details the applications submitted pursuant this section and section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), including each production company that applied for tax credits, the status of each application, the accredited theater production and qualified production facility to be supported by each applicant, and the amount of any credits awarded to each approved applicant.
g. As used in this section:
Accredited theater production means a for-profit live stage presentation that is a pre-Broadway production or a post-Broadway production and is performed at a qualified production facility.
Advertising and public relations expenditures means costs incurred within the State by a production company for goods or services related to the national marketing of, public relations for, or creation and placement of print, electronic, television, billboard, and other forms of advertising to promote the accredited theater production.
Authority means the New Jersey Economic Development Authority.
Director means the Director of the Division of Taxation in the Department of the Treasury.
Payroll means all salaries, wages, fees, and other compensation, including related benefits for services performed within the State, not exceeding $250,000 per week.
Post-Broadway production means a live stage presentation that, in its original or adaptive version, is performed at a qualified production facility and opens its national tour in the State following a performance or performances of such presentation in New York Citys Broadway or off-Broadway theater districts.
Pre-Broadway production means a live stage presentation that, in its original or adaptive version, is performed at a qualified production facility and with an intended purpose of being presented in New York Citys Broadway theater district.
Production and performance expenditures means a contemporaneous exchange of cash or cash equivalent for goods or services related to the development, production, or performance of, or operating expenditures incurred in the State for, an accredited theater production, including, but not limited to: (1) expenditures for design, construction, and operation, including sets, special and visual effects, costumes, wardrobe, make-up, and accessories; (2) costs associated with sound, lighting, staging, facility expenses, rentals, per diems, and accommodations; and (3) payroll, advertising, and public relations expenditures and transportation expenditures.
Qualified production facility means a facility located in the State and in which live stage presentations are, or are intended to be, exclusively performed, and that contains at least one stage, a seating capacity of 350 or more seats and dressing rooms, storage areas, and other ancillary amenities necessary for an accredited theater production.
Transportation expenditures means expenditures for: (1) the packaging, crating, and transporting, to and from the State, of sets, costumes, and other tangible property and equipment used or to be used in an accredited theater production; and (2) the transporting of cast and crew members of an