BILL NUMBER: S5256REVISED 3/17/25
SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:
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 establishing
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
 
PURPOSE:
This bill extends the New York City Theatrical Tax Credit, which has
allowed Broadway productions to receive needed capital investment and
the opening Broadway productions when 17% of audiences have not returned
since the COVID19 pandemic and industry's costs have risen by 30%, for
five years at the current funding amount while also making technical
changes to the operation of the Tax Credit.
 
SUMMARY OF PROVISIONS:
Section one of the bill extends the New York City Theatrical Tax Credit
for five years, from the current 2026 expiration to 2031.
Section two of the bill acknowledges and clarifies the treatment of a
Level Two qualified New York City production that moves to a Level One
facility, consistent with how the Tax Credit is currently administered.
Section three of the bill expands the geographic area containing eligi-
ble Level One qualified New York City production facilities to include
Lincoln Center, allowing commercial producers using their venues to
benefit from the tax credit.
Section four of the bill makes a technical statutory change consistent
with the extension of the New York City Theatrical Tax Credit for five
years.
Section five of the bill makes a technical statutory change consistent
with the extension of the New York City Theatrical Tax Credit for five
years.
Section six of the bill increases the aggregate allowable tax credits
from three hundred million dollars to eight hundred million dollars.
Section seven of the bill expands the required repayment into the NYS
Council for The Arts Cultural Program Fund from highly successful
productions adding a new lower financial threshold. In addition to the
current repayment calculation, after receiving any Tax Credit funds, any
production which has operated for two years or more shall pay $2,500 per
week to The Arts and Cultural Program Fund.
Section eight of the bill relates to the effective date.
 
JUSTIFICATION:
Since the COVID-19 pandemic, 17 percent of Broadway audiences have not
returned and the industry's costs have risen by 30 percent. The existing
New York City Theatrical Tax Credit has allowed Broadway productions to
receive needed capital investment and this bill would extend it for five
years at the current funding amount while also making technical changes
to the operation of the tax credit.
Comparable theater districts like the UK's West End offer a lower cost
structure and permanent tax credit, providing producers a tempting lower
risk option that would negatively impact New York's economic competi-
tiveness. Extending the New York Theatrical Tax Credit beyond 2026 would
ensure that this iconic industry can maintain its status as a cultural
mecca and economic engine of New York.
The technical changes would lower the threshold for repayment of the tax
credit by highly successful productions into the The Arts and Cultural
Program Fund. The bill would also expand the geographic area containing
eligible Level One qualified New York City production facilities to
institutions like the Lincoln Center.
 
LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately and apply to taxable years begin-
ning on or after January 1, 2026.

Statutes affected:
S5256: 24-c tax law