Article: 50524
Overview
The NYC Musical and Theatrical Production Tax Credit is a refundable income tax credit offered by New York State to incentivize the production of live musical and theatrical performances in New York City. This credit supports the post-pandemic recovery of the performing arts industry and helps offset eligible production and facility-related costs.
You must complete Form IT-654 and include it with your Form IT-201, IT-203, or IT-204 (depending on your residency or business structure) to claim the credit.
Who Can Claim the Credit?
You may be eligible to claim this credit if:
- You are an individual, partner, S corporation shareholder, or estate/trust beneficiary who received an allocation of the NYC Musical and Theatrical Production Tax Credit from a qualified production company, and
- You received a certificate of tax credit from the New York State Department of Taxation and Finance (DTF), and
- Your credit was reported to you on a Schedule K-1 statement, or other document from the production entity.
Note: The credit is refundable, meaning it can result in a refund even if you owe no income tax.
Credit Amount
- The amount depends on the percentage of qualified production expenditures incurred in New York City.
- The credit is limited to the amount allocated to you on your certificate of tax credit or K-1 equivalent from the entity.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: “I’d like to see the forms I’ve filled out or search for a form.”
- In the dropdown menu, select New York.
- Click on the IT Credits 500 – 600 Series tab.
- Select IT- 654 – NYC Musical and Theatrical Production Tax Credit to open the screen.
- Enter all applicable information.
- Click ‘Save‘ once complete.
Additional Resources
For further guidance, see: