New York New York City Musical and Theatrical Production Tax Credit (Instructions)

New York City Musical and Theatrical Production Tax Credit (Instructions)
Instructions for Form CT-654 New York City Musical and Theatrical Production Tax Credit Tax Year 2023
Department of Taxation and Finance

Instructions for Form CT-654

New York City Musical and Theatrical Production
Tax Credit
General information

For tax years beginning on or after January 1, 2021; the New
York City Musical and Theatrical Production Tax Credit is
available to eligible taxpayers that are certified by Empire State
Development (ESD) to participate in the program and are issued
a certificate of tax credit.
For more information about the program and application
process, visit the ESD website at www.esd.ny.gov.

Eligibility

To be eligible for this credit, you must meet all of the following
requirements:
•	 you are subject to tax under Tax Law Article 9-A or 22;
•	 you are a qualified New York City musical and theatrical
production company, or an owner of such company; and
•	 you have received, or are the owner of a business entity that
has received a certificate of tax credit issued by ESD.

Credit details

The credit is 25% of the qualified production expenditures paid
for during the qualified New York City musical and theatrical
production’s credit period. The credit may be limited; the actual
amount of your credit is stated on the certificate issued by ESD,
along with the following:
•	 name of certified business and employer identification number
(EIN),
•	 certificate number, and
•	 completion date.
Qualified production expenditures used as the basis for the
allowance of this credit or in the calculation of this credit cannot
be used to claim any other credits.
The credit is claimed in the tax year in which the completion date
falls as stated on the certificate of tax credit.
The amount of credit allowed cannot reduce the tax due to less
than the fixed dollar minimum tax.
Any unused amount of credit for the current tax year will be
treated as a refund or overpayment of tax to be credited to
the next year’s tax. Interest will not be paid on the refund or
overpayment.
The credit is not allowed against the metropolitan transportation
business tax (MTA surcharge) under Article 9-A.
For rules and regulations regarding the credit, visit the ESD
website at www.esd.ny.gov.
New York S corporations: New York S corporations will
calculate the credit; however, the S corporation may not use the
credit against its own tax liability. Instead, the credit is passed
through to the shareholders to use against their personal income
tax liabilities on their New York State tax returns. Complete only
lines A through D, and Schedules A and B.
Combined filers: A taxpayer filing as a member of a combined
group is allowed to claim the credit, which is computed on a
separate basis but applied against the combined tax.

Line instructions

Line A – Mark an X in the appropriate box to determine the
parts of this form that you need to complete. If you are claiming

CT-654-I

this credit both as a corporation that earned the credit and as
a corporate partner receiving a share of the credit, mark an X
in the Yes box and complete all appropriate schedules on one
Form CT-654.
Lines B through D – Complete lines B through D using the
information from your certificate of tax credit issued by ESD.
Failure to enter the correct information may result in a denial of
your credit. Retain a copy of your certificate of tax credit and be
prepared to produce a copy in the case of an audit.

Schedule A – Computation of credit

Line 1 – Enter the total amount of credit from the certificate of
tax credit issued by ESD. The amount entered cannot exceed
the amount shown on your certificate of tax credit. If not claiming
an additional tax credit from a partnership, skip line 2 and enter
the line 1 amount on line 3.

Schedule B – Partnership information

If you were a partner in a partnership and received a share
of the New York City musical and theatrical production tax
credit from that entity, complete this schedule. Enter the name,
employer identification number (EIN), certificate number from
the certificate of tax credit issued to the partnership, and credit
amount passed through to you from each partnership. Obtain
this information from the partnership(s) allocating the credit to
you.
Additional forms – If you have more entries than will fit on the
lines provided in Schedule B, submit additional Forms CT-654.
Include your name and taxpayer identification number on each
form, and include the totals from all additional Forms CT-654
on the indicated line. Place the extra forms behind the first
Form CT-654 and submit them with your return.

Line 3

New York S corporations – Transfer this amount to the
applicable line of Form CT-34-SH, New York S Corporation
Shareholders’ Information Schedule, and provide your
shareholders with their pro rata share of this line. The
shareholders will file Form IT-654, New York City Musical and
Theatrical Production Tax Credit, to claim this credit on their
New York State personal income tax returns.

Schedule C – Computation of credit used, refunded,
or credited as an overpayment to the next tax
year (New York S corporations: Do not complete this
schedule.)
Lines 4 and 7 entries table
If you filed

Enter on line 4
any net recapture
of other tax
credits, plus the
amount from

Enter on line 7
the minimum tax
below

Form CT-3

Part 2, line 2

Part 2, line 1c
amount

Form CT-3-A

Part 2, line 2

Part 2, line 1c
amount

Line 4 – Enter your tax due before credits using the Lines 4 and
7 entries table above.

Page 2 of 2  CT-654-I (2023)
Line 5 – If you are claiming more than one tax credit for this
year, enter the total amount of credits claimed before applying
this credit; otherwise enter 0. Tax credits must be applied in a
certain order.
Article 9-A filers: See Form CT-600-I, Instructions for
Form CT-600, Ordering of Corporation Tax Credits, for the
correct order of credits.
If filing as a member of a combined group, include any amount
of tax credit(s), including the New York City musical and
theatrical production tax credit, claimed by other members of the
combined group that you want to apply before this credit.
Line 7 – Enter the fixed dollar minimum tax using the Lines 4
and 7 entries table above.

Need help? and Privacy notification

See Form CT-1, Supplement to Corporation Tax Instructions.