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 IT-654 New York City Musical and Theatrical Production Tax Credit Tax Year 2023
Department of Taxation and Finance

Instructions for Form IT-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 the owner of such a 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 shown 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.

How to claim the credit

File Form IT-654 if you are an individual, a beneficiary or
fiduciary of an estate or trust, a partner in a partnership
(including members of an LLC treated as a partnership for
federal tax purposes), or a shareholder of an S corporation,
and you are claiming the New York City musical and theatrical
production tax credit.
An estate or trust that divides the credit among itself and its
beneficiaries must submit Form IT-654 with Form IT-205,
Fiduciary Income Tax Return, showing each beneficiary’s share
of the credit.
A partnership must file Form IT-654 with Form IT-204,
Partnership Return, showing the total credit.
A New York S corporation does not file Form IT-654. It must file
Form CT-654, New York City Musical and Theatrical Production
Tax Credit. If you are a shareholder of an S corporation,
obtain your share of the New York City musical and theatrical
production tax credit from the S corporation and follow the
instructions on this form for claiming the credit on your personal
income tax return.
The New York City musical and theatrical production tax credit
cannot reduce the tax due to less than zero; any unused
New York City musical and theatrical production tax credit may

IT-654-I

be treated as a refund or overpayment of tax to be credited
to next year’s tax. Interest will not be paid on the refund or
overpayment.

Line instructions
See the instructions for your tax return for the Privacy notification
or if you need help contacting the Tax Department.
Line A – Mark an X in the appropriate box to determine the parts
of this form you need to complete. If you are claiming this credit
both as an individual (sole proprietor), partnership, or fiduciary
of an estate or trust that earned the credit and as a partner,
shareholder, or beneficiary receiving a share of the credit, mark
an X in the Yes box and complete all appropriate schedules on
one Form IT-654.
Individuals (including sole proprietors) and partnerships:
Complete lines A through E, and Schedules A and D.
A married couple in a business enterprise that made an IRC
761(f) election to file two federal Schedule C forms instead
of a partnership return: If you file jointly, compute your credit
as if you were filing one federal Schedule C for the business.
Complete lines A through E, and Schedules A and D.
Fiduciary: Complete lines A through E, and Schedules A, C,
and D.
Partner in a partnership, shareholder of a New York
S corporation, and beneficiary of an estate or trust:
Complete lines A through E, and Schedules B and D.
Note: If more than one set of instructions applies to you,
complete all the appropriate parts of the form on one
Form IT-654.
Lines B – E – Complete lines B through E 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 – Individual (including sole
proprietor), partnership, and estate or trust

Line 1 – Enter the total amount of credit listed on your certificate
of tax credit issued by ESD. The amount entered cannot exceed
the amount shown on your certificate of tax credit.
Additional forms – If you have more entries than will fit on
the lines provided in Schedule(s) B or C, submit additional
Forms IT-654, completing only the necessary schedule(s).
Include your name and taxpayer identification number on each
form, and include the totals from all additional Forms IT-654
on the indicated lines. Place the extra forms behind the first
Form IT-654, and submit them with your return.

Schedule B – Partner’s, shareholder’s, or
beneficiary’s share of credit

Enter the appropriate information for each partnership, New
York S corporation, or estate or trust from which you received
a share of the credit. Obtain your share of the credit from your
partnership(s), S corporation, estate or trust. If needed, see
Additional forms above.

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Schedule C – Beneficiary’s and fiduciary’s share
of credit
An estate or trust must complete Schedule C. If an estate or
trust allocates or assigns the credit to its beneficiaries, it must
base the division on each beneficiary’s proportionate share of
the income of the estate or trust. Provide the beneficiaries with
their share of the credit. If needed, see Additional forms above.

Schedule D – Computation of credit

Complete lines 6, 7, and 8 (whichever apply to you).
Fiduciaries: Do not enter any amounts on lines 6 or 7.
Line 9 – Enter the amount and code 654 on:
•	 Form IT-201-ATT, line 12;
•	 Form IT-203-ATT, line 12; or
•	 Form IT-204, line 147.
For Form IT-205, include the amount on line 33.