S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7746

                            I N  S E N A T E

                              June 4, 2014
                               ___________

Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to establishing a  musical  and
  theatrical  production  business franchise credit; to amend chapter 59
  of the laws of 2014, amending the tax law relating to  a  musical  and
  theatrical production credit, in relation to the effective date there-
  of; and providing for the repeal of certain provisions upon expiration
  thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 1 of subdivision (c) of section 24-a of  the  tax
law, as added by section 1 of part HH of chapter 59 of the laws of 2014,
is amended to read as follows:
  (1) article 9-A: section [210-B] 210:  subdivision [47] 50.
  S 2. Paragraph 1 of subdivision (e) of section 24-a of the tax law, as
added  by  section  1  of  part HH of chapter 59 of the laws of 2014, is
amended to read as follows:
  (1) The aggregate amount of tax credits allowed  under  this  section,
subdivision  [forty-seven]  FIFTY of section two hundred [ten-B] TEN and
subsection (u) of section six hundred six of this chapter in any  calen-
dar year shall be four million dollars. Such aggregate amount of credits
shall  be  allocated  by  the  department  of economic development among
taxpayers in order of priority based upon the date of filing an applica-
tion for allocation of musical and  theatrical  production  credit  with
such department. If the total amount of allocated credits applied for in
any  particular year exceeds the aggregate amount of tax credits allowed
for such year under this section, such excess shall be treated as having
been applied for on the first day of the subsequent year.
  S 3. Section 210 of the tax law is amended by adding a new subdivision
50 to read as follows:
  50. MUSICAL AND THEATRICAL PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT.
A TAXPAYER WHO IS ELIGIBLE PURSUANT TO  SECTION  TWENTY-FOUR-A  OF  THIS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15496-02-4
              

S. 7746                             2

CHAPTER  SHALL  BE  ALLOWED  A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH
SECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
THAN  THE  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS
SECTION.  PROVIDED, HOWEVER, THAT IF THE AMOUNT OF THE CREDIT  ALLOWABLE
UNDER  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CRED-
ITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE  THOU-
SAND  EIGHTY-SIX  OF  THIS CHAPTER. PROVIDED, FURTHER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S 4. Clause (xxxix) of subparagraph B of paragraph 1 of subsection (i)
of section 606 of the tax law, as added by section 3 of part HH of chap-
ter 59 of the laws of 2014, is amended to read as follows:
(xxxix) Musical and theatrical       Amount of credit for
production credit under              the sum of the qualified
subsection (u)                       production expenditures and
                                     the transportation expenditures
                                     in a qualified musical and
                                     theatrical production under
                                     subdivision [forty-seven] FIFTY of
                                     section two hundred [ten-B] TEN
  S  5.  Section 5 of part HH of chapter 59 of the laws of 2014, amended
the tax law relating to a musical and theatrical production  credit,  is
amended to read as follows:
  S 5. This act shall take effect immediately AND SHALL APPLY TO TAXABLE
YEARS  COMMENCING ON OR AFTER JANUARY 1, 2014, provided that section two
of this act shall take effect on January 1, 2015, [and  shall  apply  to
taxable  years  beginning  on or after January 1, 2015,] with respect to
"qualified production expenditures"  and  "transportation  expenditures"
paid  or incurred on or after such effective date, regardless of whether
the  production  of  the  qualified  musical  or  theatrical  production
commenced  before such date, provided further that this act shall expire
and be deemed repealed 4 years after such date.
  S 6. This act shall take effect immediately, provided  that:  sections
one,  two,  three  and  four  of  this  act shall apply to taxable years
commencing on or after January 1, 2014, and such sections  shall  expire
and  be deemed repealed on the effective date of section 17 of part A of
chapter 59 of the laws of 2014, as amended.