The Launch of a Musical and Theatrical Tax Credit in New York City
The news on the launch of a $100 million Musical and Theatrical Production Tax Credit in New York City was received with so much excitement. This announcement has the potential of contributing greatly towards the path of economic recovery for the city after the ravaging effects of the coronavirus pandemic. Speaking during the launch, Governor Andrew M. Cuomo was very enthusiastic that the tax credits will help New York’s theatrical production industry recover rapidly.
Residents are curious to find out more about this program. Here are answers to some of the questions they might have:
What is the program about and how long will it last?
The $100 million Musical and Theatrical Production Tax credit is a program that is aimed at re-activating the entertainment and tourism industry in New York City. Visitors and residents have been missing out on the unmatched experience that comes with theatrical performances in the city since the onset of the pandemic. The launch of this program is a welcomed opportunity for many. The program is scheduled to last for two years
The program will cover some of the costs associated with producing a show as New York’s economy bounces back from the negative effects of the pandemic. Companies can get tax credits amounting to a whopping 25% of qualified production expenditures. For the first year, applicants will receive a maximum of $3 million per production. For the second year, if there is an economic indicator that the tourism industry is doing well in its recovery journey, companies applying will get $1.5 million per production.
Who qualifies for this?
Here are the eligibility criteria for this program:
- A musical and theatrical production must be a live and scripted performance with one or more performers.
- The productions must happen in a qualified production facility based in New York City.
- The expenditures that will be covered for qualified productions are:
- Salaries, wages, and fees for the services performed. These should not go beyond $200,000 per week.
- Productions costs for items like costumes, sets, make-up, accessories, lighting, sound, and staging.
- Costs of production facilities.
- A maximum of 50% of the advertising and marketing costs incurred.
How can they apply?
Interested applicants are advised to submit their applications before the first paid performance, preferably not more than 10 days before it. Applicants will need to keenly read the Program Guidelines and check the Chart of Application Materials before submitting their applications.
This initial application will consist of the following:
- A summary of the project.
- The production budget.
- A weekly payroll report.
- A public access and availability plan that will outline the strategies the applicant has in place to ensure the product reaches low-income New Yorkers.
- A diversity and arts job training program proposing the applicant’s way of participating in this initiative in New York.
There is so much hope for New York’s economic reinstatement with the launch of this program. The $100 million Musical and Theatrical Production Tax Credit can do so much! Residents are elated by this.
About David Milberg
David Milberg is an experienced financial analyst and entrepreneur from New York City. Milberg is a proud father of three kids. Milberg graduated from Princeton University with a BA in History and graduated from Columbia University with an MBA. David Milberg currently serves as a Senior Vice President at Milberg Factors, Inc.
Over his tenure at Milberg Factors, David has also been involved in numerous not-for-profit activities. In light of David’s charitable work, he was honored in the year 2000 by the accountants and bankers division of Big Brothers Big Sisters of New York and by the Metropolitan Jewish Geriatric Foundation. David Milberg has also been active in the Lincoln Center Business Council.
David Milberg has invested in such major broadway productions as Mel Brook’s The Producers, The Weir, and the hit revival of Pippin directed by Diane Paulus and starring Tony Award Winner Patina Miller at the Leading Player. David sits on the Board of Trustees for The Prospect Theater Company and is a fervent supporter of the Lincoln Center Theater. David Milberg presently serves on the Board of Trustees of the Princeton Triangle Club, where he was Vice-Chairman.
David Milberg has a rich, varied background in musical theater and live stage performance.