Assembly Speaker Sheldon Silver today announced the 2014-15 SFY Budget establishes the Musical and Theatrical Production Tax Credit as an incentive for the many major theatrical productions that originate in New York State to begin their national tours in communities throughout the state.
"New York City is home to many of America's most critically acclaimed musicals and theatrical performances that have thrilled audiences worldwide," said Silver. "The artistry and ingenuity that makes these productions unforgettable begins in New York State and so should their national tours."
"Through this tax credit, we hope to expand the excitement of Broadway-style shows across the state so more New Yorkers can enjoy these outstanding performances and the increased economic activity that a major theatrical production can bring. Broadway is a New York brand and who better to benefit from it first than the people of our state," he added.
Silver noted that New York is competing against several other states with similar tax credits aimed at luring the shows during their "tech" period, which involves an entire team of technicians and performers working out the technical aspects of the show before taking it on tour.
"Broadway's major theatrical productions are an exciting part of the history and traditions of the Empire State. With this tax credit, we increase the entertainment opportunities for our cities, towns, theaters and play houses so they can gain from the cultural and economic activity that these spectacular productions generate," said Assemblywoman Margaret Markey, chair, Tourism, Parks, Arts and Sports Development Committee.
"People often underestimate the positive economic impact that national tours have on the communities of such Upstate cities as Schenectady, Rochester or Buffalo. When major productions come to town, money is being spent on local labor, transportation, housing, food, drink and marketing, not to mention the cultural benefit for communities." said Assemblyman Angelo Santabarbara. "It is critical that we provide this tax credit so that we don't lose these productions to other states."
The Musical and Theatrical Production Credit included in this budget will provide a 25 percent refundable credit against taxes for production, promotion, performance and transportation expenses for live, dramatic, stage shows on national tour.
Silver estimated the value of the tax credit at $4 million and underscored the economic impact these national tours can have on host communities when productions with a significant number of cast and crew members, including electricians, carpenters stagehands, musicians and laborers, arrive in town in need of such services as hotel rooms, restaurants and rental cars.