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 2025
Department of Taxation and Finance

Instructions for Form CT-654

New York City Musical and Theatrical Production
Tax Credit

General information

You may be eligible for this credit if you or your business:
•	 is subject to tax under Tax Law Article 9-A (franchise tax on
general business corporations),
•	 is a qualified New York City musical and theatrical production
company, and
•	 received a certificate of tax credit from Empire State
Development (ESD) showing the following:
–	 name of certified business and their employer identification
number (EIN),
–	 certificate number, and
–	 completion date.
ESD allocates the amount of the credit. For rules and regulations
about the credit, including the application process for the credit,
visit New York City Musical and Theatrical Production Tax Credit
Program or visit www.esd.ny.gov.

Credit calculation

The credit is 25% of the qualified production expenditures paid
for during the qualified New York City musical and theatrical
production’s credit period.

Limitations

You may claim this credit in the tax year that includes the
completion date shown on the certificate of tax credit.
You cannot:
•	 use any qualified production expenditures in calculating this
credit in the calculation of any other credit,
•	 apply the credit against the metropolitan transportation
business tax (MTA surcharge), and
•	 reduce your tax liability below the fixed dollar minimum tax.
If you do not use the full amount of the credit against your
tax liability this year, you may request a refund or apply the
overpayment to next year’s tax. The Tax Department will not pay
interest on the refund or overpayment.

How to claim the credit

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.
Combined filers: A taxpayer filing as a member of a combined
group is allowed to claim the credit, which is calculated 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
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.

Certificate information

A separate Form CT-654 must be completed for each certificate
you receive, whether it is as the entity that earned the credit or
as a partner.

CT-654-I

Note: If you received multiple copies of the same certificate from
different entities, complete a separate Form CT-654 to report
your share of credit from each entity, even though the certificate
number is the same.
Lines B through D: If you do not enter the correct information,
your credit may be denied. Corporate partners must get
this information from their partnership. Submit a copy of the
certificate with this form.
Additional forms: If you have multiple credit amounts to enter
on line 1, or more entries than will fit on the lines provided in
Schedule B, submit additional Forms CT-654, completing only
the necessary schedules. Include your name and taxpayer
identification number on each form. On the indicated lines of
the first Form CT-654, include the totals from all additional
Forms CT-654. Place the extra forms behind the first
Form CT-654 and submit them with your return.

Schedule A: Calculation 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 you are not
claiming an additional tax credit from a partnership, skip line 2
and enter the total of lines 1 and 1a on line 3. If needed, see
Additional forms.

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), and credit amount passed through
to you from each partnership. Obtain this information from all
partnerships allocating the credit to you. If needed, see Additional
forms.
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 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: Calculation of credit used, refunded,
or credited as an overpayment to the next tax
year (New York S corporations: Do not complete this
schedule.)
Line 4: Enter the amount from Form CT-3 or CT-3-A, Part 2,
line 2, plus any net recaptured tax credits.

Line 5: If you are claiming more than one tax credit for this year,
enter the total amount of credits you claimed before applying this
credit; otherwise enter 0. You must apply tax credits in a specific
order.
Article 9-A filers: For the correct order of credits, see
Form CT-600-I, Instructions for Form CT-600, Ordering of
Corporation Tax Credits.
Combined filers: Include the total amount of tax credits you
and other members of the combined group are claiming—
including the New York City musical and theatrical production tax
credit—that you want to apply before you apply this credit.

Page 2 of 2  CT-654-I (2025)
Line 7: Enter your fixed dollar minimum tax from Form CT-3 or the
designated agent’s fixed dollar minimum tax from Form CT-3-A.