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 2025
Department of Taxation and Finance

Instructions for Form IT-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 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 may not use any qualified production expenditures used
in calculating this credit in the calculation of any other credit.
•	 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

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, file
Form IT-654 with your income tax return.
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, calculate
your credit as if you were filing one federal Schedule C for the
business.
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.

IT-654-I

Line instructions

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.

Certificate information

A separate Form IT-654 must be completed for each certificate
you receive, whether it is as the entity that earned the credit or
as a partner, shareholder or beneficiary in an entity that earned
the credit.
Note: If you received multiple copies of the same certificate from
different entities, complete a separate Form IT-654 to report
your share of credit from each entity, even though the certificate
number is the same.
Lines B through E: If you do not enter the correct information,
your credit may be denied. Partners, shareholders, or
beneficiaries must get this information from their partnership,
S corporation, estate or trust. 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 or C, submit additional Forms IT-654, completing
only the necessary schedules. Include your name and taxpayer
identification number on each form. On the indicated lines
of the first Form IT-654, include the totals from all additional
Forms IT-654. Place the extra forms behind the first Form IT-654
and submit them with your return.

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. If needed,
see Additional forms.

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
partnerships, S corporation, estate or trust. If needed, see
Additional forms.

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 share of the income of
the estate or trust. Provide the beneficiaries with their share of
the credit. If needed, see Additional forms.

Page 2 of 2  IT-654-I (2025)

Schedule D: Calculation of credit
Line 9
Individuals: Enter the amount from line 9 and code 654 on:
•	 Form IT-201-ATT, line 12; or
•	 Form IT-203-ATT, line 12.
Partnerships: Enter the amount from line 9 and code 654 on
Form IT-204, line 147.
Fiduciaries: Include the amount from line 9 and code 654 on
Form IT-205, line 33. Do not enter any amount on line 6 and 7 of
this form.