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A2055
ASSEMBLY, No. 2055
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman SHAMA A. HAIDER
District 37 (Bergen)
Co-Sponsored by:
Assemblywomen Peterpaul and Donlon
SYNOPSIS
���� Provides corporation business and gross income tax
credit for certain Pre-Broadway and Post-Broadway theater productions.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
providing a tax credit for certain theater productions
and supplementing P.L.1945, c.162 and chapter 4 of Title 54A of the New Jersey
Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a.� A taxpayer that is a
production company shall be allowed a credit against the tax due pursuant to
section 5 of P.L.1945, c.162 (C.54:10A-5) in an amount equal to 35 percent of
the production and performance expenditures incurred by the taxpayer for an
accredited theater production.
���� b.��� (1)� The order of
priority of the application of the credit allowed pursuant to this section and
any other credits allowed against the tax imposed pursuant to section 5 of
P.L.1945, c.162 (C.54:10A-5) for a privilege period shall be as prescribed by
the Director of the Division of Taxation in the Department of the Treasury.�
���� (2)� The amount of the credit
applied pursuant to this section against the tax imposed pursuant to section 5
of P.L.1945, c.162 (C.54:10A-5) shall not reduce a taxpayer's tax liability for
a privilege period to an amount less than the statutory minimum provided in
subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).
���� (3)� The amount of the credit otherwise
allowed under this section that cannot be applied for the privilege period due
to the limitations of this subsection, or under other provisions of P.L.1945,
c.162 (C.54:10A-1 et seq.), may be carried forward, if necessary, to the three
privilege periods following the privilege period for which the tax credit was
allowed.
���� c.��� To receive the tax
credit allowed pursuant to this section, a taxpayer that is a production
company of an accredited theater production shall apply to the authority in
such form and manner as prescribed by the authority. In addition to any other
information that the authority deems appropriate, the application shall include
information detailing:
���� (1) the accredited theater
production, including the dates on which the production was performed at a
qualified production facility and New York City's Broadway theater district,
respectively;
���� (2) the qualified production
facility at which such production was performed; and
���� (3) the production and
performance expenditures incurred for the accredited theater production.
���� d.��� The authority may
approve applications on a rolling basis, subject to the availability of
authorized credits.� If the authority approves an application, the authority
shall issue a notice of initial certification to the taxpayer and the
director.� The director shall make a determination, no later than 30 days after
receiving the initial certification, concerning the issuance of a final
certification of tax credits to the taxpayer.
���� e.��� The total value of tax
credits approved by the director pursuant to this section and section 2 of
P.L. , c.
(C. ) (pending before the Legislature
as this bill) shall not exceed a cumulative total of $10 million in any one
fiscal year.
���� f.���� No later than 12 months
following the effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill), and annually thereafter, the authority
shall prepare and submit a report to the Governor and, pursuant to section 2 of
P.L.1991, c.164 (C.52:14-19.1), to the Legislature that, at a minimum, details
the applications submitted pursuant this section and section 2 of
P.L. ,
c. (C. )
(pending before the Legislature as this bill), including each production
company that applied for tax credits, the status of each application, the
accredited theater production and qualified production facility to be supported
by each applicant, and the amount of any credits awarded to each approved
applicant.
���� g.��� As used in this section:
���� �Accredited theater
production� means a for-profit live stage presentation that is a pre-Broadway
production or a post-Broadway production and is performed at a qualified
production facility.
���� �Advertising and public
relations expenditures� means costs incurred within the State by a production
company for goods or services related to the national marketing of, public
relations for, or creation and placement of print, electronic, television,
billboard, and other forms of advertising to promote the accredited theater
production.
���� �Authority� means the New
Jersey Economic Development Authority.
���� �Director� means the Director
of the Division of Taxation in the Department of the Treasury.
���� �Payroll� means all salaries,
wages, fees, and other compensation, including related benefits for services
performed within the State, not exceeding $250,000 per week.
���� �Post-Broadway production�
means a live stage presentation that, in its original or adaptive version, is
performed at a qualified production facility and opens its national tour in the
State following a performance or performances of such presentation in New York
City�s Broadway or off-Broadway theater districts.
���� �Pre-Broadway production�
means a live stage presentation that, in its original or adaptive version, is
performed at a qualified production facility and with an intended purpose of
being presented in New York City�s Broadway theater district.
���� �Production and performance
expenditures� means a contemporaneous exchange of cash or cash equivalent for
goods or services related to the development, production, or performance of, or
operating expenditures incurred in the State for, an accredited theater
production, including, but not limited to: (1) expenditures for design, construction,
and operation, including sets, special and visual effects, costumes, wardrobe,
make-up, and accessories; (2) costs associated with sound, lighting, staging,
facility expenses, rentals, per diems, and accommodations; and (3) payroll,
advertising, and public relations expenditures and transportation expenditures.
���� �Qualified production
facility� means a facility located in the State and in which live stage
presentations are, or are intended to be, exclusively performed, and that
contains at least one stage, a seating capacity of 350 or more seats and
dressing rooms, storage areas, and other ancillary amenities necessary for an
accredited theater production.
���� �Transportation expenditures�
means expenditures for: (1) the packaging, crating, and transporting, to and
from the State, of sets, costumes, and other tangible property and equipment
used or to be used in an accredited theater production; and (2) the
transporting of cast and crew members of an accredited theater production to
and from the State.� This term shall not include any costs for the transporting
of tangible property and equipment that are or will be used only for staging a
production other than the accredited theater production, any indirect costs or
expenditures that are or will be reimbursed by a third party, or any amounts
that are paid to an individual or entity as a result of such individual�s or
entity�s participation in profits from the exploitation of an accredited
theater production.
���� 2.��� a.� A taxpayer that is a
production company shall be allowed a credit against the �New Jersey Gross
Income Tax Act,� N.J.S.54A:1-1 et seq., in an amount equal to 35 percent of the
production and performance expenditures incurred by the taxpayer for an accredited
theater production.
���� b.��� (1)� The director shall
prescribe the order of priority of the application of the credit allowed under
this section and any other credits allowed by law against the tax imposed under
the �New Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq.� The amount of the
credit applied under this section against the tax imposed pursuant to the �New
Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq., for a taxable year,
together with any other credits allowed by law, shall not reduce the tax
liability to an amount less than zero.�
���� (2)� The amount of the credit
otherwise allowed under this section that cannot be applied for the taxable
year due to the limitations of this subsection, or under other provisions of
the �New Jersey Gross Income Tax Act� N.J.S.54A:1-1 et seq., may be carried
forward, if necessary, for three taxable years following the taxable year for
which the tax credit was allowed.
���� c.��� (1)� A business entity
that is classified as a partnership for federal income tax purposes shall not
be allowed the tax credit directly under N.J.S.54A:1-1 et seq., but the amount
of credit of the taxpayer in respect of a distributive share of partnership
income shall be determined by allocating to the taxpayer that proportion of the
credit acquired by the partnership that is equal to the taxpayer�s share,
whether or not distributed, of the total distributive income or gain of the
partnership for its taxable year ending within or with the taxpayer�s taxable
year.
���� (2)� A taxpayer that is a New
Jersey S corporation shall not be allowed the tax credit directly under
N.J.S.54A:1-1 et seq., but the amount of credit of a taxpayer in respect of a
pro-rata share of S corporation income shall be determined by allocating to the
taxpayer that proportion of the credit acquired by the New Jersey S corporation
that is equal to the taxpayer�s share, whether or not distributed, of the total
pro-rata share of S corporation income of the New Jersey S corporation for its
privilege period ending within or with the taxpayer�s taxable year.
���� d.��� To receive the tax
credit allowed pursuant to this section, a taxpayer that is a production
company of an accredited theater production shall apply to the authority in
such form and manner as prescribed by the authority.� In addition to any other
information that the authority deems appropriate, the application shall include
information detailing:
���� (1) the accredited theater
production, including the dates on which the production was performed at a
qualified production facility and New York City�s Broadway theater district,
respectively;
���� (2) the qualified production
facility at which such production was performed; and
���� (3) the production and
performance expenditures incurred for the accredited theater production.
���� e.��� The authority may
approve applications on a rolling basis, subject to the availability of
authorized credits.� If the authority approves the application, the authority
shall issue a notice of initial certification to the taxpayer and the
director.� The director shall make a determination, no later than 30 days after
receiving the initial certification, concerning the issuance of a final
certification of tax credits to the taxpayer.
���� f.���� The total value of tax
credits approved by the director pursuant to this section and section 1 of
P.L. , c.
(C. ) (pending before the Legislature
as this bill) shall not exceed a cumulative total of $10 million in any one
fiscal year.
���� g.��� No later than 12 months
following the effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill), and annually thereafter, the authority
shall prepare and submit a report to the Governor and, pursuant to section 2 of
P.L.1991, c.164 (C.52:14-19.1), to the Legislature that, at a minimum, details
the applications submitted pursuant this section and section 1 of
P.L. ,
c. (C. )
(pending before the Legislature as this bill), including each production
company that applied for tax credits, the status of each application, the
accredited theater production and qualified production facility to be supported
by each applicant, and the amount of any credits awarded to each approved
applicant.
���� h.��� As used in this section:
���� �Accredited theater
production� means a for-profit live stage presentation that is a pre-Broadway
production or a post-Broadway production and is performed at a qualified
production facility.
���� �Advertising and public
relations expenditures� means costs incurred within the State by a production
company for goods or services related to the national marketing of, public
relations for, or creation and placement of print, electronic, television,
billboard, and other forms of advertising to promote the accredited theater
production.
���� �Authority� means the New
Jersey Economic Development Authority.
���� �Director� means the Director
of the Division of Taxation in the Department of the Treasury.
���� �Payroll� means all salaries,
wages, fees, and other compensation, including related benefits for services
performed within the State, not exceeding $250,000 per week.
���� �Post-Broadway production�
means a live stage presentation that, in its original or adaptive version, is
performed at a qualified production facility and opens its national tour in the
State following a performance or performances of such presentation in New York
City�s Broadway or off-Broadway theater districts.
���� �Pre-Broadway production�
means a live stage presentation that, in its original or adaptive version, is
performed at a qualified production facility and with an intended purpose of being
presented in New York City�s Broadway Theater.
���� �Production and performance
expenditures� means a contemporaneous exchange of cash or cash equivalent for
goods or services related to the development, production, or performance of, or
operating expenditures incurred in the State for, an accredited theater
production, including, but not limited to: (1) expenditures for design, construction
and operation, including sets, special and visual effects, costumes, wardrobe,
make-up, and accessories; (2) costs associated with sound, lighting, staging,
facility expenses, rentals, per diems, and accommodations; and (3) payroll,
advertising, and public relations expenditures and transportation expenditures.
���� �Qualified production
facility� means a facility located in the State and in which live stage
presentations are, or are intended to be, exclusively performed, and that
contains at least one stage, a seating capacity of 350 or more seats and
dressing rooms, storage areas, and other ancillary amenities necessary for an
accredited theater production.
���� �Transportation expenditures�
means expenditures for: (1) the packaging, crating, and transporting, to and
from the State, of sets, costumes, and other tangible property and equipment
used or to be used in an accredited theater production; and (2) the
transporting of cast and crew members of an accredited theater production to
and from the State. This term does not include any costs for the transporting
of tangible property and equipment that are or will be used only for staging a
production other than the accredited theater production, any indirect costs or
expenditures that are or will be reimbursed by a third party, or any amounts
that are paid to an individual or entity as a result of such individual�s or
entity�s participation in profits from the exploitation of an accredited
theater production.
���� 3.��� This act shall take
effect immediately and shall apply to privilege periods and taxable years
beginning on or after the January 1 next following the date of enactment.
STATEMENT
���� This bill provides corporation
business tax and gross income tax credits to production companies for costs
incurred for certain accredited theater productions.
���� Specifically, the bill
provides that a production company may receive tax credits for costs related to
eligible pre- and post-Broadway theater productions that are performed at qualified
facilities in New Jersey.� The credits would equal 35 percent of the
production�s eligible production and performance expenditures.� Under the bill,
production and performance expenditures include: (1) expenditures for design,
construction, and operation, including sets, special and visual effects,
costumes, wardrobe, make-up, and accessories; (2) costs associated with sound,
lighting, staging, facility expenses, rentals, per diems, and accommodations; (3)
payroll costs up to $250,000 per week; and (4) certain advertising and public
relations expenditures and transportation expenditures.
���� The bill requires production
companies to apply to the New Jersey Economic Development Authority for the
initial approval of tax credits.� However, the bill provides that the Director
of the Division of Taxation in the Department of the Treasury would be
responsible for the final approval of tax credits.� Under the bill, the total
value of tax credits awarded in each fiscal year may not exceed $10 million.