Form IT-654: New York City Musical and Theatrical Production Tax Credit (Tax Year 2025) Explained

Form IT-654 is how eligible production companies claim the New York City Musical and Theatrical Production Tax Credit on their New York State tax return. This credit was created to support live theatrical and musical productions in New York City that were affected by the pandemic shutdown, and it continues to help productions recover costs tied to reopening, staging, and running shows in qualified NYC venues. If your production company received a certificate of tax credit from Empire State Development for this program, Form IT-654 is the document that lets you actually claim that credit against your state tax liability.

The credit is administered jointly by Empire State Development, which certifies eligible productions and issues the credit certificates, and the Department of Taxation and Finance, which processes the claim through this form. You cannot file Form IT-654 without first going through the certification process with Empire State Development. The form itself is the mechanism for converting that certification into an actual reduction of your state tax bill.

Who Needs to File Form IT-654

This form applies to businesses involved in producing qualified musical and theatrical productions performed in a venue located in New York City with a seating capacity that meets the program’s requirements. Eligible costs generally include production, transportation, and other costs directly related to mounting a show, such as expenses for sets, costumes, sound, lighting, and related labor. If your company incurred these types of costs and received certification confirming your production qualifies, you’ll use Form IT-654 to report the credit amount and apply it to your tax return.

Partnerships, S corporations, and other pass-through entities that received the credit certificate may need to pass the credit through to their partners, members, or shareholders, who then claim their share on their own individual returns using this same form. If you’re a partner or shareholder receiving a share of this credit from a production entity, you’ll still need Form IT-654 attached to your personal or business tax filing.

When You Use This Form

Form IT-654 is filed with your New York State tax return for the tax year in which the credit was earned or allocated, based on your certificate from Empire State Development. For tax year 2025, that means attaching the completed form to your 2025 New York State return, whether that’s a personal income tax return, a corporation franchise tax return, or another applicable filing depending on your business structure. Timing matters here because credits are generally tied to the specific tax year referenced on your certification, so filing late or attaching the wrong year’s form can delay processing.

How to Fill Out and Submit Form IT-654

The form itself is a fillable PDF, so you can complete it directly on your computer before printing or attaching it to an electronic filing. You’ll need your certificate number and the credit amount as issued by Empire State Development, along with basic identifying information about your business or, if you’re a pass-through entity, information about how the credit is being allocated among partners or shareholders.

Because this credit interacts with other New York State business credits, it helps to review how it fits alongside programs like the Employer-Provided Childcare Credit or industry-specific credits such as the Farm Workforce Retention Credit, especially if your business qualifies for more than one credit in the same tax year. Each credit has its own form and its own certification requirements, so double-check that you’re not duplicating information across filings.

Once completed, Form IT-654 gets attached to whichever New York State return applies to your entity type. Keep a copy of your Empire State Development certificate with your tax records, since the Department of Taxation and Finance may request it if questions come up during processing. If you’re also exploring other niche New York credits tied to specific industries, it’s worth comparing this form to programs like the Farm Donations to Food Pantries Credit, which follows a similar certification-then-claim structure but applies to a completely different sector.

Getting this form right mostly comes down to having accurate certification numbers and matching the tax year correctly. The credit calculation itself is handled by Empire State Development during certification, so your job on Form IT-654 is largely reporting that pre-determined amount accurately on your state return.