HOCHUL PROPOSES $150 MILLION ADD-ON TO EXTEND PRODUCTION TAX CREDIT
State budget would be a boon to Broadway.
EXCLUSIVE: New York Gov. Kathy Hochul proposed allocating an additional $150 million to retroactively extend a prized New York State theater tax credit.
Empire State Development, which supports economic growth in the state, currently isn’t accepting applications for the New York City Musical and Theatrical Production Tax Credit. Applicants had to have their first paid performance by Dec. 1, 2025. The proposed state budget announced today “increases the aggregate amount available under the program by $150 million for productions with initial performances on or after December 1, 2025,” according to a state briefing book posted online.
The briefing book doesn’t offer other details about the subsidy, which has been worth a maximum $3 million per Broadway show and $350,000 off-Broadway. News broke last summer that the program’s funds had been depleted, although it was later extended by a few months. Producers have said the credit is essential for fundraising for shows, and usually reference the subsidy in documents they circulate to prospective investors.
If the state legislature approves the extension, it could aid shows such as All Out: Comedy About Ambition, which began performances Dec. 12; Every Brilliant Thing, starring Daniel Radcliffe, which is scheduled to begin previews on Feb. 21; and Giant, starring John Lithgow, which is scheduled to begin previews on March 11.
With the Broadway season about two-thirds complete, grosses are up 8 percent over 2024-25. But investor profits are elusive for all but long-running blockbusters. Last week, the Alicia Keys musical Hell’s Kitchen posted its closing notice. Over more than 700 performances, it’s returned only about 60 percent of its investors’ money.
Jason Laks, president of the Broadway League — which represents theater owners, producers and general managers — said in a statement: “The 100,000 New Yorkers whose jobs are supported by Broadway are grateful to Governor Hochul for investing in the theater industry’s success. Broadway is vital to New York City’s ability to attract tourism, support small businesses and generate new jobs. As we continue to grapple with ever higher costs, the State’s program remains essential to bringing many productions to the stage.”