A tax credit program that helped fuel Broadways recovery has run out of money.
Starting in 2021, NYC Musical and Theatrical Production Tax Credit allowed commercial productions to subsidize 25 percent of their production costs, totaling up to $3 million per Broadway production or up to $350,000 per Off-Broadway production. The $400 million program, which was expected to last through 2027, is now expected to allocate all of its remaining funds by October 2025.
About $365 million of the program funding has already been allocated, and the program is expected to be sunset after the remaining funding is distributed. To that end, the program, which was run through the states economic agency, Empire State Development, will not accept applications for productions with a first paid public performance date after Sept. 15, 2025. If any funds remain, they will be distributed to eligible projects in the order of their first public performance date.
The tax credit played an important role in Broadways recovery, particularly as productions sought to convince investors to put money in new productions. The tax credit was often included in recoupment charts for Broadway shows, and help assuage concerns about getting a return.
I think that this was a mitigation to investors. That was very helpful for producers raising money, and now, when it goes away, I think its going to be more challenging, said Robert Fried, a longtime Broadway accountant.
The program was initiated in 2021 under Gov. Andrew M. Cuomo, with an initial $100 million in funding as a way for the industry to emerge from theatrical shutdown in March 2020 due to the coronavirus. Gov. Kathy Hochul then tripled the funding to $300 million and then increased the funding once more to $400 million as part of the 2026 state budget. As part of the latest funding increase, the program was also extended through 2027.
More to come.