On May 9, the New York State Senate approved Governor Kathy Hochul’s state budget for fiscal year 2026. Included in the $254 billion budget is an expansion of the New York City Musical and Theatrical Production Tax Credit, known colloquially as the downstate tax credit.
The new budget increases the program’s allotment to $400 million (up from $300 million in the preceding budget) and extends the program into 2027.
The downstate tax credit was initially introduced in 2021 as a measure to help Broadway in its first year back on the boards following the year-and-a-half-long pandemic shutdown. The program allows Broadway productions to apply for a tax credit, which, pending approval, can be used to cover up to $12 million in qualified production expenditures of up to $3 million per Broadway production (and $350,000 for Off-Broadway shows).
These costs, which can be incurred during the 12 weeks leading up to a production’s first paid public performance (and paid performances up to the limit of $12 million), can include: production costs (sets, costumes, lighting, sound, etc.), salaries (up to $200,000 per week) or advertising and marketing costs (up to 50 percent).
Eligibility for the tax credit is limited to live, scripted productions; ballet, opera, concerts and stand-up comedy performances are not eligible.
“This is a win for the tens of thousands of New Yorkers who earn their livelihoods on Broadway,” Broadway League president Jason Laks told Broadway News. “As shows grapple with ever-rising costs, this support is even more vital today than when it was first conceived. We appreciate the work of Governor Hochul, bill sponsors Senator Hoylman-Sigal and Assembly Member Kim, as well as Speaker Heastie and Majority Leader Stewart-Cousins, to sustain Broadway’s economic engine.”
Additional information regarding the New York City Musical and Theatrical Production Tax Credit, including how to apply, can be found here.
