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# New York state budget includes expansion and extension of downstate tax credit for Broadway productions
- URL: https://www.broadwaynews.com/new-york-state-budget-includes-expansion-and-extension-of-downstate-tax-credit-for-broadway-productions/
- Published: 2025-05-12T22:03:24.000Z
- Updated: 2025-05-12T22:04:47.000Z
- Description: Governor Kathy Hochul signed the budget into law on May 9.
- Author: Michael Abourizk
- Tags: Government, New York City Musical and Theatrical Tax Credit Program, News, Kathy Hochul, Jason Laks

On May 9, the New York State Senate approved Governor [Kathy Hochul’s state budget](https://www.broadwaynews.com/new-york-governor-includes-downstate-tax-credit-in-state-budget-for-fy2026/) for fiscal year 2026\. Included in the [$254 billion budget](https://openbudget.ny.gov/?ref=broadwaynews.com) 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](https://www.broadwaynews.com/new-yorks-3-million-tax-credit-looks-to-help-restart-broadway/) 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](https://www.broadwaynews.com/jason-laks-named-president-of-broadway-league-2/) 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](https://esd.ny.gov/new-york-city-musical-and-theatrical-production-tax-credit?ref=broadwaynews.com#overview).