New York State Budget Adds $150 Million to NYC Theatrical Production Tax Credit

The newly enacted New York State Fiscal Year 2027 Budget includes a $150 million increase to the New York City Musical and Theatrical Production Tax Credit, extending the program’s runway and clearing the way for shows that opened in recent months to apply retroactively.

In a statement to BroadwayWorld, a representative for Empire State Development said: “The FY 2027 Budget, enacted by Governor Hochul and the Legislature, increases the New York City Musical and Theatrical Production Tax Credit by an additional $150 million. The investment reinforces New York’s position as the world’s premier destination for live theater, supporting the productions and workers that drive New York City’s tourism economy.”

Empire State Development confirmed that within the next week, the agency will reopen the online application portal for all applicants and update the program page. For shows with a first public performance on or after December 1, 2025 through June 30, 2026, the requirement to submit an initial application before a first public performance has been waived. Those productions must submit initial applications by June 30, 2026. Productions with a first public performance on July 1, 2026 or later must submit their initial application in advance, as previously required.

The infusion is retroactive to December 1, 2025, meaning shows that began performances during the program’s funding gap are now eligible to apply. Those include All Out: Comedy About Ambition, which began performances in December; Every Brilliant Thing, starring Daniel Radcliffe, which began performances in February; and Giant, starring John Lithgow, which began performances in March.

Governor Kathy Hochul first proposed the $150 million expansion in her January executive budget. The executive budget briefing book stated that the increase was intended “to maintain support for musical and theatrical productions in New York City,” raising the aggregate amount available under the program for productions with initial performances on or after December 1, 2025.

The New York City Musical and Theatrical Production Tax Credit launched in 2021 with a $400 million cap as a pandemic-era lifeline for the live entertainment sector, which had been dark for more than a year. The program provides a refundable credit of up to 25 percent of qualified production expenses, capped at $3 million per Broadway production and $350,000 per Off-Broadway production.

The program has been extended and expanded multiple times since its creation. New York State extended the application deadline in September 2025, shifting the cutoff from September to October of that year. With the FY 2027 Budget’s $150 million increase, the state’s total commitment to the program reaches $550 million.