Broadway Tax Credit Program Nears Depletion, Raising Concerns for Future Productions

A New York State tax credit program that has supported Broadway and Off-Broadway productions since the pandemic is nearing its funding limit, far ahead of its intended expiration in 2027.

According to news first reported by Broadway Journal's Philip Boroff, the New York City Musical and Theatrical Production Tax Credit, launched in 2021 and with a $400 million cap, may be depleted by fall 2025. The Broadway League reportedly notified members earlier this week that the program’s funding is running low, and BroadwayWorld has learned additional details about the status of the fund. 

Broadway League President Jason Laks underscored the critical role the tax credit has played in the industry’s recovery and expressed concern about its future.

Laks said, “The New York City Musical and Theatrical Production Tax Credit continues to be vital to the funding of Broadway productions.  Our tens of thousands of workers and every producer on Broadway are grateful for the Governor, the NYS legislature and Empire State Development. The success of this past Broadway season is a direct result of the State sustaining the tax credit program to incentivize private investment in productions. Despite driving tourism and economic activity, productions still struggle to recoup the investments required to bring a show to Broadway. There’s a lot of concern right now given the reports on the tax credit program’s funding status, but we know that the Governor and the state legislature understand how important Broadway’s success and the work of our thousands of employees are to the economy of the city and the state. We will continue to work with them to sustain this vital program.”

In a statement, the Empire State Development said of the fund, “The NYC Musical and Theatrical Production Tax Credit has played a key role in driving the city’s economic recovery in the wake of the COVID-19 pandemic. By supporting live performances across Broadway and Off-Broadway, the program has helped bring audiences back, boost tourism, and create good-paying jobs across the five boroughs.”

The tax credit, administered by Empire State Development, covers up to 25% of qualified production costs. Broadway productions can receive up to $3 million, while Off-Broadway shows are eligible for up to $350,000.

Empire State Development anticipates that the remaining funds for the New York City Musical and Theatrical Production Tax Credit Program will be fully allocated by early October 2025. As a result, ESD will not accept applications from productions with a first paid public performance scheduled after Monday, September 15, 2025.

Of the program’s $400 million total funding, approximately $365 million has already been committed. If any funds remain, they will be distributed to eligible productions in the order of their first public performance date. Since its launch, the program has supported more than 39,000 jobs and generated approximately $2.7 billion in New York City spending. Through its Diversity and Arts Job Training requirement, over 160 fellows have received training and work opportunities, while more than 250,000 tickets have been distributed to low-income New Yorkers through the program’s accessibility initiatives.

Currently, only shows that begin public performances by September 15, 2025, are expected to qualify. Among the productions aiming to start previews before that deadline are MAMMA MIA!, Jeff Ross: Take A Banana For The Ride, Art, Waiting For Godot, and Punch.

The tax incentive was created to revive New York’s live entertainment sector in the wake of the COVID-19 shutdown, which left theaters dark for over a year. Its early depletion has prompted renewed conversations among industry leaders about the need for continued state support.