New York Extends and Expands Broadway Tax Credit Through 2027 Amid Federal Arts Cuts

Amid federal reductions in arts funding, New York State is reinforcing its commitment to the creative economy. On Friday, Governor Kathy Hochul signed the fiscal year 2026 state budget, which includes a significant boost for Broadway: the extension and expansion of the New York City Musical and Theatrical Production Tax Credit.

Originally set to expire this year, the program will now continue through 2027, with its funding increased from $300 million to $400 million.

First introduced in 2021 to support the theatre industry’s post-pandemic recovery, the credit provides tax relief to commercial productions facing rising costs. Eligible productions can receive tax credits worth 25% of qualified expenses, up to $350,000 for Off-Broadway and up to $3 million for Broadway shows.

In January 2025, Governor Hochul proposed to extend the credit through 2027 and increase its funding, highlighting the state's ongoing support for the arts sector. 

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