Governor Hochul Proposes Extension of New York City Musical and Theatrical Production Tax Credit

New York Governor Kathy Hochul has released her budget proposal for the 2026 fiscal year, which includes an extension of the New York City Musical and Theatrical Production Tax Credit for two years.

To maintain support of the musical and theatrical industry in NYC, the Executive Budget proposes to extend the credit an additional two years and increase the total program credit allocation from $300 million to $400 million. 

As BroadwayWorld previously reported, the tax credit was first launched in 2021 under Governor Andrew Cuomo. It began as a $100 million credit aimed to jumpstart the entertainment industry and support tourism in New York City in the wake of the COVID-19 pandemic. The intent of the two-year program was to offset some of the costs associated with producing a show.

Originally just a two-year program, the tax credit was extended in 2023 by Governor Hochul until June 30, 2025. At that time, she had expanded the total allotment to $300 million. Now, this new budget proposes an extension of the program until 2027 and an increase of the annual allocation from $300 million to $400 million.

Read the full budget proposal here.