Troubling news is on the horizon for New York theatre investors. The NYC Musical and Theatrical Production Tax Credit, a post-pandemic relief program that has been providing up to $3 million in tax credits to Broadway shows, has reportedly run out of money far earlier than expected, according to reporting by The Broadway Journal and confirmed by Playbill.
The program, which subsidizes 25% of production costs (capped at $3 million on Broadway and $350,000 Off-Broadway), had received a $100 million, two-year extension earlier this year, though shortly thereafter, it was discovered the program likely only had funding for half of that two-year period. And now, the program is reportedly not even accepting applications for productions that begin performances after September 15, with the funding expected to completely evaporate by “early October,” per Empire State Development, which administers the program. The group says $365 million of the $400 million total allocated to the program has been allocated, which they attribute to the support of more than 39,000 jobs and the generation of approximately $2.7 billion in New York City spending.
A fall audit of the program has the potential to free up additional funds, which would be distributed via a new application process. A statement from Broadway League President Jason Laks appears to hold out hope that the program could continue in some fashion beyond even that glimmer of hope…