In 2021, Broadway reopened after being closed for 18 months because of the COVID pandemic. And one of the reasons it was able to get back on its feet was because of a tax credit created by New York State, where up to 25% of a show’s production expenses — up to $3 million — were eligible for that credit. But now it’s going away.
“It was instrumental in getting us back after the pandemic,” said Jason Laks, president of the Broadway League, which represents producers and theater owners. Laks said old shows and new shows received the credit and it helped them run, “because nothing was assumed that we’d be able to get back up and that the audiences would come back and feel comfortable coming back and be excited about coming back. And luckily, they did.”
Broadway’s a very risky business: only one out of ten shows returns its investment. Last year, five new musicals which opened in the spring closed early, losing around $100 million. It’s very concerning, explained Boroff, especially because that tax credit is about to go away: “The business of musicals, especially new musicals, is very precarious right now, and losing that tax credit doesn’t help.”…