Launched in 2021, the New York City Musical and Theatrical Production Tax Credit was designed to support the entertainment industry and boost tourism in the wake of the COVID-19 pandemic.

Originally initiated under Governor Andrew Cuomo, this tax credit began with a budget of $100 million aimed at offsetting production costs for theatrical shows.

In 2023, Governor Kathy Hochul extended the program until June 30, 2025, while also increasing the total allotment to $300 million.

Hochul's budget proposal for the 2026 fiscal year now includes a further two-year extension of this tax credit.

The latest proposal seeks to increase the total program credit allocation from $300 million to $400 million.

If approved, this extension would continue to provide vital financial support for New York City's musical and theatrical industry until 2027.