Broadway’s Key Tax Credit Has Run Dry — And 2025–2026 Could Get Tough

A major financial incentive that helped Broadway rebound post-COVID is officially out of money.

The New York City Musical and Theatrical Production Tax Credit—covering up to 25% of eligible costs, with a cap of $3 million per Broadway show and $350,000 per Off-Broadway show—is no longer available for productions with their first public performance AFTER September 15, 2025. While some shows already in the queue may still receive funding, the program’s $400 million allocation has been exhausted, and no additional rounds are currently planned.

Jeff T. Daniel, President of the Shubert Organization and The Broadway League’s government affairs liaison, had warned members back in May that while the tax credit was technically extended through 2027, “we have likely received one year of funding.” As it turns out, the $100 million added in the most recent budget only extended the program’s life by a few months.

The timing could present real challenges for the 2025–2026 season. The credit was a powerful incentive for private investment and often factored into a show's projected timeline for recoupment. For some productions, it shortened the path to profitability. For others, particularly flops, it softened the blow for investors who might otherwise have lost everything. For example, a $6 million play running just 16 weeks could be eligible for a $2 million credit—a substantial offset that can push an otherwise break-even production into profit.

Without that support, producers face steeper uphill battles securing investment, especially for non-musicals and newer works that don't carry star names or brand recognition. The impact will likely be felt most acutely among limited-run plays and Off-Broadway productions, where margins are already razor-thin.

Although Broadway posted record grosses this past season, rising costs and shorter runs have kept many shows from recouping. The tax credit helped de-risk those investments. Its absence removes a critical safety net just as producers plan their next slate of shows.

With no new applications accepted at this time, and producers unsure which pending applications will be honored, the Broadway League and Off-Broadway League are already pivoting toward lobbying efforts. But unless new money is allocated, Broadway will be heading into a tougher, leaner stretch—just as some of its riskiest, most ambitious projects were beginning to take shape.