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New York Launches NYC Theatrical Production Tax Credit

Posted on July 27, 2021

New York Gov. Andrew Cuomo (D) announced the launch of a $100 million tax credit to help jump-start the entertainment industry in New York City as part of the state’s economic recovery.

The New York City Musical and Theatrical Production Tax Credit, a two-year program designed to help the city’s entertainment and tourism industries recover from the COVID-19 pandemic, will “help to restart this quintessentially New York industry more quickly,” the governor said in a July 22 release.

Eligible companies can receive a tax credit equal to 25 percent of qualified production expenditures, including costumes, wardrobes, and makeup, according to the release. Applicants to the program will be eligible for up to $3 million per production in the first year. Credits in the second year will be capped at $1.5 million unless the city's tourism economy has not yet fully recovered, in which case the credit will remain at $3 million, according to an overview of the tax credit. 

Participants in the program will be required to participate in a state diversity and arts job training program and “expand opportunities for low-income New Yorkers to access productions at low or no cost,” according to the release. 

“New York is not ‘New York’ without theatre, but for more than a year and a half visitors and residents were unable to enjoy the unparalleled experience of a live stage performance,” Cuomo said. “Theatrical productions support thousands of jobs and showcase performances and artists that reflect our state’s great talent and diversity.”

According to the release, the entertainment industry supported over “90,000 local jobs and contributed over $14 billion to the New York City economy annually” before the pandemic. The tax credit, enacted as part of the fiscal 2022 state budget, “will offset some of the costs associated with producing a show, including production costs for sets, costumes, wardrobes, makeup, technical support, salaries, sound, lighting and staging,” the release said. At least 35 productions announced opening performance plans for 2021 after the tax credit was announced as part of the budget, the release added.

Cuomo’s office did not respond to a request for comment by press time.

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