New York's $150M Theater Tax Credit Expansion Faces Criticism as Big Shows Reap Benefits

New York Governor Kathy Hochul added $150 million to a theater production tax credit program as part of the state's $268 billion budget, bringing total funding to $550 million since 2021. The program, which covers up to 25% of production costs for shows in Manhattan theaters with at least 100 seats, has awarded $33.5 million to 19 shows this year. Critics, including budget watchdog Reinvent Albany and State Senator James Skoufis, argue the credits primarily benefit large productions backed by major companies like Walt Disney Co. and Universal Stage Group, rather than supporting emerging artists. Beneficiaries include "Aladdin," "Wicked," and "The Music Man," each receiving $3 million in 2023. Broadway attendance rebounded to pre-pandemic levels last year, with the 2024-2025 season grossing $1.8 billion, the highest on record. The program faces a sunset date of September 30, 2027, and debate over its merits continues amid a projected $6 billion state budget gap in fiscal 2028. Some shows that received credits, like "Glengarry Glen Ross" and "An Enemy of the People," recouped their investments, while others, including "Gypsy" and "Tammy Faye," closed early. The tax credit is seen as a tool to compete with London's more generous 45% subsidy.