Some of the theaters along Broadway in September 2025. (Photo by Corey Seeman, CC BY-SA 4.0 via Wikimedia Commons)
…
Broadway’s Tony Awards highlight the shows and performances along that famed thoroughfare. But the attention also puts a spotlight on New York’s tax credit that many of the productions say is vital to their existence. But is it really?
…
Yes, I will be watching the Tony Awards tonight.
No, I haven’t seen any Broadway productions this year. But I do love live theater. And I’m intrigued with the choice of Pink, or P!nk as she spells it for her albums and shows, as the TV event’s emcee.
I love her music and her attitude. And Pink does have a connection to live theater, aside from some ambitious live arena show acrobatics. She’s a self-professed theater fan.
Two of her songs are part of current Broadway shows. “Raise Your Glass” is excerpted in “Moulin Rouge! The Musical.” “F****in’ Perfect” is featured in “& Juliet.”
Ratings, money, and taxes: But the bottom line reason Pink was picked to host the Tony Awards show is, of course, ratings. Which mean money.
And money, of course, means tax connections, which I promise dear tax-focused readers will be discussed shortly.
CBS is hoping the Grammy winning pop star will be able to stem the loss of television viewers.
The American Theater Wing, the New York City nonprofit that in 1947 created the Antoinette (Tony) Perry Awards for Excellence in Theatre, hopes some of those TV viewers will decide to attend shows in person.
Dollars also bring us, as promised, to this weekend’s tax-themed Sunday Shout Outs.
Previous federal tax help: Just like their entertainment cousins in the film industry, Broadway shows rely on tax breaks.
There used to be a federal tax deduction in Section 181 of the Internal Revenue Code (IRC) that helped television and stage show producers write off costs.
However, that tax break, which was extended to live theater in 2015 (thanks, Alexander Hamilton), expired at the end of 2025.
The One Big Beautiful Bill Act did, six months later, make the separate IRC Section 168(k) 100 percent bonus depreciation option permanent. But this alternative lacks Section 181’s immediate “as-incurred” deduction benefits that made it a cornerstone for production cash flow.
So, theater companies now must depend primarily on state tax help.
NY tax ovation: Given Broadway’s cultural and financial importance (nearly $2 billion made during the 2025-26 season) to the Big Apple, it’s no surprise that New York state legislators chose to renew their more-local tax credit.
After running out of funds late last year, the tax credit was included in the Empire State’s recently passed budget, according to The Hollywood Reporter (via Yahoo!Finance) story The Broadway Tax Credit Has Returned, For Now.
New York’s Democratic Gov. Kathy Hochul allocated an additional $150 million for the tax credit program, which started in 2021 and had been doling out about $100 million to Broadway and Off-Broadway productions annually, according to the article.
Bloomberg Tax also examines the New York stage tax break in Broadway Shows Backed by Disney, Billionaires Nab NY Tax Credits.
The state has set aside a total of $550 million for the incentive since it launched, arguing it remains essential to attract shows to New York and the jobs that come with them, according to Bloomberg.
Tax break critics: Like the film tax breaks that a variety of states offer, the Broadway benefit has its critics.
Aside from questions of potential fraud and whether it’s a financially wise move to support one particular sector, there also is concern, even among theater insiders, that the money isn’t reaching productions that really need the help.
Many of the shows that got state tax help had the backing of major production companies, according to records Bloomberg obtained under New York’s Freedom of Information Law.
So, look for opponents of New York’s theatrical tax break to take their tour on the road to Albany to argue against renewal (again) when the benefit expires Sept. 30, 2027.
In the meantime, if you make it to New York City to see a show or two, enjoy.
If you decide to wait for a touring company to bring your favorite production to you (I’m hoping Tony-nominated Two Strangers (Carry a Cake Across New York) is one and, if so, it makes it to Austin), enjoy that, too.
And if like me you’ll be watching the Tony’s tonight, here’s hoping we get to see not only some great performances from the nominees, but also a truly theatrical master of ceremonies turn from Pink.
…
Advertisements
🌟 Search Amazon Tax Products 🌟
The text link above is an affiliate ad. If you click through and then buy a product, I receive a commission.
