Broadway producers showered cash on Governor Kathy Hochul's re-election campaign months before she announced plans to expand a key tax credit for the theater industry, worth $150 million. This tax credit, which covers production costs up to $3 million for Broadway shows, has been extended three times and expanded by $300 million despite criticism from watchdogs that it often funds well-resourced hit shows that don't need taxpayer money. The Broadway League, the industry's main trade group, hired a lobbying firm to try to enhance the tax credit, which directly lobbied Hochul's office and her budget director. The firm's lobbying efforts coincided with a surge in campaign donations from Broadway producers, actors, and theater executives to Hochul's campaign, totaling over $243,000, including a single day donation of $83,000. This financial support came as the tax credit's funding was running low, and the industry faced concerns about its future. Despite the controversy, Hochul's office defended the tax credit as crucial for the theater industry and tourism, and the governor's budget announcement included a $150 million expansion, partly retroactive to shows that opened last year. Critics argue that the close proximity of lobbying and donations looks terrible, and that campaign contributions should not influence government decisions. The tax credit's effectiveness is debated, with a 2023 study finding it generates only 23 cents for every dollar invested, but the industry's recovery and the subsidy's availability to commercial productions are highlighted as positive aspects.
