'Late Show' and Colbert Will Stay in NYC

Gov. Andrew Cuomo and CBS president Leslie Moonves announced today that the "Late Show" will continue broadcasting from its headquarters at the Ed Sullivan Theatre in midtown after Dave Letterman passes the baton to new host Stephen Colbert.

In return, the state is offering CBS $11 million in tax credits for eligible costs over five years, plus a $5 million grant for renovations to the famed theater.

"The television and film industries are thriving in the Empire State — creating jobs and fueling dozens of other sectors across the state," Cuomo said.

City Council Speaker Melissa Mark-Viverito added: "Stephen Colbert is going on 'Late' but CBS' decision came just in time."

But economist James Parrott of the Fiscal Policy Institute said the state should use incentives to support small businesses, instead of large, wealthy ones like a television network. "Any time there's a big subsidy deal like this to a big company for something that it's been doing for a long time already, it really raises a question about whether or not the state has its priorities right," he said.

The state said it spent $466 million in tax credits for the television and film industry in 2013. It also used a special tax credit to lure "the Tonight Show" from California when Jimmy Fallon took over for Jay Leno last year.