New York Wooing Fallon-Hosted TONIGHT SHOW With Promise of Tax Breaks

This week, The New York Times reported that NBC has begun implementing a plan to bring TONIGHT back to its original home, New York City, with Fallon officially taking the reins from Leno, who hosts from Burbank, CA. In addition, the publication has confirmed that execs are gutting a studio within 30 Rockefeller Plaza, prepping and updating it to welcome Fallon - and TONIGHT - as early as the fall of 2014.

Today, New York's Daily News adds to the speculation by reporting that the state of New York is customizing a special tax credit in its proposed budget to specifically woo the show back to the Big Apple.

The paper reports that financial incentives would be offered to the producers of "a talk or variety program that filmed at least five seasons outside the state prior to its first relocated season in New York," which is recorded in front of a studio audience of more than 200 people and have a production budget of at least $30 million. In addition, the new credit would only apply to a show that was coming from out of state. (The Tonight Show has aired from California since 1972.)

Recent reports have revealed that the peacock network will be making an official announcement in May that the 2013-14 television season will be the last for Leno while Fallon will take over as host of THE TONIGHT SHOW in the 11:35 p.m. slot beginning with "a soft launch during the summer of 2014 before a formal fall kickoff."

Though Leno remains competitve in the ratings, Jimmy Kimmel has been beating him in the all-important 18-49 demographic. "Kimmel has done extremely well," says a network source, adding, "Jay wins overall, but on any given night, it's neck-and-neck in 18-49. I understand where they might have fear and also feel that they own the solution [in Fallon.]"

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