Now that Stephen Colbert is officially taking over Late Show from David Letterman next year, another guessing game begins: Will the show stay in New York or will it head to Los Angeles?

When Letterman announced his retirement last week, mayors on both coasts started to lobby CBS CEO Les Moonves. LA Mayor Eric Garcetti wrote to Moonves that he wanted “to encourage you to bring CBS’ next late night show to our city — the entertainment capital of the world.”

This week, Mayor de Blasio told reporters, “I had a very good conversation yesterday with the man who will actually make that decision, Les Moonves, and I emphasized that New York has been an extraordinary home for the Late Show and that we think it’ll be a great home for the Late Show going forward. And I’m hopeful that that’s what will come to pass.”

The Tonight Show returned to NYC this year after a 42-year stint in LA, and NY State gave the production a reported $20 million in tax credits. According to the Daily News, heres how the credit language was phrased in the state budget:

The provision would make state tax credits available for 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,” budget documents show.

In addition, the episodes “must be filmed before a studio audience” of at least 200 people. And the program must have an annual production budget of at least $30 million or incur at least $10 million a year in capital expenses.

The Late Show has been filming in NYC since it started in 1993: The Ed Sullivan Theater was renovated for Letterman, and a CBS executive said, “There was a lot of hidden decay. We had to replace every pipe, every wire in the building. There was more asbestos than I ever thought. We had a stream running through the basement. There was a terrible rat problem.”

It’s possible that NY State and NYC would be open to extending the credit to the Late Show—it’s often mentioned that the shows provide jobs, attract tourism and help promote the city. But E.J. McMahon, head of The Empire Center for Public Policy, thinks it’s a bad idea; commenting on The Tonight Show’s rich perks, he said, “We’re going to change our tax policy — in the heaviest-taxed city and state in the country — to get another late night show in Manhattan? Even the money that they bring is a rounding error in the New York City economy… Other industries don’t get 30 percent credit. It’s because it’s a glamorous industry.”

Crain’s Greg David argues that offering tax credits to The Late Show is the same as offering them to Fresh Direct, which de Blasio is again. Of course, CBS will have to decide what they want to do: Move to LA and cede NYC to NBC late night completely—or stay in NYC to remain competitive, and keep a 12:35 a.m. show out in LA.

Colbert is a Montclair, NJ resident. He’s very involved with the community and reportedly”extremely normal” there.

© 2014 Gothamist