CBS Corp. will receive a combined $16 million package of tax credits and grants from the state over the next five years to keep the Late Show in New York City, Gov. Andrew Cuomo’s office on Wednesday announced.

The money to keep the late-night talk show in New York comes after the state lured NBC’s The Tonight Show franchise to the city.

Comedy Central’s Stephen Colbert will be taking over as host from the retiring David Letterman next year.

The incentives for CBS include $11 million in Excelsior tax credits over the next five years to offset the company’s investment and “job commitment” in the show, and a $5 million grant to renovate the existing Ed Sullivan Theatre.

“Today, I am pleased to announce that the ‘LATE SHOW’ will stay in New York, where it belongs. New York has long been an international entertainment leader, and with this commitment from CBS we are beginning the next chapter in that proud history,” Cuomo said in a statement. “The television and film industries are thriving in the Empire State – creating jobs and fueling dozens of other sectors across the state. Les Moonves and CBS have made the right decision in choosing to continue investing in New York, and as David Letterman passes the baton to Stephen Colbert, I look forward to watching “The Late Show” from the historic Ed Sullivan Theatre for years to come.”

Critics of the state’s generous tax breaks for the entertainment industry have questioned whether the incentives actually create a lasting economic impact or if they’re needed in the first place. The Late Show with David Letterman is currently filmed in New York, as is Colbert’s Comedy Central show, The Colbert Report.

California made an aggressive play to push CBS to bring the new, Colbert-helmed version of The Late Show to Los Angeles.

But states have entered into an increasingly competitive contest to draw or retain TV and film productions close to home.

Cuomo’s office points to the entertainment industry spending more than $2 billion in the state, along with the hiring of 126,301 actors and crew for 181 projects.