Four of McNally's plays, including Master Class, Golden Age, Some Men and Unusual Acts of Devotion, received their world premieres at the Philadelphia Theatre Company.
Terrence McNally New Play Award will annually "recognize a new play that celebrates the transformative power of art," according to PTC.
The award will be open to unproduced, full-length plays. PTC will hold the world-premiere rights to the winning plays for up to three years following the presentation of the award. The inaugural recipient will be announced during the 2012 PTC@Play Festival, which runs Feb. 27-March 11, 2012.
“I am confident this award will help identify the next generation of American playwrights who understand the special power of theatre to transform hearts and minds and that Philadelphia Theatre Company will continue to be a welcoming venue for them," McNally said in a statement.
"PTC has enjoyed a long and fruitful collaboration with Terrence McNally," said PTC’s producing artistic director Sara Garonzik in a statement. "We believe that the inherent humanity found in McNally’s work, along with his belief in the indelible impact that art and beauty can make on the individual, as well as upon society, should be recognized and celebrated." McNally earned Tony Awards for his plays Master Class and Love! Valour! Compassion!, as well as the books to the musicals Kiss of the Spider Woman and Ragtime. His works also include The Visit; Catch Me If You Can; The Ritz; Frankie and Johnny at the Claire de Lune; Lips Together, Teeth Apart; Deuce; Some Men; Dedication or the Stuff of Dreams; The Lisbon Traviata; The Rink; A Man of No Importance; and The Full Monty.