Sen. Charles Schumer (D-N.Y.) has reintroduced legislation to extend certain federal tax incentives to Broadway and live theater productions.
The Support Theaters in America Growth and Expansion Act would mean that shows and live theatrical productions would enjoy an incentive given to film and TV productions for certain costs. Under section 181 of the tax code, they are able to immediately expense up to $15 million when 75% of compensation is paid for services in the United States.
According to the Broadway League, such countries as the U.K. already allow for the immediate expensing of production costs for commercial theater productions. The disparate tax treatment, according to the league, has been driving new play and musical development to other countries. The league argues that the legislation would help lure investors, as they would be able to accelerate deductions.
The legislation is co-sponsored by Sen. Roy Blunt (R-Mo.).
Charlotte St. Martin, executive director of the Broadway League, said that such a change to the tax code would “eliminate a major impediment to attracting financing for commercial theater at virtually no cost to U.S. taxpayers.”