Should Live Theatre Productions Get The Same Tax Breaks As The Film Industry? (S. 364)
Do you support or oppose this bill?
What is S. 364?
(Updated March 15, 2018)
This bill aims to offer live theatre investors (for shows like those on Broadway) the same tax breaks offered to the film and television industry.
Under the current tax code, qualified film and TV production companies can expense costs of up to $15 million, as long as 75 percent of the labor they are paying for is done in the U.S. As such, studios can immediately recoup their investments on the movies and TV shows they're working on, taxes can be determined based on the profits they earn. Broadway shows, and other live theatre productions are left out of these tax breaks.
Through amendments to the Internal Revenue Code of 1986, this bill extends tax incentives to live theatrical venues through 2016. These tax breaks would be offered to venues with an audience capacity of 3,000 people or less, but also extends to live touring companies.
Argument in favor
Live theatre is foundational to U.S. performing arts history. Supporting these productions helps stage actors, theatre workers, artists, and American cultural intelligence.
Argument opposed
There are many U.S. businesses that deserve tax breaks more than live theatrical venues. The performing arts shouldn’t be a priority
Impact
Stage actors and workers, live theatrical venues and companies, the performing arts, Internal Revenue Service, federal taxation agencies.
Cost of S. 364
A CBO cost estimate is unavailable.
Additional Info
In Depth:
With the STAGE Act, live theatrical productions could spend up to $15 million when 75 percent of the business’s compensation pays for performances within the United States.
Of Note:
Immediate expensing for commercial theater productions is already allowed in other countries like the U.K. — an incentive that has been driving play and musical investors (and their money) out of the U.S. The Broadway League, the national trade association for the Broadway industry, argues that this legislation would lure investors back to the states.
Media:
Sponsoring Rep. Charles E. Schumer (D-NY) Press Release
The Broadway League (In Support)
New York Post (Previous Bill Version)
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