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, before 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.