Bill > H2471

This bill establishes a live theater tax credit program to support the expansion of pre-Broadway and pre-off-Broadway productions, as well as Broadway tour launches, and to aid in the development and growth of long-running shows. The program allows eligible live theater companies that do business with Massachusetts-based venues, companies, presenters, or producers to claim a tax credit against their state taxes. An "eligible theater production" is defined as a live stage musical or theatrical production or tour presented in a qualified production facility in Massachusetts that is either a Pre-Broadway production (scheduled for New York City's Broadway within 12 months), a pre-off-Broadway production (scheduled for New York City's Off-Broadway within 12 months), or a Broadway Tour Launch (opening its US tour in Massachusetts). The credit is calculated as 35% of in-state labor costs and 25% of production and performance expenditures, which include costs for sets, costumes, payroll, advertising, and more, as well as all out-of-state labor costs for the eligible production. The credit is capped at $3 million per tax year and can be carried forward for up to five years. The bill also outlines procedures for applying for and receiving certification for these credits, including initial and final certification processes managed by the Massachusetts Office of Travel and Tourism (the "Office") and the Commissioner of Revenue. Importantly, eligible companies can assign or transfer these tax credits to other individuals or entities, and the proceeds from such sales are exempt from state taxes. The total amount of credits issued annually is limited to $3 million, and no credits will be issued after January 1, 2021, unless the production received initial certification before that date.