(Adam Hetrick’s article appeared in Playbill, 12/18; via Pam Green.)
A package that establishes equal tax treatment for live theatrical productions was signed into law Dec. 18 by President Barack Obama. Broadway producers spoke exclusively with Playbill.com about how this legislature will impact the "art of making art."
The bill levels the playing field between New York-based theatrical productions and film and television shows. Current tax codes allow TV and film productions to expense up to $15 million in qualified costs, when 75 percent of compensation paid is for services performed in the United States. Broadway shows and other live theatrical productions did not previously qualify for the tax incentive.
U.S. Senator Charles E. Schumer is among those who supported of the passage of the legislation. The law allows 100 percent of an investment to be deducted by the investor from his or her income in the year of the investment.
Beginning January 2016, all forms of entertainment media will be treated similarly by the IRS, essentially allowing producers to immediately recoup their investments prior to taxes being assessed on profits earned.