Massachusetts House Bill H2711

Massachusetts 2023-2024 Regular Session

• Introduced: 2/16/23
• Refer: 2/16/23
• Refer: 3/21/24

Caption

Creating a pilot program to enhance economic and community development through live theatrical arts

Impact

The bill significantly modifies Chapter 62 of the General Laws by introducing section 38DD, which outlines the eligibility and application processes for theater companies seeking tax credits. Under this new framework, the tax credits can support up to $5 million annually with specific provisions including employee payroll costs and production costs incurred within Massachusetts. The initiative is expected to boost local theater production budgets, permitting the allocation of funds that can stimulate community businesses involved in theater operations, such as hotels, transportation, and catering needs.

Summary

House Bill H2711 proposes the establishment of a pilot program aimed at enhancing economic and community development through the promotion of live theatrical arts in Massachusetts. This bill introduces a live theater tax credit that allows eligible theater companies engaged in pre-Broadway, pre-off-Broadway productions, or national tours to receive tax benefits. The intention is to foster a robust theater environment while encouraging the production of new shows in the Commonwealth, which could subsequently lead to increased tourism and local business revenue.

Contention

Despite its potential benefits, the bill may face scrutiny as opinions differ regarding government involvement in the arts. Proponents argue that supporting the arts through tax incentives not only enhances cultural offerings but also yields long-term economic returns through increased tourism and local job creation. Conversely, critics may assert that such financial incentives constitute unnecessary government spending, suggesting that the arts should rely on private funding or ticket sales rather than taxpayer money. The evaluation of the program's effectiveness will be crucial, as a report is mandated by the bill to assess its impact on local economies and arts engagement over the life of the pilot program, extending through December 2027.