Alexander Hamilton introduced the idea of federal taxes. Broadway producers enjoying a record season buoyed by his namesake musical are lobbying Congress to limit what they owe.
The industry is fighting to keep a provision that allows live-theater backers deductions in a show’s first year. That means they’d pay tax on income only after turning a profit. The provision passed in 2015, yet needs to be extended by Congress this year to survive.
In an industry where four of five performances close without recouping start-up costs, producers say such a sweetener will keep the hits coming.
But some lawmakers don’t like the idea. Nor do advocates of tax cuts, who say such breaks make it more difficult to reduce the burden on everyone else.
At stake, according to Broadway producers, is the continued health of an industry that contributed more than $12 billion to New York City’s economy last year, bolstered by sold-out hip-hop musical “Hamilton” and other hits like “The Lion King” and “Wicked.”
The issue will be hashed out before Congress ends its work, said Senate Finance Committee Chairman Orrin Hatch.