House plan offers tax credits for local theaters | News | gloucestertimes.com

2022-07-18 05:39:55 By : Ms. Theresa Fu

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BOSTON — Performing arts and small movie theaters that took a hit financially during the pandemic could be getting some help from the state to offset losses and attract new productions.

A $10.4 billion economic development bill, which was approved by the state House of Representatives on Thursday, includes a provision to create a $5 million grant program for local theaters. The money could be used help offset the costs associated with payroll, transportation and production.

One of the bill’s chief architects, Rep. Jerry Parisella, D-Beverly, said the aid recognizes the “integral role” live theaters “play in the cultural enrichment of our communities and added tourism and the positive economic impact they have.”

He said the funds will help attract pre-Broadway productions to perform at local theaters while they prepare to embark on nationwide tours.

“Programs like this in other states have been very successful and led to significant positive economic development,” Parisella said.

Under the proposal, the state Office of Travel and Tourism would administer the plan and come up with criteria to qualify for the credits.

The credits would be available to live theater companies “doing business with a Massachusetts-based theater venue, theater company, theater presenter or producer.”

The House bill approved Thursday also includes $3 million in funding to provide grants to small local movie theaters impacted by the pandemic.

To qualify for a grant, the theaters must have box office sales of $15,000 or less in 2019 and demonstrate that ticket sales have declined by 40% or more in subsequent years. Eligible businesses will get 15,000 for every two screens and $10,000 for every additional screen, according to the plan.

Both proposals need to make it into a final version of the bill, which must be approved by the state Senate before landing on Gov. Charlie Baker’s desk for consideration.

The state’s tourism and entertainment industries were hammered hard by economic fallout of the pandemic and government restrictions that shut down many businesses in early 2020 to prevent the spread of COVID-19. Collectively, the losses totaled tens of millions of dollars, according to industry figures.

While the state offers a tax credit to movie production studios — which doles out tens of millions of dollars a year to Hollywood productions — there is no such tax credit for community theaters.

Live theater operators welcome the help as they struggle to recover from the lingering impacts of the pandemic and attract more live productions and patrons.

“This would be a big help,” said J. Casey Soward, executive director of The Cabot theater in Beverly. “Coming out of the pandemic, we’ve been able to recoup a fair amount of our audience, but there’s still a big group of people who have not come back to the theater.”

Offering tax credits to traveling productions will help lure bigger shows to the state, which will benefit The Cabot and other local theaters that are desperately trying to fill seats, he said.

Unlike the film tax credit, which has been criticized as a giveaway to Hollywood movie production studios, Soward said the live theater tax credit would have an outsized impact on the local economy. He said the plan would give preference to small theaters outside of Boston, which generally don’t attract the big shows.

“There’s so many venues outside of Boston that could really benefit from having some of these productions come in for a couple weeks,” Soward said. “What that does for our downtowns, economically, is huge. It means millions of dollars are being spent in restaurants and local shops, which are also still struggling.”

Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@northofboston.com.

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