Massachusetts Legislature Passes Live Theater Tax Credit As Part Of Economic Development Bill

The Massachusetts Legislature has officially passed a sweeping economic development bill that establishes a Live Theater Tax Credit. Massachusetts Governor Maura Healey signed the bill into law today, November 20, 2024.

Under this program, producers of any Pre-Broadway, Pre-Off-Broadway, or National Tour launch that comes to Massachusetts can seek to offset associated costs that incurred in the Commonwealth. Any theater in Massachusetts that meets the size and infrastructure requirements would be eligible to host one of these productions, meaning that the benefits can be enjoyed in any region of the Commonwealth, which currently includes over 70 theaters statewide.

Massachusetts has a long and significant live theater history. Hundreds of Pre-Broadway and National Tours originated here – though that number has dwindled in recent years since other states, including Rhode Island, Connecticut, and New York, have passed legislation creating similar tax credits.

Neighboring states with theatrical tax credits have reported significant economic impacts. Rhode Island reports that for every $1 in state tax incentives, the return on investment is $8, and New York state places their ROI for upstate productions at $10 in benefit for every $1 in state incentives. Upstate New York has seen a significant economic boost from their program, with 19 National Tours launching in the area since 2015, yielding more than $103 million in new revenue to the state.

The ripple effect from more theatrical shows launching in Massachusetts also promises to increase both tourism and economic activity from theater goers who attend these productions. In contrast with other tax incentive programs, live theater draws visitors from other states and countries who travel to the Commonwealth specifically to be part of the launch of a new musical or play and the corresponding meals, lodging, and tourism dollars all have an exponential economic impact.

In a statement released to GBH's “The Culture Show,” Governor Maura Healey and Lt. Governor Kim Driscoll touted both the economic and culture impact of the Live Theater Tax Credit, stating “We're excited that the legislature has advanced the Live Theater Tax Credit to incentivize productions to remain in and expand to Massachusetts. This will be good for our arts and culture sector and our economic competitiveness. When our theaters are full, so are our restaurants, hotels, shops, and other businesses.”

To read the full economic development bill text, click here.