Broadway is synonymous with New York, but Sen. Charles Schumer wants to use a tax break to lure producers to the world’s greatest stage.
Schumer said Monday that investors and production companies might run off to Canada and Europe to stage their shows without incentives allowing them to write off their losses.
Schumer said Broadway productions should enjoy the same tax incentives enjoyed by film and television projects — even though the experience of the Great White Way can’t be created anywhere else.
To make his point, Schumer trotted out enough stars to fill a Tony Awards stage, a cast of characters that included veteran actress Tyne Daly, Bryan Cranston, who plays LBJ in “All The Way,” and Neil Patrick Harris, who stars in “Hedwig and the Angry Inch.”
“This plan, which would eliminate a double standard when it comes to taxing the entertainment industry, will mean more shows on Broadway, more jobs and more investment in and around the Great White Way,” Schumer said.
Under the bill, Broadway show backers could expense up to $15 million of the costs of a US-based project. Investors wouldn’t have to start paying taxes on income from a production until the show has actually recouped its costs and begun turning a profit.
Currently, investors must pay taxes on income from shows that haven’t made it into the black yet, a big turnoff on such a risky endeavor.
“The incentives are there in the UK,” said film producer Harvey Weinstein, who has invested in a string of Broadway productions, including “Finding Neverland,” which originated in Leicester, England, in 2012.
“It’s the reason we went there,” he said. “We got a great deal and a great tax break.”
Backers of the bill said it also would help cities across the country because many shows go on national tours after their New York runs.
Schumer, in a news conference at Sardi’s, said the tax break would bring jobs and dollars to New York.
According to the Broadway League, Broadway attendance in 2012-13 reached 11.5 million. Schumer said Broadway contributes $11 billion to New York City’s economy, and 86,000 jobs.
“When you ask somebody from Denver or from Tokyo or from Johannesburg why they want to come to New York, they’ll say, ‘I want to go to Broadway,’” Schumer said. “So the better Broadway does, the better New York does.”
But Schumer couldn’t promise that the incentives would result in lower ticket prices.