Massachusetts has officially launched its Live Theater Tax Credit Pilot Program, a bold initiative aimed at revitalizing the state’s cultural economy and reinforcing its reputation as a premier destination for theatrical production.
Spearheaded by the Massachusetts Office of Travel and Tourism (MOTT) in collaboration with the Massachusetts Office of Business Development (MOBD), the program is set to run as a five-year pilot. The inaugural application window opened on July 15, 2025, and closes on August 26, 2025. The program includes a statewide cap of $7 million in total tax credits awarded annually, ensuring a balanced and sustainable approach to supporting the arts.
Tax Credit Details
Eligible theater companies and productions, including non-profits, can apply for one tax credit per year based on qualified expenditures incurred in Massachusetts. The breakdown includes:
- 35% of payroll costs
- 25% of production and performance expenditures
- 25% of transportation expenditures
Credits are non-refundable, may be carried forward up to five years, and are transferable.
Eligibility
To qualify, the production must:
- Incur $100,000 minimum of eligible expenses in Massachusetts and fall into one of the following categories:
- Pre-Broadway
- Pre-Off-Broadway
- National Tour Launch
- Regional Professional Theater
- Be presented at a Qualified Production Facility that has at least 175 seats and appropriate backstage infrastructure.
- Be in good standing with the Massachusetts Secretary of the Commonwealth, Department of Revenue, and Department of Unemployment Assistance.
Application Process
- Application Period: That application window is currently open and closes on August 26, 2025.
- Submission Platform: All applications must be submitted through the official portal.
- Required Documentation:
- Detailed production budget
- Proof of Massachusetts-based expenditures
- Evidence of future performance plans
- Certificate of Good Standing from the Massachusetts Secretary of the Commonwealth
- Eligibility Review: Applications will be reviewed for completeness and compliance with program guidelines before being evaluated for tax credit awards.
- Award Notification: Selected applicants will be notified after the review period, with tax credits awarded based on available funds and program criteria.
Certification Process
- Initial Certificate: Once approved, the applicant will be issued an initial certificate that outlines all relevant information to the award, including the total maximum amount of Live Theater Tax Credit approved.
- Final Certificate: No later than 6 months following the last performance of the live theater production, the recipient is required to submit the following documents in order to obtain a Final Certificate:
- Cost Accounting Report
- Economic Impact Report
After receipt and approval of the Cost Accounting Report and Economic Impact Report, MOTT will issue a Final Certificate confirming and authorizing the actual amount of Live Theater Tax Credits the recipient may claim.
Independent CPA Review
A key component of this program is the accountant’s Cost Accounting Report, which ensures transparency, accountability, and compliance with state guidelines. This process is a formal evaluation of a production’s financial records. The independent CPA is required to:
- Verify the accuracy of reported expenditures.
- Ensure compliance with the program’s eligibility criteria.
- Provide assurance to the MOTT and MOBD that the claimed costs are legitimate and incurred within the state.
This process helps maintain the integrity of the tax credit program and ensures that public funds are used appropriately.
Withum brings deep expertise in conducting independent CPA reviews for various theater tax credits around the country. Our specialized team understands the unique financial and regulatory requirements of live productions, ensuring accurate and compliant reporting that helps clients maximize their credit benefits.
Author: Ryan Flash | [email protected]
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For more information on this topic, reach out to Withum’s Theatre and Entertainment Services Team today.
