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Section 181's Extension to Live Stage Productions Doesn't Set Clear Path for Producers, Investors

By Thomas D. Selz, Bernard C. Topper Jr. and Christopher A. Cacace

At the end of 2015, Congress passed, as part of a large tax extender bill, the Protecting Americans from Tax Hikes Act (PATH), H.R 2029, an extension of '181 of the Internal Revenue Code. Section 181 has been available since 2004 to permit expedited deduction of the costs of a film or TV production. The present version of '181 permits an expedited deduction of a production's costs up to $15 million ($20 million in certain circumstances). Since inception, this has had several sunset provisions, each of which was extended as part of year-end extender bills. The latest for the first time has extended the availability of '181 treatment to live stage productions.

Will this new provision be helpful to producers of live theatrical productions as they seek to raise funding for their shows?

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