§ 3M — Live theater tax credit pilot program; competitive grant program; applications; cost accounting

[ Text of section added by 2024, 238, Sec. 41 effective November 20, 2024 for taxable years beginning on or after January 1, 2025 until January 1, 2030. Repealed by 2024, 238, Sec. 315. See 2024, 238, Sec. 319.]Section 3M. (a)(1) For the purposes of this section, "office'' shall mean the Massachusetts office of business development established in section 1, or any constituent office thereof.(2) There is hereby established a pilot program for a live theater tax credit for which a live theater company doing business with a Massachusetts-based theater venue, theater company, theater presenter or producer may be eligible. The credit shall be established to support the expansion of pre-Broadway productions, pre-off-Broadway productions, national tour launches and regional professional theater productions, as those terms are defined in paragraph (1) of subsection (ff) of section 6 of chapter 62 and subsection (a) of section 38QQ of chapter 63, and shall assist in the development of long run show development and growth.(b)(1) The office, directly or through a constituent office, shall run a competitive grant program to award live theater tax credits. An applicant shall only be awarded a tax credit if they meet the requisite criteria and qualifications for the credit as outlined in this section and subsection (ff) of section 6 of chapter 62 or section 38QQ of chapter 63. The office shall establish criteria for prioritization of credits, which may include anticipated economic impact and other factors at the discretion of the office. The total cumulative value of the credits authorized pursuant to this section and subsection (ff) of section 6 of chapter 62 or section 38QQ of chapter 63 shall not exceed $7,000,000 annually.(2) An applicant for a live theater tax credit shall properly prepare, sign and submit to the office an application for certification of the theater production. The application shall provide all information and data the office deems necessary for the evaluation and administration of the application, including, but not limited to, any information about the theater production company or its related partners or presenters and a specific Massachusetts live theater or musical production as well as such other information as the office, in its discretion, requires to evaluate and prioritize applications. The eligible theater production budget shall be not less than $100,000. The maximum credit for any production shall not be more than $7,000,000, or a lesser amount as determined by the office.(3) The office shall review completed applications, determine whether they meet the requisite criteria and qualifications for certification and award tax credits in the office's sole discretion. If a theater production or presentation is determined to be eligible, the office shall issue a certification of the eligible theater production or presentation to the theater production company, co-producer or presenter and to the commissioner of revenue. The certification shall provide a unique identification number for the production and shall be a statement of conditional eligibility for the production.(c) Upon completion of an eligible theater production for which a certification has been granted, the applicant shall properly prepare, sign and submit to the office and the department of revenue a cost accounting in connection with the eligible theater production. The cost accounting shall contain a cost report and an accountant's certification. In computing payroll costs, production and performance expenditures and transportation expenditures for which a credit may be claimed, an eligible theater production shall subtract any state funds, state loans or state guaranteed loans. The office and commissioner of revenue may rely, without independent investigation, upon an accountant's certification, in the form of an opinion, confirming the accuracy of the information included in the cost report. If the office or the department of revenue receives information that is materially inconsistent with representations made in an application, the office may rescind the certification.(d) The office, in consultation with the commissioner of revenue, shall promulgate rules and regulations to administer this section.