Definitions

Advertising and Public Relations Expenditure. A cost incurred within the Commonwealth by an Eligible Theater Production for goods or services related to the marketing, public relations, creation and placement of print, electronic, television, billboards or other forms of advertising to promote an Eligible Theater Production. Commissioner. The Commissioner of Revenue or the Commissioner's duly authorized representative. Cost Accounting Report. A cost accounting of expenditures in connection with an Eligible Theater Production prepared and signed bythe certified Eligible Company Such cost accounting shall set forth in detail all Eligible Production Costs, including Payroll Costs, Production and Performance Expenditures, Transportation Expenditures, and documentation acceptable to the Office to substantiate reported costs and expenses, and shall include an accountant's certification, in the form of an opinion, confirming the accuracy of the information included in the Cost Accounting Report. An Eligible Theater Production shall not include any Eligible Production Costs paid with state funds, state loans or state guaranteed loans in computing Payroll Costs, Production and Performance Expenditures and Transportation Expenditures for which a Live Theater Tax Credit may be claimed. Economic Impact Report. A report provided to the Office by an Eligible Company describing the direct and indirect economic impact of an Eligible Theater Production prior to the issuance of a Final Certificate. Such report may include, but is not limited to, jobs created and associated wages, theater ticket sales to domestic and international visitors, spending by live theater productions on adjacent businesses, wages paid for setting up and taking down productions, and impacts on hotels, restaurants and other businesses in proximity to theaters. The Office may from time to time specify in program guidelines the information required to be provided. Eligible Company. An individual or business that produces, co-produces or presents an Eligible Theater Production with a Massachusetts-based theater venue, theater company, theater presenter or producer for the purpose of supporting the expansion of Eligible Theater Productions and assisting in the development of long run show development and growth within the Commonwealth. Eligible Production Costs Payroll Costs, Production and Performance Expenditures, and Transportation Expenditures that are incurred in the Commonwealth. (Mass. Register #1550, 6/20/2025) Eligible Theater Production. A live stage musical, dance or theatrical production or tour being presented in a Qualified Production Facility that is either: (a) a Pre-broadway Production; (b) a Pre-off-broadway Production; (c) a National Tour Launch; or (d) a Regional Professional Theater Production. Final Certificate. The certificate issued by the Office to an Eligible Company pursuant to 400 CMR 10.05. Initial Certificate A certificate issued by the Office certifying that a production is an Eligible Theater Production that is eligible to claim a Live Theater Tax Credit in a specified amount, pursuant to M.G.L. c. 23A, § 3M, upon issuance of a Final Certificate. Live Theater Tax Credit. The tax credit authorized pursuant M.G.L. c. 62, § 6(ff) and M.G.L. c. 63, § 38QQ. National Tour Launch. A live stage production that, in its original or adaptive version, is performed in a Qualified Production Facility and opens its national tour in the Commonwealth. Office. The Massachusetts Office of Business Development or any constituent office thereof. Payroll. All salaries, wages, fees and other compensation from sources within the Commonwealth, including, but not limited to, taxes, benefits and any other consideration incurred or paid to talent and non-talent employees of the applicant for services rendered within the Commonwealth to and on behalf of an Eligible Theater Production; provided, that the Payroll expenditure shall be incurred or paid by the applicant for services related to any portion of an Eligible Theater Production from its pre-production stages, including, but not limited to: (a) the writing of the script; (b) casting; (c) hiring of service providers; (d) purchases from vendors; (e) marketing; (f) advertising; (g) public relations; (h) load in; (i) rehearsals; (j) performances; (k) other Eligible Theater Production related activities; and (l) load out; and provided further, that the Payroll expenditure shall be directly attributable to the Eligible Theater Production and shall be limited to the first $100,000 of wages incurred or paid to each employee of an Eligible Theater Production in each tax year. Pre-broadway Production. A live stage production that, in its original or adaptive version, is performed in a Qualified Production Facility having a presentation scheduled for thecity of New York's Broadway theater district within 24 months after its presentation in theCommonwealth. Pre-off-broadway Production. A live stage production that, in its original or adaptiveversion, is performed in a Qualified Production Facility having a presentation scheduled for the cityof New York's off-Broadway theater district within 24 months after its presentation in the Commonwealth. Production and Performance Expenditures A contemporaneous exchange of cash orcash equivalent for goods or services related to development, production, performance or operating expenditures incurred in the Commonwealth for an Eligible Theater Production, including, but not limited to, expenditures for design, construction and operation, including sets, special and visual effects, costumes, wardrobes, make-up, accessories, costs associated with sound, lighting, staging, Advertising and Public Relations Expenditures, facility expenses, rentals, per diems, accommodations and other related costs. Qualified Production Facility. A facility located in the Commonwealth in which live theater productions are, or are intended to be, exclusively presented that contains at least one stage, a seating capacity of not less than 175 seats, dressing rooms, storage areas and other ancillary amenities necessary for the Eligible Theater Production. Regional Professional Theater Production. A live stage production that is performed in a Qualified Production Facility with a professional cast and crew. Transportation Expenditures. Expenses incurred in the Commonwealth for the packaging, crating and transportation both to the Commonwealth for use in an Eligible Theater Production of sets, costumes or other tangible property constructed or manufactured outside the Commonwealth, or from the Commonwealth after use in an Eligible Theater Production of sets, costumes or other tangible property constructed or manufactured in the Commonwealth and the transportation of the cast and crew to and from the Commonwealth; provided, that Transportation Expenditures shall include any portion performed in the Commonwealth of the packaging, crating and transporting of propertyand equipment used for special and visual effects, sound, lighting and staging,costumes, wardrobes, make-up and related accessories and materials and any other performance or production-related property and equipment.