Sec. 169. Extension of special expensing rules for certain film and television productions; special expensing for live theatrical productions
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Section 181(f) is amended by striking December 31, 2014 and inserting December 31, 2016 . Paragraph
(1)of section 181(a) is amended by inserting , and any qualified live theatrical production, after any qualified film or television production . Section 181 is amended— by inserting or any qualified live theatrical production after qualified film or television production each place it appears in subsections (a)(2), (b), and (c)(1), by inserting or qualified live theatrical productions after qualified film or television productions in subsection (f), and by inserting after and live theatrical in the heading. film and television The item relating to section 181 in the table of sections for part VI of subchapter B of chapter 1 is amended to read as follows: Sec. 181. Treatment of certain qualified film and television and live theatrical productions. . Section 181 is amended— by redesignating subsections
(e)and (f), as amended by subsections
(a)and (b), as subsections
(f)and (g), respectively, and by inserting after subsection
(d)the following new subsection: For purposes of this section— The term qualified live theatrical production means any production described in paragraph
(2)if 75 percent of the total compensation of the production is qualified compensation (as defined in subsection (d)(3)). A production is described in this paragraph if such production is a live staged production of a play (with or without music) which is derived from a written book or script and is produced or presented by a taxable entity in any venue which has an audience capacity of not more than 3,000 or a series of venues the majority of which have an audience capacity of not more than 3,000. In the case of multiple live staged productions— for which the election under this section would be allowable to the same taxpayer, and which are— separate phases of a production, or separate simultaneous stagings of the same production in different geographical locations (not including multiple performance locations of any one touring production), each such live staged production shall be treated as a separate production. For purposes of subparagraph (B), the term phase with respect to any qualified live theatrical production refers to each of the following, but only if each of the following is treated by the taxpayer as a separate activity for all purposes of this title: The initial staging of a live theatrical production. Subsequent additional stagings or touring of such production which are produced by the same producer as the initial staging. In the case of a live staged production not described in subparagraph
(B)which is produced or presented by a taxable entity for not more than 10 weeks of the taxable year, subparagraph
(A)shall be applied by substituting 6,500 for 3,000 . For purposes of clause (i), in the case of any taxable year of less than 12 months, the number of weeks for which a production is produced or presented shall be annualized by multiplying the number of weeks the production is produced or presented during such taxable year by 12 and dividing the result by the number of months in such taxable year. A production is not described in this paragraph if such production includes or consists of any performance of conduct described in section 2257(h)(1) of title 18, United States Code. . The amendment made by subsection
(a)shall apply to productions commencing after December 31, 2014. The amendments made by subsections
(b)and
(c)shall apply to productions commencing after December 31, 2015. For purposes of subparagraph (A), the date on which a qualified live theatrical production commences is the date of the first public performance of such production for a paying audience.