,,ii  #aacth ,,congress  #b;d ,session  
,s4 #bahj  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,march #bg1    
#bjad ,mr4 ,schumer 7for himself and    
,mr4 ,blunt7 introduced the following   
bill2 which was read twice and referred 
to the ,committee on ,finance  ,a ,,bill
  ,to amend the ,internal ,revenue ,code
 of #aihf to extend tax incentives to   
certain live theatrical performances1   
and for other purposes4  #a4  ,short    
title  ,this ,act may be cited as the   
,support ,theaters in ,america ,growth  
and ,expansion ,act or the ,,stage ,act4
  #b4  ,expensing of qualified          
productions  7a7  ,extension            
,subsection 7f7 of section #aha of the  
,internal ,revenue ,code of #aihf is    
amended by striking ,december #ca1 #bjac
 and inserting ,december #ca1 #bjae4    
7b7  ,application to live productions   
7#a7  ,in general  ,paragraph 7#a7 of   
section #aha7;a7 of the ,internal       
,revenue ,code of #aihf is amended by   
inserting 1 and any qualified live      

theatrical production1 after any        
qualified film or television production4
  7#b7  ,conforming amendments  ,section
 #aha of such ,code is amended--  7,a7  
by inserting or any qualified live      
theatrical production after qualified   
film or television production each place
 it appears in subsections 7a77#b71 7b71
 and 7c71  7,b7 by inserting or         
qualified live theatrical productions   
after qualified film or television      
productions in subsection 7f71 and  7,c7
 by inserting and live theatrical after 
film and television in the heading4  7c7
  ,qualified live theatrical production 
,section #aha of the ,internal ,revenue 
,code of #aihf is amended--  7#a7 by    
redesignating subsections 7e7 and 7f71  
as amended by subsections 7a7 and 7b71  
as subsections 7f7 and 7g71             
respectively1 and  7#b7 by inserting    
after subsection 7d7 the following new  
subsection3  7e7  ,qualified live       
theatrical production  ,for purposes of 
this section--  7#a7  ,in general  ,the 

term qualified live theatrical          
production means any production         
described in paragraph 7#b7 if #ge      
percent of the total compensation of the
 production is qualified compensation   
7as defined in subsection 7d77#c774     
7#b7  ,production  7,a7  ,in general  ,a
 production is described in this        
paragraph if such production is a live  
staged production of a play 7with or    
without music7 which is derived from a  
written book or script and is produced  
or presented by a commercial entity in  
any venue which has an audience capacity
 of not more than #c1jjj or a series of 
venues the majority of which have an    
audience capacity of not more than      
#c1jjj4  7,b7  ,touring companies1 etc  
,in the case of multiple live staged    
productions--  7i7 for which the        
election under this section would be    
allowable to the same taxpayer1 and     
7ii7 which are--  7,i7 separate phases  
7within the meaning of section          
#dfi7;g77#d77;,b77 of a production1 or  

7,,ii7 separate simultaneous stagings of
 the same production in different       
geographical locations 7not including   
multiple performance locations of any   
one touring production71  each such live
 staged production shall be treated as a
 separate production4  7,c7  ,exception 
,a production is not described in this  
paragraph if such production includes or
 consists of any performance of conduct 
described in section #bbeg7;h77#a7 of   
title #ah1 ,united ,states ,code4  4    
7d7  ,effective dates  7#a7  ,in general
  ,the amendments made by this section  
shall apply to productions commencing   
after ,december #ca1 #bjac4  7#b7       
,commencement  ,for purposes of         
paragraph 7#a71 the date on which a     
qualified live theatrical production    
commences is the date of the first      
public performance of such production   
for a paying audience4  #c4             
,dispositions of interest in theatrical 
productions as passive activity  7a7    
,in general  ,subsection 7g7 of section 

#dfi of the ,internal ,revenue ,code of 
#aihf is amended by adding at the end   
the following new paragraph3  7#d7      
,special rule for interest in qualified 
live theatrical productions  7,a7  ,in  
general  ,in the case of an interest in 
a qualified live theatrical production  
7as defined in section #aha7;e77#a77 as 
a passive activity--  7i7 each phase of 
such production shall be treated        
separately for purposes of this         
subsection1 and  7ii7 the termination of
 any phase of such production in which  
the taxpayer holds an interest as a     
passive activity shall be treated as a  
disposition of such taxpayer's entire   
interest in such passive activity4  7,b7
  ,phase  ,for purposes of subparagraph 
7,a71 the term phase with respect to any
 qualified live theatrical production   
refers to each of the following1 but    
only if each of the following is treated
 as a separate activity by the taxpayer 
for all purposes of this title3  7i7    
,the initial staging of a live          

theatrical production4  7ii7 ,subsequent
 additional stagings or touring of such 
production which are produced by the    
same producer as the initial staging4   
7iii7 ,disposition of copyrights1       
licensing rights1 or subsidiary rights  
in connection with such production4  4  
7b7  ,effective date  ,the amendment    
made by this section shall apply to     
taxable years beginning after ,december 
#ca1 #bjac4