A long-running hit could give investors lucrative returns for years, particularly when shows go on tours or spin off into television or film, said Ken Davenport, whose productions include “Kinky Boots” and “ Spring Awakening.”
“Investing in Broadway shows is a lot like investing in a restaurant, a piece of art, or frankly, in any entrepreneurial startup,” he said. “And since shows can now run five, 10 or 20 years and spawn multiple companies, the upside can be huge.”
“Hamilton,” for instance, grossed $74 million over 45 weeks of the 2015-16 season, selling out every week, according to the Broadway League, and investors could make millions themselves.
Ellis, of the taxpayer advocacy group, lumps the tax break with other special-interest tax bills, including accelerated depreciation for investing in NASCAR tracks or race horses, and rebates for Virgin Island or Puerto Rican rum. He says he’s mobilizing Republican lawmakers to reject.
The issue will be hashed out in negotiations with Democrats on the finance committee, said its chairman, Senator Orrin Hatch of Utah.
“As we continue to engage in bipartisan efforts to overhaul the tax code, it’s imperative the committee and members in Congress as a whole evaluate the current tax extender provisions,” he said.
Marino, of Pennsylvania, says he’s already made up his mind.
“If these guys aren’t bright enough to put anything together that makes money, tell them to get out of the business,” he said.