Hartford Business Journal

14 HARTFORDBUSINESS.COM | JULY 10, 2023 Shubert Theatre Executive Director Anthony McDonald outside the New Haven venue. HBJ PHOTO | STEVE LASCHEVER Lights, Camera, Action? Theater execs hope new tax credit will lure more pre- and post-Broadway productions to CT By Hanna Snyder Gambini hgambini@hartfordbusiness.com C an Connecticut theaters become a desti- nation for pre- and post-Broadway productions? That's what local theater executives are hoping as they begin to market a new tax credit that aims to make their venues more attractive to traveling production companies. The recently passed two-year, $51.1 billion state budget includes a new tax credit for theater produc- tion companies that hold their technical rehearsals at a qualified Connecticut theater. Such rehearsals, also known as "teching," are an extensive process where a show sets up residence at a theater, typically for a few weeks or longer, to run through all aspects of a production — from lighting and sound, to stage directions and costumes — before officially launching a tour. In recent years, Connecticut's major theaters have lost out on that business to neighboring states like New York and Rhode Island that offer incentives and tax credits. Connecticut's new credit, which takes effect in 2024, is open to companies that create pre- and post- Broadway and live theatrical tours. They must station their rehearsals at a Connecticut theater with at least 1,000 seats. The credit is capped at $2.5 million annually and equals 30% of a produc- tion's eligible expenditures, which include spending on stage design, lighting, costumes, transportation, hotels, food and up to $250,000 of weekly payroll. The state's six largest performance houses — the Shubert Theatre (New Haven); The Bushnell (Hart- ford); The Palace Stamford; Palace Theater (Waterbury); Warner Theater (Torrington); and Garde Theater (New London) — formed the Connecticut Performing Arts Centers Coalition a few years ago, in part, to lobby for the tax credit. Teching provides an economic boost to theaters, which are still recovering from the pandemic, and their host communities, said Anthony McDonald, executive director of the Shubert Theatre. When tech rehearsals occur, touring companies pay rent, utilities, stagehands and cleaning costs to theaters, and also have dozens of employees staying in local hotels, eating at restaurants and visiting merchants and other tourist attrac- tions — sometimes up to five weeks at a time, McDonald said. "And so, … the ecosystem grows, … our restaurants and hotels are benefiting from seeing this kind of influx," he said. Over the past decade or more, the Shubert has hosted numerous rehearsals for shows like "Matilda," "Jersey Boys," and "Dream Girls." But as other states, including New York and Rhode Island, began offering tax credits to production companies, Connecticut theaters began losing out on that potential revenue stream, McDonald said. "It became harder for us to attract those kinds of opportunities, because we didn't have as many incentives to be able to offer the shows that wanted to come here," McDonald said. "This was an opportunity for us, and if we could get this legislation passed, it would have a really big impact on our community, but also on the financial picture for the Shubert." Calculating costs McDonald said he expects theater production companies to quickly meet the $2.5 million tax credit threshold. He actually lobbied for a higher $10 million cap, but lawmakers were unwilling to go that far. The Shubert in March hosted tech productions of the musical "Six on Broadway." It was a 20-day rehearsal, and in the first week alone, 77 Shubert stagehands accrued 2,286 hours of work that yielded roughly $140,000 in wages paid by the show producer, McDonald said. Under the new law, production companies would apply to the state, through the Department of Economic and Community Development, for the tax credit to offset some of those costs. Connecticut theaters were always attractive to production compa- nies because of their proximity to New York City, but this credit boosts their appeal, said Michael E. Moran Jr., president and CEO of The Palace in Stamford. "If producers know that they can Michael E. Moran

• Cover