New tax break could be worth millions on the Strip
WASHINGTON — The Senate began debate Tuesday on a bill to renew more than 50 tax breaks for individuals and businesses, including a handful with particular resonance in Nevada and a new one that could be worth millions on the Strip.
The legislation would broaden a $15 million deduction for movies and television productions to include theater shows as well. The tax break sought by Sen. Chuck Schumer, D-N.Y., on behalf of Broadway also would benefit Cirque du Soleil and other shows in Las Vegas and Reno, according to Sen. Harry Reid, D-Nev.
“This is brand new,” Reid said in a telephone call with reporters. “It allows casinos, hotels and resorts in Nevada to invest in high-quality productions which make our state an attractive destination.”
The tax break would allow producers to deduct 100 percent of their first-year investments, up to $15 million, for shows that opened after Dec. 31, 2013. “Sexually explicit” shows would not qualify, although it was not clear how that call would be made on some of the more risqué offerings in Las Vegas.
The provision also could benefit productions at The Smith Center for the Performing Arts and other venues, Reid’s office said.
The deduction was among a handful in the $85 billion bill expected to have an outsized impact in the Silver State, if Congress is able to follow through and get it passed.
The tax breaks, many of which expired at the end of last year and would be extended through 2015, enjoy broad support. But some Republicans want to offer amendments, and it was not clear whether Reid, the Senate majority leader, will allow them.
“We’re going to see what happens on this bill,” Reid said, adding he wanted to keep debate focused on the tax breaks. “If there is a reasonable request to have some amendments, I’ll be happy to sit down and talk with them.”
Sen. Dean Heller, R-Nev., said Tuesday he had considered trying to attach an amendment to extend unemployment benefits for long-term jobless workers but decided to keep looking for another bill.
Republicans “haven’t had amendments on a tax bill in three years here in the Senate, and I don’t anticipate we will be allowed amendments this time,” he said.
Among its provisions, the so-called “tax extender” bill would:
■ Extend the deduction for state and local sales tax, a benefit for residents of Nevada and eight other states where there is either no state income tax to deduct or a limited income tax.
■ Renew a “mortgage forgiveness” tax break for homeowners who complete a short sale on their properties or are able to obtain adjustments on their troubled mortgages.
■ Nod to the long-term unemployed by offering a $2,400 tax credit for businesses to hire workers who have been out of a job for more than 26 weeks.
■ Extend tax credits for companies that produce electricity from renewable sources, a key incentive for developers of solar, wind and geothermal energy that are growing industries in Nevada.
“There are provisions in this bill that will really help Nevada significantly,” Reid said. “It’s a good bill.”
In the House, Republican leaders are taking a different approach to the tax package, working to make some of the tax cuts permanent, while allowing others to go away. Last week, the House voted to make permanent the tax credit for investing in research and development.
The two approaches are setting the stage for a showdown that might not get settled until after elections in November.
The Associated Press contributed to this report. Contact Stephens Washington Bureau chief Steve Tetreault at 202-783-1760 or STetreault@stephensmedia.com. Follow @STetreaultDC on Twitter.
