Theatrical Production Organization Act of 1979

[AI summary unavailable — showing source text] Theatrical Production Organization Act of 1979 - Amends the Internal Revenue Code to allow an investment tax credit for investments by theatrical production organizations in theatrical productions. Requires, in determining a qualified investment, that specified production costs be used in lieu of the basis of property. Applies capital gain treatment to the sale of certain theatrical production rights. Provides for the nonrecognition of any gain or income derived from theatrical productions if the taxpayer reinvests such realized gain or income in another theatrical production within a specified period of time. Reduces the basis of the theatrical production acquired through such reinvestment by the amount of the gain or income previously not recognized. Treats as the sale or exchange of a capital asset held for more than one year the sale or exchange of any theatrical production rights by an author in connection with the first theatrical production of a play, and also the initial subsequent sale of any part of the remaining ancillary rights.…