TORONTO — Ontario should extend film tax credits to live shows such as dance, theatre and the opera to create more jobs and boost the live performance industry, just as New Orleans did in the wake of hurricane Katrina, artists and New Democrats said Friday.

"It's my belief that tax credits for live performance can help build live performance and put people to work as producers, directors, actors, stagehands -- the full range of people who are involved," said New Democrat Peter Tabuns.

The bill is modelled on one in Louisiana, which wanted to help rebuild New Orleans' live performance industry in the wake of hurricane Katrina.

Three years after the hurricane, New Orleans' theatre community is thriving, with new companies sprouting up and actors and directors moving into the city.

"If new ideas can be used to help rebuild New Orleans after a hurricane, new ideas can be used to help diversify our economy in Ontario after the recession," Tabuns said.

The private member's bill, which he will introduce Monday, would mostly deal with labour costs, since live theatre, dance and opera is very labour-intensive.

The Louisiana bill offers 10 per cent coverage for a project up to $100,000, 20 per cent for those between $300,000 and $1 million and 25 per cent for those over $1 million.

Arden Ryshpan of Canadian Actors' Equity Association says the tax credit would also help take shows on the road and attract tourism to the province when the performances are at home.

"One of the great challenges is trying to tour our work, which extends its life and its impact," she said.

"The Louisiana legislation has an interesting additional boost which encourages touring, and we would hope that this legislation would look seriously at that component."

The province said in June it would offer tax credits for any cost film productions incurred in Ontario, including equipment, studio rentals and labour costs.

The Canadian dollar's rise has made it more expensive to shoot movies or TV shows in Ontario, and the credit has been a huge help to film producers looking to attract projects to the province.

Jim Biros of the Toronto Musicians' Association hopes a similar credit will boost theatre companies as well.

"Producers are talking all the time about how difficult it is economically just to set up a production here, and we are in competition with the entire English-speaking world," he said.

"We know it works from the models in the film industry."

A spokeswoman for Finance Minister Dwight Duncan said the province welcomed the input from the arts community and "will review the proposal."

Private member's bills rarely become law, but Tabuns said he hopes the arts community will lobby the government to incorporate his proposal into next year's budget.

If passed, Ontario would be the first province in Canada to offer such a rebate.

The arts are a $19-billion industry in Ontario and employ 430,000 people directly and indirectly. About 6,000 people in Ontario work in live performance.