H.R. 3844 — Texas is the New Hollywood Act of 2025

This section establishes special rules under section 168(k) of the Internal Revenue Code extending 100% bonus depreciation to qualified film or television productions placed in service after December 31, 2025, and before January 1, 2036, by substituting "January 1, 2035" for "January 1, 2027" in paragraph (2)(A)(iii) and setting the applicable percentage at 100% for such property. (As background, bonus depreciation allows taxpayers to immediately expense the cost of qualified depreciable assets rather than depreciating them over time.) A qualified production must (1) meet the definition in section 181 (i.e., expensing for film, TV, and theatrical productions), (2) incur at least $500,000 ($100,000 for educational/instructional videos or digital interactive media) in expenses in one state, and (3) satisfy other criteria (e.g., intended for commercial, educational, or instructional use; not excluded types). (Thus, the minimum in-state spend incentivizes production spending within individual states.)