“To amend the Internal Revenue Code of 1986 to expand the ability to expense certain qualified productions.”
No CRS summary available for this bill.
This section revises the dollar limitations and termination date for the expensing election available under Section 181 of the Internal Revenue Code for the costs of qualified film, television, and live theatrical productions (i.e., immediate deduction of production costs up to specified limits, rather than capitalization and depreciation). Specifically, it (1) increases the general dollar limitation to $30 million (from $15 million), (2) increases the higher limitation for productions principally shot in low-income communities or outside the United States to $40 million (from $20 million), (3) adds an inflation adjustment to those amounts for taxable years beginning after 2026 (using calendar year 2025 as the base year and rounding to the nearest $1,000), and (4) extends the provision through December 31, 2030 (from December 31, 2025). The changes apply to productions commencing in taxable years ending after December 31, 2025.