H.R. 4787: To amend the Internal Revenue Code of 1986 to extend the deduction for film and television productions and to make certain changes with respect to the calculation of such deduction.

This bill proposes to amend the Internal Revenue Code of 1986 regarding the tax deductions for film and television productions. The key changes it specifies include:

Extension of the Deduction Period

The bill extends the tax deduction for eligible film and television productions from the previously set expiration date of December 31, 2025, to December 31, 2030. This means that filmmakers can continue to benefit from this tax write-off for an additional five years.

Increase in Dollar Limitation

The legislation proposes to increase the maximum allowable cost for qualified film or television productions. Specifically:

• It raises the general dollar limitation on the aggregate cost of any qualified production from $15 million to $30 million.

Higher Limitation for Certain Areas

For production activities taking place in specified areas, the bill increases the maximum deduction from:

• $30 million to $40 million for productions qualifying under certain conditions.

Adjustment for Inflation

The bill includes a provision for future adjustments of the deduction limits based on inflation. After 2026, the dollar amounts for deductions will be revised annually according to cost-of-living changes. Specifically, the increases will be calculated based on the adjustments determined for the calendar year in which the taxable year begins, using 2025 as the reference year.

Effective Date

The amendments outlined in this bill will take effect for productions that commence after the bill is signed into law.

Relevant Companies

None found.