H.R. 4840: Creative Relief and Expensing for Artistic Entertainment Act

This bill, known as the Creative Relief and Expensing for Artistic Entertainment Act (or the CREATE Act), modifies certain provisions in the Internal Revenue Code regarding the expensing of qualified productions in the artistic and entertainment sectors.

Key Provisions

Increased Dollar Limitations

The bill increases the dollar limits for expensing qualified productions:

• The maximum expense limit for a qualifying production, initially set at $15 million, is raised to $30 million.
• The limit for productions that meet certain conditions is increased from $30 million to $40 million.

Inflation Adjustments

The bill includes a provision for inflation adjustments that will affect the dollar amounts specified:

• Starting in the taxable year after 2026, the dollar limits will be adjusted for cost-of-living changes.
• These adjustments will be rounded to the nearest multiple of $1,000.

Extended Termination Date

The expiration date for the provisions regarding these expenses has been extended from December 31, 2025, to December 31, 2030.

Effective Date

The changes proposed in the bill will apply to productions that begin in taxable years that end after December 31, 2025.

Relevant Companies