H.R. 9938: Supporting Cinema Renewal, Enhancement, and Enriching Neighborhoods Act

This bill would create a new federal tax credit for money spent on renovating and upgrading movie theaters in the United States.

What the tax credit would do

The bill adds a new credit to the Internal Revenue Code for qualified movie theater revitalization expenditures. In practical terms, if a theater owner or operator spends money on certain new physical property used to improve a qualifying movie theater, they could claim a tax credit worth 30% of those costs.

Which theaters would qualify

The credit would apply to theaters, screening rooms, drive-ins, or similar venues in the U.S. that are mainly used to show movies to the public or to an assembled audience. The movies shown must be “qualified motion pictures,” meaning copyrighted films rated by the Motion Picture Association.

To qualify, the theater must also have been in service for at least the previous 5 years before the upgraded property is first used.

What kinds of expenses would count

Only certain expenditures would count: money spent on tangible property that can be depreciated for tax purposes and that is newly placed into service by the taxpayer. The property must be expected to remain in use at the theater for at least 5 more years.

This means the credit is aimed at long-term physical improvements, rather than routine repairs or short-lived items.

Limits on the credit

The total credit for each theater would be capped based on the number of screens or similar displays:

• $250,000 for theaters with fewer than 4 screens
• $375,000 for theaters with at least 4 but fewer than 10 screens
• $500,000 for theaters with 10 or more screens

These caps apply over time, meaning prior years’ credits for the same theater reduce the remaining amount available.

How the credit could be used

The credit would be part of the general business tax credit system, so eligible taxpayers could use it like other business credits. The bill also says the credit would be transferable, meaning some taxpayers could sell or transfer the credit under existing rules that allow certain tax credits to be transferred.

When it would apply

The credit would apply to amounts spent or incurred after the bill is enacted. The credit would end for expenses paid or incurred after December 31, 2030.

Relevant Companies

None found