Sponsors
Last progress June 9, 2025 (8 months ago)
Introduced on June 9, 2025 by Tony Gonzales
Referred to the House Committee on Ways and Means.
Creates a new, temporary tax incentive for qualifying film and television productions that meet minimum in‑state spending requirements. Eligible productions may claim a 100% bonus depreciation rule for qualifying property placed in service during the stated ten-year window, and the change amends existing bonus‑depreciation rules in the Internal Revenue Code. The change defines eligibility (including references to existing section 181 rules), makes conforming amendments to section 168(k), and sets an effective period for the bonus depreciation boost and related special rules. The intent is to encourage domestic production spending and capital investment by increasing immediate tax write-offs for qualifying production property.
Adds a new paragraph (11) to section 168(k) of the Internal Revenue Code defining the term "qualified film or television production." The definition lists the specific eligibility criteria (see items below).
Eligibility criterion: production must be intended for commercial, educational, or instructional use.
Eligibility criterion: production must also be a "qualified film or television production" as defined in section 181(d).
Eligibility criterion: the production must be one for which a deduction would have been allowable under section 181 without regard to subsections (a)(2) and (g) of section 181 or subsection (k) of section 168.
Minimum in‑State spend requirement: the production must pay or incur at least $100,000 in one State for educational or instructional videos or digital interactive media productions, or at least $500,000 in one State for any other film or television production.
Who is affected and how:
Film and television production companies: Direct beneficiaries if they meet the in‑state spend and other eligibility rules. They can claim immediate, full bonus depreciation on qualifying production property placed in service during the covered window, lowering near‑term taxable income and improving cash flow.
Production crew, casts, and local businesses: Local hiring, vendor payments, and service purchases may increase in jurisdictions where productions meet the in‑state spending thresholds, creating short‑term job and business opportunities.
Equipment lessors, manufacturers, and suppliers: Accelerated investment demand is likely as producers purchase or lease qualifying equipment to take advantage of the temporary 100% bonus depreciation, benefiting vendors and lessors.
State and local governments: May gain economic activity from increased in‑state production spending; states that already offer or expand their own incentives could see amplified benefits.
Federal budget/tax receipts: The federal government likely collects less revenue in the near term because deductions are accelerated; long‑term revenue effects depend on how accelerated deductions compare with the tax base over time.
Taxpayers and tax administrators: Tax preparers and the IRS will face additional administrative work to apply the new eligibility rules, verify in‑state spending, and implement conforming changes to reporting and forms.
Overall effect: The change steers production activity toward projects that can meet the defined in‑state spend rules within the eligibility window and shifts tax benefits forward in time, creating near‑term incentives for investment and location decisions but also increasing short‑term federal revenue cost and compliance complexity.