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.

Summary

Extends and strengthens the tax rule that lets film, television, and live theatrical producers immediately deduct production costs. It pushes the expiration date to December 31, 2030, raises the aggregate cost cap for immediate expensing from $15 million to $30 million, revises the higher-dollar exception for certain designated areas, and begins indexing the dollar limits for inflation after 2026. The changes apply to productions that start after the law is enacted.

• Extends the temporary §181 election to allow immediate expensing of qualified production costs through December 31, 2030.
• Raises the aggregate-cost cap for immediate expensing from $15,000,000 to $30,000,000.
• Revises the higher-dollar exception language for productions in certain designated areas.
• Indexes the dollar caps for inflation for taxable years beginning after 2026, rounding to the nearest $1,000.
• Changes apply only to productions that commence after the date of enactment.
• Amendment targets film, TV, and live theatrical productions and affects how production costs are deducted for tax purposes.
• Larger near-term tax deductions are likely, which may reduce federal receipts in the short run.
• Compliance and tax reporting rules will need updating to reflect the new caps and indexing.