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Extends and expands the special tax deduction for qualifying film, television, and live theatrical productions so producers can immediately expense production costs through December 31, 2030. It raises the per-production cost threshold to $30,000,000, adds an inflation adjustment for those dollar limits beginning after 2026, and applies to productions that start after the law is enacted.
The bill improves cash flow and planning certainty for film and TV production by expanding and indexing immediate expensing, but does so at the cost of reduced federal revenue and benefits that skew toward larger, better-funded productions, creating a new permanent tax expenditure.
Film and TV producers (including small production companies and investors) can immediately deduct more production costs through 2030, improving cash flow and lowering near-term tax bills for productions.
Larger productions and their backers benefit because the per-production deduction threshold is raised to $30 million and indexed for inflation, preserving the deduction's real value over time.
Productions commencing after enactment gain regulatory certainty because the changes are effective on enactment, enabling clearer planning and investment decisions.
All taxpayers face lower federal revenue because extending and expanding the immediate expensing deduction reduces tax receipts, which could increase deficits or crowd out other government spending.
Independent and very small creators gain less because the larger deduction limits and benefits are concentrated among better-funded productions and investors, increasing unevenness in who benefits.
All taxpayers and budget planners face a longer-term complication because indexing the threshold to inflation creates a permanent tax expenditure that makes long-run budget projections more uncertain.
Introduced July 29, 2025 by Judy Chu · Last progress July 29, 2025