July 29, 2025
Ms. Chu introduced the following bill; which was referred to the Committee on Ways and Means
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.
Section 1. Film and television production deduction amendments
(a) Extension
Section 181(g) of the Internal Revenue Code of 1986 is amended by striking December 31, 2025
and inserting December 31, 2030
.
(b) Increase in dollar limitation
Section 181(a)(2)(A) of such Code is amended to read as follows:
(A) In general
Paragraph (1) shall not apply to so much of the aggregate cost of any qualified film or television production or any qualified live theatrical production as exceeds $30,000,000.
(c) Higher dollar limitation for productions in certain areas
Section 181(a)(2)(B) of such Code is amended in the matter following clause (ii) by striking substituting
and inserting $20,000,000
for $15,000,000
substituting
.$40,000,000
for $30,000,000
(d) Inflation adjustment
Section 181(a)(2) of such Code is amended by adding at the end the following new subparagraph:
(C) Inflation adjustment
(i) In general
In the case of any taxable year beginning in a calendar year after 2026, each dollar amount in subparagraph (A) or (B) shall be increased by an amount equal to—
(I)
such dollar amount, multiplied by
(II)
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting
calendar year 2025forcalendar year 2016in subparagraph (A)(ii) thereof.(ii)
Rounding.—Any increase determined under clause (i) shall be rounded to the nearest multiple of $1,000.
(e) Effective date
The amendments made by this section shall apply to productions commencing after the date of the enactment of this Act.