August 1, 2025
Ms. Chu (for herself and Ms. Malliotakis) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to expand the ability to expense certain qualified productions.
Section 1. Short title
This Act may be cited as the Creative Relief and Expensing for Artistic Entertainment Act
or the CREATE Act
.
Sec. 2. Adjustment of provisions applicable to qualified productions
(a) Dollar limitations
Section 181(a)(2) of the Internal Revenue Code of 1986, as amended by section 70434 of Public Law 119–21, is amended—
(1)
in subparagraph (A), by striking $15,000,000
and inserting $30,000,000
,
(2)
in subparagraph (B), by striking by substituting
and inserting $20,000,000
for $15,000,000
.by substituting
, and$40,000,000
for $30,000,000
.
(3)
by adding at the end the following new subparagraph:
(D) Inflation adjustment
(i) In general
In the case of any taxable year beginning in a calendar year after 2026, each dollar amount in subparagraphs (A), (B), and (C) 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.
(b) Extension of termination
Subsection (h) of section 181 of such Code, as redesignated and amended by section 70434 of Public Law 119–21, is amended by striking December 31, 2025
and inserting December 31, 2030
.
(c) Effective date
The amendments made by this section shall apply to productions commencing in taxable years ending after December 31, 2025.