Motion Picture, Television, and Entertainment Revitalization Act

This bill establishes a federal business tax credit for a percentage of the compensation paid for services performed in the United States related to a qualified film or television production. (Conditions and exceptions apply.)

The bill defines a qualified film or television production as any production that is

a feature film, television pilot, or television season; produced in the ordinary course of business for commercial purposes; capitalized; completed during the tax year with more than $1 million in total costs; and filmed in the United States for 75% of the photography days. Under the bill, various types of programming are not a qualified film or television production, including news programs, live sporting events, and programming intended primarily for social media platforms.

The amount of the tax credit is 20% (base tax credit percentage) of the compensation paid for services performed in the United States related to a qualified film or television production. The base tax credit percentage increases by increments of 5% (up to a maximum tax credit percentage of 30%) if

at least 30% of the production is filmed in a federally declared disaster area or rural qualified opportunity zone, the production is independently produced, or the production meets certain multi-state or increased domestic production requirements. Special rules apply to animations, visual effects productions, and post-production activities.

Finally, the tax credit may be transferred to an unrelated third party in exchange for cash.