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
H.R. 4787 proposes amendments to Section 181 of the Internal Revenue Code of 1986, which concerns the deduction for film and television productions. The bill aims to extend the deduction's availability through December 31, 2030, and increase the dollar limitation on the aggregate cost of qualified productions. It also introduces inflation adjustments to these limitations, beginning in 2026.
Expected Effects
The bill's passage would incentivize continued investment in film and television production within the United States. This could lead to more projects being filmed domestically and potentially create more jobs in the entertainment industry. The inflation adjustments aim to maintain the real value of the deduction over time.
Potential Benefits
- Encourages film and television production in the US.
- Potentially creates jobs in the entertainment industry.
- Provides increased financial incentives for productions in certain areas.
- Adjusts for inflation, maintaining the deduction's value.
- Could lead to increased tourism and revenue for local economies.
Potential Disadvantages
- May increase the national debt if not offset by other revenue increases.
- Could disproportionately benefit large production companies.
- The inflation adjustment may add complexity to tax calculations.
- Potential for misuse or abuse of the tax deduction.
- May not significantly impact smaller, independent productions.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the Constitution. The bill aims to promote the general welfare by incentivizing economic activity in the film and television industry. There are no apparent conflicts with other constitutional provisions.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).