H.R. 10582

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.