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Congress·In Committee·7 months ago

Congress Proposes Larger Tax Write-Off Limits for Film and TV Productions, Extending Break to 2030

Also known as: CREATE Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Key Points

  • Lets more film, TV, and similar productions write off more of their costs right away on their taxes, instead of spreading it out over time.
  • Raises the maximum production budget that can qualify for this faster write-off, doubling the main limit from $15 million to $30 million.
  • Raises a higher cap for certain productions from $20 million to $40 million.
  • Extends how long this tax break is available, moving the end date from December 31, 2025, to December 31, 2030.
  • After 2026, the dollar caps would increase over time with inflation, in $1,000 steps.
TaxesEconomySmall Business

Milestones

2 milestones2 actions
Aug 1, 2025House

Referred to the House Committee on Ways and Means.

Aug 1, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Starting with many productions commencing in 2026 tax years

Higher expensing limits begin for productions that start in tax years ending after Dec. 31, 2025.

New qualifying projects starting in 2026 can generally deduct more production costs right away, which can improve cash flow during filming or rehearsals.

2030-12-31

The expanded expensing rules remain available through Dec. 31, 2030.

Producers and financiers can plan multi-year projects knowing the faster write-off is scheduled to last longer instead of ending in 2025.

Tax years beginning in 2027 and later

Automatic inflation adjustments raise the dollar caps for tax years beginning after 2026.

Over time, more productions may qualify for the full up-front deduction because the caps can rise with inflation instead of staying flat.

Related News

7 articles
Screen Global Production·7 months ago

Bipartisan bill calls for US Section 181 film, TV production incentive expansion

Covers the CREATE Act proposal to extend and expand IRC Section 181, including higher $30M/$40M caps and extension through 2030, plus inflation adjustment.

C=
Marsha Blackburn (official Senate site)·7 months ago

Blackburn, Warnock Introduce Legislation to Provide Tax Relief for Entertainers...

Announcement of the CREATE Act to extend IRC Section 181 for five years, allowing qualifying productions to expense costs and keeping incentives available beyond 2025.

R+
The Tennessee Star·7 months ago

Blackburn's New Bipartisan Bill Seeks to Help Entertainers Save Money on Taxes

Reports on the CREATE Act extending Section 181 to 2030 and adding cost-of-living adjustments, framing it as tax relief for entertainment and recording expenses.

R+

Source Information

Document Type

Congressional Bill

Official Title

CREATE Act

Bill NumberHR 4840
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(10)
D: 6R: 4

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.