SCREEN Act

Key Points

• The bill creates a new tax credit to help movie theater owners pay for building improvements and new equipment. Owners could get back 30 percent of what they spend on upgrades like new seats, projectors, or sound systems.
• The total amount of tax credits a theater can receive depends on how many screens it has. Small theaters with fewer than four screens are capped at $250,000, while large cinemas with 10 or more screens can receive up to $500,000.
• To qualify, a theater must have been in business for at least five years. The equipment or property purchased must be new to the theater and expected to stay in use for at least five more years.
• This credit applies to traditional cinemas, drive-in theaters, and other public screening rooms that show movies rated by the Motion Picture Association.
• Theater owners who do not owe enough in taxes to use the full credit can sell it to other businesses. This helps smaller theaters get immediate cash for their projects.
• The program is designed to be temporary and will end on December 31, 2030. It aims to help local theaters stay competitive as more people watch movies at home.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.