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Legislative bills

Bipartisan Bill Introduced to Support U.S. Film, TV, and Sound Recording Production

Strategic Insights

— 2 min read

Reps. Judy Chu (CA-28) and Nicole Malliotakis (NY-11), along with Senators Raphael Warnock (GA) and Marsha Blackburn (TN), have introduced the bipartisan, bicameral bill to extend and strengthen Section 181, the only federal tax incentive specifically designed for film, television, and sound production in the United States. The Creative Relief and Expensing for Artistic Entertainment, or "CREATE" Act aims to preserve high-paying creative jobs and keep film and television production in the U.S.

Key Takeaways:

  • The Section 181 tax deduction is set to expire at the end of this year, and without congressional action, the U.S. will move backwards by losing the only existing federal incentive that helps keep film and television productions here in America.
  • The "CREATE" Act would extend and strengthen Section 181, allowing for a 100% deduction of production costs in the same year those costs are paid or incurred.
  • The bill would support good-paying domestic creative jobs and keep film and television production in the U.S., which is facing increasing competition from foreign countries with more generous incentives.
  • The Greater Los Angeles area saw a nearly 20% decline in film and TV production in 2023, according to FilmLA.
  • The State of California recently more than doubled its Film and Television Tax Credit Program, but the federal government lags behind in supporting domestic film and television production.
  • The bill has earned the support of industry leaders such as Jon Voight, the Independent Film & Television Alliance (IFTA), the Motion Picture Association (MPA), the Directors Guild of America (DGA), and the Recording Academy, among others.

Statistics:

  • The U.S. film and television industry supports over 2.32 million jobs nationwide (Motion Picture Association).
  • Foreign countries such as Canada, the United Kingdom, and Australia are increasingly offering generous tax incentives to lure American film and television productions (Directors Guild of America).
  • The Section 181 deduction is set to expire at the end of this year, ending an important incentive for local film and television production in the U.S. (CreativeFuture).
  • The bill would benefit not only film and television but also music and theatrical productions, supporting local economies across the country (CreativeFuture).
  • Section 181 has been in place since 2004, and its expiration would put tens of thousands of creative community jobs at risk, as well as drag down one of America's strongest export sectors (Recording Industry Association of America).

Sources:

  • Rep. Judy Chu Introduces Bipartisan, Bicameral Bill to Support U.S. Film, TV, and Sound Recording Production (United States House of Representatives -- Representative Judy Chu (CA2-27))
  • Creative Relief and Expensing for Artistic Entertainment, or "CREATE" Act (Bill text)
  • FilmLA (Greater Los Angeles area saw a nearly 20% decline in film and TV production in 2023)
  • Independent Film & Television Alliance (IFTA)
  • Motion Picture Association (MPA)
  • Directors Guild of America (DGA)
  • Recording Academy
  • CreativeFuture
  • Recording Industry Association of America (RIAA)

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