Extension of bonus depreciation for qualified film and television productions and minimum in State spend requirement

(a)

In general

Section 168(k) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(11)

Special rules for qualified film or television production

(A)

In general

For purposes of this subsection, the term qualified film or television production means a film or televison production— (i)which is intended for commercial, educational, or instructional use, (ii)that is a qualified film or television production as defined in section 181(d), (iii)for which a deduction would have been allowable under section 181 without regard to subsections (a)(2) and (g) of such section or this subsection, (iv)pays or incurs for expenses relating to such production not less than— (I)in the case of an educational or instructional video or a digital interactive media production, $100,000 in 1 state, or (II)in the case of any other film or television production, $500,000 in 1 state. (v)meets the requirements of subparagraph (B) and clauses (i) and (ii) of subparagraph (C), and (vi)which is not described in subparagraph (D). (B)

Extension of application

In the case of a qualified film or television production, paragraph (2)(A)(iii) shall be applied by substituting January 1, 2035 for January 1, 2027.

(b)

Increased applicable percentage

Section 168(k)(6) of such Code is amended by adding at the end the following new subparagraph:

(D)

Qualified film or television production

In the case of a qualified film or television production, the term applicable percentage means 100 percent in the case of property placed in service after December 31, 2025, and before January 1, 2036.

(c)

Conforming amendment

Section 168(k)(2)(A)(IV) of such Code is amended by striking (as defined and all that follows through subsection. (d)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2025.