[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3330 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 3330

To amend the Internal Revenue Code of 1986 to modify the deduction for 
domestic production activities for film and television productions, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 24 (legislative day, July 23), 2008

  Mrs. Feinstein (for herself and Mr. Smith) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to modify the deduction for 
domestic production activities for film and television productions, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Domestic Film Production Equity Act 
of 2008''.

SEC. 2. PROVISIONS RELATED TO FILM AND TELEVISION PRODUCTIONS.

    (a) Modifications to Deduction for Domestic Activities.--
            (1) Determination of w-2 wages.--Paragraph (2) of section 
        199(b) of the Internal Revenue Code of 1986 (relating to W-2 
        wages) is amended by adding at the end the following new 
        subparagraph:
                    ``(D) Special rule for qualified film.--In the case 
                of a qualified film, such term shall include 
                compensation for services performed in the United 
                States by actors, production personnel, directors, and 
                producers.''.
            (2) Definition of qualified film.--Paragraph (6) of section 
        199(c) of such Code (relating to qualified film) is amended by 
        adding at the end the following: ``A qualified film shall 
        include any copyrights, trademarks, or other intangibles with 
        respect to such film. The methods and means of distributing a 
        qualified film shall not affect the availability of the 
        deduction under this section.''.
            (3) Partnerships.--Subparagraph (A) of section 199(d)(1) of 
        such Code (relating to partnerships and S corporations) is 
        amended by striking ``and'' at the end of clause (ii), by 
        striking the period at the end of clause (iii) and inserting 
        ``, and'', and by adding at the end the following new clause:
                            ``(iv) in the case of each partner of a 
                        partnership, or shareholder of an S 
                        corporation, who owns (directly or indirectly) 
                        at least 20 percent of the capital interests in 
                        such partnership or of the stock of such S 
                        corporation--
                                    ``(I) such partner or shareholder 
                                shall be treated as having engaged 
                                directly in any film produced by such 
                                partnership or S corporation, and
                                    ``(II) such partnership or S 
                                corporation shall be treated as having 
                                engaged directly in any film produced 
                                by such partner or shareholder.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.
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