Establishment of qualified movie theater revitalization credit

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

45BB.

Qualified movie theater revitalization credit

(a)

In general

For purposes of section 38, the qualified movie theater revitalization credit determined under this section for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each qualified movie theater owned or operated by the taxpayer. (b)

Credit amount

(1)

In general

Subject to paragraph (2), the amount determined under this subsection with respect to any qualified movie theater for any taxable year shall be equal to 30 percent of the qualified movie theater revitalization expenditures of the taxpayer for such taxable year with respect to such qualified movie theater. (2)

Limitation

(A)

In general

The amount determined under this subsection with respect to any qualified movie theater for any taxable year shall not exceed the excess (if any) of— (i) the applicable amount, over (ii)the aggregate amount of credits determined under this subsection with respect to such qualified movie theater for all prior taxable years. (B)

Applicable amount

For purposes of subparagraph (A), with respect to the number of screens or similar video displays on which qualified motion pictures are regularly featured, the applicable amount is— (i)$250,000, in the case of a qualified movie theater with fewer than 4 such screens or similar video displays, (ii)$375,000, in the case of a qualified movie theater with at least 4, but fewer than 10 such screens or similar video displays, and (iii)$500,000, in the case of a qualified movie theater with at least 10 such screens or similar video displays. (c)

Qualified movie theater revitalization expenditures

For purposes of this section— (1)

In general

The term qualified movie theater revitalization expenditures means, with respect to any taxpayer for any taxable year, any amounts paid or incurred by such taxpayer for tangible property (of a character subject to the allowance for depreciation)— (A)the original use of which commences with the taxpayer during such taxable year, (B)which is used as part of any qualified movie theater which has been in service for the 5-year period preceding the date on which such property is initially so used, and (C)which can be reasonably expected to remain in such use for the 5-year period succeeding such date. (2)

Qualified movie theater

The term qualified movie theater means a movie theater, screening room, drive-in theater, or other venue located within the United States that is being used primarily for the exhibition of qualified motion pictures, if such exhibition is open to the public or is made to an assembled group of viewers outside of a normal circle of a family and its social acquaintances. (3)

Qualified motion picture

The term qualified motion picture means a copyrighted motion picture (as defined in section 101 of title 17, United States Code) which is rated by the Motion Picture Association. (d)

Basis adjustment

For purposes of this subtitle, if a credit is allowed under this section in connection with any expenditure for any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed. (e)

Termination

No credit shall be allowed under this section with respect to any amounts paid or incurred after December 31, 2030.

(b)

Credit allowed as part of general business credit

Section 38(b) of such Code is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting , plus, and by adding at the end the following new paragraph:

(42)the qualified movie theater revitalization credit determined under section 45BB(a).

(c)

Transferability of credit

Section 6418(f)(1)(A) of such Code is amended by adding at the end the following new clause:

(xiii)The qualified movie theater revitalization credit determined under section 45BB.

(d)

Clerical amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding after the item relating to section 45AA the following new item:

Sec. 45BB. Qualified movie theater revitalization credit.

(e)

Effective date

The amendments made by this section shall apply with respect to amounts paid or incurred after the date of the enactment of this Act.