Motion Picture, Television, and Entertainment Revitalization Act

The credit would equal 20% of eligible U.S. compensation for qualifying commercial feature films, television pilots, and television seasons that cost more than $1 million, are completed in the tax year, and meet the U.S. location test. Most productions must have at least 75% of their principal photography days in the United States; the bill sets separate location tests for animation.

Certain productions that do not meet the U.S. principal-photography location test could still qualify for a credit on eligible U.S. visual-effects or traditional post-production services. Those projects generally must have at least 75% of the relevant visual-effects or post-production costs in the United States.

The credit could increase in 5-percentage-point steps for qualifying rural opportunity-zone or disaster-area production, independent producers, multi-state producers, and producers that increase domestic production. The general credit could not exceed 30%; separate rules apply to visual-effects and post-production projects.

A taxpayer could elect to transfer the production credit under the tax code’s credit-transfer rules. The bill would also treat it as a general business credit.