HR 4840
CREATE Act
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Bill overview
The CREATE Act modifies tax laws to allow filmmakers and other creators to more easily deduct expenses related to the production of qualified films and other artistic entertainment. Specifically, it increases the dollar amount that can be deducted for qualified production expenses, and extends the current tax incentive period. These changes aim to encourage investment and production in the entertainment industry. The bill adjusts existing tax provisions to provide greater flexibility for these deductions.
Key provisions
- Increases the deduction limit for qualified production expenses from $15 million to $30 million.
- Increases the deduction limit for qualified production expenses from $20 million to $40 million.
- Allows for an inflation adjustment to the deduction limits, starting in 2027.
- Extends the period for which these enhanced deductions are available until December 31, 2030.
Who is affected
- Filmmakers
- Producers
- Studios
- The Entertainment Industry
- Taxpayers
Notable changes
- Increases the deduction limits for qualified production expenses.
- Extends the existing tax incentive period.
- Includes an inflation adjustment to the deduction limits.
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119th CONGRESS — 1st Session
H. R. 4840
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Internal Revenue Code of 1986 to expand the ability to expense certain qualified productions.
This Act may be cited as the Creative Relief and Expensing for Artistic Entertainment Act CREATE Act
or the
.
Section 181(a)(2) of the Internal Revenue Code of 1986, as amended by section 70434 of Public Law 119–21, is amended—
$15,000,000and inserting
$30,000,000,
by substitutingand inserting$20,000,000for$15,000,000.
by substituting, and$40,000,000for$30,000,000.
In the case of any taxable year beginning in a calendar year after 2026, each dollar amount in subparagraphs (A), (B), and (C) shall be increased by an amount equal to—
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2025
for calendar year 2016
in subparagraph (A)(ii) thereof.
Subsection (h) of section 181 of such Code, as redesignated and amended by section 70434 of Public Law 119–21, is amended by striking December 31, 2025
and inserting December 31, 2030
.