Film and television production deduction amendments

(a) Extension Section 181(g) of the Internal Revenue Code of 1986 is amended by striking December 31, 2025 and inserting December 31, 2030. (b) Increase in dollar limitation Section 181(a)(2)(A) of such Code is amended to read as follows: (A) In general Paragraph (1) shall not apply to so much of the aggregate cost of any qualified film or television production or any qualified live theatrical production as exceeds $30,000,000.. (c) Higher dollar limitation for productions in certain areas Section 181(a)(2)(B) of such Code is amended in the matter following clause (ii) by striking substituting $20,000,000 for $15,000,000 and inserting substituting $40,000,000 for $30,000,000. (d) Inflation adjustment Section 181(a)(2) of such Code is amended by adding at the end the following new subparagraph: (C) Inflation adjustment (i) In general In the case of any taxable year beginning in a calendar year after 2026, each dollar amount in subparagraph (A) or (B) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) 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. (ii) Rounding.—Any increase determined under clause (i) shall be rounded to the nearest multiple of $1,000.. (e) Effective date The amendments made by this section shall apply to productions commencing after the date of the enactment of this Act.