H.R. 4787House119th Congress (2025-2027)In Committee

To amend the Internal Revenue Code of 1986 to extend the deduction for film and television productions and to make certain changes with respect to the calculation of such deduction.

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Updated November 23, 2025 at 11:08 PM UTC

The bill updates the Internal Revenue Code’s film and television production deduction. It extends the deduction’s availability through 2030, raises the maximum amount of production costs that can be deducted, provides a higher limit for projects in certain designated areas, and introduces an inflation‑adjustment mechanism for future years. The changes affect producers of qualified film, TV, and live theatrical projects by allowing larger deductions and keeping the limits in line with inflation.

Key Provisions

Extends the tax deduction for qualified film, television, and live theatrical productions from its current expiration on Dec. 31, 2025 to Dec. 31, 2030.
Raises the overall dollar cap on the deduction: production costs above $30 million are no longer subject to the limitation (previous cap was lower).
Increases the special higher cap for productions located in designated “certain areas” from $30 million to $40 million.
Adds an inflation‑adjustment rule that, for tax years beginning after 2026, automatically raises the $30 million and $40 million limits by the cost‑of‑living adjustment, rounding the increase to the nearest $1,000.
Applies these changes only to productions that start after the law is enacted.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

July 29, 2025

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HouseIntro Referral

Introduced in House

July 29, 2025

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

July 29, 2025

Bill Text

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Introduced in HouseIssued July 29, 2025

119th CONGRESS

1st Session

H. R. 4787

IN THE HOUSE OF REPRESENTATIVES

July 29, 2025

Ms. Chu introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to extend the deduction for film and television productions and to make certain changes with respect to the calculation of such deduction.

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.