To amend the Internal Revenue Code of 1986 to include qualified domestic film or television production as a qualified production activity for purposes of the special allowance for qualified production property.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 11033 Introduced in House (IH)]

<DOC>

119th CONGRESS 2d Session H. R. 11033

To amend the Internal Revenue Code of 1986 to include qualified domestic film or television production as a qualified production activity for purposes of the special allowance for qualified production property.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

November 13, 2026

Ms. Malliotakis 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 include qualified domestic film or television production as a qualified production activity for purposes of the special allowance for qualified production property.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SPECIAL ALLOWANCE FOR QUALIFIED DOMESTIC FILM OR TELEVISION PRODUCTION PROPERTY.

(a) In General.--Section 168(n)(2) of the Internal Revenue Code of 1986 is amended-- (1) in subparagraph (A), by inserting ``unless such property is a qualified domestic film or television production facility'' after ``shall not be considered to be used by the taxpayer as part of a qualified production activity'', (2) in subparagraph (C), by inserting ``or of a qualified film or television production (as defined in section 181(d))'' after ``tangible personal property'', (3) in subparagraph (D), by inserting ``The preceding sentence shall not apply to any qualified film or television production (as defined in section 181(d)).'' after the period at the end, (4) in subparagraph (E), by striking ``agricultural production and chemical production'' and inserting ``agricultural production, chemical production, and any qualified film or television production (as defined in section 181(d))'', (5) in subparagraph (F), by striking ``means any tangible personal property'' and all that follows through the period and inserting the following: ``means-- ``(i) any tangible personal property if such property is not a food or beverage prepared in the same building as a retail establishment in which such property is sold, or ``(ii) a qualified film or television production (as defined in section 181(d)).'', and (6) by adding at the end the following new subparagraph: ``(I) Qualified domestic film or television production facility.-- ``(i) In general.--The term `qualified domestic film or television production facility' means a soundstage, backlot, integrated set-construction or mill space, dedicated virtual-production infrastructure, or similar facility used as an integral part of producing one or more qualified film or television productions (as defined in section 181(d)), but only if, for the testing period, at least 75 percent of-- ``(I) the stage use of such facility, determined by square-foot- days, or ``(II) if the taxpayer elects the application of this subclause with respect to the facility (and such election, once made, shall be irrevocable), the rental or license revenue of such facility, is derived from one or more such productions. ``(ii) Testing period.--For purposes of clause (i), the testing period is-- ``(I) the 12-month period beginning on the date the property is placed in service, and ``(II) each taxable year any portion of which falls within the 10- year period described in paragraph (5). ``(iii) Anticipated use at placed-in- service date.--Property shall not fail to be a qualified domestic film or television production facility solely because the 75- percent requirement of clause (i) cannot be determined as of the date the property is placed in service, if the taxpayer reasonably expects to satisfy such requirement for the period described in clause (ii)(I) and such expectation is supported by written leases, license agreements, or similar arrangements in effect as of such date. If the requirement is not in fact satisfied for such period, paragraph (5) shall apply as of the close of such period. ``(iv) Integrated campus.--At the election of the taxpayer, 2 or more buildings or structures located on the same or contiguous parcels and operated as a single studio campus may be treated as a single facility for purposes of this subparagraph. ``(v) Failure of 75-percent test.--If a facility fails to meet the requirement of clause (i) for any testing period described in clause (ii)(II), such facility shall be treated, for purposes of paragraph (5), as ceasing to be used as described in subparagraph (A)(ii) on the first day of such testing period. ``(vi) Regulations.--The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out this subparagraph, including rules for measuring square-foot-days, allocating dual-use space, and applying clause (iv) to noncontiguous parcels operated as an integrated studio campus.''. (b) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. <all>