(A) In General-
Paragraph (1) shall not apply to any qualified film or television production
the aggregate cost of which exceeds $15,000,000.
(B) Higher Dollar Limitation For Productions In Certain Areas-
In the case of any qualified film or television production the aggregate
cost of which is significantly incurred in an area eligible for designation
as--
(i) a low-income community under section 45D, or
(ii) a distressed county or isolated area of distress by the Delta Regional
Authority established under section 2009aa-1 of title 7, United States
Code, subparagraph (A) shall be applied by substituting `$20,000,000'
for `$15,000,000'.
(b) No Other Deduction Or Amortization Deduction Allowable-
With respect to the basis of any qualified film or television production
to which an election is made under subsection (a), no other depreciation
or amortization deduction shall be allowable.
(c) Election-
(1) In General-
An election under this section with respect to any qualified film or television
production shall be made in such manner as prescribed by the Secretary
and by the due date (including extensions) for filing the taxpayer's return
of tax under this chapter for the taxable year in which costs of the production
are first incurred.
(2) Revocation Of Election-
Any election made under this section may not be revoked without the consent
of the Secretary.
(d) Qualified Film Or Television Production-
For purposes of this section--
(1) In General-
The term `qualified film or television production' means any production
described in paragraph (2) if 75 percent of the total compensation of
the production is qualified compensation.
(2) Production-
(A) In General-
A production is described in this paragraph if such production is property
described in section 168(f)(3). For purposes of a television series,
only the first 44 episodes of such series may be taken into account.
(B) Exception-
A production is not described in this paragraph if records are required
under section 2257 of title 18, United States Code, to be maintained
with respect to any performer in such production.
(3) Qualified Compensation-
For purposes of paragraph (1)--
(A) In General-
The term `qualified compensation' means compensation for services
performed in the United States by actors, directors, producers, and
other relevant production personnel.
(B) Participations And Residuals Excluded-
The term `compensation' does not include participations and residuals
(as defined in section 167(g)(7)(B)).
(e) Application Of Certain Other Rules-
For purposes of this section, rules similar to the rules of subsections
(b)(2) and (c)(4) of section 194 shall apply.
(f) Termination-This section shall not apply to qualified film and television
productions commencing after December 31, 2008.
(Added by Pub. L. 108-357, title II, Sec. 244(a), Oct. 22, 2004, 118 Stat.
1418.)
