proposed-federal-film-tv-credit - MediaHedge Underwriting Knowledgebase

# Proposed Federal Film and Television Credit H.R. 10582 and S. 5552 would create an American film and television production credit under a new §45BB. Both bills remain introduced. Existing [[wiki/concepts/section-168k-film-tv-deductions|Section 168(k) Deductions]] and state programs in the [[wiki/syntheses/us-film-tax-incentives|U.S. Incentive Guide]] have separate rules. > [!warning] Proposed, Not Available > Congress.gov checked November 4, 2026 shows both bills as Introduced. Do not include the proposed credit as an awarded incentive, available cash, approved tax position or committed financing source. ## Legislative Status and Compared Texts | Bill | Version Reviewed | Latest Action Observed on November 4, 2026 | | --- | --- | --- | | [H.R. 10582](https://www.congress.gov/bill/119th-congress/house-bill/10582) | Introduced in House, September 24, 2026 | Referred to House Ways and Means, September 24, 2026; status Introduced. | | [S. 5552](https://www.congress.gov/bill/119th-congress/senate-bill/5552) | Introduced in Senate, September 24, 2026 | Read twice and referred to Senate Finance, September 24, 2026; status Introduced. | Both bills are titled the Motion Picture, Television, and Entertainment Revitalization Act. The [House text](https://www.govinfo.gov/content/pkg/BILLS-119hr10582ih/xhtml/BILLS-119hr10582ih.html) and [Senate text](https://www.govinfo.gov/content/pkg/BILLS-119s5552is/xhtml/BILLS-119s5552is.html) share the reviewed provisions, rates and thresholds, with minor wording differences. The Senate omits two articles and the word “by” in the effective-date clause, and capitalizes “To” in the transfer heading. Both contain drafting errors discussed below. ## Who and What Would Qualify Proposed §45BB(b) covers a feature film, television pilot or television season made commercially in the ordinary course of business, chargeable to capital account, completed during the taxable year, costing **more than $1 million**, and meeting the **75% U.S. principal-photography-days** test. Exactly $1 million would not satisfy the stated cost threshold. This is not §181’s compensation-based 75% test. A season must contain at least four episodes with narrative or thematic common elements, produced for distribution/broadcast within 12 months of the close of the completion tax year. All episodes of a season count as one production. Completion means post-production has finished and a final composite answer print, delivery air master or digital cinema file exists; it is not the same event as §168(k)’s initial release/broadcast. Exclusions include §2257-record productions; talk/interview/game/award shows; news, live sports, radio, gala and daytime-drama programming; primarily social-media/media-sharing/blog content; advertising/marketing/brand campaigns; fundraising; and primarily industrial/corporate/institutional productions. The bill directs Treasury to issue guidance limiting eligibility to the taxpayer with the benefits and burdens of production ownership. Paying a service invoice alone would not establish eligibility. Animation uses the location of specified animation and voice-recording activities and their cost ratio. A mixed live-action/animated production may satisfy either the live-filming or animation route specified in subsection (b)(3). ## Credit Base and Percentage The proposed base is capitalizable compensation for qualifying services performed in the United States, including through contractors/subcontractors and qualifying pre- and post-production work. Only qualifying compensation enters the base; other budget costs, participations and residuals are excluded. The bill calls for later guidance on substantiating indirect payments. | Ordinary Production Route | Introduced Proposal | | --- | --- | | Base | 20% of qualified compensation | | Rural opportunity zone or disaster-area route | Additional 5 percentage points for the specified 30% photography-days/location conditions; the disaster route includes a five-year timing condition | | Independent producer | Additional 5 points; taxpayer cannot be publicly traded or majority-owned directly/indirectly by a publicly traded corporation, with aggregation rules | | Multi-state producer | Additional 5 points; requirements cover 10 or more states, including at least 50% photography days of a qualifying production and $10 million qualifying compensation in each state during the defined period | | Increased domestic production | Additional 5 points subject to a foreign-base comparison, domestic increase, rounding and other conditions | | Overall limit | 30%, even if more than two ordinary-production uplifts are satisfied | The multi-state period begins 12 months before the taxable year and ends with that year. The domestic-growth route compares completions against the year before the start year and uses a three-year average foreign-production base of at least one. Specified percentages rise from 30% in the start year to 40% the next year and 50% thereafter, rounded as stated. These tests apply to the taxpayer’s production activity; filming in two states or moving one project home would not alone establish eligibility. ## Separate Visual-Effects and Post-Production Routes Proposed subsections (e) and (f) cover otherwise qualifying productions that fail the ordinary U.S.-photography test but incur 75% of relevant visual-effects or traditional post-production costs in the United States. Only the relevant U.S. compensation enters the respective credit base. The ordinary uplifts in (d)(2)–(5) do not apply. Each special route starts at 20% and permits one five-point increase for the stated location or independent-producer condition; the ordinary 30% maximum does not apply. Traditional post-production includes specified editing, sound, scoring, credits, soundtrack and dubbing activities, but excludes visual effects and advertising/promotion. Do not double-count the same compensation across routes. **Drafting issue:** the independent-producer references in (e)(2)(C)(ii) and (f)(2)(C)(ii) point to (d)(4)(B), although the definition is in (d)(3)(B). Subsection (c)(2)(A) also references (A)(i) where the displayed compensation provision has no such clause. Check amended text and eventual guidance before relying on these references. ## Timing, Transfer and Interaction The introduced effective date applies to productions whose principal photography starts **in taxable years beginning after December 31, 2026**, if enacted. Fiscal-year taxpayers must use the taxable-year condition, rather than a universal January 1, 2027 photography start date. The proposed date creates no current entitlement. The bill would add the credit to the general business credit and to §6418’s transfer-eligible credit list. Transfers would depend on §6418 and its implementation. The proposal does not promise direct payment, a refund, a buyer or sale at face value. Review the then-current §6418 rules before structuring a transfer. Proposed §45BB(g)(4) reduces production basis by the credit determined. A combined credit/§168(k) model must account for that reduction and other applicable rules rather than calculate both benefits on an unchanged full basis. State incentives require their own interaction review; the proposal does not establish a universal stacking permission. ## Illustrative Calculation Assume enactment exactly as introduced, full eligibility, $2 million of qualified compensation and the ordinary 20% rate: the proposed face credit would be $400,000. If one valid five-point uplift applied it would be $500,000; two would reach $600,000. These are hypothetical credit face amounts calculated on compensation, not the total budget. They establish no current credit, sale proceeds or available loan; no sale discount or advance rate is assumed. ## Analysis and Inference Keep the proposal in a labeled upside scenario. Record zero committed proceeds until an enacted entitlement and transaction-specific evidence support them. Review completion, ownership, compensation records, applicable elections, transfer execution, basis effects and cash timing. Use [[wiki/concepts/tax-credit-collateral|Tax-Credit Collateral]], [[wiki/concepts/incentive-monetization|Incentive Monetization]] and [[wiki/concepts/full-financing|Full Financing]] to distinguish legal benefit, collectible cash and committed funding. Links checked: 2026-11-04. ## Continue Exploring [[MediaHedge Knowledgebase|Home]] · [[wiki/syntheses/financier-diligence-route|Financier’s Guide]] · [[wiki/syntheses/credit-lifecycle|Credit Lifecycle]] · [[wiki/syntheses/site-navigator|Site Navigator]]