S. 5552, Entertainment Industry Tax Subsidy. Quorum's AI analysis reads it as a trade-off: gains for some, costs for others.
S. 5552 · Mixed
What it does
This bill creates a new federal tax credit for American film and television productions, offering a base 20% credit on qualified compensation (wages for actors, crew, directors, etc.) paid in the U.S., with the credit rising to as high as 30% for productions in rural areas, disaster zones, independent producers, multi-state producers, or those increasing domestic output. The credit applies to feature films, TV pilots, and TV seasons costing over $1 million with at least 75% of principal photography in the U.S., and covers pre- and post-production work and visual effects performed domestically.
The analysis names film and television production companies — and 4 more groups — among the beneficiaries.
The trade-off
The credit is transferable under Section 6418, allowing producers to sell unused credits to other taxpayers, creating a secondary market and potentially allowing non-producers to benefit from the subsidy.
Transparency scores 75%, with a medium warning level and no provisions unrelated to the bill's subject.
Who is behind it
Filed by Tim Scott. Cosponsored by Adam Schiff, Alex Padilla, Andy Kim and Bernie Moreno.
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