CREATE Act
- Bill Number
- H.R. 4840
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-08-01: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-05T08:07:28Z
AI-Generated Summary
Purpose The legislation expands tax expensing rules for certain qualified film, television, and other entertainment productions by increasing deduction limits and extending the period during which these benefits are available.
Key Provisions
- Raises the general dollar limit for immediate expensing of qualified production costs from $15,000,000 to $30,000,000.
- Increases the limit for productions in certain designated areas from $20,000,000 to $40,000,000.
- Adds an automatic inflation adjustment to these limits beginning in 2026, rounded to the nearest $1,000.
- Extends the expiration date of the expensing provision from December 31, 2025, to December 31, 2030.
- Applies the changes to productions that begin in taxable years ending after December 31, 2025.
Significant Changes to Existing Law The bill amends Section 181 of the Internal Revenue Code of 1986. It modifies the dollar caps previously updated by Public Law 119-21 and lengthens the temporary window for using immediate expensing instead of capitalizing production costs over time.
Potential Impacts
- Government agencies: The Internal Revenue Service would administer higher deduction amounts and updated inflation adjustments, potentially requiring revised guidance or forms.
- Citizens and businesses: Production companies and creators gain the ability to deduct larger amounts of costs in the year incurred, which may improve cash flow for qualifying projects.
- International relations: No direct effects are specified in the legislation.
Main Stakeholders Affected
- Entertainment industry companies and individuals involved in film, television, and related productions.
- Taxpayers who incur costs for qualified productions.
- The Internal Revenue Service, which oversees compliance with the revised limits.
Notable Legal, Constitutional, or Political Implications The measure is a targeted amendment to tax code provisions governing business deductions. It contains no provisions raising constitutional questions or altering federal-state relations. The changes are time-limited and subject to future congressional action.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (15)
Rep. Malliotakis, Nicole [R-NY-11], Rep. Friedman, Laura [D-CA-30], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Moore, Blake D. [R-UT-1], Rep. Moran, Nathaniel [R-TX-1], Rep. Fitzpatrick, Brian K. [R-PA-1], Del. Plaskett, Stacey E. [D-VI-At Large], Rep. Pettersen, Brittany [D-CO-7], Rep. Sewell, Terri A. [D-AL-7], Rep. Lieu, Ted [D-CA-36], Rep. Barr, Andy [R-KY-6], Rep. Goldman, Daniel S. [D-NY-10], Rep. Boyle, Brendan F. [D-PA-2], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Horsford, Steven [D-NV-4]
Recent Actions
- 2025-08-01: Referred to the House Committee on Ways and Means.
- 2025-08-01: Introduced in House
- 2025-08-01: Introduced in House
Bill Versions
- Creative Relief and Expensing for Artistic Entertainment Act — issued 2025-08-01 — PDF (3 pages)