CREATE Act

The CREATE Act proposes significant amendments to the Internal Revenue Code of 1986, aiming to expand tax benefits for certain qualified productions. It primarily focuses on increasing the dollar limitations for expensing costs associated with qualified film, television, and live theatrical productions. Specifically, the bill raises the general expensing limit from $15 million to $30 million and the limit for productions in low-income communities from $20 million to $40 million . To ensure these limits remain relevant over time, it introduces an inflation adjustment mechanism, effective for taxable years beginning after 2026. Furthermore, the legislation extends the sunset date for these expensing provisions by five years, from December 31, 2025, to December 31, 2030 . These changes will apply to productions commencing in taxable years ending after December 31, 2025, providing a longer window for production companies to utilize these expanded tax incentives.