The New Deduction For Film Costs

August 27, 2018Article

New tax code section 168(k) permits the immediate deduction of 100% of the cost of films and television programs if they would have qualified under now-repealed section 181. Since the rules of prior section 181 apply, (a) 75% of production costs must be incurred in the United States, (b) for television series, only the first 44 episodes qualify, and (c) films or programs with a “depiction of actual sexually explicit conduct" are excluded.