HR 4840119th CongressIn Committee

CREATE Act

Introduced: Aug 1, 2025

Sponsor: Rep. Chu, Judy [D-CA-28] (D-California)

Technology & Innovation

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Creative Relief and Expensing for Artistic Entertainment Act (CREATE Act) would amend the Internal Revenue Code to expand the ability to immediately expense certain qualified productions under Section 181. Specifically, it increases the dollar caps for eligible production costs (doubling the existing limits for two subcategories), adds an annual inflation adjustment to those caps after 2026, and extends the expiration date of the provision from 2025 to 2030. The amendments apply to productions commencing in taxable years ending after December 31, 2025. The goal is to strengthen the financial incentive for film, television, and other creative productions to be produced domestically by allowing larger upfront deductions and providing a longer-lived tax incentive. The bill is introduced in the 119th Congress by Rep. Chu (joined by Rep. Malliotakis) and would go into effect for productions that begin after 2025, with inflation adjustments and a refreshed sunset extending the program through 2030.

Key Points

1Dollar cap increases for qualified productions:
2- Subparagraph (A): from $15,000,000 to $30,000,000.
3- Subparagraph (B): from $20,000,000 to $40,000,000.
4- Subparagraph (C): amount remains subject to the same framework (and will be adjusted via inflation).
5Inflation adjustment (new subparagraph D):
6- Starting with taxable years beginning after 2026, the caps (A, B, and C) are increased by the same cost-of-living adjustment used for 1(f)(3) (with 2025 as the base year for calculation) and rounded to the nearest $1,000.
7Extension of the program’s termination:
8- The sunset date for the Section 181 expensing provision is extended from December 31, 2025 to December 31, 2030.
9Effective date:
10- Changes apply to productions commencing in taxable years ending after December 31, 2025.
11Legislative purpose:
12- To bolster domestic production of film, television, and related media by allowing larger upfront deductions, improving cash flow for producers, and encouraging investment in the U.S. creative sector.

Impact Areas

Primary group/area affected:- Film, television, and other qualified productions (studios, producers, post-production houses, and related service providers) that use Section 181 expensing.Secondary group/area affected:- States and localities seeking to attract production activity through related economic incentives; employment in the entertainment industry; tax planning and accounting professionals serving production companies.Additional impacts:- Potential change in federal revenue timing due to larger upfront deductions (short-term budget impact); increased domestic production activity could influence local economies and jobs; introduces annual inflation-based adjustments, which reduces need for future statutory updates to keep caps aligned with costs.

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