HR 3844119th CongressIntroduced

Texas is the New Hollywood Act of 2025

Introduced: Jun 9, 2025

Economy & Taxes

Standard Summary

Comprehensive overview in 1-2 paragraphs

H.R. 3844, titled the “Texas is the New Hollywood Act of 2025,” is a federal bill introduced by Rep. Tony Gonzales (TX) that would modify the tax code to extend and expand the bonus depreciation (Section 168(k)) for qualified film and television productions. It would create a new, generous 100% bonus depreciation window for these productions placed in service after December 31, 2025 and before January 1, 2036, meaning eligible production costs could be written off fully in the year they are placed in service. To qualify, productions must meet a set of criteria and, importantly, must spend a minimum amount of money in a single state. The bill also extends the applicable timeline related to Section 181 (a separate expensing provision for film/TV productions) from 2027 to 2035. The text indicates the measure applies nationwide (despite the Texas branding) and would take effect for property placed in service starting in 2026.

Key Points

1100% bonus depreciation for qualified film or television productions. For property placed in service after December 31, 2025 and before January 1, 2036, the “applicable percentage” is 100% for these productions.
2Minimum in-state spending thresholds. A production must spend at least:
3- $500,000 in one state for most film/television productions, or
4- $100,000 in one state for educational or instructional videos or digital interactive media productions.
5Definition of a “qualified film or television production.” A production must:
6- be intended for commercial, educational, or instructional use;
7- be a “qualified film or television production” as defined in Section 181(d);
8- have a deduction would-have-been allowable under Section 181 without regard to certain subsections of that section or this subsection;
9- meet the in-state spend requirement above;
10- satisfy additional criteria in the text and not be described in a specific subparagraph.
11Extension of the 181 deduction period. The statute would substitute January 1, 2035 for January 1, 2027 in determining the applicability of the Section 181 deduction, effectively extending its applicability.
12Effective date. The amendments apply to property placed in service after December 31, 2025 (i.e., starting in 2026).

Impact Areas

Primary group/area affected- Film and television production companies and their investors, financiers, and tax advisers. The bill would make it much more favorable to claim a full (100%) deduction in the year a production’s eligible costs are placed in service, provided the in-state spending thresholds are met.Secondary group/area affected- States and localities hosting productions, film commissions, and workforce (crews, actors, post-production) who benefit from in-state spending.- Tax professionals and accountants who advise on depreciation methods and film production incentives.- Educational and digital media producers that fall under the lower in-state spend threshold.Additional impacts- Economic origin and job activity: potential increases in domestic production activity and related employment and services within a state, particularly if productions seek to meet the in-state spending requirements.- Federal budget impact: broadening and extending the bonus depreciation benefit for a wide range of productions would reduce federal tax revenue in the near term and shift some tax liability to later years, depending on taxpayer behavior and other provisions.- Compliance and administration: producers must document in-state spend and meet the complex criteria to qualify, potentially increasing administrative work for tax filings and audits.

Generated by gpt-5-nano on Oct 3, 2025