Rep. Collin Peterson, D-Minn., has introduced new legislation that if passed into law would amend I.R.C. § 181 to disqualify certain movie and television producers from receiving tax incentives from the federal government if any of the production is performed outside the United States or its possessions. The bill, known as the Film Incentive Reform Act of 2014, would amend I.R.C. § 181, to change the requirements required to expense the cost of qualified film, television, and theatrical productions.

As a background, The American Federation of Musicians (hereinafter “AFM”) strategically lobbied Congress in 2003 and 2004 to add § 181 to the Code through the American Job Creation Act of 2004 which outlines the treatment of qualified film and television production expenditures for the purposes of providing tax incentives for domestic film Read More