Us Congress 2023-2024 Regular Session

Us Congress House Bill HB376

Introduced
1/17/23  

Caption

Puerto Rico Film, Television, and Theatre Production Act of 2023 This bill extends the expensing provisions for film, television, and theater productions to productions in Puerto Rico. (Expensing permits the write-off of property costs in the current taxable year rather than amortizing such costs over a period of years.)

Impact

The impact of HB 376 on state laws primarily revolves around tax provisions concerning film and television production. By extending expensing provisions to include Puerto Rico, production companies will be able to write off costs in the year incurred rather than amortizing them over several years. This change is expected to enhance the attractiveness of Puerto Rico as a filming location, potentially leading to increased investments in the local entertainment industry and related services, thus fostering economic development in an area that has been economically challenged.

Summary

House Bill 376, known as the Puerto Rico Film, Television, and Theatre Production Act of 2023, proposes amendments to the Internal Revenue Code to allow for accelerated depreciation of costs associated with certain qualified film, television, and live theatrical productions in Puerto Rico. This initiative aims to bolster the creative industry in Puerto Rico by providing financial relief to production companies, thereby encouraging more productions to take place in the territory, which could stimulate local economic growth and create jobs within the entertainment sector.

Contention

Despite its potential benefits, there may be points of contention surrounding HB 376. Some critics could express concerns regarding tax equity and the prioritization of incentives for the entertainment industry over other pressing economic needs in Puerto Rico. Additionally, discussions may arise around the effectiveness of such tax incentives in achieving the desired economic growth and job creation, with some arguing that without proper regulatory oversight, such measures could lead to inefficiencies and unequal resource allocations.

Companion Bills

No companion bills found.

Previously Filed As

US HB257

Earned Income Tax Credit Equity for Puerto Rico Act of 2021 This bill makes residents of Puerto Rico eligible for the federal earned income tax credit.

US SB2530

CREATE Act Creative Relief and Expensing for Audio and Television Enterprises Act

US HB4419

Relating to the promotion of film and television production in this state, including the eligibility of film or television productions for funding under the major events reimbursement program, the creation of a film events trust fund and a film production tax rebate trust fund, the establishment of virtual film production institutes, and the designation of media production development zones.

US HB318

Protecting Homeowners from Disaster Act of 2023 This bill repeals the current limitation on tax deductions for personal casualty losses. Under current law, such losses are deductible in taxable years 2018-2025 only to the extent that they are attributable to a federally declared disaster.

US HB1452

Relating to the promotion of film and television production in this state, including the eligibility of film or television productions for funding under the major events reimbursement program, the creation of a film events trust fund and a film production tax rebate trust fund, the establishment of virtual film production institutes, and the designation of media production development zones.

US HB2212

Relating to the promotion of film and television production in this state, including the eligibility of film or television productions for funding under the major events reimbursement program, the creation of a film events trust fund and a film production tax rebate trust fund, the establishment of virtual film production institutes, and the designation of media production development zones.

US HB462

Real Estate Exchange Fairness Act of 2023 This bill requires Puerto Rico to be treated as part of the United States for the purpose of determining if an exchange of real property qualifies as a like-kind exchange for tax purposes. (Under current law, real property located in the United States and real property located outside of the United States are not property of a like kind.)

US SB283

Modify film and theater production tax credit

US SB159

Regards film and theater production tax credits

US HB108

Small Business Prosperity Act of 2023 This bill modifies the tax deduction for qualified business income to (1) make such deduction permanent, (2) limit to 21% the top tax rate on qualified business income, (3) repeal the limitation on the deduction based on amount of wages paid, and (4) revise the definition of qualified trade or business to mean any trade or business other than the trade of business of performing services as an employee. The bill provides that a change in the organizational structure of a corporation is not a taxable event if there is no change among the owners, their ownership interests, or the assets of the organization, The bill repeals the estate tax after 2022.

Similar Bills

No similar bills found.