The Senate Finance Committee passed legislation Oct. 19 that scales back a tax break used by Hollywood studios in write-offs for the depreciation of films and TV shows.
The bill will force studios to adjust the “income forecast method” of accounting for taxation of film and TV programs. Hollywood will lose an estimated $192 million over seven years as a result of the legislation.
The bill is part of a broad attack on what critics have labeled “corporate welfare.” Similar legislation already has cleared the House of Representatives.
The Senate Finance Committee bill now moves to the full Senate for action expected next week.