WASHINGTON — Sen. John Breaux (D-La.) and the rest of the Senate Finance Committee believe the time is right to make a tax break for Hollywood official.
Although the White House has warned lawmakers to keep the massive $350 million to $550 billion tax bill as unencumbered as possible, Breaux inserted a pet provision for film companies that the industry has been eyeing for years. The Finance Committee approved the amendment, one of 21 added to the massive bill making its way through Congress.
The language would allow studios and other film companies to deduct the cost of making a movie over 10 years, according to an industry source and language in the bill.
The provision would resolve discrepancies in existing law and help keep film companies out of the courts, which in recent years have shown an inclination to allow the motion picture industry to deduct the cost of making movies in this way.
Even so, the Congressional Budget Office said it would cost $571 million over 11 years.
The Senate Finance Committee referred inquiries to Breaux’s office, which did not return phone calls before press time.