You will be redirected back to your article in seconds

Berman, Dreier unveil tax deduction

Provision allows producers to expense first $15 million

Reps. Howard Berman (D-Calif.) and David Dreier (R-Calif.) say they have introduced legislation to extend a tax provision designed to prevent production from migrating overseas.

The provision, called Section 181, allows producers to expense the first $15 million of production costs if 75% occurs in the U.S. The provision is actually modest when compared to incentives offered by other countries, and it is not a tax credit but a deduction.

The legislation extends Section 181 another two years starting retroactively on Dec. 31, 2011. The provision was originally part of a jobs bill passed in 2004.

Berman said in a statement, “We must make every effort to keep American productions here in the United States.”

Its introduction comes as Berman faces a tough re-election fight in a newly drawn San Fernando Valley congressional seat. He is facing another incumbent Democrat, Brad Sherman, in the June 5 primary, and both have been anxious to highlight legislation beneficial to workers in the district. Sherman said that he plans to introduce a bill this summer making Section 181 permanent.

“A permanent credit will have far greater impact since projects need to be planned and financed in an atmosphere of stable and known tax laws,” he said in a statement. “Almost all this year’s changes to the Internal Revenue Code will be adopted in late fall.”

More Film

  • Jennifer LawrenceElle Women In Hollywood, Arrivals,

    Jennifer Lawrence Says Producer Put Her in 'Naked Lineup,' Told Her to Lose Weight

    Reps. Howard Berman (D-Calif.) and David Dreier (R-Calif.) say they have introduced legislation to extend a tax provision designed to prevent production from migrating overseas. The provision, called Section 181, allows producers to expense the first $15 million of production costs if 75% occurs in the U.S. The provision is actually modest when compared to […]

  • Frank Grillo Jamie Bell

    Frank Grillo, Jamie Bell to Star in Indie 'Donnybrook'

    Reps. Howard Berman (D-Calif.) and David Dreier (R-Calif.) say they have introduced legislation to extend a tax provision designed to prevent production from migrating overseas. The provision, called Section 181, allows producers to expense the first $15 million of production costs if 75% occurs in the U.S. The provision is actually modest when compared to […]

  • Antalya: Christopher Walken, Juliette Lewis Head

    Antalya Festival: Christopher Walken, Juliette Lewis Head Antalya Star Lineup

    Reps. Howard Berman (D-Calif.) and David Dreier (R-Calif.) say they have introduced legislation to extend a tax provision designed to prevent production from migrating overseas. The provision, called Section 181, allows producers to expense the first $15 million of production costs if 75% occurs in the U.S. The provision is actually modest when compared to […]

  • The Snowman Trailer

    ‘The Snowman’ Tops Studios’ TV Ad Spending

    Reps. Howard Berman (D-Calif.) and David Dreier (R-Calif.) say they have introduced legislation to extend a tax provision designed to prevent production from migrating overseas. The provision, called Section 181, allows producers to expense the first $15 million of production costs if 75% occurs in the U.S. The provision is actually modest when compared to […]

  • 'Geostorm' film premiere

    'Geostorm' Director Hopes Harvey Weinstein Scandal Signals 'Sea Change' for Hollywood

    Reps. Howard Berman (D-Calif.) and David Dreier (R-Calif.) say they have introduced legislation to extend a tax provision designed to prevent production from migrating overseas. The provision, called Section 181, allows producers to expense the first $15 million of production costs if 75% occurs in the U.S. The provision is actually modest when compared to […]

  • Ron Howard

    'Star Wars' Han Solo Movie Title Announced

    Reps. Howard Berman (D-Calif.) and David Dreier (R-Calif.) say they have introduced legislation to extend a tax provision designed to prevent production from migrating overseas. The provision, called Section 181, allows producers to expense the first $15 million of production costs if 75% occurs in the U.S. The provision is actually modest when compared to […]

  • Hilary Swank

    Hilary Swank to Star in Sci-Fi Thriller 'I Am Mother' (EXCLUSIVE)

    Reps. Howard Berman (D-Calif.) and David Dreier (R-Calif.) say they have introduced legislation to extend a tax provision designed to prevent production from migrating overseas. The provision, called Section 181, allows producers to expense the first $15 million of production costs if 75% occurs in the U.S. The provision is actually modest when compared to […]

More From Our Brands

Access exclusive content