,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #edig  ,,in ,,the ,,house ,,of  
,,representatives  ,september #af1 #bjad
 ,mr4 ,peterson introduced the following
 bill2 which was referred to the        
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to modify and extend the
 election to expense the cost of        
qualified film1 television1 and         
theatrical productions4  #a4 ,short     
title ,this ,act may be cited as the    
,film ,incentive ,reform ,act of #bjad4 
#b4 ,modification and extension of      
election to expense the cost of         
qualified film1 television1 and         
theatrical productions  7a7 ,extension  
,section #aha7;f7 of the ,internal      
,revenue ,code of #aihf is amended by   
striking ,december #ca1 #bjac and       
inserting ,december #ca1 #bjae4  7b7    
,modification of qualified film1        
television and theatrical productions to
 which section applies  7#a7 ,in general
 ,section #aha7;d7 of such ,code is     

amended to read as follows3  7d7        
,qualified film1 television1 or         
theatrical production ,for purposes of  
this section--  7#a7 ,in general ,the   
term qualified film1 television1 or     
theatrical production means--  7,a7 any 
film or television production if #ajj   
percent of the total compensation of the
 film or television production is       
compensation for services performed in  
the ,united ,states1 and  7,b7 any      
theatrical production if #ge percent of 
the total compensation of the theatrical
 production is qualified compensation4  
7#b7 ,film or television production     
7,a7 ,in general ,the term film or      
television production means property    
described in section #afh7;f77#c74  7,b7
 ,special rule for television series ,in
 the case of a television series--  7i7 
each episode of such series shall be    
treated as a separate production1 and   
7ii7 only the first #dd episodes of such
 series shall be taken into account4    
7#c7 ,theatrical production  7,a7 ,in   

general ,the term theatrical production 
means a live staged production of a play
 7with or without music7 which is       
derived from a written book or script   
and is produced or presented in any     
venue which has an audience capacity of 
not more than #c1jjj or a series of     
venues the majority of which have an    
audience capacity of not more than      
#c1jjj4  7,b7 ,touring companies ,in the
 case of multiple live staged           
productions for which an election under 
this section is made by the same        
taxpayer and which are--  7i7 separate  
phases of a production1 or  7ii7        
separate simultaneous stagings of the   
same production in different            
geographical locations 7not including   
multiple performance locations of any   
one touring production71  each such live
 staged production shall be treated as a
 separate production4  7,c7 ,phases ,for
 purposes of subparagraph 7,b71 the term
 phase refers to each of the following  
7but only if the taxpayer treats each of

 the following as a separate activity   
for all purposes of this title73  7i7   
,the initial staging of the production4 
7ii7 ,subsequent additional stagings or 
tourings of the production which are    
produced by the same producer as the    
initial staging4  7,d7 ,qualified       
compensation  7i7 ,in general ,for      
purposes of paragraph 7#a77;,b71 the    
term qualified compensation means       
compensation for services performed in  
the ,united ,states by actors1          
directors1 musicians1 producers1 and    
other production and post-production    
personnel4  7ii7 ,participations and    
residuals excluded ,for purposes of     
paragraph 7#a77;,b7 and clause 7i71 the 
term compensation does not include      
participations and residuals 7as defined
 in section #afg7;g77#g77;,b774  7#d7   
,exception ,the term qualified film1    
television1 or theatrical production    
shall not include any production if     
records are required under section #bbeg
 of title #ah1 ,united ,states ,code1 to

 be maintained with respect to any      
performer in such production4  4  7#b7  
,conforming amendments  7,a7            
,subsections 7a77#a71 7a77#b77;,a71     
7a77#b77;,b71 7b71 and 7c77#a7 of       
section #aha of such ,code are each     
amended by striking any qualified film  
or television production and inserting  
any qualified film1 television1 or      
theatrical production4  7,b7 ,section   
#aha7;f7 of such ,code is amended by    
striking qualified film and television  
productions and inserting any qualified 
film1 television1 or theatrical         
production4  7,c7 ,the heading of       
section #aha is amended by striking     
qualified film and television           
productions and inserting qualified     
film1 television1 and theatrical        
productions4  7,d7 ,the item relating to
 section #aha in the table of sections  
for part ,,vi of subchapter ,b of       
chapter #a of such ,code is amended to  
read as follows3  ,sec4 #aha4 ,treatment
 of certain qualified film1 television1 

and theatrical productions4  4  7c7     
,effective date ,the amendments made by 
this section shall apply to qualified   
film1 television1 and theatrical        
productions commencing after ,december  
#ca1 #bjac4