Bill Summary
This legislation, known as the "Puerto Rico Film, Television, and Theatre Production Act of 2021", aims to amend the Internal Revenue Code of 1986 to allow for accelerated depreciation of certain qualified film and television and live theatrical productions in Puerto Rico. This means that these productions will be able to deduct their expenses at a faster rate for tax purposes, potentially providing financial incentives for production companies to film in Puerto Rico. The amendment also specifies that Puerto Rico will be included in the definition of the United States for these purposes. The effective date of this amendment will be retroactive to a previous law, and the specific details for the application of accelerated depreciation can be found in section 168(k)(2)(A) of the Internal Revenue Code.
Possible Impacts
1. The legislation could provide tax incentives for companies to produce film, television, and theatre productions in Puerto Rico, which could lead to an increase in job opportunities for people in the entertainment industry on the island.
2. The amendment could also potentially boost the local economy in Puerto Rico by attracting more production companies to film in the area, bringing in more revenue and potentially creating new businesses and services to support the industry.
3. On the other hand, the legislation could also potentially displace local residents in Puerto Rico who may not be able to afford the rising costs of living due to an influx of people and companies into the area.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1741 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 1741
To amend the Internal Revenue Code of 1986 to allow accelerated
depreciation of certain qualified film and television and live
theatrical productions in Puerto Rico.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 10, 2021
Miss Gonzalez-Colon introduced the following bill; which was referred
to the Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to allow accelerated
depreciation of certain qualified film and television and live
theatrical productions in Puerto Rico.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Puerto Rico Film, Television, and
Theatre Production Act of 2021''.
SEC. 2. ACCELERATED DEPRECIATION FOR CERTAIN QUALIFIED FILM AND
TELEVISION AND LIVE THEATRICAL PRODUCTIONS IN PUERTO
RICO.
(a) In General.--Section 181(d)(3)(A) of the Internal Revenue Code
of 1986 is amended by inserting ``(including Puerto Rico)'' after
``United States''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in section 13201 of Public Law 115-97.
(c) Cross Reference.--For application of accelerated depreciation
to qualified film or television productions and qualified live
theatrical productions (as defined in section 181 of the Internal
Revenue Code of 1986, as amended by this section), see section
168(k)(2)(A) of the Internal Revenue Code of 1986.
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