Creative Relief and Expensing for Artistic Entertainment Act; CREATE Act
Summary
The Creative Relief and Expensing for Artistic Entertainment Act (CREATE Act) aims to amend the Internal Revenue Code of 1986 to expand the ability to expense certain qualified productions. Specifically, it increases the dollar limitations for expensing qualified productions and extends the termination date for these provisions. The bill seeks to provide economic relief to the artistic entertainment industry.
Expected Effects
The CREATE Act, if enacted, would allow larger film and television productions to qualify for tax incentives, potentially stimulating investment in the entertainment industry. The extension of the termination date provides long-term certainty for production companies. This could lead to increased production activity within the United States.
Potential Benefits
- Increased investment in film and television production.
- Potential job creation in the entertainment industry.
- Greater financial stability for production companies.
- Attraction of more film and television projects to the US.
- Support for local economies through production spending.
Potential Disadvantages
- Potential for increased tax burden on other sectors to offset the tax breaks.
- Risk of inefficient allocation of resources if the incentives are not well-targeted.
- Possible inflation of production costs due to increased demand.
- Complexity in administering the expanded tax provisions.
- Potential for abuse or fraud in claiming the tax incentives.
Most Disadvantaged Areas:
Constitutional Alignment
The CREATE Act falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the Constitution. The bill aims to promote the general welfare by supporting the arts and entertainment industry, which aligns with the broader goals stated in the Preamble. However, the Constitution does not explicitly address the arts or entertainment, leaving the specifics of such support to legislative discretion.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).