26 USC 181 - Treatment of certain qualified productions

U.S Code last checked for updates: Nov 14, 2026

§ 181.

Treatment of certain qualified productions

(a)

Election to treat costs as expenses

(1)

In general

(2)

Dollar limitation

(A)

In general

(B)

Higher dollar limitation for productions in certain areas

In the case of any qualified film or television production or any qualified live theatrical production the aggregate cost of which is significantly incurred in an area eligible for designation as—

(i)

a low-income community under section 45D, or

(ii)

a distressed county or isolated area of distress by the Delta Regional Authority established under section 2009aa–1 of title 7, United States Code,

subparagraph (A) shall be applied by substituting “$20,000,000” for “$15,000,000”.

(C)

Qualified sound recording production

(b)

No other deduction or amortization deduction allowable

(c)

Election

(1)

In general

(2)

Revocation of election

(d)

Qualified film or television production

For purposes of this section—

(1)

In general

(2)

Production

(A)

In general

(B)

Special rules for television series

In the case of a television series—

(i)

each episode of such series shall be treated as a separate production, and

(ii)

only the first 44 episodes of such series shall be taken into account.

(C)

Exception

(3)

Qualified compensation

For purposes of paragraph (1)—

(A)

In general

(B)

Participations and residuals excluded

(e)

Qualified live theatrical production

For purposes of this section—

(1)

In general

(2)

Production

(A)

In general

(B)

Touring companies, etc.

In the case of multiple live staged productions—

(i)

for which the election under this section would be allowable to the same taxpayer, and

(ii)

which are—

(I)

separate phases of a production, or

(II)

separate simultaneous stagings of the same production in different geographical locations (not including multiple performance locations of any one touring production),

each such live staged production shall be treated as a separate production.

(C)

Phase

For purposes of subparagraph (B), the term “phase” with respect to any qualified live theatrical production refers to each of the following, but only if each of the following is treated by the taxpayer as a separate activity for all purposes of this title:

(i)

The initial staging of a live theatrical production.

(ii)

Subsequent additional stagings or touring of such production which are produced by the same producer as the initial staging.

(D)

Seasonal productions

(i)

In general

(ii)

Short taxable years

(E)

Exception

(f)

Qualified sound recording production

(g)

Application of certain other rules

(h)

Termination

(Added Pub. L. 108–357, title II, § 244(a), Oct. 22, 2004, 118 Stat. 1445; amended Pub. L. 109–135, title IV, § 403(e)(1), Dec. 21, 2005, 119 Stat. 2623; Pub. L. 110–343, div. C, title V, § 502(a)

cite as: 26 USC 181