Film Incentive Reform Act of 2014

To amend the Internal Revenue Code of 1986 to modify and extend the election to expense the cost of qualified film, television, and theatrical productions. 1. Short title This Act may be cited as the Film Incentive Reform Act of 2014 2. Modification and extension of election to expense the cost of qualified film, television, and theatrical productions (a) Extension Section 181(f) December 31, 2013 December 31, 2015 (b) Modification of qualified film, television and theatrical productions to which section applies (1) In general Section 181(d) of such Code is amended to read as follows: (d) Qualified film, television, or theatrical production For purposes of this section— (1) In general The term qualified film, television, or theatrical production (A) any film or television production if 100 percent of the total compensation of the film or television production is compensation for services performed in the United States, and (B) any theatrical production if 75 percent of the total compensation of the theatrical production is qualified compensation. (2) Film or television production (A) In general The term film or television production (B) Special rule 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. (3) Theatrical production (A) In general The term theatrical production (B) 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— (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) Phases For purposes of subparagraph (B), the term phase (i) The initial staging of the production. (ii) Subsequent additional stagings or tourings of the production which are produced by the same producer as the initial staging. (D) Qualified compensation (i) In general For purposes of paragraph (1)(B), the term qualified compensation (ii) Participations and residuals excluded For purposes of paragraph (1)(B) and clause (i), the term compensation (4) Exception The term qualified film, television, or theatrical production section 2257 . (2) Conforming amendments (A) Subsections (a)(1), (a)(2)(A), (a)(2)(B), (b), and (c)(1) of section 181 of such Code are each amended by striking any qualified film or television production any qualified film, television, or theatrical production (B) Section 181(f) of such Code is amended by striking qualified film and television productions any qualified film, television, or theatrical production (C) The heading of section 181 is amended by striking qualified film and television productions qualified film, television, and theatrical productions (D) The item relating to section 181 in the table of sections for part VI of subchapter B of chapter 1 of such Code is amended to read as follows: Sec. 181. Treatment of certain qualified film, television, and theatrical productions. . (c) Effective date The amendments made by this section shall apply to qualified film, television, and theatrical productions commencing after December 31, 2013.

Summary: Film Incentive Reform Act of 2014 - Amends the Internal Revenue Code to: (1) extend through 2015 the election to expense the cost of qualified film, television, and theatrical productions; and (2) include theatrical productions in such expensing allowance. Defines "theatrical production" as a live staged production of a play derived from a written book or script and produced or presented in any venue which has an audience capacity of more than 3,000.