week, or pilot production for any of the preceding
productions if—
‘‘(A) 75 percent of the total wages of the
production are qualified wages,
‘‘(B) the production is created primarily
for use as public entertainment or for edu-
cational purposes, and
‘‘(C) the total cost of wages of the produc-
tion is more than $200,000 but less than
$10,000,000.
Such term shall not include any production if
records are required under section 2257 of title 18,
United States Code, to be maintained with respect
to any performer in such production (reporting of
books, films, etc. with sexually explicit conduct). For
purposes of subparagraph (A), no day of photog-
raphy shall be considered a day of principal photog-
raphy unless the cost of wages for the production for
that day exceeds the average daily cost of wages for
such production.
‘‘(2) 
PUBLIC
ENTERTAINMENT.—The 
term
‘public entertainment’ includes a motion picture
film, video tape, or television program intended for
initial broadcast via the public broadcast spectrum
or delivered via cable distribution, or productions
that are submitted to a national organization in ex-
istence on July 27, 2001, that rates films for violent
or adult content. Such term does not include any
film or tape the market for which is primarily top-
ical, is otherwise essentially transitory in nature, or
is produced for private noncommercial use.
‘‘(3) INFLATION ADJUSTMENT.—
‘‘(A) IN
GENERAL.—In the case of any
taxable year beginning in a calendar year after
2001, the $10,000,000 amount contained in
paragraph (1)(C) shall be increased by an
amount equal to—
‘‘(i) such dollar amount, multiplied by
‘‘(ii) the cost-of-living adjustment
under section 1(f)(3) for the calendar year
in which the taxable year begins, deter-
mined by substituting ‘calendar year 2000’
for ‘calendar year 1992’ in subparagraph
(B) thereof.
‘‘(B) ROUNDING.—If any increase deter-
mined under subparagraph (A) is not a multiple
of $500,000, such amount shall be rounded to
the nearest multiple of $500,000.
‘‘(e) CONTROLLED GROUPS.—For purposes of this
section—
‘‘(1) all employers treated as a single employer
under subsection (a) or (b) of section 52 shall be
treated as a single employer for purposes of this
subpart, and
‘‘(2) the credit (if any) determined under this
section with respect to each such employer shall be
its proportionate share of the wages giving rise to
such credit.
‘‘(f) APPLICATION OF CERTAIN OTHER RULES.—For
purposes of this section, rules similar to the rules of sec-
tion 51(k) and subsections (c) and (d) of section 52 shall
apply.’’.
(b) CREDIT TREATED AS BUSINESS CREDIT.—Sec-
tion 38(b) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘plus’’ at the end of paragraph (14), by
striking the period at the end of paragraph (15) and in-
serting ‘‘, plus’’, and by adding at the end the following
new paragraph:
‘‘(16) the United States independent film and
television production wage credit determined under
section 45G(a).’’.
(c) NO CARRYBACKS.—Subsection (d) of section 39
of the Internal Revenue Code of 1986 (relating to
carryback and carryforward of unused credits) is amended
by adding at the end the following:
‘‘(11) NO CARRYBACK OF SECTION 45G CREDIT
BEFORE EFFECTIVE DATE.—No portion of the un-
used business credit for any taxable year which is
attributable to the United States independent film
and television production wage credit determined
under section 45G may be carried back to a taxable
year ending before the date of the enactment of sec-
tion 45G.’’.
(d) DENIAL OF DOUBLE BENEFIT.—Subsection (a)
of section 280C of the Internal Revenue Code of 1986 is
amended by inserting ‘‘45G(a),’’ after ‘‘45A(a),’’.
(e) CONFORMING AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of chapter
1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new item:
‘‘Sec. 45G. United States independent film and television produc-
tion wage credit.’’.
(f) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts paid or incurred after
the date of the enactment of this Act in taxable years end-
ing after such date.
Æ