I 
108TH CONGRESS 
1ST SESSION 
H. R. 715
To amend the Internal Revenue Code of 1986 to allow a United States 
independent film and television production wage credit. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 12, 2003
Mr. DREIER (for himself, Mr. RANGEL, Ms. DUNN, Mr. BERMAN, Mr. FOLEY, 
Mr. MATSUI, Mrs. BONO, Mr. BECERRA, Mr. WELLER, Mr. ABER-
CROMBIE, Mr. BACA, Mr. BLUMENAUER, Ms. BORDALLO, Mr. BOUCHER, 
Mr. CALVERT, Mrs. CAPPS, Mr. COBLE, Mr. DOYLE, Mr. FARR, Mr. FIL-
NER, Mr. FROST, Mr. GIBBONS, Mr. GREENWOOD, Ms. HARMAN, Mr. 
JOHN, Mrs. JOHNSON of Connecticut, Mr. KELLER, Mr. LANTOS, Mr. 
MCINTYRE, Mr. MCKEON, Mr. MCGOVERN, Ms. MILLENDER-MCDON-
ALD, Mrs. MYRICK, Mr. NADLER, Mr. PRICE of North Carolina, Mr. 
RADANOVICH, Ms. ROYBAL-ALLARD, Mr. SCHIFF, Mr. SHERMAN, Ms. 
SLAUGHTER, Mr. SMITH of Texas, Mr. TAUZIN, Mr. THOMPSON of Cali-
fornia, Ms. WATSON, Mr. WAXMAN, Mr. WEXLER, and Ms. WOOLSEY) 
introduced the following bill; which was referred to the Committee on 
Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
United States independent film and television production 
wage credit.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘United States Inde-
pendent Film and Television Production Incentive Act of 
2003’’. 
SEC. 2. TAX INCENTIVES FOR QUALIFIED UNITED STATES 
INDEPENDENT FILM AND TELEVISION PRO-
DUCTION. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45G. UNITED STATES INDEPENDENT FILM AND TELE-
VISION PRODUCTION WAGE CREDIT. 
‘‘(a) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—For purposes of section 38, 
the United States independent film and television 
production wage credit determined under this section 
with respect to any taxpayer for any taxable year is 
an amount equal to 25 percent of the qualified 
wages paid or incurred per qualified United States 
independent film and television production during 
such taxable year. 
‘‘(2) HIGHER PERCENTAGE FOR PRODUCTION 
EMPLOYMENT IN CERTAIN AREAS.—In the case of 
qualified employees in any qualified United States 
independent film and television production located in
an area eligible for designation as a low-income com-
munity under section 45D or eligible for designation 
by the Delta Regional Authority as a distressed 
county or isolated area of distress, paragraph (1) 
shall be applied by substituting ‘35 percent’ for ‘25 
percent’. 
‘‘(b) ONLY FIRST $25,000 OF WAGES PER PRODUC-
TION TAKEN INTO ACCOUNT.—With respect to each quali-
fied United States independent film and television produc-
tion, the amount of qualified wages paid or incurred to 
each qualified employee or personal service corporation 
which may be taken into account per such production shall 
not exceed $25,000. 
‘‘(c) QUALIFIED WAGES.—For purposes of this sec-
tion—
‘‘(1) IN GENERAL.—The term ‘qualified wages’ 
means—
‘‘(A) any wages paid or incurred by an em-
ployer for services performed in the United 
States by an employee while such employee is a 
qualified employee, 
‘‘(B) the employee fringe benefit expenses 
of the employer allocable to such services per-
formed by such employee,
‘‘(C) any payments made to personal serv-
ice 
corporations 
as 
defined 
in 
section 
269A(b)(1) for services performed in the United 
States, and 
‘‘(D) renumeration, other than wages, for 
services personally rendered in the United 
States. 
‘‘(2) QUALIFIED EMPLOYEE.—
‘‘(A) IN
GENERAL.—The term ‘qualified 
employee’ means, with respect to any period, 
any individual who renders personal services if 
substantially all of such services are performed 
during such period in an activity related to any 
qualified United States independent film and 
television production. 
‘‘(B) CERTAIN
INDIVIDUALS
NOT
ELIGI-
BLE.—Such term shall not include—
‘‘(i) any individual described in sub-
paragraph (A), (B), or (C) of section 
51(i)(1), and 
‘‘(ii) any 5-percent owner (as defined 
in section 416(i)(1)(B). 
‘‘(3) COORDINATION WITH OTHER WAGE CRED-
ITS.—No credit shall be allowed under any other 
provision of this chapter for wages paid to any em-