Source: http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section181&num=0&edition=prelim
Timestamp: 2019-04-22 18:01:52+00:00

Document:
A taxpayer may elect to treat the cost of any qualified film or television production, and any qualified live theatrical production, as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction.
Paragraph (1) shall not apply to so much of the aggregate cost of any qualified film or television production or any qualified live theatrical production as exceeds $15,000,000.
subparagraph (A) shall be applied by substituting "$20,000,000" for "$15,000,000".
With respect to the basis of any qualified film or television production or any qualified live theatrical production to which an election is made under subsection (a), no other depreciation or amortization deduction shall be allowable.
An election under this section with respect to any qualified film or television production or any qualified live theatrical production shall be made in such manner as prescribed by the Secretary and by the due date (including extensions) for filing the taxpayer's return of tax under this chapter for the taxable year in which costs of the production are first incurred.
Any election made under this section may not be revoked without the consent of the Secretary.
The term "qualified film or television production" means any production described in paragraph (2) if 75 percent of the total compensation of the production is qualified compensation.
A production is described in this paragraph if such production is property described in section 168(f)(3).
(ii) only the first 44 episodes of such series shall be taken into account.
A production is not described in this paragraph if records are required under section 2257 of title 18, United States Code, to be maintained with respect to any performer in such production.
The term "qualified compensation" means compensation for services performed in the United States by actors, production personnel, directors, and producers.
The term "compensation" does not include participations and residuals (as defined in section 167(g)(7)(B)).
The term "qualified live theatrical production" means any production described in paragraph (2) if 75 percent of the total compensation of the production is qualified compensation (as defined in subsection (d)(3)).
A production is described in this paragraph if such production is a live staged production of a play (with or without music) which is derived from a written book or script and is produced or presented by a taxable entity in any venue which has an audience capacity of not more than 3,000 or a series of venues the majority of which have an audience capacity of not more than 3,000.
each such live staged production shall be treated as a separate production.
(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.
In the case of a live staged production not described in subparagraph (B) which is produced or presented by a taxable entity for not more than 10 weeks of the taxable year, subparagraph (A) shall be applied by substituting "6,500" for "3,000".
For purposes of clause (i), in the case of any taxable year of less than 12 months, the number of weeks for which a production is produced or presented shall be annualized by multiplying the number of weeks the production is produced or presented during such taxable year by 12 and dividing the result by the number of months in such taxable year.
A production is not described in this paragraph if such production includes or consists of any performance of conduct described in section 2257(h)(1) of title 18, United States Code.
For purposes of this section, rules similar to the rules of subsections (b)(2) and (c)(4) of section 194 shall apply.
This section shall not apply to qualified film and television productions or qualified live theatrical productions commencing after December 31, 2017.
A prior section 181, Pub. L. 87–834, §2(c), Oct. 16, 1962, 76 Stat. 970 , related to a deduction for unused investment credit, prior to repeal by Pub. L. 88–272, title II, §203(a)(3)(B), (4), Feb. 26, 1964, 78 Stat. 34 , applicable in case of property placed in service after Dec. 31, 1963, with respect to taxable years ending after such date, and in case of property placed in service before Jan. 1, 1964, with respect to taxable years beginning after Dec. 31, 1963.
2018-Subsec. (g). Pub. L. 115–123 substituted "December 31, 2017" for "December 31, 2016".
2015-Pub. L. 114–113, §169(b)(2)(C), inserted "and live theatrical" after "film and television" in section catchline.
Subsec. (a)(1). Pub. L. 114–113, §169(b)(1), inserted ", and any qualified live theatrical production," after "any qualified film or television production".
Subsecs. (a)(2)(A), (B), (b), (c)(1). Pub. L. 114–113, §169(b)(2)(A), inserted "or any qualified live theatrical production" after "qualified film or television production".
Subsec. (e). Pub. L. 114–113, §169(c)(2), added subsec. (e). Former subsec. (e) redesignated (f).
Subsec. (f). Pub. L. 114–113, §169(c)(1), redesignated subsec. (e) as (f). Former subsec. (f) redesignated (g).
Pub. L. 114–113, §169(b)(2)(B), which directed insertion of "or qualified live theatrical productions" after "qualified film or television productions", was executed by making the insertion after "qualified film and television productions", to reflect the probable intent of Congress.
Pub. L. 114–113, §169(a), substituted "December 31, 2016" for "December 31, 2014".
Subsec. (g). Pub. L. 114–113, §169(c)(1), redesignated subsec. (f) as (g).
2014-Subsec. (f). Pub. L. 113–295 substituted "December 31, 2014" for "December 31, 2013".
2013-Subsec. (f). Pub. L. 112–240 substituted "December 31, 2013" for "December 31, 2011".
2010-Subsec. (f). Pub. L. 111–312 substituted "December 31, 2011" for "December 31, 2009".
2008-Subsec. (a)(2)(A). Pub. L. 110–343, §502(b), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: "Paragraph (1) shall not apply to any qualified film or television production the aggregate cost of which exceeds $15,000,000."
Subsec. (d)(3)(A). Pub. L. 110–343, §502(d), substituted "actors, production personnel, directors, and producers." for "actors, directors, producers, and other relevant production personnel."
Subsec. (f). Pub. L. 110–343, §502(a), substituted "December 31, 2009" for "December 31, 2008".
2005-Subsec. (d)(2). Pub. L. 109–135 struck out "For purposes of a television series, only the first 44 episodes of such series may be taken into account." at end of subpar. (A), added subpar. (B), and redesignated former subpar. (B) as (C).
Pub. L. 115–123, div. D, title I, §40308(b), Feb. 9, 2018, 132 Stat. 146 , provided that: "The amendment made by this section [amending this section] shall apply to productions commencing after December 31, 2016."
"(1) Extension.-The amendment made by subsection (a) [amending this section] shall apply to productions commencing after December 31, 2014.
"(A) In general.-The amendments made by subsections (b) and (c) [amending this section] shall apply to productions commencing after December 31, 2015.
"(B) Commencement.-For purposes of subparagraph (A), the date on which a qualified live theatrical production commences is the date of the first public performance of such production for a paying audience."
Pub. L. 113–295, div. A, title I, §129(b), Dec. 19, 2014, 128 Stat. 4018 , provided that: "The amendment made by this section [amending this section] shall apply to productions commencing after December 31, 2013."
Pub. L. 112–240, title III, §317(b), Jan. 2, 2013, 126 Stat. 2331 , provided that: "The amendment made by this section [amending this section] shall apply to productions commencing after December 31, 2011."
Pub. L. 111–312, title VII, §744(b), Dec. 17, 2010, 124 Stat. 3319 , provided that: "The amendment made by this section [amending this section] shall apply to productions commencing after December 31, 2009."
"(1) In general.-Except as otherwise provided in this subsection, the amendments made by this section [amending this section and section 199 of this title] shall apply to qualified film and television productions commencing after December 31, 2007.
"(2) Deduction.-The amendments made by subsection (c) [amending section 199 of this title] shall apply to taxable years beginning after December 31, 2007."
Amendment by Pub. L. 109–135 effective as if included in the provision of the American Jobs Creation Act of 2004, Pub. L. 108–357, to which such amendment relates, see section 403(nn) of Pub. L. 109–135, set out as a note under section 26 of this title.
Pub. L. 108–357, title II, §244(c), Oct. 22, 2004, 118 Stat. 1447 , provided that: "The amendments made by this section [enacting this section] shall apply to qualified film and television productions (as defined in section 181(d)(1) of the Internal Revenue Code of 1986, as added by this section) commencing after the date of the enactment of this Act [Oct. 22, 2004]."

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 §203
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 §502
 §502
 §502
 §40308
 §129
 §317
 §744
 §244