CREATE Act Doubles Tax Benefit Caps for Film/TV Production, Adds Inflation Guardrails, and Extends Program to 2030

The Creative Relief and Expensing for Audio and Television Enterprises Act, or the CREATE Act, is all about making it easier and more financially attractive for production companies to create movies and TV shows. This bill is essentially an upgrade to an existing tax benefit program for what the law calls “qualified productions.” It makes three major changes: it significantly increases the amount of spending eligible for these tax breaks, it extends the program’s deadline, and it finally introduces inflation adjustments so the benefits don’t lose value over time. These changes apply to productions starting in tax years ending after December 31, 2025.

Bigger Budgets, Bigger Breaks

The most immediate impact of the CREATE Act is the jump in spending caps. For one category of qualified productions, the maximum amount of spending eligible for the benefit is doubling from $15 million to $30 million. For another category, the cap is increasing from $15 million to $20 million, and the threshold for the next tier jumps from $30 million to $40 million (SEC. 2). What does this mean in real life? If you're a production company, you can now spend significantly more on your project—hiring more crew, renting more equipment, and building bigger sets—while still maximizing your tax benefits. This is a direct financial incentive to greenlight larger, more ambitious projects, which is great news for everyone working in the production pipeline, from grips and electricians to caterers and local suppliers.

Inflation-Proofing the Incentives

One of the smartest long-term moves in this bill is the introduction of automatic inflation adjustments. Starting in tax years after 2026, the spending limits mentioned above will automatically increase based on cost-of-living adjustments (SEC. 2). Why does this matter? Tax benefits often lose their value over time as inflation eats away at the purchasing power of a dollar. By tying these caps to inflation, the bill ensures that the tax break remains a meaningful incentive for production companies for years to come. This provides crucial stability and predictability for an industry that relies on long-term planning and investment.

Extending the Deadline and the Cost

Finally, the bill extends the program’s sunset date, pushing the termination from December 31, 2025, back to December 31, 2030 (SEC. 2). This five-year extension provides certainty to the industry, ensuring the tax breaks will be available for nearly another decade. However, extending the program and doubling the spending caps means the federal government will be foregoing significantly more tax revenue. While this is a direct benefit to the media industry and the local economies where production takes place, it translates to a higher cost carried by the general taxpayer. Like any tax incentive, the question is always whether the economic activity generated justifies the cost in foregone revenue.