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Provide for reconciliation pursuant to title II of H. Con. Res. 14Section 70434 › Proposal

The productions qualify for bonus depreciation on first release

To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70434, Sec. 70434. Written by .

The productions qualify for bonus depreciation on first release

The document says “shallWho acts: Secretary of the TreasuryHow: statuteSec. 70434 in the PDF
What the document says

“a qualified sound recording production shall be considered to be placed in service at the time of initial release or broadcast.”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70434

The section adds a new subclause (VI) to section 168(k)(2)(A)(i) of the Internal Revenue Code of 1986 bringing a qualified sound recording production within qualified property where a deduction would have been allowable under section 181 without regard to subsections (a)(2) and (h) or the bonus depreciation subsection, fixes two cross references in the neighboring subclauses, and adds a new clause (iii) to section 168(k)(2)(H) treating such a production as placed in service on initial release or broadcast.

What the document actually says

“a qualified sound recording production shall be considered to be placed in service at the time of initial release or broadcast.”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70434
That sentence, in plain words

The recording counts as in use from a set point. That point is its first release or broadcast.

What this is about

Being in use starts the write-off clock. The recording also joins the list for a bonus write-off. That list sits in another tax rule.

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