Treatment of Certain Qualified Sound Recording Productions
Section 70434 · Sec. 70434 ·
What this chapter is about
This part lets a sound recording made in the United States be written off at once. The break is capped at $150,000 a year. The recording also counts for a bonus write-off. It is treated as in use when it is first released.
“Section 181(a)(1) is amended by striking "qualified film or television production, and any qualified live theatrical production," and inserting "qualified film or television production, any qualified live theatrical production, and any qualified sound recording production".”
The section adds any qualified sound recording production to the list in section 181(a)(1) of the Internal Revenue Code of 1986, and makes the same addition in subsections (b), (c) and the redesignated subsection (h) so the new term runs through the section. The section heading and the table of sections item are reworded to treatment of certain qualified productions.
What the document actually says
“Section 181(a)(1) is amended by striking "qualified film or television production, and any qualified live theatrical production," and inserting "qualified film or television production, any qualified live theatrical production, and any qualified sound recording production".”
That sentence, in plain words
A phrase is taken out of a tax rule. A longer one is put in. The new one adds sound recording productions.
What this is about
Film and live theater were already on the list. The same addition is made in three more spots. The section heading is reworded to match.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70434 in the PDF
What the document says
“Paragraph (1) shall not apply to so much of the aggregate cost of any qualified sound recording production, or to so much of the aggregate, cumulative cost of all such qualified sound recording productions in the taxable year, as exceeds $150,000.”
The section adds a new subparagraph (C) to section 181(a)(2) of the Internal Revenue Code of 1986 so that the expensing rule does not reach cost above $150,000, whether on one production or on all such productions in the taxable year.
What the document actually says
“Paragraph (1) shall not apply to so much of the aggregate cost of any qualified sound recording production, or to so much of the aggregate, cumulative cost of all such qualified sound recording productions in the taxable year, as exceeds $150,000.”
That sentence, in plain words
The break does not reach cost above $150,000. That cap covers one recording. It also covers all such recordings in the year.
What this is about
Cost above the cap is written off the normal way. The cap does not grow with prices. It is fixed in the law.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“the term `qualified sound recording production' means a sound recording (as defined in section 101 of title 17, United States Code) produced and recorded in the United States.”
The section inserts a new subsection (f) into section 181 of the Internal Revenue Code of 1986, redesignating subsections (f) and (g) as (g) and (h), defining a qualified sound recording production as a sound recording as defined in section 101 of title 17, United States Code that is produced and recorded in the United States.
What the document actually says
“the term `qualified sound recording production' means a sound recording (as defined in section 101 of title 17, United States Code) produced and recorded in the United States.”
That sentence, in plain words
The term covers a sound recording. A copyright law says what that is. It must be made and taped in the United States.
What this is about
Both steps must happen here. A recording made abroad does not count. That copyright law is not indexed here.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who 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.”
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.”
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.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70434 in the PDF
What the document says
“The amendments made by this section shall apply to productions commencing in taxable years ending after the date of the enactment of this Act.”
The section applies its amendments to productions commencing in taxable years ending after the date of enactment.
What the document actually says
“The amendments made by this section shall apply to productions commencing in taxable years ending after the date of the enactment of this Act.”
That sentence, in plain words
The changes reach work that starts in tax years ending after this law passed.
What this is about
Work that started earlier is not touched. The old rules still hold for it. The date is the day this law passed.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: add sound recording productions to the expensing election, cap the amount at $150,000, define a qualified sound recording production, bring the productions within the bonus depreciation rules and fix when they count as placed in service, and set the effective date.
The parallel wording changes in subsections (b), (c) and (h) of section 181 that carry the new term through, and the conforming heading and table of sections changes.
The section works by amending sections 168 and 181 of the Internal Revenue Code of 1986 and points to section 101 of title 17, United States Code, neither of which is indexed here.
