October
1 Hollywood & the Bailout II

The Senate-passed bailout bill does include sweeteners that will benefit Hollywood --- just don't call them pork.

The bill includes tax incentives intended to curb runaway production.

The entertainment industry stands to gain from new provisions that would revise tax statutes that extend tax breaks to movie and TV producers, providing a boon in the form of more production in the U.S. and more jobs created, boosters say.

The provision, which was championed by Sen. Diane Feinstein (D-Calif.), would allow producers to benefit from a 32% tax rate, rather than 35%, a reduction already enjoyed by other American manufacturers. MPAA chairman Dan Glickman has been pushing for the new provision for some time, and it had been part of an existing tax bill that was merged into the bailout package.

Another provision would let producers deduct the cost of a production up to $15 million, even if the budget exceeds that amount. It had previously applied only to movies with total budgets less than $15 million.

Also included in the bill are an array of tax breaks, including one for certain wooden arrows used by children, another benefiting litigants in the 1989 Exxon Valdez oil spill, and some $8 billion in tax relief for those hit by natural disasters.

The bill passed the Senate this evening 74-25. The House is expected to vote on the bailout plan later this week.