Dreier Applauds Passage of the American Jobs Creation Act
Includes Provisions to Stem Runaway Production
 

October 8, 2004

WASHINGTON, D.C. - Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee, today praised House passage of the conference report for H.R. 4520, the American Jobs Creation Act, 280-141. The Act will end European Union sanctions on U.S. manufacturers, businesses and farmers and reform our tax laws to provide pro-growth tax relief for American job creators. Dreier singled out the measure’s inclusion of a tax incentive designed to stem runaway production and encourage television and film production here in the United States.

“I want to commend Chairman Thomas and Chairman Grassley for recognizing the ever-growing problem of runaway production,” Dreier stated. “For years, countries like Canada, the United Kingdom, and New Zealand have used tax benefits to lure film and television production away from California and many other areas of the United States. This has particularly hurt workers who support the entertainment community – local truck drivers, caterers, florists, and hotel workers.”

Last year, Congressman Dreier introduced legislation with Congressman Howard Berman (D-Van Nuys) that would have also provided a tax incentive to encourage film and television production here in the United States. H.R. 715, The United States Independent Film and Television Production Incentive Act of 2003, and the provisions in H.R. 4520 are different in form but united in their objective.

“We can only compete with our global competitors and create jobs here at home if we make entertainment production as attractive in America as it is across our borders,” Dreier said. “H.R. 4520 does just that by leveling the playing field and encouraging film and television-making in the United States.”

The American Jobs Creation Act will allow an immediate tax deduction for the production cost of qualifying film and television productions which cost no more than $15 million. That threshold increases to $20 million if a significant amount of production costs are incurred in low-income communities. These provisions will expire at the end of 2008.