SCREEN Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9938 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9938

  To amend the Internal Revenue Code of 1986 to establish a credit to
   incentivize investments in movie theaters, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 23, 2026

  Ms. Tenney (for herself, Mr. Kustoff, and Mr. Carey) introduced the
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

  To amend the Internal Revenue Code of 1986 to establish a credit to
   incentivize investments in movie theaters, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Supporting Cinema Renewal,
Enhancement, and Enriching Neighborhoods Act'' or the ``SCREEN Act''.

SEC. 2. ESTABLISHMENT OF QUALIFIED MOVIE THEATER REVITALIZATION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:

``SEC. 45BB. QUALIFIED MOVIE THEATER REVITALIZATION CREDIT.

    ``(a) In General.--For purposes of section 38, the qualified movie
theater revitalization credit determined under this section for any
taxable year is an amount equal to the sum of the credit amounts
determined under subsection (b) with respect to each qualified movie
theater owned or operated by the taxpayer.
    ``(b) Credit Amount.--
            ``(1) In general.--Subject to paragraph (2), the amount
        determined under this subsection with respect to any qualified
        movie theater for any taxable year shall be equal to 30 percent
        of the qualified movie theater revitalization expenditures of
        the taxpayer for such taxable year with respect to such
        qualified movie theater.
            ``(2) Limitation.--
                    ``(A) In general.--The amount determined under this
                subsection with respect to any qualified movie theater
                for any taxable year shall not exceed the excess (if
                any) of--
                            ``(i) the applicable amount, over
                            ``(ii) the aggregate amount of credits
                        determined under this subsection with respect
                        to such qualified movie theater for all prior
                        taxable years.
                    ``(B) Applicable amount.--For purposes of
                subparagraph (A), with respect to the number of screens
                or similar video displays on which qualified motion
                pictures are regularly featured, the applicable amount
                is--
                            ``(i) $250,000, in the case of a qualified
                        movie theater with fewer than 4 such screens or
                        similar video displays,
                            ``(ii) $375,000, in the case of a qualified
                        movie theater with at least 4, but fewer than
                        10 such screens or similar video displays, and
                            ``(iii) $500,000, in the case of a
                        qualified movie theater with at least 10 such
                        screens or similar video displays.
    ``(c) Qualified Movie Theater Revitalization Expenditures.--For
purposes of this section--
            ``(1) In general.--The term `qualified movie theater
        revitalization expenditures' means, with respect to any
        taxpayer for any taxable year, any amounts paid or incurred by
        such taxpayer for tangible property (of a character subject to
        the allowance for depreciation)--
                    ``(A) the original use of which commences with the
                taxpayer during such taxable year,
                    ``(B) which is used as part of any qualified movie
                theater which has been in service for the 5-year period
                preceding the date on which such property is initially
                so used, and
                    ``(C) which can be reasonably expected to remain in
                such use for the 5-year period succeeding such date.
            ``(2) Qualified movie theater.--The term `qualified movie
        theater' means a movie theater, screening room, drive-in
        theater, or other venue located within the United States that
        is being used primarily for the exhibition of qualified motion
        pictures, if such exhibition is open to the public or is made
        to an assembled group of viewers outside of a normal circle of
        a family and its social acquaintances.
            ``(3) Qualified motion picture.--The term `qualified motion
        picture' means a copyrighted motion picture (as defined in
        section 101 of title 17, United States Code) which is rated by
        the Motion Picture Association.
    ``(d) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section in connection with any expenditure for
any property, the increase in the basis of such property which would
(but for this subsection) result from such expenditure shall be reduced
by the amount of the credit so allowed.
    ``(e) Termination.--No credit shall be allowed under this section
with respect to any amounts paid or incurred after December 31,
2030.''.
    (b) Credit Allowed as Part of General Business Credit.--Section
38(b) of such Code is amended by striking ``plus'' at the end of
paragraph (40), by striking the period at the end of paragraph (41) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
            ``(42) the qualified movie theater revitalization credit
        determined under section 45BB(a).''.
    (c) Transferability of Credit.--Section 6418(f)(1)(A) of such Code
is amended by adding at the end the following new clause:
                            ``(xiii) The qualified movie theater
                        revitalization credit determined under section
                        45BB.''.
    (d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
after the item relating to section 45AA the following new item:

``Sec. 45BB. Qualified movie theater revitalization credit.''.
    (e) Effective Date.--The amendments made by this section shall
apply with respect to amounts paid or incurred after the date of the
enactment of this Act.
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