text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``United States Independent Film and 
  Television Production Incentive Act of 2003''.
  
  SEC. 2. TAX INCENTIVES FOR QUALIFIED UNITED STATES INDEPENDENT FILM AND 
                TELEVISION PRODUCTION.
  
      (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
  of the Internal Revenue Code of 1986 (relating to business related 
  credits) is amended by adding at the end the following new section:
  
  ``SEC. 45G. UNITED STATES INDEPENDENT FILM AND TELEVISION PRODUCTION 
                WAGE CREDIT.
  
      ``(a) Amount of Credit.--For purposes of section 38, the United 
  States independent film and television production wage credit 
  determined under this section with respect to any eligible taxpayer for 
  any taxable year is an amount equal to 25 percent of the qualified 
  wages paid or incurred per qualified United States independent film and 
  television production during such taxable year.
      ``(b) Only First $25,000 of Wages per Production Taken Into 
  Account.--With respect to each qualified United States independent film 
  and television production, the amount of qualified wages paid or 
  incurred to each qualified employee or personal service corporation 
  which may be taken into account per such production shall not exceed 
  $25,000.
      ``(c) Eligible Taxpayer.--For purposes of this section, the term 
  `eligible taxpayer' means any taxpayer substantially all of the total 
  gross income of which for the taxable year is derived from the active 
  conduct of qualified United States independent film and television 
  productions.
      ``(d) Qualified Wages.--For purposes of this section--
              ``(1) In general.--The term `qualified wages' means--
                      ``(A) any wages paid or incurred by an employer for 
                  services performed in the United States by an employee 
                  while such employee is a qualified employee,
                      ``(B) the employee fringe benefit expenses of the 
                  employer allocable to such services performed by such 
                  employee,
                      ``(C) any payments made to personal service 
                  corporations as defined in section 269A(b)(1) for 
                  services performed in the United States, and
                      ``(D) remuneration, other than wages, for services 
                  personally rendered in the United States.
              ``(2) Qualified employee.--
                      ``(A) In general.--The term `qualified employee' 
                  means, with respect to any period, any individual who 
                  renders personal services if substantially all of such 
                  services are performed during such period in an 
                  activity related to any qualified United States 
                  independent film and television production.
                      ``(B) Certain individuals not eligible.--Such term 
                  shall not include--
                              ``(i) any individual described in 
                          subparagraph (A), (B), or (C) of section 
                          51(i)(1), and
                              ``(ii) any 5-percent owner (as defined in 
                          section 416(i)(1)(B)).
              ``(3) Coordination with other wage credits.--No credit 
          shall be allowed under any other provision of this chapter for 
          wages paid to any employee during any taxable year if the 
          employer is allowed a credit under this section for any of such 
          wages.
              ``(4) Wages.--The term `wages' has the same meaning as when 
          used in section 51.
              ``(5) Employee fringe benefit expenses.--The term `employee 
          fringe benefit expenses' means the amount allowable as a 
          deduction under this chapter to the employer for any taxable 
          year with respect to--
                      ``(A) employer contributions under stock bonus, 
                  pension, profit-sharing, or annuity plan,
                      ``(B) employer-provided coverage under any accident 
                  or health plan for employees, and
                      ``(C) the cost of life or disability insurance 
                  provided to employees.
          Any amount treated as wages under paragraph (1)(A) shall not be 
          taken into account under this subparagraph.
      ``(e) Qualified United States Independent Film and Television 
  Production.--For purposes of this section--
              ``(1) In general.--The term `qualified United States 
          independent film and television production' means any 
          production described in paragraph (2) if--
                      ``(A) 75 percent of the total wages of the 
                  production are qualified wages,
                      ``(B) the production is created primarily for use 
                  as public entertainment or for educational purposes, 
                  and
                      ``(C) the total cost of the production which is 
                  taken into account for purposes of depreciation under 
                  section 167(g) is more than $200,000 but less than 
                  $7,500,000.
              ``(2) Production.--
                      ``(A) In general.--A production is described in 
                  this paragraph if such production is--
                              ``(i) any motion picture (whether released 
                          theatrically, for television or cable 
                          programming, or directly to video cassette or 
                          disc or any other format),
                              ``(ii) any television or cable--
                                      ``(I) mini series,
                                      ``(II) season of an episodic 
                                  television series,
                                      ``(III) movie of the week, or
                                      ``(IV) single program not described 
                                  in any preceding subclause, or
                              ``(iii) any pilot production for any of the 
                          productions described in clause (i) or (ii).
                      ``(B) Exception.--A production is not described in 
                  this paragraph if records are required under section 
                  2257 of title 18, United States Code, to be maintained 
                  with respect to any performer in such production 
                  (reporting of books, films, etc. with sexually explicit 
                  conduct).
              ``(3) Public entertainment.--The term `public 
          entertainment' includes a motion picture film, video tape, or 
          television program intended for initial broadcast via the 
          public broadcast spectrum or delivered via cable distribution, 
          or productions that are submitted to a national organization in 
          existence on July 27, 2001, that rates films for violent or 
          adult content. Such term does not include any film or tape the 
          market for which is primarily topical, is otherwise essentially 
          transitory in nature, or is produced for private noncommercial 
          use.
      ``(f) Controlled Groups.--For purposes of this section--
              ``(1) all employers treated as a single employer under 
          subsection (a) or (b) of section 52 shall be treated as a 
          single employer for purposes of this subpart, and
              ``(2) the credit (if any) determined under this section 
          with respect to each such employer shall be its proportionate 
          share of the wages giving rise to such credit.
      ``(g) Application of Certain Other Rules.--For purposes of this 
  section, rules similar to the rules of section 51(k) and subsections 
  (c) and (d) of section 52 shall apply.
      ``(h) Election To Have Credit Not Apply.--
              ``(1) In general.--A taxpayer may elect to have this 
          section not apply for any taxable year.
              ``(2) Manner of making election.--An election under 
          paragraph (1) (or revocation thereof) shall be made in such 
          manner as the Secretary may by regulations prescribe.''.
      (b) Credit Treated as Business Credit.--Section 38(b) of the 
  Internal Revenue Code of 1986 (relating to current year business 
  credit) is amended by striking ``plus'' at the end of paragraph (14), 
  by striking the period at the end of paragraph (15) and inserting ``, 
  plus'', and by adding at the end the following new paragraph:
              ``(16) the United States independent film and television 
          production wage credit determined under section 45G(a).''.
      (c) No Carrybacks.--Subsection (d) of section 39 of the Internal 
  Revenue Code of 1986 (relating to carryback and carryforward of unused 
  credits) is amended by adding at the end the following:
              ``(11) No carryback of section 45g credit before effective 
          date.--No portion of the unused business credit for any taxable 
          year which is attributable to the United States independent 
          film and television production wage credit determined under 
          section 45G may be carried back to a taxable year ending before 
          January 1, 2004.''.
      (d) Denial of Double Benefit.--Subsection (a) of section 280C of 
  the Internal Revenue Code of 1986 (relating to certain expenses for 
  which credits are available) is amended by inserting ``45G(a),'' after 
  ``45A(a),''.
      (e) Conforming Amendments.--
              (1) Section 6501(m) of the Internal Revenue Code of 1986 is 
          amended by inserting ``45G(h),'' after ``45C(d)(4),''.
              (2) The table of sections for subpart D of part IV of 
          subchapter A of chapter 1 of such Code is amended by adding at 
          the end the following new item:
  
                                ``Sec. 45G. United States independent 
                                          film and television production 
                                          wage credit.''.
      (f) Effective Date.--The amendments made by this section shall 
  apply to amounts paid or incurred in taxable years ending after 
  December 31, 2003.
target: United States Independent Film and Television Production Incentive Act of 2003 - Amends the Internal Revenue Code to establish an annual tax credit for 25 percent of up to the first $25,000 of qualified wages paid or incurred per qualified U.S. independent film and television production.
feat_title: A bill to amend the Internal Revenue Code of 1986 to allow a United States independent film and wage production credit.