Older movie theater owners could claim tax credits for upgrades

Eligible theater owners and operators could claim a limited tax credit covering 30% of qualifying property costs. U.S. venues must have operated for the preceding five years and mainly show copyrighted, Motion Picture Association-rated films to the public or groups beyond family and friends. The property must qualify for depreciation, which lets businesses deduct its cost over time. Its first use must begin with the taxpayer during that tax year, and it must be reasonably expected to stay in theater use for five years. Eligible costs must be paid or incurred after enactment and on or before December 31, 2030.

Total credits for each eligible theater would be capped across all years. The cap would be $250,000 for fewer than four screens, $375,000 for four through nine, and $500,000 for ten or more. The screen count covers screens regularly showing qualifying films. Claiming the credit would reduce the property's value for tax purposes by the credit amount.