H.R. 9938

119 HR 9938 IH: Supporting Cinema Renewal, Enhancement, and Enriching Neighborhoods Act
 U.S. House of Representatives
 2026-07-23
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 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I  119th CONGRESS  2d Session  H. R. 9938  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.
1.
Short title
This Act may be cited as the   Supporting Cinema Renewal, Enhancement, and Enriching Neighborhoods Act   or the   SCREEN Act  .
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:
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.