The Senate voted 52 to 45 today to strip from the massive stimulus package a $246 million provision that would have allowed the film industry to take accelerated depreciation on equipment costs in 2009.
The movie industry, already hampered by a credit crunch that makes it harder for filmmakers to raise capital, wanted parity with other industries. So it asked Congress to extend to the movies the “bonus depreciation” offered to other sectors of the economy, allowing businesses to write off 50% of their equipment costs for this year.
“We see no reason why the film industry should be excluded,” said Michael O’Leary, senior vice president for the Motion Picture Assn.