SECTION 2. DEFINITIONS

The following definitions apply solely for the purpose of this revenue procedure:

.01 Creative property costs . Costs paid or incurred for federal tax purposes to acquire and develop screenplays, scripts, story outlines, motion picture production rights to books and plays, and other similar properties (creative properties) for purposes of potential future film development, production, and exploitation.

.02 Film . Feature films, television specials, television series, and similar products (including animated films and television programming) that are sold, licensed or exhibited, whether produced on film, videotape, digital, or other video recording format.

.03 Set for production . Management, with relevant authority, implicitly or explicitly authorizes and commits to funding the production of a film, active pre-production has begun, and the start of principal photography is expected to begin within 6 months of being set for production.

.04 SOP 00–2 . The American Institute of Certified Public Accountants (AICPA) Statement of Position (SOP) 00–2, “Accounting for Producers or Distributors of Films.”

.05 Initial write-off . The earliest date on which the taxpayer properly writes off under SOP 00–2 any creative property costs

paid or incurred with respect to a particular creative property.