Deduction for film production costs: subsidies and untaxed regional receipts reduce the taxable production cost basis. Deduction for production expenditure reduces the film's cost of production by government subsidies not taxed and by untaxed receipts for regional films; excluded items include positive print preparation and post-certification advertising. Qualification requires commercial exhibition or sale of exhibition rights, with full application only if released commercially ninety days before year end. If not released within that period, deduction in the year is limited to amounts realized from exhibition or sale, with any shortfall carried forward.