President Obama signed into law on Friday, December 17, 2010 a tax package which contains the extension of Section 181 in the form of Section 744. Qualifying productions included film and television production, audiovisual, dvd programs which were produced in 2009, 2010 and which have film budgets of $15 Million or less and those which will be produced in 2011.
Section 181 provides for a 100% tax write-off for a film equity investor in entertainment productions as opposed to the standard three year staggered write-off. Know as the ‘Runaway Production” tax bill, Section 181 helps film budgets with its benefit of allowing investors to take advantage of the 100% write-off.
Film Tax Incentives
The write-off of film tax incentive can be combined the many state film tax incentive programs around the country: Michigan, New Mexico, Louisiana, Georgia, etc. Combining such film tax credits with Section 181 can contribute a substantial return to your investors which you may offer them which can be very enticing to a film financier. The government wisely realized that helping financiers focus their film investments locally can improve the film industry in the USA and was designed to help fight the flight overseas, particularly to Canada which was growing as producers sought lower production costs and the previously lower Canadian dollar exchange rate.
In todays economy and tight credit market film budgets are much more under scrutiny if able to be found at all! Film finance is at its tightest point in decades, if not a generation. While filmbudget.com is the global leader in worldwide film budgets and schedules we also figure the most advantageous place to shoot a movie or television production taking into account the local labor scenario, the best film tax incentives and of course the highest production value which the particular setting may offer.