In the last throws of the dwindling days of 2012 a largely untapped source of film finance has encouragingly been renewed. First reports have come to light about the renewal which was included in the Fiscal Cliff aversion talks.
Films from 2012 applying correct documentation and for all of 2013 will have the film tax benefit available to their investors. Based upon their tax structures the investment in film subject to tax relief is a hard won achievement for the creative film and television industry.
Filmmakers are required to announced their Section 181 plans in their first tax returns. Investors can take 100% of their investment as tax relief as opposed to amortizing over several years as generally allowed. The relief is capped at $15 Million for feature films, which is increased to $20 Million for “distressed” locations. Television programs qualify for the first 44 episodes.
When presenting such film finance plans to investors it is critical to have an accurate representation of the true cost of the production. This is critically important to the planning of the investor to precisely know how much his financial input is required.
Contact Filmbudget.com for details on utilizing Section 181 and an accurate, major studio proven film budget package to know for yourself and demonstrate to investors the true cost of the production expenditure on your movie.
Film Producer Jack Binder (‘Reign Over Me’, ‘The Upside of Anger’) has been producing movie and television production for over twenty years and continues under his international film production company Greentrees Films. As the founder of Filmbudget.com Jack continues to provide the film and television industry with quality film budgets and shooting schedule breakdown services.
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.