Incentives, Tax Credits and Rebates
Updates courtesy www.Production Tax Credits.com
Film Budget to begin focus on Michigan
The State of Michigan in a few days will implement the strongest Film Production Tax Incentive in the U.S.
A 40% Film Tax Incentive will be announced.
Contact us for definitive information on Film Budgets.
Film Budgets will not be capped, nor will the Credit. Out of State crew will be eligible, capped at $2 million per crew member.
Credit will be paid within 90 days.
Additional Funding for Investment in Digital Filmmaking and infrastructure.
More information will be posted here shortly. Bookmark this page and check back.
This will create a large influx of production spending to Michigan.
Contact us with regards to filming and Production Tax Incentives, film budgets worldwide film and television production services and feature film funding consultants.
We are from Michigan, but based in Los Angeles for 25 years of filmmaking in the U.S. and abroad.
We are a Global Production Company
U.K. Government Closes Tax Loophole - Major Effect on Film Financing
March 12, 2008
U.K. closes tax loop hole
'Sole trader' schemes outlawed
By ADAM DAWTREY
The British government has clamped down again on film-financing efforts that exploit loopholes in U.K. tax laws. Over the past year, financiers such as Scion, Ingenious, Future and Prescience have quietly used these loopholes to pour millions of pounds into movies from U.S. studios and indie producers.
The government will shut down these so-called sole trader arrangements. But the official tax credits for film production will continue unaffected.
In its annual budget Wednesday, the government announced that individual investors -- sole traders -- will no longer be able to use "sideways loss relief" -- by which investors, in their tax returns, offset predicted losses on film investment against other income -- unless they can prove they are actively engaged in the business.
Financiers have been using sole trader strategies to bankroll significant volumes of film production in the past year, after the government blocked investment partnerships from using sideways loss relief in March 2007.
For example, Scion has co-financed a package of Universal and Focus movies, including "Burn After Reading," "Frost/Nixon," "The Changeling," "Death Race 2000" and "Repossession Mambo" as well as indie pics including "My Life in Ruins."
Ingenious has backed a handful of low-budget pics from Brit producers Vertigo Films and Independent, such as "Faintheart" and "Dogging." Prescience invested in Ealing's "Easy Virtue."
Typically, sole trader arrangements invest up to 30% of a film's budget.
The full extent of such financing is hard to identify because the companies involved have been doing their best to keep the details confidential to avoid attention from the government. Some sources believe the Hollywood studios have secretly tapped hundreds of millions of dollars from sole traders.
All the financiers privately expected sole trader efforts to be shut down once the government realized what was going on.
"Sole trading has had a longer lifespan than we first anticipated," one financier confided.
A U.K. Film Council spokesman said: "We have made clear over and over again that the government will take action against tax avoidance schemes, and that's what they've done today. The only specific tax relief for the production of films is the film tax relief, which has been structured to help filmmakers; everything else has a large health warning attached to it."