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Film and TV Tax Incentives Renewed in Fiscal Cliff Deal, Section 181 Extended Through 2013

01.2.13 @ 5:25PM Tags : budget, financing, incentives, investment, irs, money, taxes

If you’re involved in the film or TV industry in any way, there’s a good chance you or someone you know has benefitted from Section 181 of the U.S. IRS Tax Code since it was established in 2004. Basically, it gives any investor the ability to deduct 100% of the money they invest in that same year for production costs up to $15 million dollars — and possibly as much as $20 million dollars. The good news is that as part of the last minute “Fiscal Cliff” deal, Section 181 has been renewed for 2013, which means that investors have a federal incentive to put money into a project, in addition to the various state tax incentives. More »

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Your Film May Be More Appealing to Investors if You Start* by the End of the Year

10.12.11 @ 10:37AM Tags : budget, financing, incentives, indiewire, investment, irs, money, taxes

Did you know that for the last seven years, film investors could tax-deduct the entirety of their film investment (up to $20 million), in the same year they made the investment, regardless of whether the film made a profit or loss? This has been possible thanks to IRS Code Section 181, which, according to indieWIRE, is the only federal tax credit available for independent film investors. Section 181 is set to expire at the end of 2011, however, and is not likely to be renewed. So if you’re looking for investment in a film project of yours, and you want to entice investors with this significant deduction, you’ve got a little over two months to get started — and by “get started,” I mean getting your paperwork in order and filming at least one day (thus the reason for the asterisk). More »