Matthew Savare
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Will Film Production Tax Incentive Section 181 Die?
Tonight at midnight film investors and producers will be faced with a familiar uncertainty. Section 181, the portion of the American Jobs Creation Act of 2004 incentivizing U.S.-based film production, is set to expire, and independent filmmakers will lose a powerful tool in their fundraising arsenal. Section 181 encourages film investment by allowing investors to write off the complete cost of a qualified film in the first year. (Normally, this write-off is amortized, occurring in future years as a film demonstrates that it is money-losing. If and when profits then occur, they are treated as ordinary income by investors.) Scheduled […]
by Scott Macaulay on Dec 31, 2013 -
Will The Section 181 Film Tax Incentive Be Extended?
The film tax incentive known as “Section 181” is due to expire at the end of this year, removing one enticement producers have been using to convince investors to finance independent feature films. Part of the American Jobs Creation Act of 2004, Section 181 allowed investors to write off the complete cost of a qualified film in the first year. (Normally, this write-off is amortized, occurring in future years as a film demonstrates that it is money-losing.) If and when profits then occur, they are treated as ordinary income by investors. At the close of 2009, Section 181 was similarly […]
by Scott Macaulay on Oct 25, 2011
