tax incentives
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“My Advice Is To Basically Get Help”: Industry Experts Explain The Quirks And Nuances Of Tax Incentives
If there’s one basic, all-encompassing piece of advice to take away from the IFP Week 2019 panel “Where Do We Go From Here?” concerning those crippling migraines known as tax incentives it’s this: Talk to someone. Even if you’re that rare filmmaker with a head for business, tax incentives (and grants, and rebates) can be mind-foggingly complicated. “Talk to someone” and variations on it are uttered again and again by the three panelists and their moderator, John Hadity, an industry veteran who knows as much about the subject as they do. “All the programs, they sound familiar,” Hadity said. “But […]
by Matt Prigge on Sep 20, 2019 -
No Money, No Problem?
They’re the two most beautiful words in the cinematic language: tax credits. Almost no one who practices the seventh art got into it to learn about business; if anything, they got into it to avoid it altogether. Alas, it’s almost impossible to participate in the most expensive art form without being at least semi-fluent in business jargon. State film tax incentives are a crucial part of most American films’ financing these days, be they giant Marvel productions filming in incentive-rich Atlanta or a tiny indie shooting in Albuquerque, mere miles from the set of Better Call Saul. As of this […]
by Matt Prigge on Mar 14, 2019 -
Income Forecasting
“There’s a great infrastructure, and the credit is solid,” said Entertainment Partners (EP) executive vice president, John Hadity, in these pages one year ago about the New York State Film Production Tax Credit Program. Governor Andrew Cuomo had just extended its sunset date until 2022, with $420 million in annual funds appropriated. “That means television series that do their planning 18 to 24 months in advance have certainty that the program is going to be around for another few years,” he said. But just a year later, Hadity cites the New York program as one of his worries when surveying […]
by Scott Macaulay on Mar 14, 2019 -
Cash Back: How Film Tax Incentives Work
Let’s assume you got into filmmaking because you wanted nothing to do with business school. Well, tough. Movies are the most expensive art form; even ones they call “no-budget” aren’t. You need to learn about business eventually, and in today’s world, even independent filmmakers need to understand terms like “transferable rebates,” “soft money” and “100 percent deductibility.” In fact, there’s one financing term both Hollywood and independent producers must know: “tax credits.” The studio world is continually on the lookout for states offering production rebates that will reduce the cost of their movies and TV shows, while independent producers scout […]
by Matt Prigge on Mar 8, 2018 -
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 -
SARAH PALIN DEFENDS FILM TAX INCENTIVES
In my review of 2010 in film, appearing in the Winter issue of Filmmaker soon to depart newsstands, I predicted controversy in 2011 over state film tax credit and incentive programs. That controversy has today landed on an unlikely target: Sarah Palin. First, here’s what I wrote: In December, Wall Street analyst Meredith Whitney made waves when she predicted a wave of municipal bond defaults, highlighting the perilous financial position of recession-strapped state and local governments. Indeed, independent filmmakers might find their beloved film incentive and rebate programs impacted in 2011. The seeds of this began in late 2010, with […]
by Scott Macaulay on Mar 30, 2011 -
NEW JERSEY CONSIDERS TAX CREDIT SUSPENSION
The bad news regarding state film and television tax credits for films continues. Yesterday, it was reported that Pennsylvania is out of money for new projects applying for their incentive. Now, New Jersey is contemplating halting their incentive for fiscal year 2011, which begins July 1, 2010. Here is a letter I received from Tax Credits LLC. Senator Paul A. Sarlo, Chairman of the Senate Budget and Appropriations Committee, has called a special public Committee hearing to discuss the future of New Jersey’s Film and Digital Media Tax Credit Program. The Hearing will take place on Wednesday, June 9th, from […]
by Scott Macaulay on Jun 4, 2010
