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 endangered, but after a hiatus Congress signed an extension. Could the same thing happen this year?
Matthew Savare, an attorney at Lowenstein Sandler PC, isn’t holding his breath. “Although I’m hopeful Congress will renew Section 181 as it did last year, I’m very skeptical that will happen,” Savare says. “The political climate is...
At the close of 2009, Section 181 was similarly endangered, but after a hiatus Congress signed an extension. Could the same thing happen this year?
Matthew Savare, an attorney at Lowenstein Sandler PC, isn’t holding his breath. “Although I’m hopeful Congress will renew Section 181 as it did last year, I’m very skeptical that will happen,” Savare says. “The political climate is...
- 10/25/2011
- by Scott Macaulay
- Filmmaker Magazine - Blog
Film finance expert Jeff Steele has announced the launch of a new firm, Film Closings, which will specialize in the packaging and closing of film-finance deals. Based in Los Angeles and Chicago, Film Closings will focus on the management and development of financial solutions and strategies for agencies, management firms, foreign sales companies and independent producers. Steele, who blogs regularly for TheWrap and The Huffington Post, will serve as CEO of the company, which is offering its services to filmmakers working on movies of all budget ranges. "Financial closings can take anywhere from...
- 1/13/2011
- The Wrap
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