You don’t have to be discouraged about the economy’s affect on potential investors for your film project when you get little-known help from Uncle Sam.
Thanks to Section 181 of the American Jobs Creation Act of 2004 of Congress, you can use incredible federal tax incentives to entice investors to fund your movie.
Congress’ express purpose was to keep independent film and TV production within the U.S. by providing new income tax incentives for their investors.
In order to be a “qualified film or television production,” 75% of the total compensation of the production must be “qualified compensation” for services performed in the U.S. by actors, directors, producers and other relevant production personnel.
It does not include participations and residuals. Each episode of a TV series up to 44 episodes can be treated as a qualified TV production. Unless extended, Section 181 expires Jan. 1, 2010.
