Corporations, multi-member LLCs and partnerships operating on the calendar year for tax purposes are given an extended tax deadline of September 18, 2011. Sole proprietorships and single-member LLCs are given an extended due date of October 15, 2011. Don’t get left behind for next year. Talk to us about investing today.
Why am I posting this you might ask. Here is the answer. SECTION 181 of the IRS tax code.
Section 181 “Indie” Film Tax Credit Resurrected in Tax Deal
With the signing of the new tax bill President Obama earlier this year has breathed new life into the Section 181 film tax credit that had expired at the end of 2008. Originally signed into law as part of the 2004 Jobs Creation Act, it has been resurrected as part of the new tax bill. The new tax bill extends the film tax credit to the end of 2011.
The bill allows income tax incentives for investors in independent film and television projects. Section 181 permits a 100% write-off for the cost of certain audio-visual works, regardless of what media they are destined for (e.g., theatrical, television, DVD, etc.). Read here for more Internal Revenue Code:Sec. 181. Treatment of Certain Qualified Film and Television Productions
There are some limitations to the credit, such as:
The aggregate costs do not exceed $15 million for each qualifying production ($20 million if a significant amount of the production costs are incurred in certain designated areas).
A film or television production is a qualified film or television production if 75 percent of the total compensation of the production is compensation for services performed in the United States by actors, directors, producers, and other relevant production personnel (the 75 percent test).
The incentive only applies to monies spent from US equity investors – you cannot benefit from presale and gap loans.
Television production is limited to 44 episodes.
For local investors this means there could be a way to help the budding film industry in Savannah. Currently Silver Line has three projects that qualify for this Huge tax incentive. Email us for more information.