New Integrity Films Section 181
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2021 NEWS -- SECTION 181 FILM PRODUCTION TAX DEDUCTION EXTENDED TO 2025 !!!!

How your investment is assured a return of 50-100% for Film & Television production in the United States.
If you are an individual Investor, Private Equity Firm, Hedge Fund, HNW Investor, Asset Manager, Fund Of Fund, or Regional Company and are looking for a high-yield, absolute-return alternative investment that also can generate substantial Federal and State Tax Incentives, Credits, Cash Rebates, while at the same time be part of a structured film finance opportunity that can offer an absolute return of 50-100% on capital before revenues, offer long-term multiple exit strategies, and liquidity options, then continue reading.

Investing in Motion Pictures is the best investment going

MINIMIZING INVESTOR RISK with United States Film Subsidies
The American Jobs Creation Act Of 2004 and the 2004 enactment of Section 181, marked an unprecedented change in U.S. policy toward the phenomenon known as "Runaway Production" for the film industry. Hollywood, like many American industries, had grown tired of the high cost of labor and taxes in the United States. Canada and other countries identified the potential financial benefit and took advantage by successfully luring American film and television production onto their soil, taking enormous amounts of production dollars with them. The government’s reaction was to include Section 181, originally within the American Jobs Creation Act of 2004. Section 181 offers tax incentives for investors in independent film and television productions produced within the United States.

SECTION 181: You’ve heard of farming subsidies. A number of years back savvy film lobbyists created subsidies for the film industry. As they outlined the dangers of runaway film production to Canada, Eastern Europe and Australia, Congress passed legislation that resulted in Section 181 of the IRS Tax Code. Put simply, Section 181 states that investment in a motion picture shot in the US is 100% tax deductable for the investor in the same year invested. Under Section 181 an investor may deduct the money which is invested in a film or television production from his or her passive income earned in the same year. If the investor is actively involved in the operation of the production, he or she may deduct the amount of investment from all active income earned in the same year. Productions with budgets below $15,000,000 (up to $20,000,000) which have at least seventy-five percent 75% of its production completed within the United States qualify under Section 181. Investors can be either individuals or businesses.

Investor broad strokes for the 181 Tax Deduction:

-100% of the motion picture costs are deductible in year of investment.
- 75% of the motion picture must be shot in the U.S. to qualify.
- There is a 15 to 20 million dollar budget cap.
- There is no minimum film production budget cost.
- TV pilots, TV episodes, short films, music videos and feature films qualify.
- Section 181 can be applied to active income or passive income.
- Investors can be either individuals or businesses.
- Deduction can be claimed regardless of film's completion/distribution.
- The motion picture’s corporation issues Schedule K-1’s to the investors.
- 181 applies to the puchase of unreleased motion picture content.
  Keep film production in the United States

WHAT IT MEANS FOR INVESTORS:
Tax rebates and incentives for money spent on film or television production within a particular state combined with the benefits of Section 181 allow an investor (working with cooperative film producers) to greatly minimize his or her risk on what would ordinarily be considered a risky investment. For example, if a tax payer is in the thirty-five percent (35%) tax bracket and a qualifying film is shot in a US state (see below) offering thirty percent (30%), an investor will be eligible to recapture conceptually sixty five percent (65%) of their investment in a qualifying production. This recapture can be realized before the film is released and/or makes its first dollar.

GOVERNMENT SPONSORSHIP: State Film Incentives passed onto Investor
In addition to the Section 181 tax deduction, the motion picture can be filmed in a state with rebates or transferrable tax credits. If the film Producers elect to do so, they can pass this subsidy onto our investors upon release of the rebate. As an example, if a $1,000,00.00 movie shoots in Georgia and spends every penny in the state, the state of Georgia will issue a (20% + 10%) 30% tax rebate, worth approximately $300,000.00, that can be sold for a little less than face value. That check can then passed onto to the investors. This is a considerable risk minimization for the Investor. With state film incentives alone, the investor is risking 70-90 cents (average) on the dollar if the project is produced in any number of U.S. film incentive states. Here is a current List of
State Film Incentives
with updated information provided by Entertainment Partners.

FINAL NOTE:

INVEST BEFORE SECTION 181 EXPIRES January 1, 2025:
In order to optimize this opportunity and be successful, interested investors should contact qualified film producers with their interest. A qualified accountant and/or attorney are always a good idea when utilizing the USA Internal Revenue tax benefits of Section 181.

We are happy to speak with serious or curious investors and work with you to maximize investment dollars to produce commercially viable motion pictures that will profit in the marketplace. For questions related to Section 181 or equity investment for film and television production please contact Joseph Barmettler jj@newintegrityfilms.com.


ARCHIVES-RESEARCH for SECTION 181

Domestic Film Production Incentive Program
Revised Section 181 of the Internal Revenue Code


Past Congressional Research & Publications:
The “Protecting Americans from Tax Hikes” act (.pdf) (now section 169) (December 16, 2015)
Internal Revenue Bulletin for Section 181 (.pdf)
(1/14/2013) (pg 5/273)
Section 181 published IRS tax code regulation (.pdf file): (2007)
Section 181 published IRS Example Scenarios (.pdf file): (2007)
IRS Tax Code Link for Section 181 (3/19/2007)

Notice Of Proposed Rulemaking (2011-2012)
American Taxpayer Relief Act of 2012 (1/1/2013 pdf file) Sec. 317


DELOITTE TAX LLP - PRESENTATION FOR SECTION 181

Movies Made In USA

Familiar individuals who are financing films include Larry Ellison, Paul Allen, Steven Rales, Fred Smith, the CEO of Federal Express, Norman Waitt, the Co-Founder of Gateway Computers, Jeff Skoll Of Ebay, Marc Turtletaub of The Money Store, Roger Marino Of EMC Corp, Sidney Kimmel Of Jones Apparel Group, Minnesota Twins owner Bill Pohlad; Real Estate Developers Tom Rosenberg, Bob Yari; and, financiers Sheikh Waleed Al Ibrahim, Zeid Masri of SilverHaze Partners, Michael Singer, Mark Esses, David Larcher, Michael Goguen, Richard Landry, Michael Reilly, Rafael Fogel, and Philip Anschutz.

On the institutional side, familiar names such as CITIGROUP, Deutche Bank, JP Morgan, Morgan Stanley, Dresdner Kleinwort, GE Commercial Finance, ABRY Partners, AIG Direct Investments, Bank of America Capital Investors, Columbia Capital, Falcon Investment Advisors, and M/C Venture Partners are or have been involved with the finance of films.