This law provides for investors to have a 100% write off on ANY invested dollar amount from $1 up to $15 million ($20 in economically depressed regions). The ONLY requirement is that the investor is classified as a passive investor in order to write off passive income, or be an active investor to write off active income. Passive investors need have to not do anything. You send them a company letter that thanks them for being a passive investor and points them to their tax advisor to fill out the proper paperwork.
Assuming you are approaching investors that make enough to invest, they probably pay 35% taxes. This means that you provide the investor with a 35% benefit for investing with you. If they invest $100,000, then $35,000 was NOT lost because it was going to go to taxes anyway. This means to make your investors money back, you only have to get 65% of the way there.
Even better, this federal incentive can be combined with ANY other incentive. Which means if your film is shot in Oklahoma, at the close of principle photography, you will receive your 35% rebate. Which means just by setting up shop in Oklahoma, you are at 70% benefit to the investor. Which means you only have to make up 30% when you move to distribution.
What business can an investor put money in to where that is the case? 70% of the money is not risked!
But the law has sunset. And the renewal proposal has passed the House. It would have passed right on through the Senate as well had some Republicans not viewed it as a part of Health Care, and some Democrats not viewed it as a "Bush Tax Plan".
So there will be debate. This Section 181 will be scrutinized along with the rest of the law.
As filmmakers you CAN NOT allow this law to sunset!
Call your senators' offices (or call them all) and let them know you support and desperately need Section 181.
They are business people and often don't get that film is a business. But let them know that film creates jobs. And that American movies are one of the largest money making exports from our country.
Some points to make to your Senator: Not just film makers go to work when production companies roll in to town, either. But hardware stores spike in sales, newspapers go flying off the racks, tourism gets a MAJOR boost, catering services, hotels, bars, event planners, drivers, etc, etc. Even our court systems see a boost as Oklahoma City found out as Jessica Alba and her United Way / Save the Sharks "Campaign" landed her with major fines (you don't necessarily have to make that point - I'm just sayin').
Film productions bring in "free" money to a location that wasn't getting that money anyway.
They went back in to session January 19th. Make the calls or send the emails NOW.
Refer to HR 3931 to be more precise. Or find out more here: http://thomas.loc.gov/cgi-bin/bdquery/z?d111:HR03931:@@@X
This link will give you all the Senators' contact information.
http://www.senate.gov/general/contact_information/senators_cfm.cfm?OrderBy=state
Add more points to make in the comments - let's make sure all of us know all the angles.
Assuming you are approaching investors that make enough to invest, they probably pay 35% taxes. This means that you provide the investor with a 35% benefit for investing with you. If they invest $100,000, then $35,000 was NOT lost because it was going to go to taxes anyway. This means to make your investors money back, you only have to get 65% of the way there.
Even better, this federal incentive can be combined with ANY other incentive. Which means if your film is shot in Oklahoma, at the close of principle photography, you will receive your 35% rebate. Which means just by setting up shop in Oklahoma, you are at 70% benefit to the investor. Which means you only have to make up 30% when you move to distribution.
What business can an investor put money in to where that is the case? 70% of the money is not risked!
But the law has sunset. And the renewal proposal has passed the House. It would have passed right on through the Senate as well had some Republicans not viewed it as a part of Health Care, and some Democrats not viewed it as a "Bush Tax Plan".
So there will be debate. This Section 181 will be scrutinized along with the rest of the law.
As filmmakers you CAN NOT allow this law to sunset!
Call your senators' offices (or call them all) and let them know you support and desperately need Section 181.
They are business people and often don't get that film is a business. But let them know that film creates jobs. And that American movies are one of the largest money making exports from our country.
Some points to make to your Senator: Not just film makers go to work when production companies roll in to town, either. But hardware stores spike in sales, newspapers go flying off the racks, tourism gets a MAJOR boost, catering services, hotels, bars, event planners, drivers, etc, etc. Even our court systems see a boost as Oklahoma City found out as Jessica Alba and her United Way / Save the Sharks "Campaign" landed her with major fines (you don't necessarily have to make that point - I'm just sayin').
Film productions bring in "free" money to a location that wasn't getting that money anyway.
They went back in to session January 19th. Make the calls or send the emails NOW.
Refer to HR 3931 to be more precise. Or find out more here: http://thomas.loc.gov/cgi-bin/bdquery/z?d111:HR03931:@@@X
This link will give you all the Senators' contact information.
http://www.senate.gov/general/contact_information/senators_cfm.cfm?OrderBy=state
Add more points to make in the comments - let's make sure all of us know all the angles.
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