After picking myself up off the floor and reading for a second time that any film produced in the United States for up to $15 million is allowed to write off 100% of its production budget the year it is incurred instead of deducting it over a number of years, I was floored again but managed to stay seated. After conducting further research, I realized 1. That this is legit and I’m not dreaming and 2. This is a MAJOR incentive for any investor thinking about making a play in film... just our luck.

“Runaway production” (productions made in Canada due to their tax incentives and favorable exchange rate) was driving productions out of the country throughout the ‘90s and into the beginning of this century, costing the country jobs and local businesses revenue. This legislation was enacted to stop runaway production.

From a company in our position, it gives us a great incentive to offer our investors from day one of physical production. Who’s to say how much easier raising money for our production will be due to this incentive but I know it will help in at least opening the door for consideration. Also, in addition to this Federal incentive, New York State/City also offers another tax incentive that amounts up to a 10% state tax break and a 5% city tax break. Bring ‘em on!

Additional links for information on this incentive are here, here and here. EB