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From Kirsten Bischoff, Opalesque New York: One of the additions to the Emergency Economic Stability Act of 2008 was the extension of the Section 181 tax write offs which were due to expire on December 31, 2008.
SEC. 502. PROVISIONS RELATED TO FILM AND TELEVISION PRODUCTIONS
Extension of Expensing Rules for Qualified Film and Television Productions.--Section 181(f) (relating to termination) is amended by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
This is to keep films from being produced in Canada, Europe, and Australia, which all have tax credits for investors. Steve Morales, Executive Director of the Franklin Springs Media Fund I told Opalesque.
The extension of Section 181 basically allows investors to deduct 100% of an investment in film against their passive income in the year the film is made. There are several requirements for a film to meet, including initial budgetary constraints of $15million, requiring 75% of the total compensation associated with the project to be paid for services rendered in the US, and limited restrictions on content. According to Morales, the 2008 extension of Section 181 removes the $15 million ceiling for films, but now limits the deductions to the first $15 million, in most cases.
Looking to tap into the market of investors who will benefit from such tax write-offs, Franklin Springs Family Media will be launching their second fun...................... To view our full article Click here
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