As Section 181 Film Tax Deduction expired at the end of 2016, many assumed it would never return, until the new Section 181 of the Tax Cuts and Jobs Act emerged with same benefits specifically referencing the original Section 181 Tax Deduction.
Though it is based on the premise of the original text, the new Section 181 Film Tax Deduction is different in a couple of ways that make it even better for investors and producers.
To begin with, there is no cap to the Section 181 Deduction any longer, and even projects budgeted over $15 million can take advantage of the deduction.Although all producers and investors can benefits from it with the help of an entertainment law firm in New York, Los Angeles, and San Francisco, the studios and networks might be the biggest beneficiaries of the deductions,as every film and television series produced in the United States for the next 5 years will be able to take advantage,if the production qualifies under the original qualification standards of Section 181.
The way that the deduction is taken by the production company is now different as well, and rather taken as an expense, it is a form of depreciation. The provisions are complicated for anyone but,the top entertainment attorney in Los Angeles, New York, and San Francisco,like us,who is familiar with the tax law, to create the same benefit for investors as under the original Section 181 Tax Deduction.
Finally, there are no special-zones where certain geographic areas get a higher-cap anymore since the cap has been removed altogether, benefiting investors and producers.
Film and Television 