181 Tax Credit
Tax rebates and incentives for money spent on film or television production within a particular state, combined with federal tax benefits, allow an investor of a qualifying film to greatly minimize his or her investment risk as opposed to other investments. These incentive and rebates may potentially accelerate the cash flow and return on investment. There are three components that, combined, may greatly protect and reduce an investor’s exposure of his or her investment in film: United States Code Section 181, United State’s Code Section 199 and various state tax incentives. 2CHi Entertainment’s film, “The Block,” has been formed in such a way that it is a qualifying production for all three investor incentives.