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Section 181 Deductions

  • 100% of the motion picture costs are deductible in the same year of investment.

  • 75% of the motion picture must be shot in the US to qualify for Section 181

  • There is a $15 to $20 million dollar budget cap.

  • There is no minimum film production budget cost.

  • TV pilots, TV episodes (up to 44), short films, music videos and feature films all qualify for Section 181.

  • Section 181 can be applied to active income or passive income.

  • Investors can be either individuals or businesses.

  • Section 181 is retroactive to 2004 and was just renewed as part of the ‘Fiscal Cliff’ Bill on early 2013.

  • There is no expectation for film distribution or film completion.

  • The motion picture’s corporation issues Schedule K-1’s to the investors so they can take advantage of Section 181.

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