Why does this matter? Zak Forsman tweeted it nicely: " if tax payer is in 35% tax bracket and the film's shot in a state with a 42% credit, investor's eligible to get 77% of her investment back."
To go a tad deeper, Zak Forsman posted it well:
Minutes ago, I received this email from my friend and fellow filmmaker, Justin Evans.
Dear Film Professionals -
Section 181 has finally been renewed! The new Tax Bill was signed into law by President Obama earlier today. The tax law includes Section 744, which includes language that replaces IRS Section 181's expiration date of December 31, 2009 with December 31, 2011.
Here is what this means:
- Any money spent on qualifying domestic film production* in 2010 now qualifies for the Section 181 tax write-off.
- Any money spent on qualifying domestic film production* in 2011 will also qualify for the Section 181 tax write-off.
- There is no gap in Section 181 protection...which means all the fear and worry that someone might have begun a project in 2009, somehow didn't get the financing in place and investors invested in early 2010 can now breath a sigh of relief.
Read all of what Zak has to say about it here. Thanks Zak!