US Federal Tax Credit for Film Production Gains Support
In the United States, there is a growing agreement on establishing a federal tax credit for film production. At present, 39 states provide incentives for production, while the sole federal support is Section 181, a provision from the Bush administration that permits studios to deduct production expenses up to $15 million, or $20 million if filming occurs in low-income regions. Advocates for a federal credit are striving to enhance domestic filmmaking and contend with incentives offered internationally.
Key facts
- 39 U.S. states offer production incentives
- Section 181 is the only current federal aid for film production
- Section 181 allows tax deduction on up to $15 million in production spending
- Deduction limit is $20 million for shoots in low-income areas
- Section 181 is a Bush-era incentive
- Consensus is growing for a federal tax credit
- The proposal aims to boost domestic production
- The federal credit would help compete with international incentives
Entities
Institutions
- The Wrap
- Yahoo
Locations
- United States