2009 is a very special year for those who invest in Independent Film. Federal IRS Code 181 allows producers to capitalize the production costs or to expense any and all qualified film expenses up to $15 million, $20 million if incurred in a low income or distressed county.

This means producers no longer have to amortize costs over 5 years.

It also means that if an investor invests $100,000 in an Independent film & the total amount is expended this year, $100,000 is a tax write-off.

IRS code 199 allows filmmakers to deduct an additional 6% this year and 9% next year as part of the manufacturing sections of the act.

California also passed a tax incentive this year that will be activated July 1st. This will further benefit Independent Films with a 25% tax credit on productions over a Million dollars and under 10 million.