What Congress's "extension" of expiring tax provisions means for film and television producers
In a "generous" holiday gift-giving mood, Congress just passed, and the President is expected to sign, a bill that extends Section 181 of the Internal Revenue Code. This Section (subject to its applicable limitations) permits the immediate deduction of the costs of producing a film or television production in the US. It had expired at the end of 2013. It has now been extended retroactively from January 1, 2014 through December 31, 2014, and covers qualifying films where principal photography commences at any time in 2014.
Pursuant to the new extension of 181, producers of qualifying films during 2014 should be aware:
1. The new extension will apply to a producer who started filming a television production or feature film in 2014, and who (or whose investors) will now be in a position to take advantage of the benefits of Section 181. This is true even though a producer of a qualifying film commenced (and may have completed) the film in 2014, with no expectation of being able to claim the federal tax benefits of Section 181. This possibility arises because of the retroactive nature of the new extension back to January 1, 2014. It is essential for a producer to be aware that, to claim the benefits of Section 181 for a 2014 film, the producer must attach to the production company's 2014 tax return, an election to claim the benefits pf Section 181.
2. The extension of Section 181 applies to a film whose principal photography commences on or before December 31, 2014. If a producer is in a position where he/she can accelerate the principal photography of a film so that it starts by December 31, 2004, Section 181 and its benefits should be available to all the qualifying production costs of the film, even though most of the costs occur in 2015, provided that the principal photography continues unabated after its start in 2014, as would normally be done in shooting a film.
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If you have any questions about IRC Section 181 or other film and television finance issues, please contact Thomas D. Selz at (212) 826 5535 or email Thomas here.
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Simian, the showreel-building, review & approval, and production asset management platform used globally by creative leaders, is kicking off this fall season with a substantial leap forward for collaboration and project management – with more updates on the way during the holidays!
The new feature, aptly dubbed “Teams”, makes it easier than ever for users to give project responsibilities to team members and clients alike. “You can never have too many options when it comes to permission levels,” says Jay Brooks, Simian’s Chief Technology Officer. “Teams provides a streamlined way to assign multiple users to a project at once.”
“Teams are very powerful, but creating one is effortless,” Brian Atton, Simian’s Chief Operating Officer explains. “Simply enter a Team name, add members, and then apply the newly made Team to any desired project. You can even invite temporary guests without changing settings for other projects or needing to create a new Team.”
“We love helping our clients by providing efficient tools to improve their workflow, and this has been a frequently requested feature as of late,” shares Kellie Atton, Head of Sales at Simian. “It feels great to get Teams out into the wild because I know it’s going to be tremendously helpful to everyone who uses it”.
Teams is now available exclusively to Simian’s enterprise clients. Simian plans to release more product upgrades and enhancements during Q4 2024 and 2025 for enterprise and non-enterprise users, continuing its ongoing evolution as the industry’s leading production asset management solution.
For more information on Simian upgrades and features, visit https://www.gosimian.com/
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