HALLELUJAH!!! SECTION 181 PASSES THE SENATE!!!
More than three months after the House passes a version of the Tax Extender Bill of 2009 (HR 4213), the Senate got off its collective rear end and passed a modified and heavily pork filled version of the Bill today. By a vote of 62 to 36 this persistent piece of legislation made it one step closer to becoming law (remember it still needs the President’s signature). Of importance to all of us, the Extender Bill contains a one year extension of Section 181. All film makers and investors may now breathe a collective sigh of relief.
Now that the extension is a whisker away from becoming law, all you film makers can start approaching investors and their confused accountants to tout the extradorinary tax incentive that is Seciton 181. Remember the tax dedcution that 181 offers is against passive income (although there are subtle nuances that allow active investors to take the deduction against active income). Also, musicians, videographers, web casters, 181 can be used for all qualifying films; which is to say it is not just for feature length films.
We at L4M routinely work with film makers in planning and drafting their film investment documents. Now with the help from our intrepid Senators, we can once again add language to these documents regarding Section 181 (and State tax credits) that make film investment a bit more attractive.
Now that 181 has passed, stay tuned for other development in film and music law. Thanks for reading and for all of your input.
Thanks for the announcment. You guys seem to be the only ones staying on top of this thing. I’ve been waiting to go out to investors, hoping the renewal would go through. It makes it a much easier sell. Any idea what the time frame will be for it to be (hopefully) finalized?
Thanks for keeping us posted – this really is good news. As Jim asked, do you have any idea when this submission is going to a final vote and might be passed as law?
I’m really not sure. Now that Health Care is “taken care of”, I imagine it will wind up on the President’s desk. I’ll keep you posted.
This is wonderful news, but I’ve been told by fellow filmmakers that they essentially ‘ripped the guts’ out of the bill. Can anyone confirm or deny this?
Click on the link in my post and you can read the actual bill. I do not see anything other than an extension of the current bill. So everything should remain in tact when the President signs it into law.
Thanks for the update!!!!