We've been forced into an arranged marriage with Covid. Covid is the taker in this relationship. It's messy & abusive. My nose has been violated about 1000 times and I'm hoping there's no brain damage from the first year. If I can't remember my name when I'm 85 I'm blaming the Q-tip that went way to far, without permission, as I felt violated and walked away with a tear. No matter how much I try and file for a divorce, Covid finds a loop hole. It's like that hardcore attorney who finds the one line on page 52 we forgot to read and sticks it to us. It has forced us all to be givers enslaved to the next wave of its wrath.
Covid costs us more time to plan & more money with little to none increase in pay. I used to have a guy nicknamed Bovine who I used to threaten bullies with. Where's our bovine? I'll stick him on Covid! The day before a shoot I usually lose one or more key staff to sickness and have to scramble.
With the bad comes some good. You don't know hot if you don't know cold. We've become more helpful and nice. I have a shoot tomorrow and my Assistant Camera texted that she is sick and will not be able to prep today. While my heart skipped a beat, I read the second line of her text and she had already replaced herself with another great AC. Stuff like this happens time and time again and I am grateful for what feels like a family of production people who are all pushing through to continue to make great projects and do whatever it takes to get there. Keep pushing through. Smile and be happy that we can all share group therapy has we try to divorce our abusive partner, Covid.
Turns out the 2018 tax bill helps the entertainment business! Section 181 provides 100% tax deduction for motion picture production. Simply put, investment in film or television is 100% tax deductible in the same year invested and can be applied to active or passive income. Investors can be individuals or businesses and can invest up to $20,000,000 in productions which have at least seventy-five percent of its production completed within the United States. There is no minimum film production budget cost. TV pilots, TV episodes (up to 44), music videos, feature films, short films all qualify for Section 181. There is no expectation for film distribution or completion. Section 181 is retroactive. The motion picture's corporation (LLC) issues Schedule K-1's to the investors so they can take advantage of Section 181.
Investing in film is way less risky than before using the tax rebates and incentives within a state for money spent on film combined with the benefits of Section 181. For example, if a tax payer is in the is in the thirty-five percent (35%) tax bracket and a qualifying film is shot in Texas, which has a tax credit up to twenty-percent (22.5%) for in-state spend more than $3.5M, an investor will be eligible to recapture conceptually fifty-five percent (57.5%) of their investment in a qualifying production. The investor could have this money before the film is released and/or makes back any money. This type of investment assurance is hard to come by in today's economy.
Jennifer Hutchins has produced over 200 episodes of hit TV shows, branded content and films.