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IRS Section 181 Film Production Incentives Nears Renewal

What Is IRS Section 181?

Will IRS Section 181 Be Renewed?

How Can I Take Advantage of IRS Section 181 Production Incentives?

As many in the Film and Television industry know, IRS Section 181, first enacted by Congress in 2004, (explained here), permits a 100% write-off for the cost of certain audio-visual productions (e.g., theatrical, television, DVD, etc.). It had applied to “qualified productions” that began principal photography before January 1, 2010.

Rumor has it that renewal of the Section for 201 has already passed the U.S. House of Representatives. According to a prominent entertainment lawyer familiar with the Act and the renewal status, the provision is set to go before the Senate for approval. If renewed, IRS Section 181 production incentives should be extended into 2010.

To qualify, productions need to commence before January 1, 2010. The deduction applies in the year the expenditure is incurred. Therefore, if production expenditures are incurred in more than one year, the immediate tax deduction will be taken in more than one year.

Like other tax issues, producers should consult with their professional tax advisors on any issues related to this new Federal tax incentive. In light of the new legislation, the US Treasury and IRS may revise their temporary regulations, which may come in the form of Notices and Regulations.

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26 Responses to “IRS Section 181 Film Production Incentives Nears Renewal”

  1. I am looking for more information about section 181; while the bill may be extended into 2010, when will the extension expire?

    Any information would greatly be appreciated!



  2. Any AMT implications?

  3. Is it still true that 75% of the film’s cost must be incurred in the U.S. to be eligible for the incentive under Section 181. Also, any update on extension for this Section into 2010. thanks

  4. I Started my program in 07 but have not elected 181 as of yet Can this be applied going forward?

  5. Is this Section 181 in effect now 7-26-10.I am looking in to it and may have a project or two. Thank you for your time.

  6. Is it true that 181 has been extended last month? If yes, what the new expiration date?

  7. What is the status on irs section 181 for 2011?

  8. 181 has been extended and signed on Dec 16 2010. The extension covers 2010 and through the end of 2011.

  9. what media and content is allowed for the 181 rule ? for example: Sporting events, concerts , music videos, talk shows, and documentaries.

  10. Is the sec 181 credit still in effect. If so until what date. June 4, 2011 Thank You

  11. I’m a Producer, and I’m looking for someone who can actually show me the IRS returns that show the credits and/or refunds. Most of my investors are still not comfortable. Any leads?

  12. Any word on 2012?

  13. Any leads as to the possible new extension for the rule? It seems that an extension should be a no brainer?

  14. Did anyone find out about the extension of the rule 181 for the 2012????

    [DMA] Not gonna happen.

  15. I’m assuming that the extension will occur, like it did last year. I’m working with investors on the current projects and we hope that extension is also for longer than a year this time.

  16. Does anyone know who in the government is sponsoring the bill? ( or the extension?) And if there is a contact information where we can post or send our comments to? It seems that this should be of interest for both political parties……..

  17. FYI, we have a huge studio here in Dallas, and we have many projects that already qualify for the rule 181. If anyone is interested, contact me….

  18. If some one desires expert view about blogging then i recommend
    him/her to visit this website, Keep up the good job.

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