In October of 2008 Congress passed an extension of IRC Section 181 in order to combat runaway film and television production. This tax code allows for qualifying productions to immediately write off up to $15 million for tax purposes.
The American Jobs Creation act of 2004 Congress worked to address the impact of runaway production by passing tax legislation aimed at keeping film productions in the Unites States.
Section 181 permits a 100% write-off for the cost of certain audio-visual works. An individual company who makes an investment into Section 181 qualified productions can take a 100% deduction of their investment against their passive income in the year the investment was made.
Click here for a helpful summary of Section 181 from the DGA.