Film Production Tax Deductions for Video Creators

Filmmakers, video production professionals, and those who produce animations are frequently interested in learning about the ways that they can save money when tax time comes. The truth is, there are several film production tax deductions for video creators depending on the size, scope, and individual circumstances of the video project. Many expenses incurred by filmmakers are tax deductible as are various costs associated with film production. To help you save as much as you can, we’ve come up with this list of film production tax deductions for creators:

What Kinds of Expenses are Tax Deductible for Filmmakers?

First, let’s take a look at all the different things that could potentially be tax deductible if you’re a filmmaker:

• Books, magazines, or any kind of reference materials that were purchased for use in filmmaking or in understanding a character, scene, or location.
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• Gifts that were purchased for clients, employees, or as part of the business.
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• Business insurance including travel insurance and vehicle insurance.
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• Travel expenses for business-related travel including airfare, cab fare, subway fare and bus fare.
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• Cultural events that were attended in order to gain insight into a culture that you are filming for.
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• Film editing, distribution, and production costs.
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• Equipment costs and equipment repair costs.
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• Film supplies and office supplies.
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• Promotion costs including marketing and advertising. 
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• Studio rental, stage rental, or office rental as well as location rental.
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• Mortgage interest, taxes, and similar costs.
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• Wages to staff or crew.
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• Legal fees and fees paid to professionals
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• Membership fees to organizations and professional involvement.

Top Film Production Tax Deductions to Consider

Now that you know what kinds of expenses are tax deductible, it’s important to understand some of the top film production tax deductions that are likely to apply to you. 

One of the most common film production tax deductions for video creators is the Section 181 deductions that were originally employed to create a tax incentive for investors to invest in feature films and television shows in the U.S.

The section 181 dedication creates a 100% tax deduction for money that has been invested into a film, television series, or live stage production taking place in the United States.

The film or series must qualify under the original qualification standards of Section 181 in order to apply.

In addition to these film production tax deductions, a variety of film production tax deductions may be available based on where your film is produced.

States and some counties or cities have their own tax deductions and incentives to draw filmmakers into the areas.

For information on whether or not your film might qualify for film production tax deductions, check with your local film commission on tax incentives for the area. You might just be surprised!