How to Get a Film Financed with Tax Credits

The process of securing financing for a film is one of the most challenging aspects of the job for any film producer. There’s not only the funding that is required in film development just to get the film production off the ground. But then there’s the potentially hundreds of thousands in production costs which will come up immediately after. You’ve got a lot of opportunities to get your film financed. Through things like bank financing, corporate investments, and the use of film tax credits. But learning how to get a film financed with tax credits won’t happen overnight.

Whether you’re new to the film production industry, or this is something that you’ve actually never done before. Figuring out the tax credits that might apply to your production can be a bit challenging. But with some research you’ll be on the path to production.

Each state has tax credits available to assist producers in establishing the appropriate funding for their film projects. Tax rebates, incentives, and a variety of tax credits are quite common within the industry. But they’re easy to overlook if you’re not prepared. 

Film financing with tax credits is actually a long process. One that requires extensive planning, essential record keeping, and a commitment to establishing a production. That will benefit from the credits offered in a particular state.

U.S. Tax Credit Financing

Filmmakers in the United States have historically been able to establish a variety of film tax credits that are appropriate to their productions. Fortunately, tax credits provide value both to the taxpayer. And to the states in which the credits are provided.

They draw filmmakers into states that may otherwise have a low rate of film production entrants or tourists. To otherwise drive revenue while they bring additional funding in the form of expenses. Incurred within the state by those involved in the production.

Learning how to get a film financed with tax credits in the United States is a matter of first learning about the individual film tax credits available in each state, what the regulations are for each state, and how much you have to spend in order to qualify.

Learn About Film Tax Credit Rules

Each state is different. But generally speaking when it comes to figuring out how to get a film financed with tax credits.

All you have to do is check the local regulations regarding the state you intend to film in. And make sure that you familiarize yourself with the tax credit rules in that particular state.

While the rules may vary, generally there is the requirement to have qualifying expenses. A minimum and maximum expenditure or budget, and possibly sales that are made within the state. 

You will have to keep track of all expenses. And the qualifications as you prepare to file for film tax credit financing.

The Takeaway

Once complete, you’ll need an audit which will track your spend. Review the qualifications of the credits you’re involved in. And certify that you have tax liability which will qualify for payment of the credits involved.

The process may take some time. But the end result is typically a refund of the credited funds for which you qualify.

As you can see, learning how to get a film financed with tax credits is really all about understanding the tax credits available in your state.

And the steps you can take to ensure that you’re meeting tax liabilities and expenditures. As you produce your film within the desired state upon which the credits are offered.