Film Tax Credit Consulting
CDH is a complete resource for film tax credit accounting. With in-depth knowledge of film production incentives in the Midwest, particularly Illinois and Michigan, CDH offers specialized accounting and consulting services to maximize the benefits of the tax credit programs and help companies navigate the complex program requirements.
History
In 2000, Illinois began suffering a mass exodus of the film industry as other states offered film production incentives and by 2003, the film production industry in Illinois reached an all time low of $23 million. In an attempt to bring back the industry to Illinois and to ensure that the state was a top film producing location, legislation was passed that offered a tax credit to filmmakers for money spent on Illinois goods and services, including wages paid to Illinois residents. Original legislation was passed in May 2008, offering a 20% tax credit and this was increased to 30%, on January 1, 2009. In addition, filmmakers can defray onsite production and editing costs and provides a guaranteed 15-20% return on investor dollars. In fact, a number of high net worth investors, family offices and others have been opting for investing in film production, with a steadier stream of revenues than other alternative investments such as real estate, oil and gas, and commodities, especially in today’s challenging market.
Due to this legislation, Illinois rebounded to nearly $155 million in 2007, an 80% increase over 2006, with more than 26,500 hires in Illinois—putting more people to work and increasing revenues.
About Film Tax Credit Programs
The film tax incentive programs allow production companies a tax credit based on their qualified production costs incurred in a particular state. In exchange for the film tax credit, the state boosts its economy through the creation of jobs and consumption of goods and services associated with the film project. Additionally, the state can leverage the real life backdrops of popular movies and the novelty of a film production shoot to increase tourism revenue.
Our team of Film Tax Credit specialists has worked with various states’ representatives and film commissions to develop and customize the third party independent CPA procedures for their respective film tax credit programs. As a result, we have specialized knowledge of accounting principles and practices recognized in the film industry. These services include:
- Consulting on film tax credit program requirements
- Consulting to maximize credits
- Provide independent CPA report required by applicant in order to request tax credit certificate
- Timely turnaround to accelerate the receipt of your credit/incentive
- Work with state film office to secure approval of tax credits
- Explore options for best use of credit—analyze and recommend appropriate utilization of tax credits, including selling, assigning, or seeking a refund from the state
- Assist with placement specialist for identification of potential buyers of credit
To see how we can help, contact jlaubinger@cdhcpa.com
