Clocktower Place

Film & Digital Media Tax Credits

 

Our Services for Film & Digital Media Tax Credits

As tax credit brokers, Clocktower Tax Credits structures transactions that monetize Film and Digital Media Tax Credit certificates. In states offering transferable tax credits, we facilitate the sale of these certificates from the entities earning the tax credits to institutional investors who want to offset their tax liabilities. We can pre-sell the tax credits at any point in the production process, obtaining Letters of Intent or Purchase Agreements outlining the terms and conditions of funding. Our investors pay for the certificates after the film and digital media projects have been completed and the tax credits have been earned.

Clocktower Tax Credits has recently expanded its services to include arranging for loans to be made against expected Tax Credits, Tax Rebates and Tax Refunds. We work with a variety of lending sources who will provide producers with the maximum proceeds with which to film, at the lowest cost. Now Clocktower Tax Credits can help producers find financing for projects filmed in foreign locations (from Canada to the Fiji Republic), as well as within the United States. If you are a filmmaker, production company or studio who is interested in monetizing your Film and Digital Media Tax Credits, please contact us for more information regarding our services.

For investors looking to reduce your tax payments, the types of taxes that film and digital media tax credits can be used against vary across the different state programs. As national tax credit brokers, Clocktower Tax Credits works in film and digital media programs that allow for these tax credits to offset a wide range of tax liabilities including corporate income tax, insurance premium tax and franchise tax. If you are an institutional investor interested in using Film and Digital Media Tax Credits to decrease your state tax burdens, please contact us for more information.

Film & Digital Media Tax Credits

Film and Digital Media Tax Credits issued by State governments provide incentives for the private funding of film and television series production, soundstage construction, digital media content generation and other similar types of projects. Through these tax credits, producers and studios receive crucial financing for their projects, while investors purchasing the credits find tax relief.

Film Production Tax Credits

The introduction of film tax incentive programs by U.S. state governments has led to tremendous growth in domestic film production with states such as Louisiana, Massachusetts, and Georgia becoming major players in the industry. Filmmakers and large studios are utilizing these incentives throughout the country to offset production costs and make their projects more financially feasible, while bringing economic development to their filming locations. Currently, about forty states are offering production companies and filmmakers some form of incentive for filming within their borders. Fourteen of these states and Puerto Rico have incentive programs providing transferrable tax credits for film production. These film tax credits are issued in the form of fully transferrable certificates and can range from 10% to up to 44% of qualified production expenditures, depending on the state in which the expenses are incurred.

Film Infrastructure Tax Credits

Transferable tax credits are also currently available in a few states and Puerto Rico for the construction of film infrastructure projects such as soundstages and postproduction facilities. In states like Michigan and Connecticut, tax credits offered for qualified infrastructure projects have fueled the construction of soundstages and other productions facilities.

While film production tax credit programs may draw studios and filmmakers into states, film infrastructure tax credit programs help to keep them within their borders. By offering these tax credits, states are developing the infrastructures required to support all steps of the filmmaking process. This enables states to build up permanent industry presences and capture larger amounts of projects' production expenditures. Economic development increases as a result of more revenue coming in and additional film industry-related jobs being created. Meanwhile, working in such states is also beneficial for producers since they are able to do an entire project in one location.

Digital Media Tax Credits

Certain states, including Connecticut and Louisiana, are also offering tax credits for the creation of digital media content. Projects earning these credits include interactive websites, video games and other forms of digital media content varying across the state programs. Like film tax credits, these credits are transferable to outside investors.