expenditures are incurred in areas eligible for designation as a low-income community or eligible for designation by the Delta Regional Authority as a distressed county or isolated area of distress. A production is treated as commencing on the first date of principal photography.
The “aggregate cost” of a qualified film or television production may include all costs previously required to be capitalized, such as (a) development costs, (b) general and administrative costs, (c) depreciation of property used in production, and, (d) financing costs.
An individual or 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 their investment was made.
A deduction can be made against active income should the investment be made by or through a widely held C corporation.