Michigan State Film Rebates Can Be Used With Section 181 Tax Incentives by Private Equity Investors, Corporations, Fund Of Funds
The State Of Michigan is offering a new 40% cash rebate of motion picture production which makes it the most aggressive program in the country. It is trying to send a message to hedge funds, private equity groups, money managers, family offices, tax attorneys, high net worth investors, tax credit buyers, New Markets Tax Credit investors, and other international investors on the risk minimization of entertainment finance by getting a 40% cash back on the cost of equity.
However, on top of the 40% cash rebates, investors may also utilize Section 181 to offset their 75% and in some instances 100% dollar for dollar on the cost of film finance, all before operations, distribution, and international revenues.
In the past two years many institutional investors such as such as CITIGROUP, Deutche Bank, JP Morgan, Morgan Stanley, Dresdner