million dollar film, where only .5 million is equity, an investor can deduct .5 million dollars against the million, especially if the latter is mezzanine or gap finance.
Plus, an additional 20%-40% in state tax credits or rebates can be generated back to the Investors, before revenues. And with the The State of Michigan offering a 40% cash rebate for making a movie there, which is the most aggressive in the country. That translates to an additional million in rebates to an investor based on a million dollar film.
With the current appetite for alternative investing, real estate, and hedge funds starting to crunch, the viability of having an investment guaranteed up to 75-100% before operations and revenues is something that should be reviewed and considered carefully as part of a new asset class and portfolio holdings of private equity