The economic rescue plan Congress passed wasn't just about the credit crunch and mortgage crisis. Attached to the bill was a tax-break bill that will help a huge range of industries across the country, considered a way to attract more interest in passing the bill.

One of those tax breaks is an incentive plan to keep movie and TV production in the U.S. A previous tax break bill allows movies with budgets less than $15 million to deduct their production costs. That bill was meant to expire at the end of this year. This bill extends the bill, and allows movies with budgets over $15 million to be included. Producers can deduct the first $15 million in production costs. The MPAA had been pushing another tax break that made it into the bailout plan: reducing the 35 percent tax rate for producers to 32 percent.

Nearly all of the states have their own tax incentives for filming. Here's a blog from when New York increased its film incentives. Productions that strategize can reduce their budgets by as much as 30 percent. And now they'll have more tax write-offs on top of that. Not bad for movie producers.

The Screen Actors guild, whose negotiating committee has been making noise about wanting its membership to vote to authorize a strike, released a comment about the inclusion of the tax breaks in the bailout bill: "Screen Actors Guild applauds the passage of this important jobs incentive. We believe there is no better time than now to support American workers and American jobs.”

After being attacked for ignoring the tough financial climate, SAG is articulating that they do indeed want American actors to have jobs.

• Fed to Pay Interest on Banks' Reserves, Expand Loans

Fed Mulls CDS Marketplace

US Bailout Package Gets Approved

UK Mulls Banking Rescue Plan

Germany Guarantees Savings

Tools:

PrintEmail

Previous PostBack to Main Page