Originally set to expire December 31, 2008, the deduction was extended by TARP until December 31, 2009. Investments must be made before that date and the money invested into qualifying productions must be spent by the productions. For further specific information on Section 181 see below.
Example of Section 181 Deduction
For instance, should an individual or corporation that is taxed at a 35% tax rate have passive income to take a deduction against, then should that individual make a ,000 investment into a qualified production or film fund, the actual net investment will be ,500 since they can take a deduction against that full ,000 against their passive income, and 35% of ,000 is ,500, which is the value of the deduction they can make in the year they make their investment.
Various State Production