Distribution : The Impact Of The New Tax Bill On Hollywood by Pat Alexander

The loss of Section 181 under the new Big Beautiful Bill could have the biggest impact on indie film financing in years.

Right now, individual investors in qualified U.S. productions can deduct 100% of their investment in the same year — but that ends December 31, 2025.

I’m currently working to go into production before the deadline, because here’s the kicker:

If you invest $100,000 in a film in 2025, you can write off the full $100K on your taxes that year

Which means a tax savings of:

$24,000 if you're in the 24% bracket

$32,000 if you're in the 32% bracket

$35,000 if you're in the 35% bracket

$37,000 if you're in the top 37% bracket

That’s massive.

And as long as production starts in 2025, you can finish in 2026 and still qualify.

Now combine that with state tax incentives and you’ve got a financial model that makes real sense for investors, even before the film makes a dime.