The Benefits Of Financing A Movie

ADVISORY

The information contained in all sections pertaining to "Financing" is provided solely for the purpose of acquainting the reviewer with general concepts related to the financing of movies, the tax incentives that could possibly be utilized, and the possible financial benefits that could be derived. It does not imply an offering of securities. All scenarios provided are general in nature and cannot depict the exact benefits for each individual for there can be other factors and extenuating circumstances. Reviewers should consult a financial professional for guidance.

High quality movies made on a low budget combined with effective use of government incentive programs (for making movies) enable you to greatly minimize what would ordinarily be considered a risky business venture. For example, if a qualifying tax payer in the 33% tax bracket elected to finance a modified low budget movie totaling $400,000, their tax liability for the year (in which filming of the movie began) could be zero regardless of their tax filing status. Moreover, a qualifying film that is shot in Hawaii, which has a refundable state tax credit of either 20% (filmed on Oahu) or 25% (filmed on one of the neighbor islands) of the production budget, can be returned to the tax payer (for up to 90% of the credit amount), which would reduce the risk even further. See Government Incentive Programs for a detailed description of the specific tax programs that can benefit those who finance movies.

On the other hand, in planning for the downside, low budget movies help to mitigate the risks of any movie project. For one is not spending hundreds of millions of dollars, but rather financing projects where our production types can range from as high as just under $2,500,000 (for a multi-character, multi-location action picture) to as low as $20,000 (for a minimalist slice-of-life drama filmed in a single setting), and any budget in between. On the upside, given any movie concept could ultimately prove to be a hit, the potential earnings that could be derived from a movie whose overhead is kept low can prove to be substantial. See Proposed Return Schedule for a breakdown of the financial returns provided depending on the movie production type.

The beauty of LegacyVision Film’s approach is its flexibility while working with you. For contrary to other filmmakers who have created a script that has a pre-set budget requirement built in, LegacyVision Films can be customized to fit your desires. A series of examples using hypothetical incomes and production types financed are depicted in Movie Financing Scenarios which evaluates the financial benefits of financing low budget movies before sales has even commenced.

In essence, a high quality movie…

• Based on a story concept that you might have initiated and helped to develop…

• Filmed on a budget intended to keep overhead low so that the probability for profit can be high…

• And produced while taking full advantage of incentive programs that help to reduce financial risk…

… can all combine to provide you with an outstanding opportunity:

TO CREATE YOUR OWN MOVIE THAT PROVIDES GREAT TAX ADVANTAGES AND THE POTENTIAL FOR ADDED PROFIT!