Movie Industry Stimulus Bill Tax Break Gets Thumbs Down
After starting the year off with a big bang, the Hollywood community is coming down from its early January highs. The admendment to the Stimilus Bill that would provide tax breaks for the movie industry received was rejected. CNBC reports
“Tuesday the House dropped a provision from the stimulus bill that would allow film projects in 2009 to qualify for 50 percent write-offs, worth some $250 million in tax breaks.”
The approval of the admendment would have meant big things for the major studios, many of which have posted big losses in the last couple of quarters, but alas.
What the Financial Bailout Means for the Movie Industry
On Wall Street, hearts have gone from heart attack-provoking levels to pitter patters, as an agreement was reached concerning the historic financial bailout. Hollywood, however, was never scared, actually.
In fact, while the rest of the nation was feeling the heat banking quagmire that in the past week, Hollywood was waltzing to a different tune. Brooks Barnes of the New York Times noted:
“Hollywood’s most prominent independent production companies, closed on a $350 million revolving credit fund led by JPMorgan Chase and Comerica. The financing effort began just six weeks ago, said Asif Satchu, co-chief executive of the film company.”
An executive from Media Rights told the Times that this development goes to prove that ”money available banks are still in the business of putting money to work; they’re just making many fewer bets.”