Financing Movies with Loans Secured by State Tax Credits

[@GeorgiaMade404]

I’m confused. If they do not advance capital until principle photography is completed, one would need to raise the entire budget to start principle photography correct? If so what’s the point of using them? Why not offer the tax credits directly to your equity investors?🤔

[@kukoistava.]

You wouldn't need to raise the *entire* budget to start principal photography, but yeah, that's a typical cash flow issue for productions. I'm not sure what you mean by offering the tax credit directly to equity investors, but I'm pretty sure the auditing of qualified expenditures won't complete until after PP anyway. Also, not all states have refundable or transferable film tax credits. Hope this helps!

[@gvinib]

P & A - these guys extend loans for projects that are in post but need P&A (Prints & Advertising…this is basically the marketing and post cost to take a finished project and get it edited to a locked picture and ready for distribution) their risk is drastically reduced because they are taking finished products to market. I hunk of it as SharkTank! You walk in and present a completed product, you have some sales guaranteed, you have vetted the product to a place where you have solid numbers and the. The sharks, these guys come in and Say, OK - I’ll give you a million bucks for XX ownership in the product and help me you bring it to market. Hope that helps

[@ericdavidwallace]

Yes this is confusing.

[@ultra_ek]

Ngl none of this made sense lol. Basically you already must have investment grade capital to get investment grade capital.