Why Invest in a Motion Picture?

"While film investments are risky, the potential return from a hit can be enormous. Not only can the film earn revenue from box office receipts, but also there are many ancillary sources of income. These sources include revenue from television, home video, merchandising, music publishing, soundtrack albums, sequels and remakes." - Mark Litwak, veteran entertainment attorney.



We live in an age when intellectual property has become the United States' greatest export. Americans now spend more money on entertainment ($480 billion) than they do on healthcare or even clothing, representing 8.4% of consumer expenditures (WIRED). The advent of global 500-channel interactive television dictates that the demand for content will continue to grow. There has never been a better time to invest in a media-related venture.

Tri Cinemas believes that its films represent a remarkable opportunity for investors willing to take the risk of becoming involved with the financing of a feature-length motion picture. The recent success of the March of the Penguins and movies such as A Mighty Wind and This is Spinal Tap demonstrate the strength of the growing markets for independent films that are family oriented and/or rock movies.

Moreover with the recent legislation which allows film investors to write off 100% of their investment in the year they invest in the movie ... allows an investor to feel they are getting the maximum investment advantage and the least risk since any money invested can be offset by taxes under IRS Section 181 and any money made is pure bonus.
100% SAME YEAR TAX DEDUCTION FOR FILM INVESTORS

The American Jobs Creation Act of 2004 creates an extraordinary new tax incentive for film producers who make low- and medium budget films (under $15.0 or $20.0 million) in the U.S. The new law allows producers of qualifying films to elect out of the uniform capitalization rules which mandate that film costs be deducted gradually over a film’s useful life or be matched to a film’s projected income. Costs of qualifying films can now be deducted in full in the year they are incurred. The purpose of the new tax law is to stimulate investment in domestic film production operations and make domestic film production more competitive with foreign production options.