Chicago, Illinois, November 1, 2004

New Federal Law Gives Major Incentive to Film Movies in the U.S.

Amendment to the IRS Code will make it possible for more U.S. filmmakers to stay home

For more than a decade the Hollywood film industry has called for an end to "runaway film production" - the shooting of U.S. films and television productions in less expensive foreign locations. Finally, their call for help has been heard. New legislation just passed in Congress gives tax breaks to film or television productions with an aggregate cost less than $15 million dollars.

"The law sends a strong signal to the world that the United States is finally serious about combating the effects of runaway film productions," says Chicago entertainment lawyer and executive producer, Hal "Corky" Kessler. "The amendment will help remove some of the incentives American film and TV producers have had to bring their projects to Canada and other foreign countries." Kessler notes that the federal law is in addition to existing production incentives available in several states, including Illinois.

The new federal tax relief applies to those films that have production budgets between one and fifteen million dollars and spend at least 75% in the United States. The allowable budgets can go up to 20 million dollars if the shooting and expenditures are in depressed areas and communities.

Under the new law, 100% of all production costs can be deducted as allowable expenses in the first year of expenditure. As a result, the cost of the film production can be deducted as an expense on tax returns in the first year of production.

This new law will have implications for film-makers and for cities that have lost revenue to "runaway" productions. Kessler offers a unique insider’s perspective on these issues as an entertainment lawyer who is also an executive producer.

For more information or to schedule an interview, contact Corky Kessler, Funkhouser Vegosen Liebman & Dunn Ltd., 312.701.6889,

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