Clocktower Tax Credits has been active in film and digital media tax credit markets across the country since the company was formed in 2010. We have relationships with a vast network of buyers that work through us to purchase tax credits of all kinds throughout the country. Clocktower Tax Credits also has relationships with private equity and banking institutions that can help producers monetize their tax credits up front to complete the budget. Some of these same lenders can loan against distribution contracts and territory presales. We have the network to handle all of your film tax credit and lending needs. As your broker, we handle all of the administrative work for you, so you can focus on what you do best. We are looking forward to hearing about your project!
Tax Credit Brokerage
As tax credit brokers, Clocktower Tax Credits structures transactions that monetize Film and Digital Media Tax Credit certificates. In states offering transferable tax credits, we facilitate the sale of these certificates from the entities earning the tax credits to institutional investors who want to offset their tax liabilities. We can pre-sell the tax credits at any point in the production process, obtaining Letters of Intent or Purchase Agreements outlining the terms and conditions of funding. As your broker, we handle all of the paperwork for you, from drafting Purchase Agreements to filling out transfer request forms; this keeps you free to focus on your project.
Tax Credit & Distribution Contract Monetization
Clocktower Tax Credits has recently expanded its services to include arranging last-money-in, debt financing for your film project. We have relationships with a variety of funding sources which are experienced in providing loans against tax credits, rebates, refunds, distribution deals with minimum guarantees attached, and gap financing. We will work with you to help you secure the maximum proceeds with which to film, at the lowest cost.
Micro-Budget and Micro Loans
Recently Clocktower Tax Credits has expanded our lending program to include micro-budget films and producers looking for small loans to complete their budget. Clocktower Tax Credits will work with you and directly provide last-money-in, debt financing for your project. We make the loans that are too small for the typical industry lenders to help you complete your budget and make your movie!
Different Types of Credits
Film and Digital Media Tax Credits issued by State governments provide incentives for the private funding of film and television series production, soundstage construction, digital media content generation and other similar types of projects. Through these tax credits, producers and studios receive crucial financing for their projects, while investors purchasing the credits find tax relief.
The introduction of film tax incentive programs by U.S. state governments has led to tremendous growth in domestic film production with states such as Louisiana, Massachusetts, and Georgia becoming major players in the industry. Filmmakers and large studios are utilizing these incentives throughout the country to offset production costs and make their projects more financially feasible, while bringing economic development to their filming locations. Currently, about 30 states are offering production companies and filmmakers some form of incentive for filming within their borders. A handful of these states have incentive programs providing transferable tax credits for film production. These film tax credits are issued in the form of fully transferable certificates and can range from 10% to up to 40% of qualified production expenditures, depending on the state in which the expenses are incurred.
Certain states, including Connecticut and Louisiana, are also offering tax credits for the creation of digital media content. Projects earning these credits include interactive websites, video games and other forms of digital media content varying across the state programs. Like film tax credits, these credits are transferable to outside investors.