Internal Revenue Code section 181 allows for 100% tax deduction against gross income for independent film investments. Below are some Investor guidelines for the Section 181 Tax Deduction:
 

-100% of the motion picture costs are deductible in the same year of investment.
- 75% of the motion picture must be shot in the US to qualify for Section 181.
- There is a 15 to 20 million dollar budget cap.
- TV pilots, TV episodes (up to 44), short films, music videos and feature films all qualify for Section 181.
- Section 181 can be applied to active income or passive income. Investors can be either individuals or businesses.
- Section 181 is retroactive. There is no expectation for film distribution or film completion.
- The motion picture issues Schedule K-1’s to the investors in order to take advantage of Section 181.

In the past, movies were made with tens of millions of dollars and distributed in the theaters or the video store. Today, the market is far more open and allows for any compelling movie to make money with targeted markleting and cost-effective social media campaign approaches. Films are shot for less, with many more opportunities for low-budget advertising, reducing the risk and allowing the investor to enjoy the process of executive production. Budgets at IAM vary in range from ultra-low budget to low budget feature films and ultra-low budget series'.