Tax Credits: Has the Economic Downturn Affected their Value?

We are currently in the middle of the tax season selling film industry tax credits on behalf of our clients. Many have approached us asking if the economic downturn due to the local fiscal situation and the aftermath from Hurricane María have affected the demand and the price of tax credits. From our conversations with intermediaries and CPA firms, it seems that this economic downturn should not present a problem in placing all of our tax credit inventory during the tax season at similar prices than in the past.

Based on closings to date and offers received, we have observed that the tax credit market for film tax credits is still within the usual range of 89-92%, with the same behavior of buyers of larger amounts offering to pay slightly less than buyers of smaller amounts. In order to maximize the price, we are ready to sell to more buyers in smaller portions as needed. Although it requires more work from us, we are able to deliver value to our clients.

Please contact us if you need more details or if you or your company are in need of tax credits.