Originally Posted by NemesisEnforcer

The Federal Government gives a tax credit whereby all production is 100% deductible up to $15/20 Million.

* 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.
* There is no minimum film production budget cost.
* TV pilots, TV episodes (up to 44), short films, music videos and feature films all qualify.
* Can be applied to active income or passive income.
* Investors can be either individuals or businesses.
* Benefits are retroactive.
* There is no expectation for film distribution or film completion.
* Schedule K-1s are issued to investors so they can take advantage.

However, the Federal Government clearly excluded the adult industry from taking advantage of these benefits:

(C) Exception
A production is not described in this paragraph if records are required under section 2257 of title 18, United States Code, to be maintained with respect to any performer in such production.

If you're a non-adult indie film maker, you'll probably pay next to nothing in Federal taxes.