Clocktower Tax Credits had the opportunity to attend the American Film Market (AFM) in early November, where filmmakers and entertainment executives discussed the evolving landscape of the entertainment industry.  While there was cautious optimism about the industry’s future, discussions often centered on practical approaches to creating and distributing content in a challenging market.

A key topic discussed at the market was the shift in strategy among streaming platforms, which is resulting in less content being bought and made.  With many platforms feeling they’ve already reached and signed up their core audience, their focus has shifted from attracting new subscribers to retaining the ones they have.  This has led to a reduction in content acquisition, with streaming services prioritizing quality over quantity.  As a result, they are also creating less content in-house.  For independent filmmakers, this shift means a greater emphasis on producing high-quality, marketable content that is more likely to sell.  Independent filmmakers will also need to look beyond streaming deals and start seeking distribution through independent distribution companies.

Tax incentives continue to be a major topic of conversation at AFM, with filmmakers increasingly looking to state programs to help offset rising production costs.  Many states are expanding their tax credit programs to attract filmmakers.  Industry professionals agree that utilizing these incentives is important for making productions financially viable.  It is also important to ensure that the U.S. remains competitive in the global market.  Clocktower works across all 50 states, and internationally for select projects.

The increasing trend of large-budget productions moving to Europe due to high union costs in the U.S. was another major point of discussion at AFM.  With unions demanding higher wages and benefits, many large-scale productions are finding it more cost-effective to film in Europe.  In contrast, smaller-budget productions continue to rely heavily on domestic tax credits. 

The move out of Los Angeles has also been increasing, with more filmmakers looking to other states for financial incentives.  Recently, Governor Gavin Newsom has stated that he is focused on strengthening California’s film tax incentive program to help keep productions and production crew jobs in Los Angeles.

Productions aren’t the only thing fleeing Hollywood.  One of the biggest points of contention discussed at the market was the relocation of AFM from Santa Monica to Las Vegas.  Sales and distribution companies, many of which are based in Los Angeles, expressed frustration with the move.  It seemed counterproductive to relocate the event a few hours away to Las Vegas.  International attendees also faced longer travel days, as many had to connect through Los Angeles to reach Las Vegas.  Additionally, the casino environment in Las Vegas created a difficult setting for networking and business discussions.

Let’s connect!  If you’re interested in discussing how tax incentives can help fund your next project or have a credit to sell, please reach out to Haley Ricker at (978) 793-6694 or via email at HRicker@ClocktowerTC.com.

\Clocktower Tax Credits, LLC, a national broker of State and Federal Tax Credit incentives, was honored by Energy Business Review as a Top Renewable Energy Financing Services Provider for 2024.  The firm was featured in a cover story in the Review’s August 15, 2024 edition.  https://renewable-energy-financing.energybusinessreview.com/vendors/top-renewable-energy-financing-services-providers.html

“We were both honored and flattered to have been selected by the magazine’s editorial staff to be featured in this prominent manner,” stated Jeff Jacobson, Clocktower’s President.  “There are a lot of firms, both traditional tax credits brokers/syndicators and newer tech-inspired firms that have been drawn to this space by the tremendous potential of the Inflation Reduction Act of 2022.  That we have been identified as a key player speaks to our past experience as well as our current capabilities.”

Clocktower was quick to embrace the exciting new features of the legislation that created, for the first time ever, a Transferable Federal Income Tax Credit.  “We have over 20 years’ experience transferring State tax credits to our mostly Fortune 500 pool of tax credit investors,” Jacobson continued.  “Although the use of the IRS transfer portal is totally new, the analysis, processing, and legal documentation used to sell or purchase these credits is similar to what we have coached our investor clients through for years.”

As described in the article, Clocktower employs its staff of acquisitions associates nationwide to identify and then connect tax credit sellers and buyers.  Dave Auster, Clocktower’s Senior Associate with over 25 years of industry experience, notes that middlemen such as Clocktower are crucial to establishing the deal flow for this nascent, $40 billion industry.  “While there are some new online marketplaces for buyers and sellers to see inventory and connect, our history tells us that there needs to be knowledgeable intermediaries in almost every transaction to see them across the finish line.  Jeff and I aim to do just that in our transactions.”

Clocktower welcomes calls from manufacturers, contractors, developers and system owner of energy property that qualifies for tax credits.  We will help you determine the value of the tax credits that you have to sell, and guide you through the process of contracting for their sale.  Similarly, we encourage investors seeking tax savings to seek out us, and we’ll match you with the appropriate tax credit seller.

Clocktower Tax Credits has offices in Boston, New York, Los Angeles, Naples, and Charlotte.  To schedule a meeting with any Clocktower associate, or a phone call or Zoom session, please call President Jeff Jacobson at (978) 823-0200, or email him at JJacobson@ClocktowerTC.com.

This fall, Acquisitions Associate Haley Ricker will attend two important events in the entertainment industry: the Chicago International Film Festival in October and the American Film Market (AFM) in November. She looks forward to connecting with filmmakers and gaining insights into the current landscape of independent filmmaking, especially the critical role that film tax credits play in project financing and production strategies.

Chicago International Film Festival: Industry Days

During Industry Days at the Chicago International Film Festival, panel discussions and events will offer learning and networking opportunities for independent filmmakers primarily located in the Chicago area. These sessions will provide a platform for exploring how filmmakers navigate the challenges of financing their projects. It will also be a great opportunity to learn about on-the-ground producing from those working in and around Chicago.

With a growing trend of filmmakers leaving Hollywood to take advantage of tax incentives across the nation, discussions will likely focus on the competitive tax incentives available in places like Illinois. Chicago has established itself as a film and TV hub for both independent producers and major studios, highlighted by the success of the award-winning show The Bear.

American Film Market: AFM Sessions

Following the Chicago festival, Haley will head to Las Vegas, the new location of the American Film Market. AFM is renowned as a marketplace where deals and connections are made. During the AFM sessions, there will be in-depth discussions around current trends in the marketplace concerning both sales and distribution, primarily the growing concern over the health of the theatrical market as the industry continues shifting towards digital and streaming platforms. This new era of film distribution plays a significant role in how films, especially independent ones, are financed.

Last year, Haley attended the market, where much of the financing discussions focused on the availability of film tax credits across most states and their importance in securing financing for films. She expects similar conversations this year, especially as the recent strikes have pushed more independent filmmakers to seek financing opportunities outside of Hollywood. Leveraging state tax incentives is becoming increasingly important for completing the financing model in today’s market.

Let’s Connect!

If you’re attending either the Chicago International Film Festival or the American Film Market, Haley would love to connect and discuss how Clocktower Tax Credits can help finance your next production through the use of transferable tax credits. To schedule a meeting, please reach out to Haley Ricker at (978) 793-6694 or via email at HRicker@ClocktowerTC.com.

Congratulations are in order to Economic Growth Corporation for its receipt of a “Preservation at its Best” award from Preservation Iowa for the rehabilitation of the Wilson Lofts in Clinton, Iowa.  The development entailed the reuse of the historic Wilson Building into a 33-unit apartment complex, containing both market-rate and workforce housing rental apartments.  The retail space in the building also houses Makers on Fifth and Clinton Culinary, the first two business incubators in Clinton.  Clocktower Tax Credits is proud to have helped provide the Federal Historic Tax Credit and Iowa Brownfield Tax Credit equity, two of more than ten sources of financing for the Wilson Lofts.

Preservation Iowa, a statewide organization dedicated to the preservation of historic resources across Iowa, honored the project and Economic Growth Corporation at its Preserve Iowa Summit in June.  The award was in the Adaptive Reuse category, highlighting the impactful vision of the project to transform the vacant building into both a home for many and a business incubation space for local entrepreneurs. 

“The Wilson Lofts is a major redevelopment milestone for GROWTH and is the result of a collaborative planning effort spanning nearly ten years that required hard work, determination, resilience, and coordination by many partners,” stated Brian Hollenback, President and CEO of GROWTH. “We’ve been extremely fortunate to have built a strong team of partners that believed and trusted in each other and believed and trusted GROWTH to get it done.”

Clocktower is ready to help developers of all kinds across the state of Iowa with the plethora of Federal and State tax credit programs available for Iowa developers to use for visionary real estate developments.  If you have any questions or need support for your Iowa project, please reach out to David Curtis at (978) 440-0742, or email him at DCurtis@ClocktowerTC.com. 

In June, Senior Associate David Curtis had the pleasure of being the final speaker at the groundbreaking event for Lakeview Landing, in the Lake View neighborhood on the North Side of Chicago. The day was a welcomed celebration, as developer client Over the Rainbow (OTR) Housing persevered through four years of pre-construction planning to push the project forward to construction. The project will be a neighborhood staple for Lake View on the former site of the Lake View Lutheran Church, creating 37 one-bedroom living units for mobility impaired residents within five blocks of Wrigley Field. The development far exceeds ADU standards, with amenities in each unit including roll-in showers, pull-under sinks, accessible appliances, and lower-positioned light switches, electric outlets, windows and door handles. OTR Housing has a long track record of supporting and developing accessible housing across Chicagoland, with over a dozen different sites that provide hundreds of units for low-income disabled tenants in both urban and suburban cities. Clocktower has provided the Illinois Affordable Housing Tax Credit equity for multiple OTR developments, and we continue to be very proud to support their wonderful vision to provide high quality accessible housing across Illinois. Clocktower is ready to help all developers with socially focused housing creation, and has a deep passion to be the state tax credit equity provider for empathetic and impactful clients like Over the Rainbow Housing. If there are any questions or help needed for a creative real estate development idea, please reach out to David Curtis at (978) 440-0742, or email him at DCurtis@ClocktowerTC.com.