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Zoetifex Blog

State of the Studio

For any investors out there waiting to see if they will still be able to take advantage of the Federal Tax Code 181 your ship has just come in.

As reported in Law Journal Newsletters (LJN), thanks to the new Jobs Act, the tax code will cover any production where 70% of its budget is spent here in the US between September 27, 2017 and December 31, 2022. This is fantastic news for all of the entertainment industry.

In February, 2018, Congress amended Tax Code 181 to include productions performed through December 31, 2017. But thanks to the new Jobs Act, this extends the time period for 5 years initially (Congress is free to extend that provision at any time). But it also doesn't end in 2022. The Jobs Act states that it will depreciate over time. The rate declines 20% per year, that is, 80% of costs for a project put in service in 2023, 60% for a project placed in service in 2024, etc.

A better visual of this is laid out at TaxNews.

As more news about this great Tax Benefit is made known, we will do our best to update you on any information that is made public.

Michael Kadrie makes another appearance on TechVibe Radio (Saturday's at Noon on 104.7FM - Pittsburgh) to talk about the studios new direction and call for investors. Teasers of future projects and a new Studio being built in Pittsburgh.

If you're not saying it out loud, you're probably at least thinking it: "What the heck is taking so long?"

If you could only be here for the day-to-day activities, you would see that there is plenty going on. However, there is also plenty that is been holding us up. I would probably have to sit and count the number of people that have come to the table offering their help and services, saying that they can make an impact or that they want to help and they want to be part of something big. Only to turn out to be a little less than what they advertised. Everything from executive producers to potential partners to investors to potential clients... one after another approached us wide-eyed and bushy tailed ready to rock. And to a bit of a fault, we never really took a cynical approach to dealing with them. In fact, just the opposite. We opened our doors and our minds and really wanted to show them what we can do. And for the most part, all were very impressed and very eager to help us get things rolling.

New relationships take months to develop and when you are working on such a huge endeavor such as this, you really want to be thorough and go through every nook and cranny with a fine-tooth comb with anyone new who comes on board. But for various reasons (some that have been given and others that remain a mystery), these people have all faded away. And as quickly as they fade away, new opportunities arise.

Like the opportunity to start an animation training facility that will also include the ability for those students with learning disabilities to take part at a location here in Pittsburgh as well as take courses on-line. These courses will be offered to the general public too as a non-accredited program. We are still working out the details, so I can't go any further than that.

Another recent opportunity that has come about is an effort to create Christian focused animation projects for both entertainment and education. This opportunity has a great deal of potential and I am really looking forward to seeing how this pans out. But again - too early to go into any details.

We are also finding ways to develop other types of content (such as live-action combined with CG visual effects) for both TV and Film.

We are slowly shaping up to be a full-blown entertainment company. Not just animation, and not just a production house. We are developing content and we are not short of great ideas. But the hold-up always comes down to funding. Who is out there that will step up and see the potential of zoetifex Studios and what we have to offer? Some are starting to come forward, but the question is - will they fade away like the rest, or will something inspire them to make the leap? I know it's always hard to be the first to get on board - I totally get that. But when it happens, and everyone gets to see just what we can do, I would suspect that those who were waiting in the wings will suddenly spring forward. It's so much easier to jump on the bandwagon than to help build it.

There is hardly a day that goes by without some sort of discussion about moving this company forward. Whether it's an idea, following up with a contact, hearing someone's pitch on a project, flushing out a concept or dozens of other conversations with those involved. Let me repeat something that I have said many times before - this is a HUGE endeavor and we are not building this from the top down. I'm not some wealthy financier who decided it would be cool to start an animation company. This idea was conceived by artists and animators - knowing that we can deliver great entertainment and give some very talented artists a full-time job working on various projects that will keep them interested and entertained as well. So, what the heck is taking so long? We're in the process of building the perfect beast. And that takes time, talent, persistence and a whole lot of patience with the waiting game.

We do thank you for your interest and your patience. This will pay off in the end. In the meantime, for anyone interested in someday working for us - keep getting more experience and keep working on your talent and demo reel. Never strive for anything less than great! I know we won't :)

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