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Tax Incentives
Another way to benefit is to invest in one of those projects. Just about every project we own has investment opportunities. And these opportunities come with a really nice perk - Tax Incentives!
Invest with Zoetifex and get a 100% tax deduction plus a 9% tax break on your returns! U.S. Tax Code 181 was originally drafted as part of The American Jobs Creation Act Of 2004 as a way to keep filming production companies from going up to Canada and elsewhere to film their movies and TV shows.
In 2013, it was rolled into the American Taxpayer Relief Act of 2012 (The Stimulus plan). What it does, is it allows an investor to get a 100% deduction on their taxes as long as the production company is spending 70% of their finances in the US and that the cost of production is $15M or less ($20M with some provisions).
This acts just like giving to charity only better. What it also does is gives the investor a 9% tax break on any revenue generated from that investment. So for every $100k that someone invests into a project, they get a $35k tax break (figuring that they would probably be at the 35% tax bracket). And for every $100k they make on the invested project, they save $9k in taxes.
IMPORTANT UPDATE: March 2018
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. You can find more details about this exciting news in our BLOG. Please check that out to get important details.
We think this is a huge deal!
With the tax breaks and potential revenue, this should be worth a look for anyone who has the ability to invest.
Competitive Edge
Zoetifex has a considerable number of advantages in its target industry. The following lists each advantage:
Cost of Production
- Because of our location and our pay per performance model, we are able to cut production costs by an average of 70%
- Due to the low cost of living in our targeted areas, we can pay our artists a salary competitive to the local market, but significantly less than other studios of similar quality
- The advancement of technology is helping to reduce the overall costs of animation. Starting our company up now will give us an advantage over those that have to convert their technology which could be more costly
- Most Studio Executives, Producers and Directors of animated feature films have salaries in the millions. Our pay per performance model keeps our fees significantly lower which will greatly reduce the cost of production
Operations
- Abide by the highest ethical standards
- Provide all clients with fair and honest service and superior productions
- Hire those artists who work by the same high standards of excellence and code of ethics
- Ability to work with other production companies with limited budgets
- Commitment to on-time delivery of all productions
- Strategic alliance with Board of Advisors will allow for initial potential client base
- Integrity will garner a strong client base
Talent Pool
- Strong working relationship with Animation Mentor - the top Online Character Animation School in the world
- Excellent ties to the PixelCorps which has thousands of artists all over the world
- Alliances with local schools such as Edinboro University, Carnegie Mellon, Ringling College of Art and Design, Duquesne University and more
- Dozens of artists already exist in our current talent pool. These include qualified individuals who have expressed an interest in moving to Pittsburgh to come and work for zoetifex. Only candidates with pre-screened portfolios and demo reels have been considered
It’s easy to see why Zoetifex will be considered over our competitors on paper, but it won’t be until we are in full production mode that people will be able to witness the quality of animation that we are able to produce. We firmly believe that once we have a showcase piece, that it will be enough for those who are seeking animation production, to seek no further than Zoetifex.
Market Segmentation
Zoetifex will initially target business in three different segments. (1) Outside Production (2) Investments for Internal Productions (3) Self-funded Internal Productions. These segments are further described below.
Outside Productions
Zoetifex will look to produce projects from clients seeking our talents. We have already reviewed several scripts and sent out quotes on the cost to produce the stories. This will be an excellent way to get off the ground with little to no start-up costs as the projects themselves will enable us to pay for the talent and equipment needed for the production. The more we can self-market ourselves via social networking, and utilizing the connections of those on our Board of Advisors, the better our chances are at getting noticed by those looking to get a project produced. When these prospects find out that we can deliver the quality they desire with a much more attractive budget, we believe that this will be enough to entice a number of these projects to get produced via Zoetifex.
Investment for Internal Productions
This method of business will be the quickest way for us to get up and running. An investor will be able to look at all of the projects we have on the table and choose which one looks the most encouraging for them to get the most out of their investment. The investor will have their money invested in the project, but not the company. However, for our first few projects, we would look to compensate the investor by giving them a small percentage of all of the future Zoetifex business. Not only will they be able to realize their return in a relatively short turnaround, but they will continue to profit from the success of zoetifex.
Self-funded Internal Productions
It will be the goal of Zoetifex to gain enough profit from one of the above mentioned methods of revenue, to self-fund an internal project. This will be a great way to grow the business as we will then realize all of the profits from the production. This will then set off a chain reaction of self-funded projects. The more profit we can realize from the last production, the more we can continue to self-fund our own projects. An investor who comes on early to help fund one of our projects will continue to benefit from our self-funded productions as well by way of profit sharing.
Faith-based Education
Zoetifex will focus on enhancing our productions by creating educational tools that authenticate our storylines and further expand the reach of our productions.
The possibilities to educate pastors, teachers and students alike with our interactive educational tools are endless. Development of these tools will be very engaging, entertaining, instructive and interactive.