Next month’s Hollywood movie premiere makes history as the first to be financed by the Inflation Reduction Act.

By Better Today On Feb 14, 2024

TL/DR –

A new low-budget dark comedy film has received financing from the Inflation Reduction Act, marking it as the first of its kind. The film will premiere at the South by Southwest film festival in Austin, Texas and lists NFL player Travis Kelce as a producer. The financing method, using funds generated from green energy entrepreneur Mike Field’s sale of surplus tax credits, may spark a trend in Hollywood to raise funds and bolster the indie film sector.

Financing Movie Production via the Inflation Reduction Act

There’s a new low-budget dark comedy premiering next month at South by Southwest film festival in Austin, Texas, but it’s not the movie itself that’s unique. Instead, it’s how it has been financed – a first of its kind leveraging the Inflation Reduction Act. According to a recent Variety report, the popular football player, Travis Kelce, is among the producers of this project.

The film financing strategy, utilizing the Inflation Reduction Act, is the result of funds appropriated by Congress for ‘green’ initiatives, which have been diverted to finance this dark comedy. This sparks concerns about the misappropriation of funds intended to address climate change and clean energy research.

Details from Variety

The investors in the comedy, including Kelce, are the first to utilize 2022’s Inflation Reduction Act to finance a film. The movie, ‘My Dead Friend Zoe,’ used funds generated by green energy entrepreneur Mike Field’s sale of surplus tax credits. Field is also a producer on the film.

‘Hollywood is risky, right? Especially in terms of independent film,’ says ‘My Dead Friend Zoe’ producer Ray Maiello, who runs California-based Radiant Media Studios with Field. ‘These federal tax credits take the risk down significantly.’

This funding strategy doesn’t stop at one film. The trio of Kelce, Maiello, and Field are applying the same approach to finance a second film, the Jean-Michel Basquiat documentary ‘King Pleasure.’ They believe their strategy could inspire a trend in Hollywood, bolstering the indie film sector. These types of deals are increasingly common outside Hollywood, representing a market worth between $7 billion and $9 billion.

Evaluating the Risks

Film-making is financially risky, particularly when producing independent films. Critics argue this strategy diverts much-needed funds from addressing genuine societal issues such as infrastructure repair and debt reduction. But for now, thanks to the Inflation Reduction Act, Hollywood has a new way to fund its projects.