Changes

The Illinois film office, our accountant, and our entertainment lawyer agree that the amount of money loaned can be considered an investment under U.S.C. 181.   

The Illinois film office, our accountant, and our entertainment lawyer agree that the amount of money loaned can be considered an investment under U.S.C. 181.   

Example A.  If a single corporation provides the entire loan, its loan-investment of $2.9 million results in a $2.9 million federal deduction.  For those in, for example, the 20% tax bracket, this results in a tax savings of $580,000.  The earnings on the loan from this source is $580,000/$2,900,000 x 100 = 21% for eight months, equivalent to 31% interest annualized.   

====Example A====

If a single corporation provides the entire loan, its loan-investment of $2.9 million results in a $2.9 million federal deduction.  For those in, for example, the 20% tax bracket, this results in a tax savings of $580,000.  The earnings on the loan from this source is $580,000/$2,900,000 x 100 = 21% for eight months, equivalent to 31% interest annualized.   

Example B.  In this example, ten individuals provide the loan based on their relative gross incomes.  The results for their considerations based on both the Illinois tax credit and the federal deduction are provided in the table.  The individuals are assumed to be in the 35% federal tax bracket.  The annualized return resulting from the total of the Illinois tax credit and the federal deduction is 58%.

====Example B====

In this example, ten individuals provide the loan based on their relative gross incomes.  The results for their considerations based on both the Illinois tax credit and the federal deduction are provided in the table.  The individuals are assumed to be in the 35% federal tax bracket.  The annualized return resulting from the total of the Illinois tax credit and the federal deduction is 58%.

Individual

Individual

4 Illinois tax credit + federal savings - loan/investment (column 4 + column 6 - column 3)

4 Illinois tax credit + federal savings - loan/investment (column 4 + column 6 - column 3)

5 (Illinois tax credit + federal savings)/(loan/investment) x 12 months/8 months x 100 (column 4 + column 6)/column 3 x 12 months/8 months x 100.  This calculation assumes that the full Illinois tax credit is accounted for in the year in which it was provided rather than being utilized over several years.

5 (Illinois tax credit + federal savings)/(loan/investment) x 12 months/8 months x 100 (column 4 + column 6)/column 3 x 12 months/8 months x 100.  This calculation assumes that the full Illinois tax credit is accounted for in the year in which it was provided rather than being utilized over several years.

In addition, as investors, the loaning entity or individuals would receive a percentage of the profits earned by the film.  The film will be distributed in all modes, for domestic and international box office, in electronic media, and in ancillary distribution (such as in prisons, cruise ships, summer camps, colleges and universities, and on airline flights).

In addition, as investors, the loaning entity or individuals would receive a percentage of the profits earned by the film.  The film will be distributed in all modes, for domestic and international box office, in electronic media, and in ancillary distribution (such as in prisons, cruise ships, summer camps, colleges and universities, and on airline flights).

The majority of motion pictures do not earn a profit solely from domestic distribution.  The percentages of the box office taken by the domestic exhibitors (theatre owners), distributors, and agents are significant.  Most profitable films earn their profits from international box office, electronic media, and ancillary distribution.  These revenue streams are realized within a year of theatrical release to ten to fifteen years after theatrical release.  Statistics of movie profitability demonstrate that character-driven films, because of their casting A-list stars, are attractive to exhibitors and distributors because they have the best chances of attaining profitability in the long run.

The majority of motion pictures do not earn a profit solely from domestic distribution.  The percentages of the box office taken by the domestic exhibitors (theatre owners), distributors, and agents are significant.  Most profitable films earn their profits from international box office, electronic media, and ancillary distribution.  These revenue streams are realized within a year of theatrical release to ten to fifteen years after theatrical release.  Statistics of movie profitability demonstrate that character-driven films, because of their casting A-list stars, are attractive to exhibitors and distributors because they have the best chances of attaining profitability in the long run.

6.  PRODUCTION AND COMPLIANCE

a.  The producers create a detailed production budget using film industry standard line production software,

The success of this project and the viability of its presentation to clients by "Accountant_firm_name" requires that the producers guarantee that the funds loaned to the production company are appropriately spent.  Therefore, numerous steps will be taken to ensure compliance with 35 ILCS  16/.

b.  That budget is submitted to the Illinois Film Office.  Their auditor determines those expenses attributable to Illinois residents, firms, and vendors and issues a letter of pre-production approval in which that amount is provided to the dollar,

c.  That sum less an agreed-upon percentage is requested as a loan by the producers,

c.  That sum less an agreed-upon percentage is requested as a loan by the producers,

d.  During the actual filming, the coordinating producer, working with the production company accountant, ensures that the residents, firms, and vendors reside or do business in Illinois.  Appropriate paperwork and receipts are compiled daily,

d.  During the actual filming, the coordinating producer, working with the production company accountant, ensures that the residents, firms, and vendors reside or do business in Illinois.  Appropriate paperwork and receipts are compiled daily,

e.  During the actual filming, the coordinating producer, working with the production company accountant, provides a daily accounting of the expenses related to these residents, firms, and vendors,

e.  During the actual filming, the coordinating producer, working with the production company accountant, provides a daily accounting of the expenses related to these residents, firms, and vendors,

f.  That accounting is provided to you or your designated associate daily.

 

f.  That accounting is provided to the accountant firm daily.

 

==Summary==

==Summary==

We and our attorney would be happy to discuss our proposal further with you, your staff, and your counsel at your convenience.  A representative of the Illinois Film Office would be happy to attend.

We and our attorney would be happy to discuss our proposal further with you, your staff, and your counsel at your convenience.  A representative of the Illinois Film Office would be happy to attend.

==Contact==

 

Leslie M. Golden</br>

===Contact===

Executive Producer</br>

Leslie M. Golden

Executive Producer

"Never Split Tens"

"Never Split Tens"

drlesgo@aol.com

drlesgo@aol.com