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MyWikiBiz, Author Your Legacy — Wednesday November 20, 2024
Jump to navigationJump to search→Production Funding by Income Tax Credits and Deductions
The funding mode is a concept that professional accountants could suggest to clients to whom they provide tax savings advice. This concerns earning substantial Illinois motion picture production income tax credits (35 ILCS 16/) and federal motion picture production income tax deductions (U.S.C. 181).
The funding mode is a concept that professional accountants could suggest to clients to whom they provide tax savings advice. This concerns earning substantial Illinois motion picture production income tax credits (35 ILCS 16/) and federal motion picture production income tax deductions (U.S.C. 181).
Much of the producers’ understanding of this "loan-investment" scenario came from an accounting firm which is on the list of the Illinois Film Office as those who purchase tax credits from film production companies.
<b>THIS IS NOT A TAX SHELTER. IT IS A LOAN/INVESTMENT WITH A RETURN BASED ON STATE AND FEDERAL STATUTES OF UP TO 58% (based on federal income tax bracket). The earnings ARE NOT dependent on the motion picture generating any profits; they are based SOLELY on the production budget being spent in Illinois.</b>
Much of the producers’ understanding of this "loan-investment" scenario came from an accounting firm which is on the list of the Illinois Film Office as those who purchase tax credits from film production companies.
==Usual Funding Modes==
==Usual Funding Modes==
