Changes

The primary answer lies in the Illinois income tax rate.  As will be seen in the examples provided later, a funding entity or individual must have a large Illinois tax liability to be able to take advantage of the Illinois Film Production Services Tax Credit Act of 2008.  The previous 3% tax rate did not create a sufficiently large tax liability.  The 67% increase to a 5% tax rate now makes many more entities and individuals able to take advantage of that state law.  Corporations and partners in accounting firms are now beginning to see the advantage of the concept we are proposing.

The primary answer lies in the Illinois income tax rate.  As will be seen in the examples provided later, a funding entity or individual must have a large Illinois tax liability to be able to take advantage of the Illinois Film Production Services Tax Credit Act of 2008.  The previous 3% tax rate did not create a sufficiently large tax liability.  The 67% increase to a 5% tax rate now makes many more entities and individuals able to take advantage of that state law.  Corporations and partners in accounting firms are now beginning to see the advantage of the concept we are proposing.

The mode of funding proposed has been underutilized for other reasons.  First, it suffers from the belief that investment in motion pictures is extremely risky.  While this is true, the mode proposed here DOES NOT depend on Never Split Tens earning a profit.   

The mode of funding proposed has been underutilized for other reasons.  First, it suffers from the belief that investment in motion pictures is extremely risky.  While this is true, the mode proposed here DOES NOT depend on <i>Never Split Tens</i> earning a profit.   

Second, large budget blockbuster movies require large up-front investments and low-budget motion pictures cannot benefit from the current proposal.  Only intermediate-budget motion pictures such as Never Split Tens can be funded in the manner proposed.   

Second, large budget blockbuster movies require large up-front investments and low-budget motion pictures cannot benefit from the current proposal.  Only intermediate-budget motion pictures such as <i>Never Split Tens</i> can be funded in the manner proposed.   

Finally, relatively few motion pictures are shot entirely in Illinois.  Many motion pictures are shot in multiple states.  Some locations may be shot in Chicago, for example, but the sound stages are based in Los Angeles. The cost of production, as a result, is split among those states rather than occurring entirely in Illinois, reducing the value of the Illinois tax credit.  

Finally, relatively few motion pictures are shot entirely in Illinois.  Many motion pictures are shot in multiple states.  Some locations may be shot in Chicago, for example, but the sound stages are based in Los Angeles. The cost of production, as a result, is split among those states rather than occurring entirely in Illinois, reducing the value of the Illinois tax credit.

In short, the mode of funding is only viable for moderate-budget films shot entirely in Illinois since 2011.

In short, the mode of funding is only viable for moderate-budget films shot entirely in Illinois since 2011.  <i>Never Split Tens</i> fulfills those requirements.

==Funding for Never Split Tens==

==Funding for Never Split Tens==