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 is 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 Never Split Tens earning a profit.   

Second, large budget blockbuster movies require large up-front investors and low-budget motion pictures can not benefit from the current proposal.  Only intermediate-budget motion pictures such as Never Split Tens can be funded in the manner propose.  Finally, many motion pictures are shot in multiple states.  The cost of production, as a result, is split among those states rather than occurring entirely in one state, for example, Illinois, and many of those states may lack the incentives provided by Illinois.

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.   

 

Finally, many motion pictures are shot in multiple states.  The cost of production, as a result, is split among those states rather than occurring entirely in one state, for example, Illinois, and many of those states lack the tax credit incentives provided by Illinois.

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.