| Line 1: |
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| − | <b>Never Split Tens</b> is a major motion picture based on the life of the mathematician who developed the card counting technique for the casino game of blackjack. | + | <b>Never Split Tens</b> is a major motion picture based on the life of the mathematician who developed the card counting technique for the casino game of blackjack. It production budget will be raised by loans taking advantage of Illinois income tax credits and federal income tax deductions. |
| | | | |
| | ==The Motion Picture== | | ==The Motion Picture== |
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| | The current administrator of the program is | | The current administrator of the program is |
| | | | |
| − | Ms. Michele McGee, Tax Credit Specialist | + | Ms. Michele McGee, Tax Credit Specialist</br> |
| − | Illinois Film Office | + | Illinois Film Office</br> |
| − | 100 W. Randolph Street | + | 100 W. Randolph Street</br> |
| − | Chicago, Illinois 60601 | + | Chicago, Illinois 60601</br> |
| − | 312-814-7162 | + | 312-814-7162</br> |
| | Michele.McGee@illinois.gov | | Michele.McGee@illinois.gov |
| | | | |
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| | 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%. | | 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
| + | [[files |
| − | Taxable Income1
| |
| − | Loan/
| |
| − | Investment2
| |
| − | Illinois Tax Credit3
| |
| − | Federal Deduction
| |
| − | Federal Savings (35% Bracket)
| |
| | | | |
| − | Total Return4
| |
| − |
| |
| − | Annualized % Return5
| |
| − | 1
| |
| − | $3,000,000
| |
| − | $435,000
| |
| − | $450,000
| |
| − | $435,000
| |
| − | $152,250
| |
| − | $167,250
| |
| − | 58%
| |
| − | 2
| |
| − | 3,000,000
| |
| − | 435,000
| |
| − | 450,000
| |
| − | 435,000
| |
| − | 152,250
| |
| − | 167,250
| |
| − | 58%
| |
| − | 3
| |
| − | 2,500,000
| |
| − | 362,500
| |
| − | 375,000
| |
| − | 362,500
| |
| − | 126,875
| |
| − | 139,375
| |
| − | 58%
| |
| − | 4
| |
| − | 2,500,000
| |
| − | 362,500
| |
| − | 375,000
| |
| − | 362,500
| |
| − | 126,875
| |
| − | 139,375
| |
| − | 58%
| |
| − | 5
| |
| − | 2,000,000
| |
| − | 290,000
| |
| − | 300,000
| |
| − | 290,000
| |
| − | 101,500
| |
| − | 111,500
| |
| − | 58%
| |
| − | 6
| |
| − | 2,000,000
| |
| − | 290,000
| |
| − | 300,000
| |
| − | 290,000
| |
| − | 101,500
| |
| − | 111,500
| |
| − | 58%
| |
| − | 7
| |
| − | 1,500,000
| |
| − | 217,500
| |
| − | 225,000
| |
| − | 217,500
| |
| − | 76,125
| |
| − | 83,625
| |
| − | 58%
| |
| − | 8
| |
| − | 1,500,000
| |
| − | 217,500
| |
| − | 225,000
| |
| − | 217,500
| |
| − | 76,125
| |
| − | 83,625
| |
| − | 58%
| |
| − | 9
| |
| − | 1,000,000
| |
| − | 145,000
| |
| − | 150,000
| |
| − | 145,000
| |
| − | 50,750
| |
| − | 55,750
| |
| − | 58%
| |
| − | 10
| |
| − | 1,000,000
| |
| − | 145,000
| |
| − | 150,000
| |
| − | 145,000
| |
| − | 50,750
| |
| − | 55,750
| |
| − | 58%
| |
| − |
| |
| − | TOTAL
| |
| − | $2,900,000
| |
| − | $3,000,000
| |
| − | $2,900,000
| |
| − | $1,015,000
| |
| − | $1,115,000
| |
| − | 58%
| |
| − |
| |
| − | 1For simplicity, the taxable income for both state and federal income taxes is assumed to be the same.
| |
| − | 2Taxable-income weighted proportion of total loan of $2.9 million
| |
| − | 3 Based on an Illinois tax credit of $3 million received on a $10 million production budget. The tax credit can be carried forward up to five years. In this way, individual #1 would have an annual 5% Illinois tax of $150,000 so that he would opt to carry his $450,000 tax credit forward for three years until it is fully utilized. Similarly, the other individuals, in this simplified model, would carry their tax credits forward for three years.
| |
| − | 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.
| |
| | | | |
| | ===Investor Share of Profits=== | | ===Investor Share of Profits=== |