Section 528.75  Amount and Duration of Tax Credit

a)         For tax years beginning on or after January 1, 2004, a person who has been awarded a credit under the Act is entitled to claim the credit against the taxes imposed under Section 201(a) and (b) of the Illinois Income Tax Act [35 ILCS 5/201(a) and (b)] in an amount determined by the Department.  If the applicant is a partnership or Subchapter S corporation, the credit is allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under sections 702 and 704 and Subchapter S of the Internal Revenue Code (26 USCA 702 and 704).  For tax years ending prior to July 11, 2005 (the effective date of Public Act 94-0171), the credit may not be carried forward or back.  For tax years ending on or after July 11, 2005, if the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year.  The credit shall be applied to the earliest year for which there is a tax liability.  If there are credits from more than one tax year that are available to offset a tax liability, the earlier credit shall be applied first.  In no event shall a credit under the Act reduce the taxpayer's liability to less than zero. [35 ILCS 5/213]

b)         For accredited productions commencing before May 1, 2006, eligible applicants will be awarded a credit equal to 25% of the Illinois labor expenditures approved by the Department for an accredited production.  In addition, accredited productions approved by the Department after January 1, 2005 will be entitled to an additional 10% film tax credit for the Illinois labor expenditures approved by the Department for employees who earn more than $1,000 on the production and live in geographic areas of high poverty or high unemployment in Illinois.  (Section 10 of the Act)

c)         For accredited productions commencing on or after May 1, 2006, eligible applicants will be awarded a credit equal to 20% of the Illinois production spending approved by the Department plus 15% of Illinois labor expenditures approved by the Department for employees who earn more than $1,000 on the production and live in geographic areas of high poverty or high unemployment in Illinois.  (Section 10 of the Act)

(Source:  Section 528.75 renumbered from Section 528.70 and amended at 31 Ill. Reg. 2253, effective January 18, 2007)