100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3039

 

Introduced , by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/222
35 ILCS 17/10-20

    Amends the Illinois Income Tax Act and the Live Theater Production Tax Credit Act. Provides that the live theater production credit applies for tax years beginning prior to January 1, 2027 (currently, January 1, 2017 by operation of the Act's automatic sunset provision. Provides that the amount of tax credits awarded pursuant to the Live Theater Production Tax Credit Act shall not exceed $4,000,000 in fiscal year 2017 and each fiscal year thereafter (currently $2,000,000).


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3039LRB100 08443 HLH 18561 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 222 as follows:
 
6    (35 ILCS 5/222)
7    Sec. 222. Live theater production credit.
8    (a) For tax years beginning on or after January 1, 2012 and
9beginning prior to January 1, 2027, a taxpayer who has received
10a tax credit award under the Live Theater Production Tax Credit
11Act is entitled to a credit against the taxes imposed under
12subsections (a) and (b) of Section 201 of this Act in an amount
13determined under that Act by the Department of Commerce and
14Economic Opportunity.
15    (b) If the taxpayer is a partnership, limited liability
16partnership, limited liability company, or Subchapter S
17corporation, the tax credit award is allowed to the partners,
18unit holders, or shareholders in accordance with the
19determination of income and distributive share of income under
20Sections 702 and 704 and Subchapter S of the Internal Revenue
21Code.
22    (c) A sale, assignment, or transfer of the tax credit award
23may be made by the taxpayer earning the credit within one year

 

 

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1after the credit is awarded in accordance with rules adopted by
2the Department of Commerce and Economic Opportunity.
3    (d) The Department of Revenue, in cooperation with the
4Department of Commerce and Economic Opportunity, shall adopt
5rules to enforce and administer the provisions of this Section.
6    (e) The tax credit award may not be carried back. If the
7amount of the credit exceeds the tax liability for the year,
8the excess may be carried forward and applied to the tax
9liability of the 5 tax years following the excess credit year.
10The tax credit award shall be applied to the earliest year for
11which there is a tax liability. If there are credits from more
12than one tax year that are available to offset liability, the
13earlier credit shall be applied first. In no event may a credit
14under this Section reduce the taxpayer's liability to less than
15zero.
16(Source: P.A. 97-636, eff. 6-1-12.)
 
17    Section 10. The Live Theater Production Tax Credit Act is
18amended by changing Section 10-20 as follows:
 
19    (35 ILCS 17/10-20)
20    Sec. 10-20. Tax credit award. Subject to the conditions set
21forth in this Act, an applicant is entitled to a tax credit
22award as approved by the Department for qualifying Illinois
23labor expenditures and Illinois production spending for each
24tax year in which the applicant is awarded an accredited

 

 

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1theater production certificate issued by the Department. The
2amount of tax credits awarded pursuant to this Act shall not
3exceed (i) $2,000,000 in any fiscal year prior to fiscal year
42017 and (ii) $4,000,000 in fiscal year 2017 and each fiscal
5year thereafter. Credits shall be awarded on a first-come,
6first-served basis. Notwithstanding the foregoing, if the
7amount of credits applied for in any fiscal year exceeds the
8amount authorized to be awarded under this Section, the excess
9credit amount shall be awarded in the next fiscal year in which
10credits remain available for award and shall be treated as
11having been applied for on the first day of that fiscal year.
12(Source: P.A. 97-636, eff. 6-1-12.)