TITLE 14: COMMERCE
SUBTITLE C: ECONOMIC DEVELOPMENT
CHAPTER I: DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY
PART 532 ILLINOIS LIVE THEATER PRODUCTION TAX CREDIT PROGRAM
SECTION 532.50 APPLICATION FOR ACCREDITED THEATER PRODUCTION CERTIFICATE
Section 532.50 Application for Accredited Theater Production Certificate
a) In order to obtain a theater tax credit award, an applicant must first receive an accredited theater production certificate establishing that the applicant has satisfied the requirements of the Act and this Part.
b) In order to qualify for a theater tax credit award under the Act, an applicant must file an application, on forms prescribed by the Department, providing information necessary to calculate the tax credit award and any additional information as reasonably required by the Department. [35 ILCS 17/10-40(a)] The Department shall only accept applications that are submitted electronically via the standard application form provided by the Department. The applicant will be required to provide information including, but not limited to, the following:
1) Legal name, address and telephone number of applicant.
2) Whether the applicant is a:
A) Theater producer;
D) Operator; or
3) Name, title and telephone number of the primary contact person.
4) Type of business entity:
A) Individual or sole proprietorship;
D) Subchapter S corporation;
E) Limited liability company; or
F) Other (applicant will provide description).
5) Date of incorporation or formation.
6) Federal Employer Identification Number (FEIN) or Tax Identification Number (TIN).
7) Production title and whether the production is a:
A) Pre‑Broadway production; or
B) Long‑run production.
8) Estimated opening night of the production run and estimated number of performances in Illinois.
9) Estimated total budget of production.
10) Estimated total Illinois labor expenditure.
11) Estimated number of Illinois residents to be hired to work on the production.
12) For a Pre-Broadway production, applicant must provide tangible evidence that the production is scheduled to be performed in Broadway's Theater District within 12 months after the end of the Illinois run.
13) The applicant must certify that it is and will remain in good standing with applicable state authorities, it is not currently operating under, or subject to, any cease and desist order, or subject to any informal or formal regulatory action, and, to the best of the applicant's knowledge, that it is not currently the subject of any investigation by any state or federal regulatory, law enforcement or legal authority. Should the applicant become the subject of an investigation by any state or federal regulatory, law enforcement or legal authority, the applicant shall promptly notify the Department of that investigation. The applicant acknowledges that, should it become delinquent in its good standing status with any applicable state authority or if it later becomes subject to a cease and desist order or memorandum of understanding, or is found in violation pursuant to any regulatory action or any court action or proceeding before any administrative agency, the Department is authorized to deny the applicant's request for an accredited theater production certificate.
c) An application must be submitted to the Department no sooner than 180 calendar days prior to the opening of ticket sales for the accredited theater production and no later than the last business day prior to the opening of the accredited theater production.
d) The Department will evaluate applications for accredited theater production certificates from eligible applicants in accordance with the following requirements:
1) The Applicant intends to make the expenditure in the State. [35 ILCS 17/10-30]
2) The applicant's accredited theater production is economically sound and will benefit the people of the State of Illinois by increasing opportunities for employment and will strengthen the economy of Illinois. [35 ILCS 17/10-30]
3) A suitable diversity plan has been created by the applicant and the following requirements related to the implementation of a diversity plan have been met: the applicant has filed with the Department a diversity plan outlining specific goals for hiring Illinois labor expenditure eligible minority persons and females, as defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act, and for using vendors receiving certification under the Business Enterprise for Minorities, Females, and Persons with Disabilities Act; the Department has approved the plan as meeting the requirements established by the Department and verified that the applicant has met or made good faith efforts in achieving those goals; and the Department has adopted any rules that are necessary to ensure compliance with the provisions set forth in this subsection (d)(3) and necessary to require that the applicant's plan reflects the diversity of the population of this State. [35 ILCS 17/10-30(a)(3)]
4) The applicant's accredited theater production application provides a detailed training plan to participate in training, education and recruitment programs that are organized in cooperation with at least one of the following: Illinois colleges and universities; labor organizations; and the holders of accredited theater production certificates. Training plans are designed to promote and encourage the training and hiring of Illinois residents who represent the diversity of Illinois. [35 ILCS 17/10-30(a)(4)]
5) The applicant illustrates evidence of a competitive need for credit. If not for the theater tax credit award, the applicant's accredited theater production would not occur in Illinois, which may be demonstrated by any means, including, but not limited to, evidence that: the applicant, presenter, owner, or licensee of the production rights has other state or international location options at which to present the production and could reasonably and efficiently locate outside of the State; at least one other state or nation could be considered for the production; the receipt of the theater tax credit award is a major factor in the decision of the applicant, presenter, production owner or licensee as to where the production will be presented and that without the theater tax credit award the applicant likely would not create or retain jobs in Illinois; or receipt of the theater tax credit award is essential to the applicant's decision to create or retain new jobs in the State. [35 ILCS 17/10-30(a)(5)] The Department maintains sole discretion to review any information, materials or evidence to determine whether an applicant has established a competitive need for the credit in accordance with the Act.
6) The theater tax credit award will result in an overall positive impact to the State, as determined by the Department using the best available data. [35 ILCS 17/10-30]
e) The applicant is responsible for the accuracy of all data, information and documentation included in the application. Once submitted, applications shall become the property of the Department.
f) Upon written request, the applicant shall issue any necessary authorization to the appropriate federal, State or local authority for the release of information concerning a production being considered under this Part, including, but not limited to, financial reports and records relating to the applicant or the accredited theater production for which the theater tax credit award is requested.
g) The Department is not responsible for any errors or delays in providing an application denial or approval caused by errors in any of the application information provided by the applicant or by any technical problems beyond the Department's control.
h) Prior to substantive evaluation of an application for an accredited theater production certificate, the Department shall review all applications to determine that all required information and documentation has been provided. Applicants will be notified, in writing, of any application deficiencies and will be allowed 5 business days to correct those deficiencies through submission of additional documentation. If the applicant successfully cures any deficiencies within the 5-day period, the applicant will keep its numeric place in the queue. If an applicant does not correct the application deficiencies within 5 business days, then the Department may treat the application as newly submitted for purposes of determining the priority of applications and the applicant will lose its numeric place in the queue.
i) The Department will provide interested applicants with information upon request and also be available via the Department's website. Submittal of an application does not commit the Department to award assistance or to pay any costs incurred by the applicant in the preparation of an application.