Public Act 095-1006
 		





SB1981 Enrolled
LRB095 15781 BDD 41788 b






    AN ACT concerning State government.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:



 
    Section 5. The Film
Production Services Tax Credit Act of 
2008 is amended  by changing Section 10 as follows:
 
    (35 ILCS 16/10)
    (Section scheduled to be repealed on January 1, 2009)

    Sec. 10. Definitions.  As used in this Act:


    "Accredited production" means: (i) for productions 
commencing before May 1, 2006, a film, video, or television 
production that
has been certified by the Department in which 
the aggregate Illinois labor
expenditures
included in the cost 
of the production, in the period that ends 12 months after
the 
time principal filming or taping of the production began, 
exceed $100,000
for productions of 30 minutes or longer, or 
$50,000 for productions of less
than 30
minutes; and (ii) for 
productions commencing on or after May 1, 2006, a film, video, 
or television production that has been certified by the 
Department in which the Illinois production spending included 
in the cost of production in the period that ends 12 months 
after the time principal filming or taping of the production 
began exceeds $100,000 for productions of 30 minutes or longer 
or exceeds $50,000 for productions of less than 30 minutes. 
"Accredited production" does not include a production that:

        (1) is news, current events, or public programming, or 
    a program that
includes weather or market reports;


        (2) is a talk show;


        (3) is a production in respect of a game, 
    questionnaire, or contest;


        (4) is a sports event or activity;


        (5) is a gala presentation or awards show;


        (6) is a finished production that solicits funds;


        (7) is a production produced by a film production 
    company if records, as
required
by 18
U.S.C. 2257, are to 
    be maintained by that film production company with respect

    to any
performer portrayed in that single media or 
    multimedia program; or


        (8) is a production produced primarily for industrial, 
    corporate, or
institutional purposes.


    "Accredited production certificate" means a certificate 
issued by the
Department certifying that the production is an 
accredited production that
meets the guidelines of this Act.

    "Applicant" means a taxpayer that is a film production 
company that is
operating or has operated an accredited 
production located within the State of
Illinois and that
(i) 
owns the copyright in the accredited production throughout the

Illinois production period or (ii)
has contracted directly with 
the owner of the copyright in the
accredited production
or a 
person acting on behalf of the owner
to provide services for 
the production, where the owner
of the copyright is not an 
eligible production corporation.


    "Credit" means:

        (1) for an accredited production approved by the 
    Department on or before January 1, 2005 and commencing 
    before May 1, 2006, the amount equal to 25% of the Illinois 
    labor
expenditure approved by the Department.
The 
    applicant is deemed to have paid, on its balance due day 
    for the year, an
amount equal to 25% of its qualified 
    Illinois labor expenditure for the tax
year. For Illinois 
    labor expenditures generated by the employment of 
    residents of geographic areas of high poverty or high 
    unemployment, as determined by the Department, in an 
    accredited production commencing before May 1, 2006 and

    approved by the Department after January 1, 2005, the 
    applicant shall receive an enhanced credit of 10% in 
    addition to the 25% credit; and
        (2) for an accredited production commencing on or after 
    May 1, 2006, the amount equal to:
            (i) 20% of the Illinois production spending for the 
        taxable year; plus
            (ii) 15% of the Illinois labor expenditures 
        generated by the employment of residents of geographic 
        areas of high poverty or high unemployment, as 
        determined by the Department; and .

        (3)  for an accredited production commencing on or after 
    January 1, 2009, the amount equal to: 
            (i) 30% of the Illinois production spending for the 
        taxable year; plus 
            (ii) 15% of the Illinois labor expenditures 
        generated by the employment of residents of geographic 
        areas of high poverty or high unemployment, as 
        determined by the Department. 
    "Department" means the Department of Commerce and Economic 
Opportunity.

    "Director" means the Director of Commerce and Economic 
Opportunity.

    "Illinois labor expenditure" means
salary or wages paid to 
employees of the
applicant for services on the accredited

production;


    To qualify as an Illinois labor expenditure, the 
expenditure must be:


        (1) Reasonable in the circumstances.


        (2) Included in the federal income tax basis of the 
    property.


        (3) Incurred by the applicant for services on or after 
    January 1, 2004.


        (4) Incurred for the production stages of the 
    accredited production, from
the final
script stage to the 
    end of the post-production stage.


        (5) Limited to the first $25,000 of wages paid or 
    incurred to each
employee of a production commencing before 
    May 1, 2006 and the first $100,000 of wages paid or 
    incurred to each
employee of
a production commencing on or 
    after May 1, 2006.

        (6) For a production commencing before May 1, 2006, 
    exclusive of the salary or wages paid to or incurred for 
    the 2 highest
paid
employees of the production.

        (7) Directly attributable to the accredited 
    production.


        (8) Paid in the tax year
for which the applicant is 
    claiming the credit
or no later than 60 days after the end 
    of the tax
year.


        (9) Paid to persons resident in Illinois at the time 
    the payments were
made.


        (10) Paid for services rendered in Illinois.


    "Illinois production spending" means the expenses incurred 
by the applicant for an accredited production, including, 
without limitation, all of the following:
        (1) expenses to purchase, from vendors within 
    Illinois, tangible personal property that is used in the 
    accredited production;
        (2) expenses to acquire services, from vendors in  
    Illinois, for film production, editing, or processing; and
        (3) the compensation, not to exceed $100,000 for any 
    one employee, for contractual or salaried employees who are 
    Illinois residents performing services with respect to the 
    accredited production.
    "Qualified production facility" means stage facilities in 
the State in which television shows and films are or are 
intended to be regularly produced and that contain at least one 
sound stage of at least 15,000 square feet.

    Rulemaking authority to implement this amendatory Act of 
the 95th General Assembly, if any, is conditioned on the rules 
being adopted in accordance with all provisions of the Illinois 
Administrative Procedure Act and all rules and procedures of 
the Joint Committee on Administrative Rules; any purported rule 
not so adopted, for whatever reason, is unauthorized. 
(Source: P.A. 95-720, eff. 5-27-08.)
 
    (35 ILCS 16/95 rep.)
    Section 10. The Film
Production Services Tax Credit Act of 
2008 is amended  by repealing Section 95.
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.