Sen. Cristina Castro

Filed: 4/5/2024

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 807

2    AMENDMENT NO. ______. Amend Senate Bill 807 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Live Theater Production Tax Credit Act is
5amended by changing Sections 10-10, 10-20, and 10-30 as
6follows:
 
7    (35 ILCS 17/10-10)
8    Sec. 10-10. Definitions. As used in this Act:
9    "Accredited theater production" means a for-profit live
10stage presentation in a qualified production facility, as
11defined in this Section, that is either (i) a pre-Broadway
12production, or (ii) a long-run production for which the
13aggregate Illinois labor and marketing expenditures exceed
14$100,000, or (iii) a . For credits awarded under this Act in
15State Fiscal Year 2023, "accredited theater production" also
16includes any commercial Broadway touring show.

 

 

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1    "Commercial Broadway touring show" means a production that
2(i) is performed in a qualified production facility and plays
3in more than 2 other markets in North America outside of
4Illinois within 12 months of its Illinois presentation and
5(ii) has Illinois production spending of not less than
6$100,000, as shown on the applicant's application for the
7credit.
8    "Pre-Broadway production" means (i) a live stage
9production that, in its original or adaptive version, is
10performed in a qualified production facility and has having a
11presentation scheduled for Broadway's Theater District in New
12York City within 12 months after its Illinois presentation or
13(ii) a live stage production that, in its original or adaptive
14version, is performed in a qualified production facility with
15the goal of having a presentation scheduled for Broadway's
16Theater District in New York City after its Illinois
17presentation.
18    "Long-run production" means a live stage production that
19is performed in a qualified production facility for longer
20than 8 weeks, with at least 6 performances per week, and
21includes a production that spans the end of one tax year and
22the commencement of a new tax year that, in combination, meets
23the criteria set forth in this definition making it a long-run
24production eligible for a theater tax credit award in each tax
25year or portion thereof.
26    "Accredited theater production certificate" means a

 

 

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1certificate issued by the Department certifying that the
2production is an accredited theater production that meets the
3guidelines of this Act.
4    "Applicant" means a taxpayer that is a theater producer,
5owner, licensee, operator, or presenter that is presenting or
6has presented a live stage presentation located within the
7State of Illinois who:
8        (1) owns or licenses the theatrical rights of the
9    stage presentation for the Illinois production period; or
10        (2) has contracted or will contract directly with the
11    owner or licensee of the theatrical rights or a person
12    acting on behalf of the owner or licensee to provide live
13    performances of the production.
14    An applicant that directly or indirectly owns, controls,
15or operates multiple qualified production facilities shall be
16presumed to be and considered for the purposes of this Act to
17be a single applicant; provided, however, that as to each of
18the applicant's qualified production facilities, the applicant
19shall be eligible to separately and contemporaneously (i)
20apply for and obtain accredited theater production
21certificates, (ii) stage accredited theater productions, and
22(iii) apply for and receive a tax credit award certificate for
23each of the applicant's accredited theater productions
24performed at each of the applicant's qualified production
25facilities.
26    "Department" means the Department of Commerce and Economic

 

 

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1Opportunity.
2    "Director" means the Director of the Department.
3    "Illinois labor expenditure" means gross salary or wages
4including, but not limited to, taxes, benefits, and any other
5consideration incurred or paid to non-talent employees of the
6applicant for services rendered to and on behalf of the
7accredited theater production. To qualify as an Illinois labor
8expenditure, the expenditure must be:
9        (1) incurred or paid by the applicant on or after the
10    effective date of the Act for services related to any
11    portion of an accredited theater production from its
12    pre-production stages, including, but not limited to, the
13    writing of the script, casting, hiring of service
14    providers, purchases from vendors, marketing, advertising,
15    public relations, load in, rehearsals, performances, other
16    accredited theater production related activities, and load
17    out;
18        (2) directly attributable to the accredited theater
19    production;
20        (3) limited to the first $100,000 of wages incurred or
21    paid to each employee of an accredited theater production
22    in each tax year;
23        (4) included in the federal income tax basis of the
24    property;
25        (5) paid in the tax year for which the applicant is
26    claiming the tax credit award, or no later than 60 days

 

 

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1    after the end of the tax year;
2        (6) paid to persons residing in Illinois at the time
3    payments were made; and
4        (7) reasonable in the circumstances.
5    "Illinois production spending" means any and all expenses
6directly or indirectly incurred relating to an accredited
7theater production presented in any qualified production
8facility of the applicant, including, but not limited to,
9expenditures for:
10        (1) national marketing, public relations, and the
11    creation and placement of print, electronic, television,
12    billboard, and other forms of advertising; and
13        (2) the construction and fabrication of scenic
14    materials and elements; provided, however, that the
15    maximum amount of expenditures attributable to the
16    construction and fabrication of scenic materials and
17    elements eligible for a tax credit award shall not exceed
18    $500,000 per applicant per production in any single tax
19    year.
20    "Qualified production facility" means a facility located
21in the State in which live theatrical productions are, or are
22intended to be, exclusively presented that contains at least
23one stage, a seating capacity of 1,200 or more seats, and
24dressing rooms, storage areas, and other ancillary amenities
25necessary for the accredited theater production.
26    "Tax credit award" means the issuance to a taxpayer by the

 

 

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1Department of a tax credit award in conformance with Sections
210-40 and 10-45 of this Act.
3    "Tax year" means a calendar year for the period January 1
4to and including December 31.
5(Source: P.A. 102-1112, eff. 12-21-22.)
 
6    (35 ILCS 17/10-20)
7    Sec. 10-20. Tax credit award. Subject to the conditions
8set forth in this Act, an applicant is entitled to a tax credit
9award as approved by the Department for qualifying Illinois
10labor expenditures and Illinois production spending for each
11tax year in which the applicant is awarded an accredited
12theater production certificate issued by the Department. The
13amount of tax credits awarded pursuant to this Act shall not
14exceed $2,000,000 in any State fiscal year, except that the
15amount of tax credits awarded pursuant to this Act for the
16State fiscal year ending on June 30, 2023 shall not exceed
17$4,000,000 in any State fiscal year. Of that $4,000,000: (1)
18For the State fiscal year ending on June 30, 2023, no more than
19$2,000,000 in credits may be awarded to accredited theater
20productions that are not commercial Broadway touring shows,
21and no more than $2,000,000 in credits may be awarded to
22commercial Broadway touring shows or pre-Broadway productions
23that have the goal of having a presentation scheduled for
24Broadway's Theater District in New York City after their
25Illinois presentations; and (2) no more than $2,000,000 in

 

 

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1credits may be awarded to accredited theater productions that
2are not described in item (1). Credits shall be awarded on a
3first-come, first-served basis. Notwithstanding the foregoing,
4if the amount of credits applied for in any fiscal year exceeds
5the amount authorized to be awarded under this Section, the
6excess credit amount shall be awarded in the next fiscal year
7in which credits remain available for award and shall be
8treated as having been applied for on the first day of that
9fiscal year.
10(Source: P.A. 102-700, eff. 4-19-22; 102-1112, eff. 12-21-22.)
 
11    (35 ILCS 17/10-30)
12    Sec. 10-30. Review of application for accredited theater
13production certificate.
14    (a) The Department shall issue an accredited theater
15production certificate to an applicant if it finds that by a
16preponderance the following conditions exist:
17        (1) the applicant intends to make the expenditure in
18    the State required for certification of the accredited
19    theater production;
20        (2) the applicant's accredited theater production is
21    economically sound and will benefit the people of the
22    State of Illinois by increasing opportunities for
23    employment and will strengthen the economy of Illinois;
24        (3) the following requirements related to the
25    implementation of a diversity plan have been met: (i) the

 

 

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1    applicant has filed with the Department a diversity plan
2    outlining specific goals for hiring Illinois labor
3    expenditure eligible minority persons and women, as
4    defined in the Business Enterprise for Minorities, Women,
5    and Persons with Disabilities Act, and for using vendors
6    receiving certification under the Business Enterprise for
7    Minorities, Women, and Persons with Disabilities Act; (ii)
8    the Department has approved the plan as meeting the
9    requirements established by the Department and verified
10    that the applicant has met or made good faith efforts in
11    achieving those goals; and (iii) the Department has
12    adopted any rules that are necessary to ensure compliance
13    with the provisions set forth in this paragraph and
14    necessary to require that the applicant's plan reflects
15    the diversity of the population of this State;
16        (4) the applicant's accredited theater production
17    application indicates whether the applicant intends to
18    participate in training, education, and recruitment
19    programs that are organized in cooperation with Illinois
20    colleges and universities, labor organizations, and the
21    holders of accredited theater production certificates and
22    are designed to promote and encourage the training and
23    hiring of Illinois residents who represent the diversity
24    of Illinois;
25        (5) except for qualifying commercial Broadway touring
26    shows qualifying in the State fiscal year ending June 30,

 

 

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1    2023, if not for the tax credit award, the applicant's
2    accredited theater production would not occur in Illinois,
3    which may be demonstrated by any means, including, but not
4    limited to, evidence that: (i) the applicant, presenter,
5    owner, or licensee of the production rights has other
6    state or international location options at which to
7    present the production and could reasonably and
8    efficiently locate outside of the State, (ii) at least one
9    other state or nation could be considered for the
10    production, (iii) the receipt of the tax award credit is a
11    major factor in the decision of the applicant, presenter,
12    production owner or licensee as to where the production
13    will be presented and that without the tax credit award
14    the applicant likely would not create or retain jobs in
15    Illinois, or (iv) receipt of the tax credit award is
16    essential to the applicant's decision to create or retain
17    new jobs in the State; and
18        (6) the tax credit award will result in an overall
19    positive impact to the State, as determined by the
20    Department using the best available data.
21    (b) If any of the provisions in this Section conflict with
22any existing collective bargaining agreements, the terms and
23conditions of those collective bargaining agreements shall
24control.
25    (c) The Department shall act expeditiously regarding
26approval of applications for accredited theater production

 

 

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1certificates so as to accommodate the pre-production work,
2booking, commencement of ticket sales, determination of
3performance dates, load in, and other matters relating to the
4live theater productions for which approval is sought.
5(Source: P.A. 102-1112, eff. 12-21-22.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".