Full Text of SB2983 94th General Assembly
SB2983sam004 94TH GENERAL ASSEMBLY
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Sen. Rickey R. Hendon
Filed: 2/28/2006
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| AMENDMENT TO SENATE BILL 2983
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| AMENDMENT NO. ______. Amend Senate Bill 2983 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Film Production Services Tax Credit Act is | 5 |
| amended by changing Sections 10, 40, and 90 as follows:
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| (35 ILCS 15/10)
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| (Section scheduled to be repealed on January 1, 2007)
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| Sec. 10. Definitions. As used in this Act:
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| "Accredited production" means : (i) for productions | 10 |
| commencing before May 1, 2006, a film, video, or television | 11 |
| production that
has been certified by the Department in which | 12 |
| the aggregate Illinois labor
expenditures
included in the cost | 13 |
| of the production, in the period that ends 12 months after
the | 14 |
| time principal filming or taping of the production began, | 15 |
| exceed $100,000
for productions of 30 minutes or longer, or | 16 |
| $50,000 for productions of less
than 30
minutes; and (ii) for | 17 |
| productions commencing on or after May 1, 2006, a film, video, | 18 |
| or television production that has been certified by the | 19 |
| Department in which the Illinois production spending included | 20 |
| in the cost of production in the period that ends 12 months | 21 |
| after the time principal filming or taping of the production | 22 |
| began exceeds $100,000 for productions of 30 minutes or longer | 23 |
| or exceeds $50,000 for productions of less than 30 minutes. | 24 |
| "Accredited production"
but does not include a production that:
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| (1) is news, current events, or public programming, or | 2 |
| a program that
includes weather or market reports;
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| (2) is a talk show;
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| (3) is a production in respect of a game, | 5 |
| questionnaire, or contest;
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| (4) is a sports event or activity;
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| (5) is a gala presentation or awards show;
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| (6) is a finished production that solicits funds;
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| (7) is a production produced by a film production | 10 |
| company if records, as
required
by 18
U.S.C. 2257, are to | 11 |
| be maintained by that film production company with respect
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| to any
performer portrayed in that single media or | 13 |
| multimedia program; or
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| (8) is a production produced primarily for industrial, | 15 |
| corporate, or
institutional purposes.
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| "Accredited production certificate" means a certificate | 17 |
| issued by the
Department certifying that the production is an | 18 |
| accredited production that
meets the guidelines of this Act.
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| "Applicant" means a taxpayer that is a film production | 20 |
| company that is
operating or has operated an accredited | 21 |
| production located within the State of
Illinois and that
(i) | 22 |
| owns the copyright in the accredited production throughout the
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| Illinois production period or (ii)
has contracted directly with | 24 |
| the owner of the copyright in the
accredited production
or a | 25 |
| person acting on behalf of the owner
to provide services for | 26 |
| the production, where the owner
of the copyright is not an | 27 |
| eligible production corporation.
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| "Credit" means :
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| (1) for an accredited production approved by the | 30 |
| Department on or before January 1, 2005 and commencing | 31 |
| before May 1, 2006, the amount equal to 25% of the Illinois | 32 |
| labor
expenditure approved by the Department.
The | 33 |
| applicant is deemed to have paid, on its balance due day | 34 |
| for the year, an
amount equal to 25% of its qualified |
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| Illinois labor expenditure for the tax
year. For Illinois | 2 |
| labor expenditures generated by the employment of | 3 |
| residents of geographic areas of high poverty or high | 4 |
| unemployment, as determined by the Department, in an | 5 |
| accredited production commencing before May 1, 2006 and | 6 |
| approved by the Department after January 1, 2005, the | 7 |
| applicant shall receive an enhanced credit of 10% in | 8 |
| addition to the 25% credit ; and .
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| (2) for an accredited production commencing on or after | 10 |
| May 1, 2006, the amount equal to 20% of the Illinois | 11 |
| production spending for the taxable year plus: | 12 |
| (i) 15% of the Illinois labor expenditures | 13 |
| generated by the employment of residents of geographic | 14 |
| areas of high poverty or high unemployment, as | 15 |
| determined by the Department; and | 16 |
| (ii) for an accredited film or television | 17 |
| production commencing on or after May 1, 2007, the | 18 |
| amount equal to 5% of the Illinois labor expenditures | 19 |
| generated during the use of a qualified production | 20 |
| facility that is located in a geographic area of high | 21 |
| poverty or high unemployment, as determined by the | 22 |
| Department. To qualify under this item (ii), at least | 23 |
| 50% of the total facility related expenses must be | 24 |
| completed in Illinois if studio space is available. No | 25 |
| labor expenditures for the additional credit under | 26 |
| item (i) may also qualify for the additional credit | 27 |
| under item (ii).
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| "Department" means the Department of Commerce and Economic | 29 |
| Opportunity.
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| "Director" means the Director of Commerce and Economic | 31 |
| Opportunity.
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| "Illinois labor expenditure" means
salary or wages paid to | 33 |
| employees of the
applicant for services on the accredited
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| production;
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| To qualify as an Illinois labor expenditure, the | 2 |
| expenditure must be:
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| (1) Reasonable in the circumstances.
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| (2) Included in the federal income tax basis of the | 5 |
| property.
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| (3) Incurred by the applicant for services on or after | 7 |
| January 1, 2004.
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| (4) Incurred for the production stages of the | 9 |
| accredited production, from
the final
script stage to the | 10 |
| end of the post-production stage.
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| (5) Limited to the first $25,000 of wages paid or | 12 |
| incurred to each
employee of a
the production commencing | 13 |
| before May 1, 2006 and the first $100,000 of wages paid or | 14 |
| incurred to each
employee of
a production commencing on or | 15 |
| after May 1, 2006 .
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| (6) For a production commencing before May 1, 2006, | 17 |
| exclusive
Exclusive of the salary or wages paid to or | 18 |
| incurred for the 2 highest
paid
employees of the | 19 |
| production.
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| (7) Directly attributable to the accredited | 21 |
| production.
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| (8) Paid in the tax year
for which the applicant is | 23 |
| claiming the credit
or no later than 60 days after the end | 24 |
| of the tax
year.
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| (9) Paid to persons resident in Illinois at the time | 26 |
| the payments were
made.
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| (10) Paid for services rendered in Illinois.
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| "Illinois production spending" means the expenses incurred | 29 |
| by the applicant for an accredited production, including, | 30 |
| without limitation, all of the following: | 31 |
| (1) expenses to purchase, from vendors within | 32 |
| Illinois, tangible personal property that is used in the | 33 |
| accredited production; | 34 |
| (2) expenses to acquire services, from vendors in |
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| Illinois, for film production, editing, or processing; and | 2 |
| (3) the compensation, not to exceed $100,000 for any | 3 |
| one employee, for contractual or salaried employees who are | 4 |
| Illinois residents performing services with respect to the | 5 |
| accredited production.
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| "Qualified production facility" means stage facilities in | 7 |
| the State in which television shows and films are or are | 8 |
| intended to be regularly produced and that contain least one | 9 |
| sound stage of at least 15,000 square feet.
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| (Source: P.A. 93-543, eff. 1-1-04; 94-171, eff. 7-11-05.)
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| (35 ILCS 15/40)
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| (Section scheduled to be repealed on January 1, 2007)
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| Sec. 40. Amount and duration of the credit. The amount of | 14 |
| the credit
awarded under this Act is based on the amount of
the | 15 |
| Illinois labor expenditure and Illinois production spending | 16 |
| approved by the Department for the production as set forth | 17 |
| under Section 10 .
The duration
of the credit may not exceed one | 18 |
| taxable year.
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| (Source: P.A. 93-543, eff. 1-1-04 .)
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| (35 ILCS 15/90)
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| (Section scheduled to be repealed on January 1, 2007)
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| Sec. 90. Repeal. This Act is repealed on January 1, 2009
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| 2007 .
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| (Source: P.A. 93-543, eff. 1-1-04; 93-840, eff. 7-30-04; | 25 |
| 94-171, eff. 7-11-05.)
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| Section 99. Effective date. This Act takes effect upon | 27 |
| becoming law.".
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