Full Text of SB1286 97th General Assembly
SB1286enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Film
Production Services Tax Credit Act of | 5 | | 2008 is amended by changing Section 10 and by adding Section 44 | 6 | | as follows: | 7 | | (35 ILCS 16/10)
| 8 | | Sec. 10. Definitions. As used in this Act:
| 9 | | "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. |
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| 1 | | "Accredited production" does not include a production that:
| 2 | | (1) is news, current events, or public programming, or | 3 | | a program that
includes weather or market reports;
| 4 | | (2) is a talk show;
| 5 | | (3) is a production in respect of a game, | 6 | | questionnaire, or contest;
| 7 | | (4) is a sports event or activity;
| 8 | | (5) is a gala presentation or awards show;
| 9 | | (6) is a finished production that solicits funds;
| 10 | | (7) is a production produced by a film production | 11 | | company if records, as
required
by 18
U.S.C. 2257, are to | 12 | | be maintained by that film production company with respect
| 13 | | to any
performer portrayed in that single media or | 14 | | multimedia program; or
| 15 | | (8) is a production produced primarily for industrial, | 16 | | corporate, or
institutional purposes.
| 17 | | "Accredited animated production" means an accredited | 18 | | production in which movement and characters' performances are | 19 | | created using a frame-by-frame technique and a significant | 20 | | number of major characters are animated. Motion capture by | 21 | | itself is not an animation technique. | 22 | | "Accredited production certificate" means a certificate | 23 | | issued by the
Department certifying that the production is an | 24 | | accredited production that
meets the guidelines of this Act.
| 25 | | "Applicant" means a taxpayer that is a film production | 26 | | company that is
operating or has operated an accredited |
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| 1 | | production located within the State of
Illinois and that
(i) | 2 | | owns the copyright in the accredited production throughout the
| 3 | | Illinois production period or (ii)
has contracted directly with | 4 | | the owner of the copyright in the
accredited production
or a | 5 | | person acting on behalf of the owner
to provide services for | 6 | | the production, where the owner
of the copyright is not an | 7 | | eligible production corporation.
| 8 | | "Credit" means:
| 9 | | (1) for an accredited production approved by the | 10 | | Department on or before January 1, 2005 and commencing | 11 | | before May 1, 2006, the amount equal to 25% of the Illinois | 12 | | labor
expenditure approved by the Department.
The | 13 | | applicant is deemed to have paid, on its balance due day | 14 | | for the year, an
amount equal to 25% of its qualified | 15 | | Illinois labor expenditure for the tax
year. For Illinois | 16 | | labor expenditures generated by the employment of | 17 | | residents of geographic areas of high poverty or high | 18 | | unemployment, as determined by the Department, in an | 19 | | accredited production commencing before May 1, 2006 and
| 20 | | approved by the Department after January 1, 2005, the | 21 | | applicant shall receive an enhanced credit of 10% in | 22 | | addition to the 25% credit; and | 23 | | (2) for an accredited production commencing on or after | 24 | | May 1, 2006, the amount equal to: | 25 | | (i) 20% of the Illinois production spending for the | 26 | | taxable year; plus |
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| 1 | | (ii) 15% of the Illinois labor expenditures | 2 | | generated by the employment of residents of geographic | 3 | | areas of high poverty or high unemployment, as | 4 | | determined by the Department; and
| 5 | | (3) for an accredited production commencing on or after | 6 | | January 1, 2009, the amount equal to: | 7 | | (i) 30% of the Illinois production spending for the | 8 | | taxable year; plus | 9 | | (ii) 15% of the Illinois labor expenditures | 10 | | generated by the employment of residents of geographic | 11 | | areas of high poverty or high unemployment, as | 12 | | determined by the Department. | 13 | | "Department" means the Department of Commerce and Economic | 14 | | Opportunity.
| 15 | | "Director" means the Director of Commerce and Economic | 16 | | Opportunity.
| 17 | | "Illinois labor expenditure" means
salary or wages paid to | 18 | | employees of the
applicant for services on the accredited
| 19 | | production;
| 20 | | To qualify as an Illinois labor expenditure, the | 21 | | expenditure must be:
| 22 | | (1) Reasonable in the circumstances.
| 23 | | (2) Included in the federal income tax basis of the | 24 | | property.
| 25 | | (3) Incurred by the applicant for services on or after | 26 | | January 1, 2004.
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| 1 | | (4) Incurred for the production stages of the | 2 | | accredited production, from
the final
script stage to the | 3 | | end of the post-production stage.
| 4 | | (5) Limited to the first $25,000 of wages paid or | 5 | | incurred to each
employee of a production commencing before | 6 | | May 1, 2006 and the first $100,000 of wages paid or | 7 | | incurred to each
employee of
a production commencing on or | 8 | | after May 1, 2006.
| 9 | | (6) For a production commencing before May 1, 2006, | 10 | | exclusive of the salary or wages paid to or incurred for | 11 | | the 2 highest
paid
employees of the production.
| 12 | | (7) Directly attributable to the accredited | 13 | | production.
| 14 | | (8) (Blank). Paid in the tax year
for which the | 15 | | applicant is claiming the credit
or no later than 60 days | 16 | | after the end of the tax
year.
| 17 | | (9) Paid to persons resident in Illinois at the time | 18 | | the payments were
made.
| 19 | | (10) Paid for services rendered in Illinois.
| 20 | | "Illinois production spending" means the expenses incurred | 21 | | by the applicant for an accredited production, including, | 22 | | without limitation, all of the following: | 23 | | (1) expenses to purchase, from vendors within | 24 | | Illinois, tangible personal property that is used in the | 25 | | accredited production; | 26 | | (2) expenses to acquire services, from vendors in |
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| 1 | | 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. | 6 | | "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 at least one | 9 | | sound stage of at least 15,000 square feet.
| 10 | | Rulemaking authority to implement this amendatory Act of | 11 | | the 95th General Assembly, if any, is conditioned on the rules | 12 | | being adopted in accordance with all provisions of the Illinois | 13 | | Administrative Procedure Act and all rules and procedures of | 14 | | the Joint Committee on Administrative Rules; any purported rule | 15 | | not so adopted, for whatever reason, is unauthorized. | 16 | | (Source: P.A. 95-720, eff. 5-27-08; 95-1006, eff. 12-15-08.) | 17 | | (35 ILCS 16/44 new) | 18 | | Sec. 44. Accredited animated productions. Each applicant | 19 | | requesting credits for an accredited animated production | 20 | | commencing on or after July 1, 2010 may make an application to | 21 | | the Department in each taxable year beginning with the taxable | 22 | | year in which the production commences and ending with the | 23 | | taxable year in which production is complete, provided that no | 24 | | credit may be claimed under this Section for a taxable year | 25 | | ending prior to December 31, 2012. |
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.
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