Full Text of SB1286 97th General Assembly
SB1286ham005 97TH GENERAL ASSEMBLY | Rep. Patrick J. Verschoore Filed: 10/26/2011
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| 1 | | AMENDMENT TO SENATE BILL 1286
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1286, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Film
Production Services Tax Credit Act of | 6 | | 2008 is amended by changing Sections 10, 20, and 40 and by | 7 | | adding Section 44 as follows: | 8 | | (35 ILCS 16/10)
| 9 | | Sec. 10. Definitions. As used in this Act:
| 10 | | "Accredited production" means: (i) for productions | 11 | | commencing before May 1, 2006, a film, video, or television | 12 | | production that
has been certified by the Department in which | 13 | | the aggregate Illinois labor
expenditures
included in the cost | 14 | | of the production, in the period that ends 12 months after
the | 15 | | time principal filming or taping of the production began, | 16 | | exceed $100,000
for productions of 30 minutes or longer, or |
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| 1 | | $50,000 for productions of less
than 30
minutes; and (ii) for | 2 | | productions commencing on or after May 1, 2006, a film, video, | 3 | | or television production that has been certified by the | 4 | | Department in which the Illinois production spending included | 5 | | in the cost of production in the period that ends 12 months | 6 | | after the time principal filming or taping of the production | 7 | | began exceeds $100,000 for productions of 30 minutes or longer | 8 | | or exceeds $50,000 for productions of less than 30 minutes. | 9 | | "Accredited production" does not include a production that:
| 10 | | (1) is news, current events, or public programming, or | 11 | | a program that
includes weather or market reports;
| 12 | | (2) (blank) is a talk show ;
| 13 | | (3) is a production in respect of a game, | 14 | | questionnaire, or contest;
| 15 | | (4) is a sports event or activity;
| 16 | | (5) is a gala presentation or awards show;
| 17 | | (6) is a finished production that solicits funds;
| 18 | | (7) is a production produced by a film production | 19 | | company if records, as
required
by 18
U.S.C. 2257, are to | 20 | | be maintained by that film production company with respect
| 21 | | to any
performer portrayed in that single media or | 22 | | multimedia program; or
| 23 | | (8) is a production produced primarily for industrial, | 24 | | corporate, or
institutional purposes.
| 25 | | "Accredited production" also includes an accredited talk | 26 | | show commencing its first season in Illinois on or after May 1, |
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| 1 | | 2011. | 2 | | "Accredited animated production" means a fully animated | 3 | | feature with a total production period of more than 12 months. | 4 | | "Accredited production certificate" means a certificate | 5 | | issued by the
Department certifying that the production is an | 6 | | accredited production that
meets the guidelines of this Act.
| 7 | | "Applicant" means a taxpayer that is a film production | 8 | | company that is
operating or has operated an accredited | 9 | | production located within the State of
Illinois and that
(i) | 10 | | owns the copyright in the accredited production throughout the
| 11 | | Illinois production period or (ii)
has contracted directly with | 12 | | the owner of the copyright in the
accredited production
or a | 13 | | person acting on behalf of the owner
to provide services for | 14 | | the production, where the owner
of the copyright is not an | 15 | | eligible production corporation.
| 16 | | "Credit" means:
| 17 | | (1) for an accredited production approved by the | 18 | | Department on or before January 1, 2005 and commencing | 19 | | before May 1, 2006, the amount equal to 25% of the Illinois | 20 | | labor
expenditure approved by the Department.
The | 21 | | applicant is deemed to have paid, on its balance due day | 22 | | for the year, an
amount equal to 25% of its qualified | 23 | | Illinois labor expenditure for the tax
year. For Illinois | 24 | | labor expenditures generated by the employment of | 25 | | residents of geographic areas of high poverty or high | 26 | | unemployment, as determined by the Department, in an |
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| 1 | | accredited production commencing before May 1, 2006 and
| 2 | | approved by the Department after January 1, 2005, the | 3 | | applicant shall receive an enhanced credit of 10% in | 4 | | addition to the 25% credit; and | 5 | | (2) for an accredited production commencing on or after | 6 | | May 1, 2006, the amount equal to: | 7 | | (i) 20% 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; and
| 13 | | (3) for an accredited production commencing on or after | 14 | | January 1, 2009, the amount equal to: | 15 | | (i) 30% of the Illinois production spending for the | 16 | | taxable year; plus | 17 | | (ii) 15% of the Illinois labor expenditures | 18 | | generated by the employment of residents of geographic | 19 | | areas of high poverty or high unemployment, as | 20 | | determined by the Department. | 21 | | "Department" means the Department of Commerce and Economic | 22 | | Opportunity.
| 23 | | "Director" means the Director of Commerce and Economic | 24 | | Opportunity.
| 25 | | "Illinois labor expenditure" means
salary or wages paid to | 26 | | employees of the
applicant for services on the accredited
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| 1 | | production;
| 2 | | To qualify as an Illinois labor expenditure, the | 3 | | expenditure must be:
| 4 | | (1) Reasonable in the circumstances.
| 5 | | (2) Included in the federal income tax basis of the | 6 | | property.
| 7 | | (3) Incurred by the applicant for services on or after | 8 | | January 1, 2004.
| 9 | | (4) Incurred for the production stages of the | 10 | | accredited production, from
the final
script stage to the | 11 | | end of the post-production stage.
| 12 | | (5) Limited to the first $25,000 of wages paid or | 13 | | incurred to each
employee of a production commencing before | 14 | | May 1, 2006 and the first $100,000 of wages paid or | 15 | | incurred to each
employee of
a production commencing on or | 16 | | after May 1, 2006.
| 17 | | (6) For a production commencing before May 1, 2006, | 18 | | exclusive of the salary or wages paid to or incurred for | 19 | | the 2 highest
paid
employees of the production.
| 20 | | (7) Directly attributable to the accredited | 21 | | production.
| 22 | | (8) Except for expenditures paid with respect to an | 23 | | accredited animated production, paid Paid in the tax year
| 24 | | for which the applicant is claiming the credit
or no later | 25 | | than 60 days after the end of the tax
year.
| 26 | | (9) Paid to persons resident in Illinois at the time |
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| 1 | | the payments were
made.
| 2 | | (10) Paid for services rendered in Illinois.
| 3 | | "Illinois production spending" means the expenses incurred | 4 | | by the applicant for an accredited production, including, | 5 | | without limitation, all of the following: | 6 | | (1) expenses to purchase, from vendors within | 7 | | Illinois, tangible personal property that is used in the | 8 | | accredited production; | 9 | | (2) expenses to acquire services, from vendors in | 10 | | Illinois, for film production, editing, or processing; and | 11 | | (3) the compensation, not to exceed $100,000 for any | 12 | | one employee, for contractual or salaried employees who are | 13 | | Illinois residents performing services with respect to the | 14 | | accredited production. | 15 | | "Qualified production facility" means stage facilities in | 16 | | the State in which television shows and films are or are | 17 | | intended to be regularly produced and that contain at least one | 18 | | sound stage of at least 15,000 square feet.
| 19 | | Rulemaking authority to implement this amendatory Act of | 20 | | the 95th General Assembly, if any, is conditioned on the rules | 21 | | being adopted in accordance with all provisions of the Illinois | 22 | | Administrative Procedure Act and all rules and procedures of | 23 | | the Joint Committee on Administrative Rules; any purported rule | 24 | | not so adopted, for whatever reason, is unauthorized. | 25 | | (Source: P.A. 95-720, eff. 5-27-08; 95-1006, eff. 12-15-08.) |
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| 1 | | (35 ILCS 16/20)
| 2 | | Sec. 20. Tax credit awards. Subject to the conditions set | 3 | | forth in this Act, an applicant is entitled to a credit as | 4 | | approved by the Department under Section 40 of this Act. The | 5 | | aggregate amount of tax credits
awarded for accredited | 6 | | productions that are talk shows may not exceed $7,500,000 in | 7 | | any fiscal
year. Credits for talk shows shall be awarded on a | 8 | | first-come first-served basis. Notwithstanding the foregoing, | 9 | | if the amount of talk show credits
applied for in any fiscal | 10 | | year exceeds the amount authorized to
be awarded under this | 11 | | Section, the excess credit amounts shall be awarded in the next | 12 | | fiscal year in which credits
remain available for award and | 13 | | shall be treated as having
been applied for on the first day of | 14 | | that fiscal year.
| 15 | | (Source: P.A. 95-720, eff. 5-27-08 .) | 16 | | (35 ILCS 16/40)
| 17 | | Sec. 40. Amount and duration of the credit. The amount of | 18 | | the credit awarded under this Act is based on the amount of the | 19 | | Illinois labor expenditure and Illinois production spending | 20 | | approved by the Department for the production as set forth | 21 | | under Section 10. The duration of the credit may not exceed (i) | 22 | | one taxable year for productions other than accredited animated | 23 | | productions commencing on or after January 1, 2011 or (ii) for | 24 | | accredited animated productions commencing on or after January | 25 | | 1, 2011, the period beginning with the taxable year in which |
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| 1 | | the production commences and ending with the taxable year in | 2 | | which production is complete .
| 3 | | (Source: P.A. 95-720, eff. 5-27-08 .) | 4 | | (35 ILCS 16/44 new) | 5 | | Sec. 44. Accredited animated productions. Each applicant | 6 | | requesting credits for an accredited animated production | 7 | | commencing on or after January 1, 2011 may make an application | 8 | | to the Department in each taxable year beginning with the | 9 | | taxable year in which the production commences and ending with | 10 | | the taxable year in which production is complete. | 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.".
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