Full Text of SB3806 103rd General Assembly
SB3806sam002 103RD GENERAL ASSEMBLY | Sen. Celina Villanueva Filed: 4/16/2024 | | 10300SB3806sam002 | | LRB103 37450 HLH 72363 a |
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| 1 | | AMENDMENT TO SENATE BILL 3806
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3806, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following: | 5 | | "Section 5. The Illinois Income Tax Act is amended by | 6 | | changing Section 213 as follows: | 7 | | (35 ILCS 5/213) | 8 | | Sec. 213. Film production services credit. | 9 | | (a) For tax years beginning on or after January 1, 2004, a | 10 | | taxpayer who has been awarded a tax credit under the Film | 11 | | Production Services Tax Credit Act or under the Film | 12 | | Production Services Tax Credit Act of 2008 is entitled to a | 13 | | credit against the taxes imposed under subsections (a) and (b) | 14 | | of Section 201 of this Act in an amount determined by the | 15 | | Department of Commerce and Economic Opportunity under those | 16 | | Acts. If the taxpayer is a partnership or Subchapter S |
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| 1 | | corporation, the credit is allowed to the partners or | 2 | | shareholders in accordance with the determination of income | 3 | | and distributive share of income under Sections 702 and 704 | 4 | | and Subchapter S of the Internal Revenue Code. | 5 | | (b) Beginning July 1, 2024, taxpayers who have been | 6 | | awarded a tax credit under the Film Production Services Tax | 7 | | Credit Act of 2008 shall pay to the Department of Commerce and | 8 | | Economic Opportunity, after determination of the tax credit | 9 | | amount but prior to the issuance of a tax credit certificate | 10 | | pursuant to Section 35 of the Film Production Services Tax | 11 | | Credit Act of 2008, a fee equal to 2.5% of the credit amount | 12 | | awarded to the taxpayer under the Film Production Services Tax | 13 | | Credit Act of 2008 that is attributable to wages paid to | 14 | | nonresidents, as described in Section 10 of the Film | 15 | | Production Services Tax Credit Act of 2008, and an additional | 16 | | fee equal to 0.25% of the amount generated by subtracting the | 17 | | credit amount awarded to the taxpayer under the Film | 18 | | Production Services Tax Credit Act of 2008 that is | 19 | | attributable to wages paid to nonresidents from the total | 20 | | credit amount awarded to the taxpayer under that Act. All fees | 21 | | collected under this subsection shall be deposited into the | 22 | | Illinois Production Workforce Development Fund. No tax credit | 23 | | certificate shall be issued by the Department of Commerce and | 24 | | Economic Opportunity until the total fees owed according to | 25 | | this subsection have been received by the Department of | 26 | | Commerce and Economic Opportunity. |
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| 1 | | (c) A transfer of this credit may be made by the taxpayer | 2 | | earning the credit within one year after the credit is awarded | 3 | | in accordance with rules adopted by the Department of Commerce | 4 | | and Economic Opportunity. Beginning July 1, 2023 and through | 5 | | June 30, 2024 , if a credit is transferred under this Section by | 6 | | the taxpayer, then the transferor taxpayer shall pay to the | 7 | | Department of Commerce and Economic Opportunity, upon | 8 | | notification of a transfer, a fee equal to 2.5% of the | 9 | | transferred credit amount eligible for nonresident wages, as | 10 | | described in Section 10 of the Film Production Services Tax | 11 | | Credit Act of 2008, and an additional fee of 0.25% of the total | 12 | | amount of the transferred credit that is not calculated on | 13 | | nonresident wages, which shall be deposited into the Illinois | 14 | | Production Workforce Development Fund. | 15 | | (d) The Department, in cooperation with the Department of | 16 | | Commerce and Economic Opportunity, must prescribe rules to | 17 | | enforce and administer the provisions of this Section. This | 18 | | Section is exempt from the provisions of Section 250 of this | 19 | | Act. | 20 | | (e) The credit may not be carried back. If the amount of | 21 | | the credit exceeds the tax liability for the year, the excess | 22 | | may be carried forward and applied to the tax liability of the | 23 | | 5 taxable years following the excess credit year. The credit | 24 | | shall be applied to the earliest year for which there is a tax | 25 | | liability. If there are credits from more than one tax year | 26 | | that are available to offset a liability, the earlier credit |
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| 1 | | shall be applied first. In no event shall a credit under this | 2 | | Section reduce the taxpayer's liability to less than zero. | 3 | | (Source: P.A. 102-700, eff. 4-19-22.) | 4 | | Section 10. The Film Production Services Tax Credit Act of | 5 | | 2008 is amended by changing Section 46 as follows: | 6 | | (35 ILCS 16/46) | 7 | | Sec. 46. Illinois Production Workforce Development Fund. | 8 | | (a) The Illinois Production Workforce Development Fund is | 9 | | created as a special fund in the State Treasury. Beginning | 10 | | July 1, 2023 July 1, 2022 , amounts paid to the Department of | 11 | | Commerce and Economic Opportunity pursuant to Section 213 of | 12 | | the Illinois Income Tax Act shall be deposited into the Fund. | 13 | | The Fund shall be used exclusively to provide grants to | 14 | | community-based organizations, labor organizations, private | 15 | | and public universities, community colleges, and other | 16 | | organizations and institutions that may be deemed appropriate | 17 | | by the Department to administer workforce training programs | 18 | | that support efforts to recruit, hire, promote, retain, | 19 | | develop, and train a diverse and inclusive workforce in the | 20 | | film industry. | 21 | | (b) Pursuant to Section 213 of the Illinois Income Tax | 22 | | Act, taxpayers who have been awarded a tax credit under this | 23 | | Act shall pay to the Department of Commerce and Economic | 24 | | Opportunity, after determination of the tax credit amount but |
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| 1 | | prior to the issuance of a tax credit certificate, a fee equal | 2 | | to 2.5% of the credit amount awarded to the taxpayer under the | 3 | | Film Production Services Tax Credit Act of 2008 that is | 4 | | attributable to wages paid to nonresidents, as described in | 5 | | Section 10 of the Film Production Services Tax Credit Act of | 6 | | 2008, and an additional fee equal to 0.25% of the amount | 7 | | generated by subtracting the credit amount awarded to the | 8 | | taxpayer under the Film Production Services Tax Credit Act of | 9 | | 2008 that is attributable to wages paid to nonresidents from | 10 | | the total credit amount awarded to the taxpayer under that | 11 | | Act. All fees collected under this subsection shall be | 12 | | deposited into the Illinois Production Workforce Development | 13 | | Fund. No tax credit certificate shall be issued by the | 14 | | Department of Commerce and Economic Opportunity until the | 15 | | total fees owed according to this subsection have been | 16 | | received by the Department of Commerce and Economic | 17 | | Opportunity. the Fund shall receive deposits in amounts not to | 18 | | exceed 0.25% of the amount of each credit certificate issued | 19 | | that is not calculated on out-of-state wages and transferred | 20 | | or claimed on an Illinois tax return in the quarter such credit | 21 | | was transferred or claimed. In addition, such amount shall | 22 | | also include 2.5% of the credit amount calculated on wages | 23 | | paid to nonresidents that is transferred or claimed on an | 24 | | Illinois tax return in the quarter such credit was transferred | 25 | | or claimed. | 26 | | (c) At the request of the Department, the State |
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| 1 | | Comptroller and the State Treasurer may advance amounts to the | 2 | | Fund on an annual basis not to exceed $1,000,000 in any fiscal | 3 | | year. The fund from which the moneys are advanced shall be | 4 | | reimbursed in the same fiscal year for any such advance | 5 | | payments as described in this Section. The method of | 6 | | reimbursement shall be set forth in rules. | 7 | | (d) Of the appropriated funds in a given fiscal year, 50% | 8 | | of the appropriated funds shall be reserved for organizations | 9 | | that meet one of the following criteria. The organization is: | 10 | | (1) a minority-owned business, as defined by the Business | 11 | | Enterprise for Minorities, Women, and Persons with | 12 | | Disabilities Act; (2) located in an underserved area, as | 13 | | defined by the Economic Development for a Growing Economy Tax | 14 | | Credit Act; or (3) on an annual basis, training a cohort of | 15 | | program participants where at least 50% of the program | 16 | | participants are either a minority person, as defined by the | 17 | | Business Enterprise for Minorities, Women, and Persons with | 18 | | Disabilities Act, or reside in an underserved area, as defined | 19 | | by the Economic Development for a Growing Economy Tax Credit | 20 | | Act. | 21 | | (e) The Illinois Production Workforce Development Fund | 22 | | shall be administered by the Department. The Department may | 23 | | adopt rules necessary to administer the provisions of this | 24 | | Section. | 25 | | (f) Notwithstanding any other law to the contrary, the | 26 | | Illinois Production Workforce Development Fund is not subject |
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| 1 | | to sweeps, administrative charge-backs, or any other fiscal or | 2 | | budgetary maneuver that would in any way transfer any amounts | 3 | | from the Illinois Production Workforce Development Fund. | 4 | | (g) By June 30 of each fiscal year, the Department must | 5 | | submit to the General Assembly a report that includes the | 6 | | following information: (1) an identification of the | 7 | | organizations and institutions that received funding to | 8 | | administer workforce training programs during the fiscal year; | 9 | | (2) the number of total persons trained and the number of | 10 | | persons trained per workforce training program in the fiscal | 11 | | year; and (3) in the aggregate, per organization, the number | 12 | | of persons identified as a minority person or that reside in an | 13 | | underserved area that received training in the fiscal year. | 14 | | (Source: P.A. 102-700, eff. 4-19-22.) | 15 | | Section 99. Effective date. This Act takes effect July 1, | 16 | | 2024.". |
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