Public Act 094-0817
 
SB2030 Enrolled LRB094 11526 BDD 42488 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Film Production Services Tax Credit Act is
amended by changing Sections 10, 40, 45, and 90 as follows:
 
    (35 ILCS 15/10)
    (Section scheduled to be repealed on January 1, 2007)
    Sec. 10. Definitions. As used in this Act:
    "Accredited production" means: (i) for productions
commencing before May 1, 2006, a film, video, or television
production that has been certified by the Department in which
the aggregate Illinois labor expenditures included in the cost
of the production, in the period that ends 12 months after the
time principal filming or taping of the production began,
exceed $100,000 for productions of 30 minutes or longer, or
$50,000 for productions of less than 30 minutes; and (ii) for
productions commencing on or after May 1, 2006, a film, video,
or television production that has been certified by the
Department in which the Illinois production spending included
in the cost of production in the period that ends 12 months
after the time principal filming or taping of the production
began exceeds $100,000 for productions of 30 minutes or longer
or exceeds $50,000 for productions of less than 30 minutes.
"Accredited production" but does not include a production that:
        (1) is news, current events, or public programming, or
    a program that includes weather or market reports;
        (2) is a talk show;
        (3) is a production in respect of a game,
    questionnaire, or contest;
        (4) is a sports event or activity;
        (5) is a gala presentation or awards show;
        (6) is a finished production that solicits funds;
        (7) is a production produced by a film production
    company if records, as required by 18 U.S.C. 2257, are to
    be maintained by that film production company with respect
    to any performer portrayed in that single media or
    multimedia program; or
        (8) is a production produced primarily for industrial,
    corporate, or institutional purposes.
    "Accredited production certificate" means a certificate
issued by the Department certifying that the production is an
accredited production that meets the guidelines of this Act.
    "Applicant" means a taxpayer that is a film production
company that is operating or has operated an accredited
production located within the State of Illinois and that (i)
owns the copyright in the accredited production throughout the
Illinois production period or (ii) has contracted directly with
the owner of the copyright in the accredited production or a
person acting on behalf of the owner to provide services for
the production, where the owner of the copyright is not an
eligible production corporation.
    "Credit" means:
        (1) for an accredited production approved by the
    Department on or before January 1, 2005 and commencing
    before May 1, 2006, the amount equal to 25% of the Illinois
    labor expenditure approved by the Department. The
    applicant is deemed to have paid, on its balance due day
    for the year, an amount equal to 25% of its qualified
    Illinois labor expenditure for the tax year. For Illinois
    labor expenditures generated by the employment of
    residents of geographic areas of high poverty or high
    unemployment, as determined by the Department, in an
    accredited production commencing before May 1, 2006 and
    approved by the Department after January 1, 2005, the
    applicant shall receive an enhanced credit of 10% in
    addition to the 25% credit; and .
        (2) for an accredited production commencing on or after
    May 1, 2006, the amount equal to:
            (i) 20% of the Illinois production spending for the
        taxable year; plus
            (ii) 15% of the Illinois labor expenditures
        generated by the employment of residents of geographic
        areas of high poverty or high unemployment, as
        determined by the Department.
    "Department" means the Department of Commerce and Economic
Opportunity.
    "Director" means the Director of Commerce and Economic
Opportunity.
    "Illinois labor expenditure" means salary or wages paid to
employees of the applicant for services on the accredited
production;
    To qualify as an Illinois labor expenditure, the
expenditure must be:
        (1) Reasonable in the circumstances.
        (2) Included in the federal income tax basis of the
    property.
        (3) Incurred by the applicant for services on or after
    January 1, 2004.
        (4) Incurred for the production stages of the
    accredited production, from the final script stage to the
    end of the post-production stage.
        (5) Limited to the first $25,000 of wages paid or
    incurred to each employee of a the production commencing
    before May 1, 2006 and the first $100,000 of wages paid or
    incurred to each employee of a production commencing on or
    after May 1, 2006.
        (6) For a production commencing before May 1, 2006,
    exclusive Exclusive of the salary or wages paid to or
    incurred for the 2 highest paid employees of the
    production.
        (7) Directly attributable to the accredited
    production.
        (8) Paid in the tax year for which the applicant is
    claiming the credit or no later than 60 days after the end
    of the tax year.
        (9) Paid to persons resident in Illinois at the time
    the payments were made.
        (10) Paid for services rendered in Illinois.
    "Illinois production spending" means the expenses incurred
by the applicant for an accredited production, including,
without limitation, all of the following:
        (1) expenses to purchase, from vendors within
    Illinois, tangible personal property that is used in the
    accredited production;
        (2) expenses to acquire services, from vendors in
    Illinois, for film production, editing, or processing; and
        (3) the compensation, not to exceed $100,000 for any
    one employee, for contractual or salaried employees who are
    Illinois residents performing services with respect to the
    accredited production.
    "Qualified production facility" means stage facilities in
the State in which television shows and films are or are
intended to be regularly produced and that contain at least one
sound stage of at least 15,000 square feet.
(Source: P.A. 93-543, eff. 1-1-04; 94-171, eff. 7-11-05.)
 
    (35 ILCS 15/40)
    (Section scheduled to be repealed on January 1, 2007)
    Sec. 40. Amount and duration of the credit. The amount of
the credit awarded under this Act is based on the amount of the
Illinois labor expenditure and Illinois production spending
approved by the Department for the production as set forth
under Section 10. The duration of the credit may not exceed one
taxable year.
(Source: P.A. 93-543, eff. 1-1-04.)
 
    (35 ILCS 15/45)
    (Section scheduled to be repealed on January 1, 2007)
    Sec. 45. Evaluation of tax credit program; reports to the
General Assembly.
    (a) The Department shall evaluate the tax credit program.
The evaluation must include an assessment of the effectiveness
of the program in creating and retaining new jobs in Illinois
and of the revenue impact of the program, and may include a
review of the practices and experiences of other states or
nations with similar programs. Upon completion of this
evaluation, the Department shall determine the overall success
of the program, and may make a recommendation to extend,
modify, or not extend the program based on this evaluation.
    (b) At the end of each fiscal quarter, the Department must
submit to the General Assembly a report that includes, without
limitation, the following information:
        (1) the economic impact of the tax credit program,
    including the number of jobs created and retained,
    including whether the job positions are entry level,
    management, talent-related, vendor-related, or
    production-related;
        (2) the amount of film production spending brought to
    Illinois, including the amount of spending and type of
    Illinois vendors hired in connection with an accredited
    production; and
        (3) an overall picture of whether the human
    infrastructure of the motion picture industry in Illinois
    reflects the geographical, racial and ethnic, gender, and
    income-level diversity of the State of Illinois.
    (c) At the end of each fiscal year, the Department must
submit to the General Assembly a report that includes, without
limitation, the following information:
        (1) an identification of each vendor that provided
    goods or services that were included in an accredited
    production's Illinois production spending;
        (2) the amount paid to each identified vendor by the
    accredited production;
        (3) for each identified vendor, a statement as to
    whether the vendor is a minority owned business or a female
    owned business, as defined under Section 2 of the Business
    Enterprise for Minorities, Females, and Persons with
    Disabilities Act; and
        (4) a description of any steps taken by the Department
    to encourage accredited productions to use vendors who are
    a minority owned business or a female owned business.
(Source: P.A. 93-543, eff. 1-1-04; 94-171, eff. 7-11-05.)
 
    (35 ILCS 15/90)
    (Section scheduled to be repealed on January 1, 2007)
    Sec. 90. Repeal. This Act is repealed on January 1, 2008
2007.
(Source: P.A. 93-543, eff. 1-1-04; 93-840, eff. 7-30-04;
94-171, eff. 7-11-05.)
 
    Section 10. The Energy Assistance Act is amended by
changing Section 13 and by adding Section 17 as follows:
 
    (305 ILCS 20/13)
    Sec. 13. Supplemental Low-Income Energy Assistance Fund.
    (a) The Supplemental Low-Income Energy Assistance Fund is
hereby created as a special fund in the State Treasury. The
Supplemental Low-Income Energy Assistance Fund is authorized
to receive moneys from voluntary donations from individuals,
foundations, corporations, and other sources, moneys received
pursuant to Section 17, and, by statutory deposit, the moneys
collected pursuant to this Section. Subject to appropriation,
the Department shall use moneys from the Supplemental
Low-Income Energy Assistance Fund for payments to electric or
gas public utilities, municipal electric or gas utilities, and
electric cooperatives on behalf of their customers who are
participants in the program authorized by Section 4 of this
Act, for the provision of weatherization services and for
administration of the Supplemental Low-Income Energy
Assistance Fund. The yearly expenditures for weatherization
may not exceed 10% of the amount collected during the year
pursuant to this Section. The yearly administrative expenses of
the Supplemental Low-Income Energy Assistance Fund may not
exceed 10% of the amount collected during that year pursuant to
this Section.
    (b) Notwithstanding the provisions of Section 16-111 of the
Public Utilities Act but subject to subsection (k) of this
Section, each public utility, electric cooperative, as defined
in Section 3.4 of the Electric Supplier Act, and municipal
utility, as referenced in Section 3-105 of the Public Utilities
Act, that is engaged in the delivery of electricity or the
distribution of natural gas within the State of Illinois shall,
effective January 1, 1998, assess each of its customer accounts
a monthly Energy Assistance Charge for the Supplemental
Low-Income Energy Assistance Fund. The delivering public
utility, municipal electric or gas utility, or electric or gas
cooperative for a self-assessing purchaser remains subject to
the collection of the fee imposed by this Section. The monthly
charge shall be as follows:
        (1) $0.40 per month on each account for residential
    electric service;
        (2) $0.40 per month on each account for residential gas
    service;
        (3) $4 per month on each account for non-residential
    electric service which had less than 10 megawatts of peak
    demand during the previous calendar year;
        (4) $4 per month on each account for non-residential
    gas service which had distributed to it less than 4,000,000
    therms of gas during the previous calendar year;
        (5) $300 per month on each account for non-residential
    electric service which had 10 megawatts or greater of peak
    demand during the previous calendar year; and
        (6) $300 per month on each account for non-residential
    gas service which had 4,000,000 or more therms of gas
    distributed to it during the previous calendar year.
    (c) For purposes of this Section:
        (1) "residential electric service" means electric
    utility service for household purposes delivered to a
    dwelling of 2 or fewer units which is billed under a
    residential rate, or electric utility service for
    household purposes delivered to a dwelling unit or units
    which is billed under a residential rate and is registered
    by a separate meter for each dwelling unit;
        (2) "residential gas service" means gas utility
    service for household purposes distributed to a dwelling of
    2 or fewer units which is billed under a residential rate,
    or gas utility service for household purposes distributed
    to a dwelling unit or units which is billed under a
    residential rate and is registered by a separate meter for
    each dwelling unit;
        (3) "non-residential electric service" means electric
    utility service which is not residential electric service;
    and
        (4) "non-residential gas service" means gas utility
    service which is not residential gas service.
    (d) At least 45 days prior to the date on which it must
begin assessing Energy Assistance Charges, each public utility
engaged in the delivery of electricity or the distribution of
natural gas shall file with the Illinois Commerce Commission
tariffs incorporating the Energy Assistance Charge in other
charges stated in such tariffs.
    (e) The Energy Assistance Charge assessed by electric and
gas public utilities shall be considered a charge for public
utility service.
    (f) By the 20th day of the month following the month in
which the charges imposed by the Section were collected, each
public utility, municipal utility, and electric cooperative
shall remit to the Department of Revenue all moneys received as
payment of the Energy Assistance Charge on a return prescribed
and furnished by the Department of Revenue showing such
information as the Department of Revenue may reasonably
require. If a customer makes a partial payment, a public
utility, municipal utility, or electric cooperative may elect
either: (i) to apply such partial payments first to amounts
owed to the utility or cooperative for its services and then to
payment for the Energy Assistance Charge or (ii) to apply such
partial payments on a pro-rata basis between amounts owed to
the utility or cooperative for its services and to payment for
the Energy Assistance Charge.
    (g) The Department of Revenue shall deposit into the
Supplemental Low-Income Energy Assistance Fund all moneys
remitted to it in accordance with subsection (f) of this
Section.
    (h) (Blank).
    On or before December 31, 2002, the Department shall
prepare a report for the General Assembly on the expenditure of
funds appropriated from the Low-Income Energy Assistance Block
Grant Fund for the program authorized under Section 4 of this
Act.
    (i) The Department of Revenue may establish such rules as
it deems necessary to implement this Section.
    (j) The Department of Commerce and Economic Opportunity
Community Affairs may establish such rules as it deems
necessary to implement this Section.
    (k) The charges imposed by this Section shall only apply to
customers of municipal electric or gas utilities and electric
or gas cooperatives if the municipal electric or gas utility or
electric or gas cooperative makes an affirmative decision to
impose the charge. If a municipal electric or gas utility or an
electric cooperative makes an affirmative decision to impose
the charge provided by this Section, the municipal electric or
gas utility or electric cooperative shall inform the Department
of Revenue in writing of such decision when it begins to impose
the charge. If a municipal electric or gas utility or electric
or gas cooperative does not assess this charge, the Department
may not use funds from the Supplemental Low-Income Energy
Assistance Fund to provide benefits to its customers under the
program authorized by Section 4 of this Act.
    In its use of federal funds under this Act, the Department
may not cause a disproportionate share of those federal funds
to benefit customers of systems which do not assess the charge
provided by this Section.
    This Section is repealed effective December 31, 2007 unless
renewed by action of the General Assembly. The General Assembly
shall consider the results of the evaluations described in
Section 8 in its deliberations.
(Source: P.A. 92-690, eff. 7-18-02; revised 12-6-03.)
 
    (305 ILCS 20/17 new)
    Sec. 17. Transfer into Supplemental Low-Income Energy
Assistance Fund. Immediately upon the effective date of this
amendatory Act of the 94th General Assembly, but no later than
5 business days after that effective date, the State
Comptroller shall direct and the Treasurer shall transfer into
the Supplemental Low-Income Energy Assistance Fund $5,201,055,
which is equivalent to 50% of the average amount of Gas Revenue
Tax paid per residential gas utility customer in State fiscal
year 2005 multiplied by the number of residential gas utility
customers that received assistance from the Low Income Home
Energy Assistance Program during the State fiscal year 2005
winter heating season.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.