State Government Administration Committee
Filed: 02/25/04
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1 | AMENDMENT TO HOUSE BILL 5180
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2 | AMENDMENT NO. ______. Amend House Bill 5180 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Income Tax Act is amended by | ||||||
5 | changing Section 213 as follows:
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6 | (35 ILCS 5/213)
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7 | Sec. 213. Film production services credit. For tax years | ||||||
8 | beginning on or
after January 1, 2004, a taxpayer who has been | ||||||
9 | awarded a tax credit under the
Film Production Services Tax | ||||||
10 | Credit Act is entitled to a credit against the
taxes imposed | ||||||
11 | under subsections (a) and (b) of Section 201 of this Act in an
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12 | amount determined by the Department of Commerce and Economic | ||||||
13 | Opportunity
Community Affairs under the
Film Production | ||||||
14 | Services Tax Credit Act. If the taxpayer is a partnership or
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15 | Subchapter S corporation, the credit is allowed to the partners | ||||||
16 | or shareholders
in accordance with the determination of income | ||||||
17 | and distributive share of income
under Sections 702 and 704 and | ||||||
18 | Subchapter S of the Internal Revenue Code. The
Department, in | ||||||
19 | cooperation with the Department of Commerce and Economic | ||||||
20 | Opportunity
Community
Affairs , must prescribe rules to enforce | ||||||
21 | and administer the provisions of this
Section. This Section is | ||||||
22 | exempt from the provisions of Section 250 of this
Act.
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23 | The credit may not be carried forward or back. In no event | ||||||
24 | shall a credit
under this Section reduce the taxpayer's
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1 | liability to less than
zero.
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2 | (Source: P.A. 93-543, eff. 1-1-04; revised 12-6-03.)
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3 | Section 10. The Film Production Services Tax Credit Act is | ||||||
4 | amended by changing Sections 10 and 90 as follows:
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5 | (35 ILCS 15/10)
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6 | (Section scheduled to be repealed on January 1, 2005)
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7 | Sec. 10. Definitions. As used in this Act:
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8 | "Accredited production" means a film, video, or television | ||||||
9 | production that
has been certified by the Department in which | ||||||
10 | the aggregate Illinois labor
expenditures
included in the cost | ||||||
11 | of the production, in the period that ends 12 months after
the | ||||||
12 | time principal filming or taping of the production began, | ||||||
13 | exceed $100,000
for productions of 30 minutes or longer, or | ||||||
14 | $50,000 for productions of less
than 30
minutes; but does not | ||||||
15 | include a production that:
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16 | (1) is news, current events, or public programming, or | ||||||
17 | a program that
includes weather or market reports;
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18 | (2) is a talk show;
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19 | (3) is a production in respect of a game, | ||||||
20 | questionnaire, or contest;
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21 | (4) is a sports event or activity;
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22 | (5) is a gala presentation or awards show;
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23 | (6) is a finished production that solicits funds;
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24 | (7) is a production produced by a film production | ||||||
25 | company if records, as
required
by 18
U.S.C. 2257, are to | ||||||
26 | be maintained by that film production company with respect
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27 | to any
performer portrayed in that single media or | ||||||
28 | multimedia program; or
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29 | (8) is a production produced primarily for industrial, | ||||||
30 | corporate, or
institutional purposes.
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31 | "Accredited production certificate" means a certificate | ||||||
32 | issued by the
Department certifying that the production is an |
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1 | accredited production that
meets the guidelines of this Act.
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2 | "Applicant" means a taxpayer that is a film production | ||||||
3 | company that is
operating or has operated an accredited | ||||||
4 | production located within the State of
Illinois and that
(i) | ||||||
5 | owns the copyright in the accredited production throughout the
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6 | Illinois production period or (ii)
has contracted directly with | ||||||
7 | the owner of the copyright in the
accredited production
or a | ||||||
8 | person acting on behalf of the owner
to provide services for | ||||||
9 | the production, where the owner
of the copyright is not an | ||||||
10 | eligible production corporation.
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11 | "Credit" means the amount equal to 25% of the Illinois | ||||||
12 | labor
expenditure approved by the Department.
The applicant is | ||||||
13 | deemed to have paid, on its balance due day for the year, an
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14 | amount equal to 25% of its qualified Illinois labor expenditure | ||||||
15 | for the tax
year.
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16 | "Department" means the Department of Commerce and Economic | ||||||
17 | Opportunity
Community Affairs .
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18 | "Director" means the Director of Commerce and Economic | ||||||
19 | Opportunity
Community Affairs .
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20 | "Illinois labor expenditure" means
salary or wages paid to | ||||||
21 | employees of the
applicant for services on the accredited
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22 | production;
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23 | To qualify as an Illinois labor expenditure, the | ||||||
24 | expenditure must be:
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25 | (1) Reasonable in the circumstances.
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26 | (2) Included in the federal income tax basis of the | ||||||
27 | property.
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28 | (3) Incurred by the applicant for services on or after | ||||||
29 | January 1, 2004.
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30 | (4) Incurred for the production stages of the | ||||||
31 | accredited production, from
the final
script stage to the | ||||||
32 | end of the post-production stage.
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33 | (5) Limited to the first $25,000 of wages paid or | ||||||
34 | incurred to each
employee of
the production.
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1 | (6) Exclusive of the salary or wages paid to or | ||||||
2 | incurred , for tax year 2004, for the 2 highest
paid
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3 | employees of the production or, for tax year 2005 and | ||||||
4 | thereafter, for the 2 highest paid employees on productions | ||||||
5 | that are 30 minutes or longer .
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6 | (7) Directly attributable to the accredited | ||||||
7 | production.
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8 | (8) Paid in the tax year
for which the applicant is | ||||||
9 | claiming the credit
or no later than 60 days after the end | ||||||
10 | of the tax
year.
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11 | (9) Paid to persons resident in Illinois at the time | ||||||
12 | the payments were
made.
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13 | (10) Paid for services rendered in Illinois.
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14 | (Source: P.A. 93-543, eff. 1-1-04; revised 12-6-03.)
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15 | (35 ILCS 15/90)
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16 | (Section scheduled to be repealed on January 1, 2005)
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17 | Sec. 90. Repeal. This Act is repealed 5 years
1 year after | ||||||
18 | its effective date.
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19 | (Source: P.A. 93-543, eff. 1-1-04.)
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20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law.".
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