Rep. Kenneth Dunkin
Filed: 03/02/04
 
 

 




 

 		












09300HB5180ham002

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AMENDMENT TO HOUSE BILL 5180




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    AMENDMENT NO. ______. Amend House Bill 5180, AS AMENDED, by 
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replacing everything after the enacting clause with the 
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following:

 
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    "Section 5. The Film Production Services Tax Credit Act is 
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amended  by changing Sections 10 and 90 as follows:
 



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    (35 ILCS 15/10)



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    (Section scheduled to be repealed on January 1, 2005)

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    Sec. 10. Definitions. As used in this Act:

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    "Accredited production" means a film, video, or television 
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production that
has been certified by the Department in which 
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the aggregate Illinois labor
expenditures
included in the cost 
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of the production, in the period that ends 12 months after
the 
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time principal filming or taping of the production began, 
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exceed $100,000
for productions of 30 minutes or longer, or 
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$50,000 for productions of less
than 30
minutes; but does not 
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include a production that:


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        (1) is news, current events, or public programming, or 
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a program that
includes weather or market reports;


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        (2) is a talk show;


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        (3) is a production in respect of a game, 
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questionnaire, or contest;


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        (4) is a sports event or activity;


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        (5) is a gala presentation or awards show;


 


 






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        (6) is a finished production that solicits funds;


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        (7) is a production produced by a film production 
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company if records, as
required
by 18
U.S.C. 2257, are to 
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be maintained by that film production company with respect

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to any
performer portrayed in that single media or 
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multimedia program; or


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        (8) is a production produced primarily for industrial, 
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corporate, or
institutional purposes.

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    "Accredited production certificate" means a certificate 
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issued by the
Department certifying that the production is an 
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accredited production that
meets the guidelines of this Act.

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    "Applicant" means a taxpayer that is a film production 
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company that is
operating or has operated an accredited 
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production located within the State of
Illinois and that
(i) 
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owns the copyright in the accredited production throughout the

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Illinois production period or (ii)
has contracted directly with 
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the owner of the copyright in the
accredited production
or a 
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person acting on behalf of the owner
to provide services for 
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the production, where the owner
of the copyright is not an 
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eligible production corporation.

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    "Credit" means the amount equal to 25% of the Illinois 
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labor
expenditure approved by the Department.
The applicant is 
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deemed to have paid, on its balance due day for the year, an

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amount equal to 25% of its qualified Illinois labor expenditure 
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for the tax
year.

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    "Department" means the Department of Commerce and Economic 
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Opportunity
Community Affairs.

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    "Director" means the Director of Commerce and Economic 
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Opportunity
Community Affairs.

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    "Illinois labor expenditure" means
salary or wages paid to 
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employees of the
applicant for services on the accredited

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production;

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    To qualify as an Illinois labor expenditure, the 
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expenditure must be:


 


 






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        (1) Reasonable in the circumstances.


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        (2) Included in the federal income tax basis of the 
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property.


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        (3) Incurred by the applicant for services on or after 
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January 1, 2004.


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        (4) Incurred for the production stages of the 
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accredited production, from
the final
script stage to the 
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end of the post-production stage.


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        (5) Limited to the first $25,000 of wages paid or 
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incurred to each
employee of
the production.


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        (6) Exclusive of the salary or wages paid to or 
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incurred, for tax year 2004, for the 2 highest
paid

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employees of the production or, for tax year 2005 and 
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thereafter, for the 2 highest paid employees on productions 
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that are 30 minutes or longer.


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        (7) Directly attributable to the accredited 
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production.


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        (8) Paid in the tax year
for which the applicant is 
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claiming the credit
or no later than 60 days after the end 
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of the tax
year.


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        (9) Paid to persons resident in Illinois at the time 
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the payments were
made.


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        (10) Paid for services rendered in Illinois.

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(Source: P.A. 93-543, eff. 1-1-04; revised 12-6-03.)

 



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    (35 ILCS 15/90)



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    (Section scheduled to be repealed on January 1, 2005)

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    Sec. 90. Repeal. This Act is repealed 5 years
1 year after 
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its effective date.

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(Source: P.A. 93-543, eff. 1-1-04.)


 
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    Section 99. Effective date. This Act takes effect upon 
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becoming law.".