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8 | (Section scheduled to be repealed on January 1, 2005)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