Sen. Celina Villanueva

Filed: 4/16/2024

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3806

2    AMENDMENT NO. ______. Amend Senate Bill 3806, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Income Tax Act is amended by
6changing 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
10taxpayer who has been awarded a tax credit under the Film
11Production Services Tax Credit Act or under the Film
12Production Services Tax Credit Act of 2008 is entitled to a
13credit against the taxes imposed under subsections (a) and (b)
14of Section 201 of this Act in an amount determined by the
15Department of Commerce and Economic Opportunity under those
16Acts. If the taxpayer is a partnership or Subchapter S

 

 

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1corporation, the credit is allowed to the partners or
2shareholders in accordance with the determination of income
3and distributive share of income under Sections 702 and 704
4and Subchapter S of the Internal Revenue Code.
5    (b) Beginning July 1, 2024, taxpayers who have been
6awarded a tax credit under the Film Production Services Tax
7Credit Act of 2008 shall pay to the Department of Commerce and
8Economic Opportunity, after determination of the tax credit
9amount but prior to the issuance of a tax credit certificate
10pursuant to Section 35 of the Film Production Services Tax
11Credit Act of 2008, a fee equal to 2.5% of the credit amount
12awarded to the taxpayer under the Film Production Services Tax
13Credit Act of 2008 that is attributable to wages paid to
14nonresidents, as described in Section 10 of the Film
15Production Services Tax Credit Act of 2008, and an additional
16fee equal to 0.25% of the amount generated by subtracting the
17credit amount awarded to the taxpayer under the Film
18Production Services Tax Credit Act of 2008 that is
19attributable to wages paid to nonresidents from the total
20credit amount awarded to the taxpayer under that Act. All fees
21collected under this subsection shall be deposited into the
22Illinois Production Workforce Development Fund. No tax credit
23certificate shall be issued by the Department of Commerce and
24Economic Opportunity until the total fees owed according to
25this subsection have been received by the Department of
26Commerce and Economic Opportunity.

 

 

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1    (c) A transfer of this credit may be made by the taxpayer
2earning the credit within one year after the credit is awarded
3in accordance with rules adopted by the Department of Commerce
4and Economic Opportunity. Beginning July 1, 2023 and through
5June 30, 2024, if a credit is transferred under this Section by
6the taxpayer, then the transferor taxpayer shall pay to the
7Department of Commerce and Economic Opportunity, upon
8notification of a transfer, a fee equal to 2.5% of the
9transferred credit amount eligible for nonresident wages, as
10described in Section 10 of the Film Production Services Tax
11Credit Act of 2008, and an additional fee of 0.25% of the total
12amount of the transferred credit that is not calculated on
13nonresident wages, which shall be deposited into the Illinois
14Production Workforce Development Fund.
15    (d) The Department, in cooperation with the Department of
16Commerce and Economic Opportunity, must prescribe rules to
17enforce and administer the provisions of this Section. This
18Section is exempt from the provisions of Section 250 of this
19Act.
20    (e) The credit may not be carried back. If the amount of
21the credit exceeds the tax liability for the year, the excess
22may be carried forward and applied to the tax liability of the
235 taxable years following the excess credit year. The credit
24shall be applied to the earliest year for which there is a tax
25liability. If there are credits from more than one tax year
26that are available to offset a liability, the earlier credit

 

 

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1shall be applied first. In no event shall a credit under this
2Section 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
52008 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
9created as a special fund in the State Treasury. Beginning
10July 1, 2023 July 1, 2022, amounts paid to the Department of
11Commerce and Economic Opportunity pursuant to Section 213 of
12the Illinois Income Tax Act shall be deposited into the Fund.
13The Fund shall be used exclusively to provide grants to
14community-based organizations, labor organizations, private
15and public universities, community colleges, and other
16organizations and institutions that may be deemed appropriate
17by the Department to administer workforce training programs
18that support efforts to recruit, hire, promote, retain,
19develop, and train a diverse and inclusive workforce in the
20film industry.
21    (b) Pursuant to Section 213 of the Illinois Income Tax
22Act, taxpayers who have been awarded a tax credit under this
23Act shall pay to the Department of Commerce and Economic
24Opportunity, after determination of the tax credit amount but

 

 

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1prior to the issuance of a tax credit certificate, a fee equal
2to 2.5% of the credit amount awarded to the taxpayer under the
3Film Production Services Tax Credit Act of 2008 that is
4attributable to wages paid to nonresidents, as described in
5Section 10 of the Film Production Services Tax Credit Act of
62008, and an additional fee equal to 0.25% of the amount
7generated by subtracting the credit amount awarded to the
8taxpayer under the Film Production Services Tax Credit Act of
92008 that is attributable to wages paid to nonresidents from
10the total credit amount awarded to the taxpayer under that
11Act. All fees collected under this subsection shall be
12deposited into the Illinois Production Workforce Development
13Fund. No tax credit certificate shall be issued by the
14Department of Commerce and Economic Opportunity until the
15total fees owed according to this subsection have been
16received by the Department of Commerce and Economic
17Opportunity. the Fund shall receive deposits in amounts not to
18exceed 0.25% of the amount of each credit certificate issued
19that is not calculated on out-of-state wages and transferred
20or claimed on an Illinois tax return in the quarter such credit
21was transferred or claimed. In addition, such amount shall
22also include 2.5% of the credit amount calculated on wages
23paid to nonresidents that is transferred or claimed on an
24Illinois tax return in the quarter such credit was transferred
25or claimed.
26    (c) At the request of the Department, the State

 

 

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1Comptroller and the State Treasurer may advance amounts to the
2Fund on an annual basis not to exceed $1,000,000 in any fiscal
3year. The fund from which the moneys are advanced shall be
4reimbursed in the same fiscal year for any such advance
5payments as described in this Section. The method of
6reimbursement shall be set forth in rules.
7    (d) Of the appropriated funds in a given fiscal year, 50%
8of the appropriated funds shall be reserved for organizations
9that meet one of the following criteria. The organization is:
10(1) a minority-owned business, as defined by the Business
11Enterprise for Minorities, Women, and Persons with
12Disabilities Act; (2) located in an underserved area, as
13defined by the Economic Development for a Growing Economy Tax
14Credit Act; or (3) on an annual basis, training a cohort of
15program participants where at least 50% of the program
16participants are either a minority person, as defined by the
17Business Enterprise for Minorities, Women, and Persons with
18Disabilities Act, or reside in an underserved area, as defined
19by the Economic Development for a Growing Economy Tax Credit
20Act.
21    (e) The Illinois Production Workforce Development Fund
22shall be administered by the Department. The Department may
23adopt rules necessary to administer the provisions of this
24Section.
25    (f) Notwithstanding any other law to the contrary, the
26Illinois Production Workforce Development Fund is not subject

 

 

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1to sweeps, administrative charge-backs, or any other fiscal or
2budgetary maneuver that would in any way transfer any amounts
3from the Illinois Production Workforce Development Fund.
4    (g) By June 30 of each fiscal year, the Department must
5submit to the General Assembly a report that includes the
6following information: (1) an identification of the
7organizations and institutions that received funding to
8administer workforce training programs during the fiscal year;
9(2) the number of total persons trained and the number of
10persons trained per workforce training program in the fiscal
11year; and (3) in the aggregate, per organization, the number
12of persons identified as a minority person or that reside in an
13underserved 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,
162024.".