Full Text of SB0807 103rd General Assembly
SB0807sam001 103RD GENERAL ASSEMBLY | Sen. Cristina Castro Filed: 4/5/2024 | | 10300SB0807sam001 | | LRB103 03263 HLH 71903 a |
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| 1 | | AMENDMENT TO SENATE BILL 807
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 807 by replacing | 3 | | everything after the enacting clause with the following: | 4 | | "Section 5. The Live Theater Production Tax Credit Act is | 5 | | amended by changing Sections 10-10, 10-20, and 10-30 as | 6 | | follows: | 7 | | (35 ILCS 17/10-10) | 8 | | Sec. 10-10. Definitions. As used in this Act: | 9 | | "Accredited theater production" means a for-profit live | 10 | | stage presentation in a qualified production facility, as | 11 | | defined in this Section, that is either (i) a pre-Broadway | 12 | | production , or (ii) a long-run production for which the | 13 | | aggregate Illinois labor and marketing expenditures exceed | 14 | | $100,000 , or (iii) a . For credits awarded under this Act in | 15 | | State Fiscal Year 2023, "accredited theater production" also | 16 | | includes any commercial Broadway touring show. |
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| 1 | | "Commercial Broadway touring show" means a production that | 2 | | (i) is performed in a qualified production facility and plays | 3 | | in more than 2 other markets in North America outside of | 4 | | Illinois within 12 months of its Illinois presentation and | 5 | | (ii) has Illinois production spending of not less than | 6 | | $100,000, as shown on the applicant's application for the | 7 | | credit. | 8 | | "Pre-Broadway production" means (i) a live stage | 9 | | production that, in its original or adaptive version, is | 10 | | performed in a qualified production facility and has having a | 11 | | presentation scheduled for Broadway's Theater District in New | 12 | | York City within 12 months after its Illinois presentation or | 13 | | (ii) a live stage production that, in its original or adaptive | 14 | | version, is performed in a qualified production facility with | 15 | | the goal of having a presentation scheduled for Broadway's | 16 | | Theater District in New York City after its Illinois | 17 | | presentation . | 18 | | "Long-run production" means a live stage production that | 19 | | is performed in a qualified production facility for longer | 20 | | than 8 weeks, with at least 6 performances per week, and | 21 | | includes a production that spans the end of one tax year and | 22 | | the commencement of a new tax year that, in combination, meets | 23 | | the criteria set forth in this definition making it a long-run | 24 | | production eligible for a theater tax credit award in each tax | 25 | | year or portion thereof. | 26 | | "Accredited theater production certificate" means a |
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| 1 | | certificate issued by the Department certifying that the | 2 | | production is an accredited theater production that meets the | 3 | | guidelines of this Act. | 4 | | "Applicant" means a taxpayer that is a theater producer, | 5 | | owner, licensee, operator, or presenter that is presenting or | 6 | | has presented a live stage presentation located within the | 7 | | State of Illinois who: | 8 | | (1) owns or licenses the theatrical rights of the | 9 | | stage presentation for the Illinois production period; or | 10 | | (2) has contracted or will contract directly with the | 11 | | owner or licensee of the theatrical rights or a person | 12 | | acting on behalf of the owner or licensee to provide live | 13 | | performances of the production. | 14 | | An applicant that directly or indirectly owns, controls, | 15 | | or operates multiple qualified production facilities shall be | 16 | | presumed to be and considered for the purposes of this Act to | 17 | | be a single applicant; provided, however, that as to each of | 18 | | the applicant's qualified production facilities, the applicant | 19 | | shall be eligible to separately and contemporaneously (i) | 20 | | apply for and obtain accredited theater production | 21 | | certificates, (ii) stage accredited theater productions, and | 22 | | (iii) apply for and receive a tax credit award certificate for | 23 | | each of the applicant's accredited theater productions | 24 | | performed at each of the applicant's qualified production | 25 | | facilities. | 26 | | "Department" means the Department of Commerce and Economic |
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| 1 | | Opportunity. | 2 | | "Director" means the Director of the Department. | 3 | | "Illinois labor expenditure" means gross salary or wages | 4 | | including, but not limited to, taxes, benefits, and any other | 5 | | consideration incurred or paid to non-talent employees of the | 6 | | applicant for services rendered to and on behalf of the | 7 | | accredited theater production. To qualify as an Illinois labor | 8 | | expenditure, the expenditure must be: | 9 | | (1) incurred or paid by the applicant on or after the | 10 | | effective date of the Act for services related to any | 11 | | portion of an accredited theater production from its | 12 | | pre-production stages, including, but not limited to, the | 13 | | writing of the script, casting, hiring of service | 14 | | providers, purchases from vendors, marketing, advertising, | 15 | | public relations, load in, rehearsals, performances, other | 16 | | accredited theater production related activities, and load | 17 | | out; | 18 | | (2) directly attributable to the accredited theater | 19 | | production; | 20 | | (3) limited to the first $100,000 of wages incurred or | 21 | | paid to each employee of an accredited theater production | 22 | | in each tax year; | 23 | | (4) included in the federal income tax basis of the | 24 | | property; | 25 | | (5) paid in the tax year for which the applicant is | 26 | | claiming the tax credit award, or no later than 60 days |
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| 1 | | after the end of the tax year; | 2 | | (6) paid to persons residing in Illinois at the time | 3 | | payments were made; and | 4 | | (7) reasonable in the circumstances. | 5 | | "Illinois production spending" means any and all expenses | 6 | | directly or indirectly incurred relating to an accredited | 7 | | theater production presented in any qualified production | 8 | | facility of the applicant, including, but not limited to, | 9 | | expenditures for: | 10 | | (1) national marketing, public relations, and the | 11 | | creation and placement of print, electronic, television, | 12 | | billboard, and other forms of advertising; and | 13 | | (2) the construction and fabrication of scenic | 14 | | materials and elements; provided, however, that the | 15 | | maximum amount of expenditures attributable to the | 16 | | construction and fabrication of scenic materials and | 17 | | elements eligible for a tax credit award shall not exceed | 18 | | $500,000 per applicant per production in any single tax | 19 | | year. | 20 | | "Qualified production facility" means a facility located | 21 | | in the State in which live theatrical productions are, or are | 22 | | intended to be, exclusively presented that contains at least | 23 | | one stage, a seating capacity of 1,200 or more seats, and | 24 | | dressing rooms, storage areas, and other ancillary amenities | 25 | | necessary for the accredited theater production. | 26 | | "Tax credit award" means the issuance to a taxpayer by the |
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| 1 | | Department of a tax credit award in conformance with Sections | 2 | | 10-40 and 10-45 of this Act. | 3 | | "Tax year" means a calendar year for the period January 1 | 4 | | to and including December 31. | 5 | | (Source: P.A. 102-1112, eff. 12-21-22.) | 6 | | (35 ILCS 17/10-20) | 7 | | Sec. 10-20. Tax credit award. Subject to the conditions | 8 | | set forth in this Act, an applicant is entitled to a tax credit | 9 | | award as approved by the Department for qualifying Illinois | 10 | | labor expenditures and Illinois production spending for each | 11 | | tax year in which the applicant is awarded an accredited | 12 | | theater production certificate issued by the Department. The | 13 | | amount of tax credits awarded pursuant to this Act shall not | 14 | | exceed $2,000,000 in any State fiscal year, except that the | 15 | | amount of tax credits awarded pursuant to this Act for the | 16 | | State fiscal year ending on June 30, 2023 shall not exceed | 17 | | $4,000,000 in any State fiscal year . Of that $4,000,000: (1) | 18 | | For the State fiscal year ending on June 30, 2023, no more than | 19 | | $2,000,000 in credits may be awarded to accredited theater | 20 | | productions that are not commercial Broadway touring shows, | 21 | | and no more than $2,000,000 in credits may be awarded to | 22 | | commercial Broadway touring shows or pre-Broadway productions | 23 | | that have the goal of having a presentation scheduled for | 24 | | Broadway's Theater District in New York City after their | 25 | | Illinois presentations; and (2) no more than $2,000,000 in |
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| 1 | | credits may be awarded to accredited theater productions that | 2 | | are not described in item (1) . Credits shall be awarded on a | 3 | | first-come, first-served basis. Notwithstanding the foregoing, | 4 | | if the amount of credits applied for in any fiscal year exceeds | 5 | | the amount authorized to be awarded under this Section, the | 6 | | excess credit amount shall be awarded in the next fiscal year | 7 | | in which credits remain available for award and shall be | 8 | | treated as having been applied for on the first day of that | 9 | | fiscal year. | 10 | | (Source: P.A. 102-700, eff. 4-19-22; 102-1112, eff. 12-21-22.) | 11 | | (35 ILCS 17/10-30) | 12 | | Sec. 10-30. Review of application for accredited theater | 13 | | production certificate. | 14 | | (a) The Department shall issue an accredited theater | 15 | | production certificate to an applicant if it finds that by a | 16 | | preponderance the following conditions exist: | 17 | | (1) the applicant intends to make the expenditure in | 18 | | the State required for certification of the accredited | 19 | | theater production; | 20 | | (2) the applicant's accredited theater production is | 21 | | economically sound and will benefit the people of the | 22 | | State of Illinois by increasing opportunities for | 23 | | employment and will strengthen the economy of Illinois; | 24 | | (3) the following requirements related to the | 25 | | implementation of a diversity plan have been met: (i) the |
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| 1 | | applicant has filed with the Department a diversity plan | 2 | | outlining specific goals for hiring Illinois labor | 3 | | expenditure eligible minority persons and women, as | 4 | | defined in the Business Enterprise for Minorities, Women, | 5 | | and Persons with Disabilities Act, and for using vendors | 6 | | receiving certification under the Business Enterprise for | 7 | | Minorities, Women, and Persons with Disabilities Act; (ii) | 8 | | the Department has approved the plan as meeting the | 9 | | requirements established by the Department and verified | 10 | | that the applicant has met or made good faith efforts in | 11 | | achieving those goals; and (iii) the Department has | 12 | | adopted any rules that are necessary to ensure compliance | 13 | | with the provisions set forth in this paragraph and | 14 | | necessary to require that the applicant's plan reflects | 15 | | the diversity of the population of this State; | 16 | | (4) the applicant's accredited theater production | 17 | | application indicates whether the applicant intends to | 18 | | participate in training, education, and recruitment | 19 | | programs that are organized in cooperation with Illinois | 20 | | colleges and universities, labor organizations, and the | 21 | | holders of accredited theater production certificates and | 22 | | are designed to promote and encourage the training and | 23 | | hiring of Illinois residents who represent the diversity | 24 | | of Illinois; | 25 | | (5) except for qualifying commercial Broadway touring | 26 | | shows qualifying in the State fiscal year ending June 30, |
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| 1 | | 2023 , if not for the tax credit award, the applicant's | 2 | | accredited theater production would not occur in Illinois, | 3 | | which may be demonstrated by any means, including, but not | 4 | | limited to, evidence that: (i) the applicant, presenter, | 5 | | owner, or licensee of the production rights has other | 6 | | state or international location options at which to | 7 | | present the production and could reasonably and | 8 | | efficiently locate outside of the State, (ii) at least one | 9 | | other state or nation could be considered for the | 10 | | production, (iii) the receipt of the tax award credit is a | 11 | | major factor in the decision of the applicant, presenter, | 12 | | production owner or licensee as to where the production | 13 | | will be presented and that without the tax credit award | 14 | | the applicant likely would not create or retain jobs in | 15 | | Illinois, or (iv) receipt of the tax credit award is | 16 | | essential to the applicant's decision to create or retain | 17 | | new jobs in the State; and | 18 | | (6) the tax credit award will result in an overall | 19 | | positive impact to the State, as determined by the | 20 | | Department using the best available data. | 21 | | (b) If any of the provisions in this Section conflict with | 22 | | any existing collective bargaining agreements, the terms and | 23 | | conditions of those collective bargaining agreements shall | 24 | | control. | 25 | | (c) The Department shall act expeditiously regarding | 26 | | approval of applications for accredited theater production |
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| 1 | | certificates so as to accommodate the pre-production work, | 2 | | booking, commencement of ticket sales, determination of | 3 | | performance dates, load in, and other matters relating to the | 4 | | live theater productions for which approval is sought. | 5 | | (Source: P.A. 102-1112, eff. 12-21-22.) | 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.". |
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