Full Text of SB1981 095th General Assembly
SB1981enr 95TH GENERAL ASSEMBLY
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| AN ACT concerning State government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Film
Production Services Tax Credit Act of | 5 |
| 2008 is amended by changing Section 10 as follows: | 6 |
| (35 ILCS 16/10) | 7 |
| (Section scheduled to be repealed on January 1, 2009)
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| Sec. 10. Definitions. As used in this Act:
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| "Accredited production" means: (i) for productions | 10 |
| commencing before May 1, 2006, 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; and (ii) for | 17 |
| productions commencing on or after May 1, 2006, a film, video, | 18 |
| or television production that has been certified by the | 19 |
| Department in which the Illinois production spending included | 20 |
| in the cost of production in the period that ends 12 months | 21 |
| after the time principal filming or taping of the production | 22 |
| began exceeds $100,000 for productions of 30 minutes or longer | 23 |
| or exceeds $50,000 for productions of less than 30 minutes. |
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| "Accredited production" does not include a production that:
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| (1) is news, current events, or public programming, or | 3 |
| 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, | 6 |
| 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 | 11 |
| company if records, as
required
by 18
U.S.C. 2257, are to | 12 |
| be maintained by that film production company with respect
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| to any
performer portrayed in that single media or | 14 |
| multimedia program; or
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| (8) is a production produced primarily for industrial, | 16 |
| corporate, or
institutional purposes.
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| "Accredited production certificate" means a certificate | 18 |
| issued by the
Department certifying that the production is an | 19 |
| accredited production that
meets the guidelines of this Act.
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| "Applicant" means a taxpayer that is a film production | 21 |
| company that is
operating or has operated an accredited | 22 |
| production located within the State of
Illinois and that
(i) | 23 |
| owns the copyright in the accredited production throughout the
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| Illinois production period or (ii)
has contracted directly with | 25 |
| the owner of the copyright in the
accredited production
or a | 26 |
| 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 | 2 |
| eligible production corporation.
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| "Credit" means:
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| (1) for an accredited production approved by the | 5 |
| Department on or before January 1, 2005 and commencing | 6 |
| before May 1, 2006, the amount equal to 25% of the Illinois | 7 |
| labor
expenditure approved by the Department.
The | 8 |
| applicant is deemed to have paid, on its balance due day | 9 |
| for the year, an
amount equal to 25% of its qualified | 10 |
| Illinois labor expenditure for the tax
year. For Illinois | 11 |
| labor expenditures generated by the employment of | 12 |
| residents of geographic areas of high poverty or high | 13 |
| unemployment, as determined by the Department, in an | 14 |
| accredited production commencing before May 1, 2006 and
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| approved by the Department after January 1, 2005, the | 16 |
| applicant shall receive an enhanced credit of 10% in | 17 |
| addition to the 25% credit; and | 18 |
| (2) for an accredited production commencing on or after | 19 |
| May 1, 2006, the amount equal to: | 20 |
| (i) 20% of the Illinois production spending for the | 21 |
| taxable year; plus | 22 |
| (ii) 15% of the Illinois labor expenditures | 23 |
| generated by the employment of residents of geographic | 24 |
| areas of high poverty or high unemployment, as | 25 |
| determined by the Department ; and .
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| (3) for an accredited production commencing on or after |
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| January 1, 2009, the amount equal to: | 2 |
| (i) 30% of the Illinois production spending for the | 3 |
| taxable year; plus | 4 |
| (ii) 15% of the Illinois labor expenditures | 5 |
| generated by the employment of residents of geographic | 6 |
| areas of high poverty or high unemployment, as | 7 |
| determined by the Department. | 8 |
| "Department" means the Department of Commerce and Economic | 9 |
| Opportunity.
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| "Director" means the Director of Commerce and Economic | 11 |
| Opportunity.
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| "Illinois labor expenditure" means
salary or wages paid to | 13 |
| 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 | 16 |
| 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 | 19 |
| property.
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| (3) Incurred by the applicant for services on or after | 21 |
| January 1, 2004.
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| (4) Incurred for the production stages of the | 23 |
| accredited production, from
the final
script stage to the | 24 |
| end of the post-production stage.
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| (5) Limited to the first $25,000 of wages paid or | 26 |
| incurred to each
employee of a production commencing before |
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| May 1, 2006 and the first $100,000 of wages paid or | 2 |
| incurred to each
employee of
a production commencing on or | 3 |
| after May 1, 2006.
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| (6) For a production commencing before May 1, 2006, | 5 |
| exclusive of the salary or wages paid to or incurred for | 6 |
| the 2 highest
paid
employees of the production.
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| (7) Directly attributable to the accredited | 8 |
| production.
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| (8) Paid in the tax year
for which the applicant is | 10 |
| claiming the credit
or no later than 60 days after the end | 11 |
| of the tax
year.
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| (9) Paid to persons resident in Illinois at the time | 13 |
| the payments were
made.
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| (10) Paid for services rendered in Illinois.
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| "Illinois production spending" means the expenses incurred | 16 |
| by the applicant for an accredited production, including, | 17 |
| without limitation, all of the following: | 18 |
| (1) expenses to purchase, from vendors within | 19 |
| Illinois, tangible personal property that is used in the | 20 |
| accredited production; | 21 |
| (2) expenses to acquire services, from vendors in | 22 |
| Illinois, for film production, editing, or processing; and | 23 |
| (3) the compensation, not to exceed $100,000 for any | 24 |
| one employee, for contractual or salaried employees who are | 25 |
| Illinois residents performing services with respect to the | 26 |
| accredited production. |
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| "Qualified production facility" means stage facilities in | 2 |
| the State in which television shows and films are or are | 3 |
| intended to be regularly produced and that contain at least one | 4 |
| sound stage of at least 15,000 square feet.
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| Rulemaking authority to implement this amendatory Act of | 6 |
| the 95th General Assembly, if any, is conditioned on the rules | 7 |
| being adopted in accordance with all provisions of the Illinois | 8 |
| Administrative Procedure Act and all rules and procedures of | 9 |
| the Joint Committee on Administrative Rules; any purported rule | 10 |
| not so adopted, for whatever reason, is unauthorized. | 11 |
| (Source: P.A. 95-720, eff. 5-27-08.) | 12 |
| (35 ILCS 16/95 rep.) | 13 |
| Section 10. The Film
Production Services Tax Credit Act of | 14 |
| 2008 is amended by repealing Section 95. | 15 |
| Section 99. Effective date. This Act takes effect upon | 16 |
| becoming law.
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