102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0483

 

Introduced 2/23/2021, by Sen. Cristina Castro

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/222
35 ILCS 17/10-10
35 ILCS 17/10-20

    Amends the Illinois Income Tax Act. Provides that the live theater production credit applies for tax years beginning prior to January 1, 2029 (currently, January 1, 2022). Amends the Live Theater Production Tax Credit Act. Includes commercial Broadway touring productions in the list of accredited productions. Increases the maximum aggregate credit amount from $2,000,000 per fiscal year to $4,000,000 per fiscal year. Provides that, beginning in State fiscal year 2021, $2,000,000 of the $4,000,000 cap shall be reserved for applicants that are operators of qualified production facilities solely in connection with the presentation of commercial Broadway touring shows. Effective immediately.


LRB102 15998 HLH 21369 b

 

 

A BILL FOR

 

SB0483LRB102 15998 HLH 21369 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 222 as follows:
 
6    (35 ILCS 5/222)
7    Sec. 222. Live theater production credit.
8    (a) For tax years beginning on or after January 1, 2012 and
9beginning prior to January 1, 2029 January 1, 2022, a taxpayer
10who has received a tax credit award under the Live Theater
11Production Tax Credit Act is entitled to a credit against the
12taxes imposed under subsections (a) and (b) of Section 201 of
13this Act in an amount determined under that Act by the
14Department of Commerce and Economic Opportunity.
15    (b) If the taxpayer is a partnership, limited liability
16partnership, limited liability company, or Subchapter S
17corporation, the tax credit award is allowed to the partners,
18unit holders, or shareholders in accordance with the
19determination of income and distributive share of income under
20Sections 702 and 704 and Subchapter S of the Internal Revenue
21Code.
22    (c) A sale, assignment, or transfer of the tax credit
23award may be made by the taxpayer earning the credit within one

 

 

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1year after the credit is awarded in accordance with rules
2adopted by the Department of Commerce and Economic
3Opportunity.
4    (d) The Department of Revenue, in cooperation with the
5Department of Commerce and Economic Opportunity, shall adopt
6rules to enforce and administer the provisions of this
7Section.
8    (e) The tax credit award may not be carried back. If the
9amount of the credit exceeds the tax liability for the year,
10the excess may be carried forward and applied to the tax
11liability of the 5 tax years following the excess credit year.
12The tax credit award shall be applied to the earliest year for
13which there is a tax liability. If there are credits from more
14than one tax year that are available to offset liability, the
15earlier credit shall be applied first. In no event may a credit
16under this Section reduce the taxpayer's liability to less
17than zero.
18(Source: P.A. 100-415, eff. 1-1-18.)
 
19    Section 10. The Live Theater Production Tax Credit Act is
20amended by changing Sections 10-10 and 10-20 as follows:
 
21    (35 ILCS 17/10-10)
22    Sec. 10-10. Definitions. As used in this Act:
23    "Accredited theater production" means a for-profit live
24stage presentation in a qualified production facility, as

 

 

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1defined in this Section, that is either (i) a pre-Broadway
2production, or (ii) a long-run production for which the
3aggregate Illinois labor and marketing expenditures exceed
4$100,000, or (iii) a commercial Broadway touring show.
5    "Commercial Broadway touring show" means a production
6playing in 3 or more markets across North America and
7recognized as a commercial Broadway touring show by the
8Broadway League, the national trade association for the
9Broadway industry.
10    "Pre-Broadway production" means a live stage production
11that, in its original or adaptive version, is performed in a
12qualified production facility having a presentation scheduled
13for Broadway's Theater District in New York City within 12
14months after its Illinois presentation.
15    "Long-run production" means a live stage production that
16is performed in a qualified production facility for longer
17than 8 weeks, with at least 6 performances per week, and
18includes a production that spans the end of one tax year and
19the commencement of a new tax year that, in combination, meets
20the criteria set forth in this definition making it a long-run
21production eligible for a theater tax credit award in each tax
22year or portion thereof.
23    "Accredited theater production certificate" means a
24certificate issued by the Department certifying that the
25production is an accredited theater production that meets the
26guidelines of this Act.

 

 

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1    "Applicant" means a taxpayer that is a theater producer,
2owner, licensee, operator, or presenter that is presenting or
3has presented a live stage presentation located within the
4State of Illinois who:
5        (1) owns or licenses the theatrical rights of the
6    stage presentation for the Illinois production period; or
7        (2) has contracted or will contract directly with the
8    owner or licensee of the theatrical rights or a person
9    acting on behalf of the owner or licensee to provide live
10    performances of the production.
11    An applicant that directly or indirectly owns, controls,
12or operates multiple qualified production facilities shall be
13presumed to be and considered for the purposes of this Act to
14be a single applicant; provided, however, that as to each of
15the applicant's qualified production facilities, the applicant
16shall be eligible to separately and contemporaneously (i)
17apply for and obtain accredited theater production
18certificates, (ii) stage accredited theater productions, and
19(iii) apply for and receive a tax credit award certificate for
20each of the applicant's accredited theater productions
21performed at each of the applicant's qualified production
22facilities.
23    "Department" means the Department of Commerce and Economic
24Opportunity.
25    "Director" means the Director of the Department.
26    "Illinois labor expenditure" means gross salary or wages

 

 

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1including, but not limited to, taxes, benefits, and any other
2consideration incurred or paid to non-talent employees of the
3applicant for services rendered to and on behalf of the
4accredited theater production. To qualify as an Illinois labor
5expenditure, the expenditure must be:
6        (1) incurred or paid by the applicant on or after the
7    effective date of the Act for services related to any
8    portion of an accredited theater production from its
9    pre-production stages, including, but not limited to, the
10    writing of the script, casting, hiring of service
11    providers, purchases from vendors, marketing, advertising,
12    public relations, load in, rehearsals, performances, other
13    accredited theater production related activities, and load
14    out;
15        (2) directly attributable to the accredited theater
16    production;
17        (3) limited to the first $100,000 of wages incurred or
18    paid to each employee of an accredited theater production
19    in each tax year;
20        (4) included in the federal income tax basis of the
21    property;
22        (5) paid in the tax year for which the applicant is
23    claiming the tax credit award, or no later than 60 days
24    after the end of the tax year;
25        (6) paid to persons residing in Illinois at the time
26    payments were made; and

 

 

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1        (7) reasonable in the circumstances.
2    "Illinois production spending" means any and all expenses
3directly or indirectly incurred relating to an accredited
4theater production presented in any qualified production
5facility of the applicant, including, but not limited to,
6expenditures for:
7        (1) national marketing, public relations, and the
8    creation and placement of print, electronic, television,
9    billboard, and other forms of advertising; and
10        (2) the construction and fabrication of scenic
11    materials and elements; provided, however, that the
12    maximum amount of expenditures attributable to the
13    construction and fabrication of scenic materials and
14    elements eligible for a tax credit award shall not exceed
15    $500,000 per applicant per production in any single tax
16    year.
17    "Qualified production facility" means a facility located
18in the State in which live theatrical productions are, or are
19intended to be, exclusively presented that contains at least
20one stage, a seating capacity of 1,200 or more seats, and
21dressing rooms, storage areas, and other ancillary amenities
22necessary for the accredited theater production.
23    "Tax credit award" means the issuance to a taxpayer by the
24Department of a tax credit award in conformance with Sections
2510-40 and 10-45 of this Act.
26    "Tax year" means a calendar year for the period January 1

 

 

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1to and including December 31.
2(Source: P.A. 97-636, eff. 6-1-12.)
 
3    (35 ILCS 17/10-20)
4    Sec. 10-20. Tax credit award. Subject to the conditions
5set forth in this Act, an applicant is entitled to a tax credit
6award as approved by the Department for qualifying Illinois
7labor expenditures and Illinois production spending for each
8tax year in which the applicant is awarded an accredited
9theater production certificate issued by the Department. The
10amount of tax credits awarded pursuant to this Act shall not
11exceed (i) $2,000,000 in any fiscal year prior to State fiscal
12year 2021 and (ii) $4,000,000 per fiscal year beginning in
13State fiscal year 2021; provided, however, that beginning in
14State fiscal year 2021, $2,000,000 of the $4,000,000 cap shall
15be reserved for applicants that are operators of qualified
16production facilities solely in connection with the
17presentation of commercial Broadway touring shows. Credits
18shall be awarded on a first-come, first-served basis.
19Notwithstanding the foregoing, if the amount of credits
20applied for in any fiscal year exceeds the amount authorized
21to be awarded under this Section, the excess credit amount
22shall be awarded in the next fiscal year in which credits
23remain available for award and shall be treated as having been
24applied for on the first day of that fiscal year.
25(Source: P.A. 97-636, eff. 6-1-12.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.