Rep. Kenneth Dunkin

Filed: 5/5/2011

 

 


 

 


 
09700SB1286ham001LRB097 08202 HLH 55144 a

1
AMENDMENT TO SENATE BILL 1286

2    AMENDMENT NO. ______. Amend Senate Bill 1286 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Film Production Services Tax Credit Act of
52008 is amended by changing Section 10 as follows:
 
6    (35 ILCS 16/10)
7    Sec. 10. Definitions. As used in this Act:
8    "Accredited production" means: (i) for productions
9commencing before May 1, 2006, a film, video, or television
10production that has been certified by the Department in which
11the aggregate Illinois labor expenditures included in the cost
12of the production, in the period that ends 12 months after the
13time principal filming or taping of the production began,
14exceed $100,000 for productions of 30 minutes or longer, or
15$50,000 for productions of less than 30 minutes; and (ii) for
16productions commencing on or after May 1, 2006, a film, video,

 

 

09700SB1286ham001- 2 -LRB097 08202 HLH 55144 a

1or television production that has been certified by the
2Department in which the Illinois production spending included
3in the cost of production in the period that ends 12 months
4after the time principal filming or taping of the production
5began exceeds $100,000 for productions of 30 minutes or longer
6or exceeds $50,000 for productions of less than 30 minutes.
7"Accredited production" does not include a production that:
8        (1) is news, current events, or public programming, or
9    a program that includes weather or market reports;
10        (2) (blank) is a talk show;
11        (3) is a production in respect of a game,
12    questionnaire, or contest;
13        (4) is a sports event or activity;
14        (5) is a gala presentation or awards show;
15        (6) is a finished production that solicits funds;
16        (7) is a production produced by a film production
17    company if records, as required by 18 U.S.C. 2257, are to
18    be maintained by that film production company with respect
19    to any performer portrayed in that single media or
20    multimedia program; or
21        (8) is a production produced primarily for industrial,
22    corporate, or institutional purposes.
23    "Accredited production" includes a talk show or a reality
24program.
25    "Accredited production certificate" means a certificate
26issued by the Department certifying that the production is an

 

 

09700SB1286ham001- 3 -LRB097 08202 HLH 55144 a

1accredited production that meets the guidelines of this Act.
2    "Applicant" means a taxpayer that is a film production
3company that is operating or has operated an accredited
4production located within the State of Illinois and that (i)
5owns the copyright in the accredited production throughout the
6Illinois production period or (ii) has contracted directly with
7the owner of the copyright in the accredited production or a
8person acting on behalf of the owner to provide services for
9the production, where the owner of the copyright is not an
10eligible production corporation.
11    "Credit" means:
12        (1) for an accredited production approved by the
13    Department on or before January 1, 2005 and commencing
14    before May 1, 2006, the amount equal to 25% of the Illinois
15    labor expenditure approved by the Department. The
16    applicant is deemed to have paid, on its balance due day
17    for the year, an amount equal to 25% of its qualified
18    Illinois labor expenditure for the tax year. For Illinois
19    labor expenditures generated by the employment of
20    residents of geographic areas of high poverty or high
21    unemployment, as determined by the Department, in an
22    accredited production commencing before May 1, 2006 and
23    approved by the Department after January 1, 2005, the
24    applicant shall receive an enhanced credit of 10% in
25    addition to the 25% credit; and
26        (2) for an accredited production commencing on or after

 

 

09700SB1286ham001- 4 -LRB097 08202 HLH 55144 a

1    May 1, 2006, the amount equal to:
2            (i) 20% 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; and
8        (3) for an accredited production commencing on or after
9    January 1, 2009, other than a talk show or reality program
10    qualifying under item (4), the amount equal to:
11            (i) 30% of the Illinois production spending for the
12        taxable year; plus
13            (ii) 15% of the Illinois labor expenditures
14        generated by the employment of residents of geographic
15        areas of high poverty or high unemployment, as
16        determined by the Department; and .
17        (4) for an accredited talk show or reality program
18    commencing its first season in Illinois on or after May 1,
19    2011, the amount equal to:
20            (i) 30% 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.
26    "Department" means the Department of Commerce and Economic

 

 

09700SB1286ham001- 5 -LRB097 08202 HLH 55144 a

1Opportunity.
2    "Director" means the Director of Commerce and Economic
3Opportunity.
4    "Illinois labor expenditure" means salary or wages paid to
5employees of the applicant for services on the accredited
6production;
7    To qualify as an Illinois labor expenditure, the
8expenditure must be:
9        (1) Reasonable in the circumstances.
10        (2) Included in the federal income tax basis of the
11    property.
12        (3) Incurred by the applicant for services on or after
13    January 1, 2004.
14        (4) Incurred for the production stages of the
15    accredited production, from the final script stage to the
16    end of the post-production stage.
17        (5) Limited to the first $25,000 of wages paid or
18    incurred to each employee of a production commencing before
19    May 1, 2006 and the first $100,000 of wages paid or
20    incurred to each employee of a production commencing on or
21    after May 1, 2006.
22        (6) For a production commencing before May 1, 2006,
23    exclusive of the salary or wages paid to or incurred for
24    the 2 highest paid employees of the production.
25        (7) Directly attributable to the accredited
26    production.

 

 

09700SB1286ham001- 6 -LRB097 08202 HLH 55144 a

1        (8) Paid in the tax year for which the applicant is
2    claiming the credit or no later than 60 days after the end
3    of the tax year.
4        (9) Paid to persons resident in Illinois at the time
5    the payments were made.
6        (10) Paid for services rendered in Illinois.
7    "Illinois production spending" means the expenses incurred
8by the applicant for an accredited production, including,
9without limitation, all of the following:
10        (1) expenses to purchase, from vendors within
11    Illinois, tangible personal property that is used in the
12    accredited production;
13        (2) expenses to acquire services, from vendors in
14    Illinois, for film production, editing, or processing; and
15        (3) the compensation, not to exceed $100,000 for any
16    one employee, for contractual or salaried employees who are
17    Illinois residents performing services with respect to the
18    accredited production.
19    "Qualified production facility" means stage facilities in
20the State in which television shows and films are or are
21intended to be regularly produced and that contain at least one
22sound stage of at least 15,000 square feet.
23    Rulemaking authority to implement this amendatory Act of
24the 95th General Assembly, if any, is conditioned on the rules
25being adopted in accordance with all provisions of the Illinois
26Administrative Procedure Act and all rules and procedures of

 

 

09700SB1286ham001- 7 -LRB097 08202 HLH 55144 a

1the Joint Committee on Administrative Rules; any purported rule
2not so adopted, for whatever reason, is unauthorized.
3(Source: P.A. 95-720, eff. 5-27-08; 95-1006, eff. 12-15-08.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".