Rep. Kenneth Dunkin

Filed: 5/25/2011

 

 


 

 


 
09700SB1286ham002LRB097 08202 HLH 56282 a

1
AMENDMENT TO SENATE BILL 1286

2    AMENDMENT NO. ______. Amend Senate Bill 1286, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Film Production Services Tax Credit Act of
62008 is amended by changing Sections 10 and 20 as follows:
 
7    (35 ILCS 16/10)
8    Sec. 10. Definitions. As used in this Act:
9    "Accredited production" means: (i) for productions
10commencing before May 1, 2006, a film, video, or television
11production that has been certified by the Department in which
12the aggregate Illinois labor expenditures included in the cost
13of the production, in the period that ends 12 months after the
14time principal filming or taping of the production began,
15exceed $100,000 for productions of 30 minutes or longer, or
16$50,000 for productions of less than 30 minutes; and (ii) for

 

 

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1productions commencing on or after May 1, 2006, a film, video,
2or television production that has been certified by the
3Department in which the Illinois production spending included
4in the cost of production in the period that ends 12 months
5after the time principal filming or taping of the production
6began exceeds $100,000 for productions of 30 minutes or longer
7or exceeds $50,000 for productions of less than 30 minutes.
8"Accredited production" does not include a production that:
9        (1) is news, current events, or public programming, or
10    a program that includes weather or market reports;
11        (2) (blank) is a talk show;
12        (3) is a production in respect of a game,
13    questionnaire, or contest;
14        (4) is a sports event or activity;
15        (5) is a gala presentation or awards show;
16        (6) is a finished production that solicits funds;
17        (7) is a production produced by a film production
18    company if records, as required by 18 U.S.C. 2257, are to
19    be maintained by that film production company with respect
20    to any performer portrayed in that single media or
21    multimedia program; or
22        (8) is a production produced primarily for industrial,
23    corporate, or institutional purposes.
24    "Accredited production" also includes an accredited talk
25show commencing its first season in Illinois on or after May 1,
262011.

 

 

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

 

 

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1    addition to the 25% credit; and
2        (2) for an accredited production commencing on or after
3    May 1, 2006, the amount equal to:
4            (i) 20% of the Illinois production spending for the
5        taxable year; plus
6            (ii) 15% of the Illinois labor expenditures
7        generated by the employment of residents of geographic
8        areas of high poverty or high unemployment, as
9        determined by the Department; and
10        (3) for an accredited production commencing on or after
11    January 1, 2009, the amount equal to:
12            (i) 30% of the Illinois production spending for the
13        taxable year; plus
14            (ii) 15% of the Illinois labor expenditures
15        generated by the employment of residents of geographic
16        areas of high poverty or high unemployment, as
17        determined by the Department.
18    "Department" means the Department of Commerce and Economic
19Opportunity.
20    "Director" means the Director of Commerce and Economic
21Opportunity.
22    "Illinois labor expenditure" means salary or wages paid to
23employees of the applicant for services on the accredited
24production;
25    To qualify as an Illinois labor expenditure, the
26expenditure must be:

 

 

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1        (1) Reasonable in the circumstances.
2        (2) Included in the federal income tax basis of the
3    property.
4        (3) Incurred by the applicant for services on or after
5    January 1, 2004.
6        (4) Incurred for the production stages of the
7    accredited production, from the final script stage to the
8    end of the post-production stage.
9        (5) Limited to the first $25,000 of wages paid or
10    incurred to each employee of a production commencing before
11    May 1, 2006 and the first $100,000 of wages paid or
12    incurred to each employee of a production commencing on or
13    after May 1, 2006.
14        (6) For a production commencing before May 1, 2006,
15    exclusive of the salary or wages paid to or incurred for
16    the 2 highest paid employees of the production.
17        (7) Directly attributable to the accredited
18    production.
19        (8) Paid in the tax year for which the applicant is
20    claiming the credit or no later than 60 days after the end
21    of the tax year.
22        (9) Paid to persons resident in Illinois at the time
23    the payments were made.
24        (10) Paid for services rendered in Illinois.
25    "Illinois production spending" means the expenses incurred
26by the applicant for an accredited production, including,

 

 

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1without limitation, all of the following:
2        (1) expenses to purchase, from vendors within
3    Illinois, tangible personal property that is used in the
4    accredited production;
5        (2) expenses to acquire services, from vendors in
6    Illinois, for film production, editing, or processing; and
7        (3) the compensation, not to exceed $100,000 for any
8    one employee, for contractual or salaried employees who are
9    Illinois residents performing services with respect to the
10    accredited production.
11    "Qualified production facility" means stage facilities in
12the State in which television shows and films are or are
13intended to be regularly produced and that contain at least one
14sound stage of at least 15,000 square feet.
15    Rulemaking authority to implement this amendatory Act of
16the 95th General Assembly, if any, is conditioned on the rules
17being adopted in accordance with all provisions of the Illinois
18Administrative Procedure Act and all rules and procedures of
19the Joint Committee on Administrative Rules; any purported rule
20not so adopted, for whatever reason, is unauthorized.
21(Source: P.A. 95-720, eff. 5-27-08; 95-1006, eff. 12-15-08.)
 
22    (35 ILCS 16/20)
23    Sec. 20. Tax credit awards. Subject to the conditions set
24forth in this Act, an applicant is entitled to a credit as
25approved by the Department under Section 40 of this Act. The

 

 

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1aggregate amount of tax credits awarded for accredited
2productions that are talk shows may not exceed $7,500,000 in
3any fiscal year. Credits for talk shows shall be awarded on a
4first-come first-served basis. Notwithstanding the foregoing,
5if the amount of talk show credits applied for in any fiscal
6year exceeds the amount authorized to be awarded under this
7Section, the excess credit amounts may be carried forward to
8the next fiscal year in which credits remain available for
9award and shall be treated as having been applied for on the
10first day of that fiscal year.
11(Source: P.A. 95-720, eff. 5-27-08.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".