Rep. Patrick J. Verschoore

Filed: 11/23/2011

 

 


 

 


 
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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 40 and by adding
7Section 44 as follows:
 
8    (35 ILCS 16/10)
9    Sec. 10. Definitions. As used in this Act:
10    "Accredited production" means: (i) for productions
11commencing before May 1, 2006, a film, video, or television
12production that has been certified by the Department in which
13the aggregate Illinois labor expenditures included in the cost
14of the production, in the period that ends 12 months after the
15time principal filming or taping of the production began,
16exceed $100,000 for productions of 30 minutes or longer, or

 

 

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1$50,000 for productions of less than 30 minutes; and (ii) for
2productions commencing on or after May 1, 2006, a film, video,
3or television production that has been certified by the
4Department in which the Illinois production spending included
5in the cost of production in the period that ends 12 months
6after the time principal filming or taping of the production
7began exceeds $100,000 for productions of 30 minutes or longer
8or exceeds $50,000 for productions of less than 30 minutes.
9"Accredited production" does not include a production that:
10        (1) is news, current events, or public programming, or
11    a program that includes weather or market reports;
12        (2) is a talk show;
13        (3) is a production in respect of a game,
14    questionnaire, or contest;
15        (4) is a sports event or activity;
16        (5) is a gala presentation or awards show;
17        (6) is a finished production that solicits funds;
18        (7) is a production produced by a film production
19    company if records, as required by 18 U.S.C. 2257, are to
20    be maintained by that film production company with respect
21    to any performer portrayed in that single media or
22    multimedia program; or
23        (8) is a production produced primarily for industrial,
24    corporate, or institutional purposes.
25    "Accredited animated production" means a fully animated
26feature with a total production period of more than 12 months.

 

 

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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) Except for expenditures paid with respect to an
20    accredited animated production, paid Paid in the tax year
21    for which the applicant is claiming the credit or no later
22    than 60 days after the end of the tax year.
23        (9) Paid to persons resident in Illinois at the time
24    the payments were made.
25        (10) Paid for services rendered in Illinois.
26    "Illinois production spending" means the expenses incurred

 

 

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

 

 

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1Illinois labor expenditure and Illinois production spending
2approved by the Department for the production as set forth
3under Section 10. The duration of the credit may not exceed (i)
4one taxable year for productions other than accredited animated
5productions commencing on or after January 1, 2011 or (ii) for
6accredited animated productions commencing on or after January
71, 2011, the period beginning with the taxable year in which
8the production commences and ending with the taxable year in
9which production is complete.
10(Source: P.A. 95-720, eff. 5-27-08.)
 
11    (35 ILCS 16/44 new)
12    Sec. 44. Accredited animated productions. Each applicant
13requesting credits for an accredited animated production
14commencing on or after January 1, 2011 may make an application
15to the Department in each taxable year beginning with the
16taxable year in which the production commences and ending with
17the taxable year in which production is complete.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.".