Rep. Patrick J. Verschoore

Filed: 3/21/2012

 

 


 

 


 
09700SB1286ham007LRB097 08202 HLH 66556 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 Section 10 and by adding Section 44
7as 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 an accredited
26production in which movement and characters' performances are

 

 

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

 

 

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1    accredited production commencing before May 1, 2006 and
2    approved by the Department after January 1, 2005, the
3    applicant shall receive an enhanced credit of 10% in
4    addition to the 25% credit; and
5        (2) for an accredited production commencing on or after
6    May 1, 2006, the amount equal to:
7            (i) 20% of the Illinois production spending for the
8        taxable year; plus
9            (ii) 15% of the Illinois labor expenditures
10        generated by the employment of residents of geographic
11        areas of high poverty or high unemployment, as
12        determined by the Department; and
13        (3) for an accredited production commencing on or after
14    January 1, 2009, the amount equal to:
15            (i) 30% of the Illinois production spending for the
16        taxable year; plus
17            (ii) 15% of the Illinois labor expenditures
18        generated by the employment of residents of geographic
19        areas of high poverty or high unemployment, as
20        determined by the Department.
21    "Department" means the Department of Commerce and Economic
22Opportunity.
23    "Director" means the Director of Commerce and Economic
24Opportunity.
25    "Illinois labor expenditure" means salary or wages paid to
26employees of the applicant for services on the accredited

 

 

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

 

 

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1        (10) Paid for services rendered in Illinois.
2    "Illinois production spending" means the expenses incurred
3by the applicant for an accredited production, including,
4without limitation, all of the following:
5        (1) expenses to purchase, from vendors within
6    Illinois, tangible personal property that is used in the
7    accredited production;
8        (2) expenses to acquire services, from vendors in
9    Illinois, for film production, editing, or processing; and
10        (3) the compensation, not to exceed $100,000 for any
11    one employee, for contractual or salaried employees who are
12    Illinois residents performing services with respect to the
13    accredited production.
14    "Qualified production facility" means stage facilities in
15the State in which television shows and films are or are
16intended to be regularly produced and that contain at least one
17sound stage of at least 15,000 square feet.
18    Rulemaking authority to implement this amendatory Act of
19the 95th General Assembly, if any, is conditioned on the rules
20being adopted in accordance with all provisions of the Illinois
21Administrative Procedure Act and all rules and procedures of
22the Joint Committee on Administrative Rules; any purported rule
23not so adopted, for whatever reason, is unauthorized.
24(Source: P.A. 95-720, eff. 5-27-08; 95-1006, eff. 12-15-08.)
 
25    (35 ILCS 16/44 new)

 

 

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1    Sec. 44. Accredited animated productions. Each applicant
2requesting credits for an accredited animated production
3commencing on or after July 1, 2010 may make an application to
4the Department in each taxable year beginning with the taxable
5year in which the production commences and ending with the
6taxable year in which production is complete, provided that no
7credit may be claimed under this Section for a taxable year
8ending prior to December 31, 2012.
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".