Illinois General Assembly - Full Text of SB1595
Illinois General Assembly

Previous General Assemblies

Full Text of SB1595  101st General Assembly

SB1595sam002 101ST GENERAL ASSEMBLY

Sen. Elgie R. Sims, Jr.

Filed: 3/6/2019

 

 


 

 


 
10100SB1595sam002LRB101 08982 HLH 56595 a

1
AMENDMENT TO SENATE BILL 1595

2    AMENDMENT NO. ______. Amend Senate Bill 1595, AS AMENDED,
3with reference to page and line numbers of Senate Amendment No.
41, on page 1, line 5, by replacing "Section 42" with "Sections
510 and 42"; and
 
6on page 1, immediately below line 5, by inserting the
7following:
 
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

 

 

10100SB1595sam002- 2 -LRB101 08982 HLH 56595 a

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

 

 

10100SB1595sam002- 3 -LRB101 08982 HLH 56595 a

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

 

 

10100SB1595sam002- 4 -LRB101 08982 HLH 56595 a

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

 

 

10100SB1595sam002- 5 -LRB101 08982 HLH 56595 a

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).
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

 

 

10100SB1595sam002- 6 -LRB101 08982 HLH 56595 a

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, other than an employee specified in item (4),
10    for contractual or salaried employees who are Illinois
11    residents performing services with respect to the
12    accredited production; and .
13        (4) the compensation, not to exceed $1,000,000 per
14    employee, for up to 4 contractual or salaried employees who
15    perform services with respect to the accredited
16    production; the employees referenced under this item (4)
17    are not required to be residents of the State.
18    "Qualified production facility" means stage facilities in
19the State in which television shows and films are or are
20intended to be regularly produced and that contain at least one
21sound stage of at least 15,000 square feet.
22    Rulemaking authority to implement this amendatory Act of
23the 95th General Assembly, if any, is conditioned on the rules
24being adopted in accordance with all provisions of the Illinois
25Administrative Procedure Act and all rules and procedures of
26the Joint Committee on Administrative Rules; any purported rule

 

 

10100SB1595sam002- 7 -LRB101 08982 HLH 56595 a

1not so adopted, for whatever reason, is unauthorized.
2(Source: P.A. 97-796, eff. 7-13-12.)".