Illinois General Assembly - Full Text of SB1595
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Full Text of SB1595  101st General Assembly

SB1595sam003 101ST GENERAL ASSEMBLY

Sen. Elgie R. Sims, Jr.

Filed: 3/12/2019

 

 


 

 


 
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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

 

 

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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 produced for local or regional
13    markets;
14        (3) is a production in respect of a game,
15    questionnaire, or contest, not including a reality
16    competition production;
17        (4) is a sports event or activity;
18        (5) is a gala presentation or awards show;
19        (6) is a finished production that solicits funds;
20        (7) is a production produced by a film production
21    company if records, as required by 18 U.S.C. 2257, are to
22    be maintained by that film production company with respect
23    to any performer portrayed in that single media or
24    multimedia program; or
25        (8) is a production produced primarily for industrial,
26    corporate, or institutional purposes.

 

 

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

 

 

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

 

 

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1    "Illinois labor expenditure" means salary or wages paid to
2employees of the applicant for services on the accredited
3production. ;
4    To qualify as an Illinois labor expenditure, the
5expenditure must be:
6        (1) Reasonable in the circumstances.
7        (2) Included in the federal income tax basis of the
8    property.
9        (3) Incurred by the applicant for services on or after
10    January 1, 2004.
11        (4) Incurred for the production stages of the
12    accredited production, from the final script stage to the
13    end of the post-production stage.
14        (5) Limited to: (A) the first $25,000 of wages paid or
15    incurred to each employee of a production commencing before
16    May 1, 2006; (B) and the first $100,000 of wages paid or
17    incurred to each employee of a production commencing on or
18    after May 1, 2006 and prior to July 1, 2019; or (C) for a
19    production commencing on or after July 1, 2019, (i) the
20    first $200,000 of wages paid or incurred to each
21    out-of-State employee of the production, whether paid or
22    incurred by the production company or by a loan out
23    corporation, subject to withholding payments provided for
24    in Article 7 of the Illinois Income Tax Act, and (ii) 100%
25    of the wages paid or incurred to each employee of the
26    production who is a resident of the State, whether paid or

 

 

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1    incurred by the production company or by a loan out
2    corporation.
3        (6) For a production commencing before May 1, 2006,
4    exclusive of the salary or wages paid to or incurred for
5    the 2 highest paid employees of the production.
6        (7) Directly attributable to the accredited
7    production.
8        (8) (Blank).
9        (9) Paid to persons resident in Illinois at the time
10    the payments were made.
11        (10) Paid for services rendered in Illinois.
12    "Illinois production spending" means the expenses incurred
13by the applicant for an accredited production, including,
14without limitation, all of the following:
15        (1) expenses to purchase, from vendors within
16    Illinois, tangible personal property that is used in the
17    accredited production;
18        (2) expenses to acquire services, from vendors in
19    Illinois, for film production, editing, or processing; and
20        (3) the compensation, not to exceed $100,000 for any
21    one employee, other than an employee specified in item (4),
22    for contractual or salaried employees who are Illinois
23    residents performing services with respect to the
24    accredited production; and .
25        (4) the compensation, not to exceed $1,000,000 per
26    employee, for up to 4 contractual or salaried employees who

 

 

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1    perform services with respect to the accredited
2    production; the employees referenced under this item (4)
3    are not required to be residents of the State.
4    "Qualified production facility" means stage facilities in
5the State in which television shows and films are or are
6intended to be regularly produced and that contain at least one
7sound stage of at least 15,000 square feet.
8    Rulemaking authority to implement this amendatory Act of
9the 95th General Assembly, if any, is conditioned on the rules
10being adopted in accordance with all provisions of the Illinois
11Administrative Procedure Act and all rules and procedures of
12the Joint Committee on Administrative Rules; any purported rule
13not so adopted, for whatever reason, is unauthorized.
14(Source: P.A. 97-796, eff. 7-13-12.)".