Bill Amendment: IL HB5426 | 2023-2024 | 103rd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: LIVE THEATER CREDIT-BROADWAY
Status: 2024-04-05 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB5426 Detail]
Download: Illinois-2023-HB5426-House_Amendment_001.html
Bill Title: LIVE THEATER CREDIT-BROADWAY
Status: 2024-04-05 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB5426 Detail]
Download: Illinois-2023-HB5426-House_Amendment_001.html
| |||||||
| |||||||
1 | AMENDMENT TO HOUSE BILL 5426 | ||||||
2 | AMENDMENT NO. ______. Amend House Bill 5426 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The Live Theater Production Tax Credit Act is | ||||||
5 | amended by changing Sections 10-10, 10-20, and 10-30 as | ||||||
6 | follows:
| ||||||
7 | (35 ILCS 17/10-10) | ||||||
8 | Sec. 10-10. Definitions. As used in this Act: | ||||||
9 | "Accredited theater production" means a for-profit live | ||||||
10 | stage presentation in a qualified production facility, as | ||||||
11 | defined in this Section, that is either (i) a pre-Broadway | ||||||
12 | production , or (ii) a long-run production for which the | ||||||
13 | aggregate Illinois labor and marketing expenditures exceed | ||||||
14 | $100,000 , or (iii) a . For credits awarded under this Act in | ||||||
15 | State Fiscal Year 2023, "accredited theater production" also | ||||||
16 | includes any commercial Broadway touring show. |
| |||||||
| |||||||
1 | "Commercial Broadway touring show" means a production that | ||||||
2 | (i) is performed in a qualified production facility and plays | ||||||
3 | in more than 2 other markets in North America outside of | ||||||
4 | Illinois within 12 months of its Illinois presentation and | ||||||
5 | (ii) has Illinois production spending of not less than | ||||||
6 | $100,000, as shown on the applicant's application for the | ||||||
7 | credit. | ||||||
8 | "Pre-Broadway production" means (i) a live stage | ||||||
9 | production that, in its original or adaptive version, is | ||||||
10 | performed in a qualified production facility and has having a | ||||||
11 | presentation scheduled for Broadway's Theater District in New | ||||||
12 | York City within 12 months after its Illinois presentation or | ||||||
13 | (ii) a live stage production that, in its original or adaptive | ||||||
14 | version, is performed in a qualified production facility with | ||||||
15 | the goal of having a presentation scheduled for Broadway's | ||||||
16 | Theater District in New York City after its Illinois | ||||||
17 | presentation . | ||||||
18 | "Long-run production" means a live stage production that | ||||||
19 | is performed in a qualified production facility for longer | ||||||
20 | than 8 weeks, with at least 6 performances per week, and | ||||||
21 | includes a production that spans the end of one tax year and | ||||||
22 | the commencement of a new tax year that, in combination, meets | ||||||
23 | the criteria set forth in this definition making it a long-run | ||||||
24 | production eligible for a theater tax credit award in each tax | ||||||
25 | year or portion thereof. | ||||||
26 | "Accredited theater production certificate" means a |
| |||||||
| |||||||
1 | certificate issued by the Department certifying that the | ||||||
2 | production is an accredited theater production that meets the | ||||||
3 | guidelines of this Act. | ||||||
4 | "Applicant" means a taxpayer that is a theater producer, | ||||||
5 | owner, licensee, operator, or presenter that is presenting or | ||||||
6 | has presented a live stage presentation located within the | ||||||
7 | State of Illinois who: | ||||||
8 | (1) owns or licenses the theatrical rights of the | ||||||
9 | stage presentation for the Illinois production period; or | ||||||
10 | (2) has contracted or will contract directly with the | ||||||
11 | owner or licensee of the theatrical rights or a person | ||||||
12 | acting on behalf of the owner or licensee to provide live | ||||||
13 | performances of the production. | ||||||
14 | An applicant that directly or indirectly owns, controls, | ||||||
15 | or operates multiple qualified production facilities shall be | ||||||
16 | presumed to be and considered for the purposes of this Act to | ||||||
17 | be a single applicant; provided, however, that as to each of | ||||||
18 | the applicant's qualified production facilities, the applicant | ||||||
19 | shall be eligible to separately and contemporaneously (i) | ||||||
20 | apply for and obtain accredited theater production | ||||||
21 | certificates, (ii) stage accredited theater productions, and | ||||||
22 | (iii) apply for and receive a tax credit award certificate for | ||||||
23 | each of the applicant's accredited theater productions | ||||||
24 | performed at each of the applicant's qualified production | ||||||
25 | facilities. | ||||||
26 | "Department" means the Department of Commerce and Economic |
| |||||||
| |||||||
1 | Opportunity. | ||||||
2 | "Director" means the Director of the Department. | ||||||
3 | "Illinois labor expenditure" means gross salary or wages | ||||||
4 | including, but not limited to, taxes, benefits, and any other | ||||||
5 | consideration incurred or paid to non-talent employees of the | ||||||
6 | applicant for services rendered to and on behalf of the | ||||||
7 | accredited theater production. To qualify as an Illinois labor | ||||||
8 | expenditure, the expenditure must be: | ||||||
9 | (1) incurred or paid by the applicant on or after the | ||||||
10 | effective date of the Act for services related to any | ||||||
11 | portion of an accredited theater production from its | ||||||
12 | pre-production stages, including, but not limited to, the | ||||||
13 | writing of the script, casting, hiring of service | ||||||
14 | providers, purchases from vendors, marketing, advertising, | ||||||
15 | public relations, load in, rehearsals, performances, other | ||||||
16 | accredited theater production related activities, and load | ||||||
17 | out; | ||||||
18 | (2) directly attributable to the accredited theater | ||||||
19 | production; | ||||||
20 | (3) limited to the first $100,000 of wages incurred or | ||||||
21 | paid to each employee of an accredited theater production | ||||||
22 | in each tax year; | ||||||
23 | (4) included in the federal income tax basis of the | ||||||
24 | property; | ||||||
25 | (5) paid in the tax year for which the applicant is | ||||||
26 | claiming the tax credit award, or no later than 60 days |
| |||||||
| |||||||
1 | after the end of the tax year; | ||||||
2 | (6) paid to persons residing in Illinois at the time | ||||||
3 | payments were made; and | ||||||
4 | (7) reasonable in the circumstances. | ||||||
5 | "Illinois production spending" means any and all expenses | ||||||
6 | directly or indirectly incurred relating to an accredited | ||||||
7 | theater production presented in any qualified production | ||||||
8 | facility of the applicant, including, but not limited to, | ||||||
9 | expenditures for: | ||||||
10 | (1) national marketing, public relations, and the | ||||||
11 | creation and placement of print, electronic, television, | ||||||
12 | billboard, and other forms of advertising; and | ||||||
13 | (2) the construction and fabrication of scenic | ||||||
14 | materials and elements; provided, however, that the | ||||||
15 | maximum amount of expenditures attributable to the | ||||||
16 | construction and fabrication of scenic materials and | ||||||
17 | elements eligible for a tax credit award shall not exceed | ||||||
18 | $500,000 per applicant per production in any single tax | ||||||
19 | year. | ||||||
20 | "Qualified production facility" means a facility located | ||||||
21 | in the State in which live theatrical productions are, or are | ||||||
22 | intended to be, exclusively presented that contains at least | ||||||
23 | one stage, a seating capacity of 1,200 or more seats, and | ||||||
24 | dressing rooms, storage areas, and other ancillary amenities | ||||||
25 | necessary for the accredited theater production. | ||||||
26 | "Tax credit award" means the issuance to a taxpayer by the |
| |||||||
| |||||||
1 | Department of a tax credit award in conformance with Sections | ||||||
2 | 10-40 and 10-45 of this Act. | ||||||
3 | "Tax year" means a calendar year for the period January 1 | ||||||
4 | to and including December 31. | ||||||
5 | (Source: P.A. 102-1112, eff. 12-21-22.)
| ||||||
6 | (35 ILCS 17/10-20) | ||||||
7 | Sec. 10-20. Tax credit award. Subject to the conditions | ||||||
8 | set forth in this Act, an applicant is entitled to a tax credit | ||||||
9 | award as approved by the Department for qualifying Illinois | ||||||
10 | labor expenditures and Illinois production spending for each | ||||||
11 | tax year in which the applicant is awarded an accredited | ||||||
12 | theater production certificate issued by the Department. The | ||||||
13 | amount of tax credits awarded pursuant to this Act shall not | ||||||
14 | exceed $2,000,000 in any State fiscal year, except that the | ||||||
15 | amount of tax credits awarded pursuant to this Act for the | ||||||
16 | State fiscal year ending on June 30, 2023 shall not exceed | ||||||
17 | $4,000,000 in any State fiscal year . Of that $4,000,000: (1) | ||||||
18 | For the State fiscal year ending on June 30, 2023, no more than | ||||||
19 | $2,000,000 in credits may be awarded to accredited theater | ||||||
20 | productions that are not commercial Broadway touring shows, | ||||||
21 | and no more than $2,000,000 in credits may be awarded to | ||||||
22 | commercial Broadway touring shows or pre-Broadway productions | ||||||
23 | that have the goal of having a presentation scheduled for | ||||||
24 | Broadway's Theater District in New York City after their | ||||||
25 | Illinois presentations; and (2) no more than $2,000,000 in |
| |||||||
| |||||||
1 | credits may be awarded to accredited theater productions that | ||||||
2 | are not described in item (1) . Credits shall be awarded on a | ||||||
3 | first-come, first-served basis. Notwithstanding the foregoing, | ||||||
4 | if the amount of credits applied for in any fiscal year exceeds | ||||||
5 | the amount authorized to be awarded under this Section, the | ||||||
6 | excess credit amount shall be awarded in the next fiscal year | ||||||
7 | in which credits remain available for award and shall be | ||||||
8 | treated as having been applied for on the first day of that | ||||||
9 | fiscal year. | ||||||
10 | (Source: P.A. 102-700, eff. 4-19-22; 102-1112, eff. 12-21-22.)
| ||||||
11 | (35 ILCS 17/10-30) | ||||||
12 | Sec. 10-30. Review of application for accredited theater | ||||||
13 | production certificate. | ||||||
14 | (a) The Department shall issue an accredited theater | ||||||
15 | production certificate to an applicant if it finds that by a | ||||||
16 | preponderance the following conditions exist: | ||||||
17 | (1) the applicant intends to make the expenditure in | ||||||
18 | the State required for certification of the accredited | ||||||
19 | theater production; | ||||||
20 | (2) the applicant's accredited theater production is | ||||||
21 | economically sound and will benefit the people of the | ||||||
22 | State of Illinois by increasing opportunities for | ||||||
23 | employment and will strengthen the economy of Illinois; | ||||||
24 | (3) the following requirements related to the | ||||||
25 | implementation of a diversity plan have been met: (i) the |
| |||||||
| |||||||
1 | applicant has filed with the Department a diversity plan | ||||||
2 | outlining specific goals for hiring Illinois labor | ||||||
3 | expenditure eligible minority persons and women, as | ||||||
4 | defined in the Business Enterprise for Minorities, Women, | ||||||
5 | and Persons with Disabilities Act, and for using vendors | ||||||
6 | receiving certification under the Business Enterprise for | ||||||
7 | Minorities, Women, and Persons with Disabilities Act; (ii) | ||||||
8 | the Department has approved the plan as meeting the | ||||||
9 | requirements established by the Department and verified | ||||||
10 | that the applicant has met or made good faith efforts in | ||||||
11 | achieving those goals; and (iii) the Department has | ||||||
12 | adopted any rules that are necessary to ensure compliance | ||||||
13 | with the provisions set forth in this paragraph and | ||||||
14 | necessary to require that the applicant's plan reflects | ||||||
15 | the diversity of the population of this State; | ||||||
16 | (4) the applicant's accredited theater production | ||||||
17 | application indicates whether the applicant intends to | ||||||
18 | participate in training, education, and recruitment | ||||||
19 | programs that are organized in cooperation with Illinois | ||||||
20 | colleges and universities, labor organizations, and the | ||||||
21 | holders of accredited theater production certificates and | ||||||
22 | are designed to promote and encourage the training and | ||||||
23 | hiring of Illinois residents who represent the diversity | ||||||
24 | of Illinois; | ||||||
25 | (5) except for qualifying commercial Broadway touring | ||||||
26 | shows qualifying in the State fiscal year ending June 30, |
| |||||||
| |||||||
1 | 2023 , if not for the tax credit award, the applicant's | ||||||
2 | accredited theater production would not occur in Illinois, | ||||||
3 | which may be demonstrated by any means, including, but not | ||||||
4 | limited to, evidence that: (i) the applicant, presenter, | ||||||
5 | owner, or licensee of the production rights has other | ||||||
6 | state or international location options at which to | ||||||
7 | present the production and could reasonably and | ||||||
8 | efficiently locate outside of the State, (ii) at least one | ||||||
9 | other state or nation could be considered for the | ||||||
10 | production, (iii) the receipt of the tax award credit is a | ||||||
11 | major factor in the decision of the applicant, presenter, | ||||||
12 | production owner or licensee as to where the production | ||||||
13 | will be presented and that without the tax credit award | ||||||
14 | the applicant likely would not create or retain jobs in | ||||||
15 | Illinois, or (iv) receipt of the tax credit award is | ||||||
16 | essential to the applicant's decision to create or retain | ||||||
17 | new jobs in the State; and | ||||||
18 | (6) the tax credit award will result in an overall | ||||||
19 | positive impact to the State, as determined by the | ||||||
20 | Department using the best available data. | ||||||
21 | (b) If any of the provisions in this Section conflict with | ||||||
22 | any existing collective bargaining agreements, the terms and | ||||||
23 | conditions of those collective bargaining agreements shall | ||||||
24 | control. | ||||||
25 | (c) The Department shall act expeditiously regarding | ||||||
26 | approval of applications for accredited theater production |
| |||||||
| |||||||
1 | certificates so as to accommodate the pre-production work, | ||||||
2 | booking, commencement of ticket sales, determination of | ||||||
3 | performance dates, load in, and other matters relating to the | ||||||
4 | live theater productions for which approval is sought. | ||||||
5 | (Source: P.A. 102-1112, eff. 12-21-22.)
|