Bill Amendment: IL SB0807 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: REVENUE-TECH

Status: 2025-01-07 - Session Sine Die [SB0807 Detail]

Download: Illinois-2023-SB0807-Senate_Amendment_001.html

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Sen. Cristina Castro

Filed: 4/5/2024

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AMENDMENT TO SENATE BILL 807
AMENDMENT NO. ______. Amend Senate Bill 807 by replacing
everything after the enacting clause with the following:
"Section 5. The Live Theater Production Tax Credit Act is
amended by changing Sections 10-10, 10-20, and 10-30 as
follows:
(35 ILCS 17/10-10)
Sec. 10-10. Definitions. As used in this Act:
"Accredited theater production" means a for-profit live
stage presentation in a qualified production facility, as
defined in this Section, that is either (i) a pre-Broadway
production, or (ii) a long-run production for which the
aggregate Illinois labor and marketing expenditures exceed
$100,000, or (iii) a . For credits awarded under this Act in
State Fiscal Year 2023, "accredited theater production" also
includes any commercial Broadway touring show.

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"Commercial Broadway touring show" means a production that
(i) is performed in a qualified production facility and plays
in more than 2 other markets in North America outside of
Illinois within 12 months of its Illinois presentation and
(ii) has Illinois production spending of not less than
$100,000, as shown on the applicant's application for the
credit.
"Pre-Broadway production" means (i) a live stage
production that, in its original or adaptive version, is
performed in a qualified production facility and has having a
presentation scheduled for Broadway's Theater District in New
York City within 12 months after its Illinois presentation or
(ii) a live stage production that, in its original or adaptive
version, is performed in a qualified production facility with
the goal of having a presentation scheduled for Broadway's
Theater District in New York City after its Illinois
presentation.
"Long-run production" means a live stage production that
is performed in a qualified production facility for longer
than 8 weeks, with at least 6 performances per week, and
includes a production that spans the end of one tax year and
the commencement of a new tax year that, in combination, meets
the criteria set forth in this definition making it a long-run
production eligible for a theater tax credit award in each tax
year or portion thereof.
"Accredited theater production certificate" means a

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certificate issued by the Department certifying that the
production is an accredited theater production that meets the
guidelines of this Act.
"Applicant" means a taxpayer that is a theater producer,
owner, licensee, operator, or presenter that is presenting or
has presented a live stage presentation located within the
State of Illinois who:
(1) owns or licenses the theatrical rights of the
stage presentation for the Illinois production period; or
(2) has contracted or will contract directly with the
owner or licensee of the theatrical rights or a person
acting on behalf of the owner or licensee to provide live
performances of the production.
An applicant that directly or indirectly owns, controls,
or operates multiple qualified production facilities shall be
presumed to be and considered for the purposes of this Act to
be a single applicant; provided, however, that as to each of
the applicant's qualified production facilities, the applicant
shall be eligible to separately and contemporaneously (i)
apply for and obtain accredited theater production
certificates, (ii) stage accredited theater productions, and
(iii) apply for and receive a tax credit award certificate for
each of the applicant's accredited theater productions
performed at each of the applicant's qualified production
facilities.
"Department" means the Department of Commerce and Economic

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Opportunity.
"Director" means the Director of the Department.
"Illinois labor expenditure" means gross salary or wages
including, but not limited to, taxes, benefits, and any other
consideration incurred or paid to non-talent employees of the
applicant for services rendered to and on behalf of the
accredited theater production. To qualify as an Illinois labor
expenditure, the expenditure must be:
(1) incurred or paid by the applicant on or after the
effective date of the Act for services related to any
portion of an accredited theater production from its
pre-production stages, including, but not limited to, the
writing of the script, casting, hiring of service
providers, purchases from vendors, marketing, advertising,
public relations, load in, rehearsals, performances, other
accredited theater production related activities, and load
out;
(2) directly attributable to the accredited theater
production;
(3) limited to the first $100,000 of wages incurred or
paid to each employee of an accredited theater production
in each tax year;
(4) included in the federal income tax basis of the
property;
(5) paid in the tax year for which the applicant is
claiming the tax credit award, or no later than 60 days

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after the end of the tax year;
(6) paid to persons residing in Illinois at the time
payments were made; and
(7) reasonable in the circumstances.
"Illinois production spending" means any and all expenses
directly or indirectly incurred relating to an accredited
theater production presented in any qualified production
facility of the applicant, including, but not limited to,
expenditures for:
(1) national marketing, public relations, and the
creation and placement of print, electronic, television,
billboard, and other forms of advertising; and
(2) the construction and fabrication of scenic
materials and elements; provided, however, that the
maximum amount of expenditures attributable to the
construction and fabrication of scenic materials and
elements eligible for a tax credit award shall not exceed
$500,000 per applicant per production in any single tax
year.
"Qualified production facility" means a facility located
in the State in which live theatrical productions are, or are
intended to be, exclusively presented that contains at least
one stage, a seating capacity of 1,200 or more seats, and
dressing rooms, storage areas, and other ancillary amenities
necessary for the accredited theater production.
"Tax credit award" means the issuance to a taxpayer by the

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Department of a tax credit award in conformance with Sections
10-40 and 10-45 of this Act.
"Tax year" means a calendar year for the period January 1
to and including December 31.
(Source: P.A. 102-1112, eff. 12-21-22.)
(35 ILCS 17/10-20)
Sec. 10-20. Tax credit award. Subject to the conditions
set forth in this Act, an applicant is entitled to a tax credit
award as approved by the Department for qualifying Illinois
labor expenditures and Illinois production spending for each
tax year in which the applicant is awarded an accredited
theater production certificate issued by the Department. The
amount of tax credits awarded pursuant to this Act shall not
exceed $2,000,000 in any State fiscal year, except that the
amount of tax credits awarded pursuant to this Act for the
State fiscal year ending on June 30, 2023 shall not exceed
$4,000,000 in any State fiscal year. Of that $4,000,000: (1)
For the State fiscal year ending on June 30, 2023, no more than
$2,000,000 in credits may be awarded to accredited theater
productions that are not commercial Broadway touring shows,
and no more than $2,000,000 in credits may be awarded to
commercial Broadway touring shows or pre-Broadway productions
that have the goal of having a presentation scheduled for
Broadway's Theater District in New York City after their
Illinois presentations; and (2) no more than $2,000,000 in

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credits may be awarded to accredited theater productions that
are not described in item (1). Credits shall be awarded on a
first-come, first-served basis. Notwithstanding the foregoing,
if the amount of credits applied for in any fiscal year exceeds
the amount authorized to be awarded under this Section, the
excess credit amount shall be awarded in the next fiscal year
in which credits remain available for award and shall be
treated as having been applied for on the first day of that
fiscal year.
(Source: P.A. 102-700, eff. 4-19-22; 102-1112, eff. 12-21-22.)
(35 ILCS 17/10-30)
Sec. 10-30. Review of application for accredited theater
production certificate.
(a) The Department shall issue an accredited theater
production certificate to an applicant if it finds that by a
preponderance the following conditions exist:
(1) the applicant intends to make the expenditure in
the State required for certification of the accredited
theater production;
(2) the applicant's accredited theater production is
economically sound and will benefit the people of the
State of Illinois by increasing opportunities for
employment and will strengthen the economy of Illinois;
(3) the following requirements related to the
implementation of a diversity plan have been met: (i) the

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applicant has filed with the Department a diversity plan
outlining specific goals for hiring Illinois labor
expenditure eligible minority persons and women, as
defined in the Business Enterprise for Minorities, Women,
and Persons with Disabilities Act, and for using vendors
receiving certification under the Business Enterprise for
Minorities, Women, and Persons with Disabilities Act; (ii)
the Department has approved the plan as meeting the
requirements established by the Department and verified
that the applicant has met or made good faith efforts in
achieving those goals; and (iii) the Department has
adopted any rules that are necessary to ensure compliance
with the provisions set forth in this paragraph and
necessary to require that the applicant's plan reflects
the diversity of the population of this State;
(4) the applicant's accredited theater production
application indicates whether the applicant intends to
participate in training, education, and recruitment
programs that are organized in cooperation with Illinois
colleges and universities, labor organizations, and the
holders of accredited theater production certificates and
are designed to promote and encourage the training and
hiring of Illinois residents who represent the diversity
of Illinois;
(5) except for qualifying commercial Broadway touring
shows qualifying in the State fiscal year ending June 30,

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2023, if not for the tax credit award, the applicant's
accredited theater production would not occur in Illinois,
which may be demonstrated by any means, including, but not
limited to, evidence that: (i) the applicant, presenter,
owner, or licensee of the production rights has other
state or international location options at which to
present the production and could reasonably and
efficiently locate outside of the State, (ii) at least one
other state or nation could be considered for the
production, (iii) the receipt of the tax award credit is a
major factor in the decision of the applicant, presenter,
production owner or licensee as to where the production
will be presented and that without the tax credit award
the applicant likely would not create or retain jobs in
Illinois, or (iv) receipt of the tax credit award is
essential to the applicant's decision to create or retain
new jobs in the State; and
(6) the tax credit award will result in an overall
positive impact to the State, as determined by the
Department using the best available data.
(b) If any of the provisions in this Section conflict with
any existing collective bargaining agreements, the terms and
conditions of those collective bargaining agreements shall
control.
(c) The Department shall act expeditiously regarding
approval of applications for accredited theater production

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certificates so as to accommodate the pre-production work,
booking, commencement of ticket sales, determination of
performance dates, load in, and other matters relating to the
live theater productions for which approval is sought.
(Source: P.A. 102-1112, eff. 12-21-22.)