Bill Amendment: IL SB1595 | 2019-2020 | 101st General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: FILM TAX CREDIT-PERMANENT

Status: 2019-08-01 - Public Act . . . . . . . . . 101-0178 [SB1595 Detail]

Download: Illinois-2019-SB1595-Senate_Amendment_003.html

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Sen. Elgie R. Sims, Jr.

Filed: 3/12/2019

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AMENDMENT TO SENATE BILL 1595
AMENDMENT NO. ______. Amend Senate Bill 1595, AS AMENDED,
with reference to page and line numbers of Senate Amendment No.
1, on page 1, line 5, by replacing "Section 42" with "Sections
10 and 42"; and
on page 1, immediately below line 5, by inserting the
following:
"(35 ILCS 16/10)
Sec. 10. Definitions. As used in this Act:
"Accredited production" means: (i) for productions
commencing before May 1, 2006, a film, video, or television
production that has been certified by the Department in which
the aggregate Illinois labor expenditures included in the cost
of the production, in the period that ends 12 months after the
time principal filming or taping of the production began,
exceed $100,000 for productions of 30 minutes or longer, or

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$50,000 for productions of less than 30 minutes; and (ii) for
productions commencing on or after May 1, 2006, a film, video,
or television production that has been certified by the
Department in which the Illinois production spending included
in the cost of production in the period that ends 12 months
after the time principal filming or taping of the production
began exceeds $100,000 for productions of 30 minutes or longer
or exceeds $50,000 for productions of less than 30 minutes.
"Accredited production" does not include a production that:
(1) is news, current events, or public programming, or
a program that includes weather or market reports;
(2) is a talk show produced for local or regional
markets;
(3) is a production in respect of a game,
questionnaire, or contest, not including a reality
competition production;
(4) is a sports event or activity;
(5) is a gala presentation or awards show;
(6) is a finished production that solicits funds;
(7) is a production produced by a film production
company if records, as required by 18 U.S.C. 2257, are to
be maintained by that film production company with respect
to any performer portrayed in that single media or
multimedia program; or
(8) is a production produced primarily for industrial,
corporate, or institutional purposes.

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

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residents of geographic areas of high poverty or high
unemployment, as determined by the Department, in an
accredited production commencing before May 1, 2006 and
approved by the Department after January 1, 2005, the
applicant shall receive an enhanced credit of 10% in
addition to the 25% credit; and
(2) for an accredited production commencing on or after
May 1, 2006, the amount equal to:
(i) 20% of the Illinois production spending for the
taxable year; plus
(ii) 15% of the Illinois labor expenditures
generated by the employment of residents of geographic
areas of high poverty or high unemployment, as
determined by the Department; and
(3) for an accredited production commencing on or after
January 1, 2009, the amount equal to:
(i) 30% of the Illinois production spending for the
taxable year; plus
(ii) 15% of the Illinois labor expenditures
generated by the employment of residents of geographic
areas of high poverty or high unemployment, as
determined by the Department.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.

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

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

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