Bill Text: IL SB3905 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Live Theater Production Tax Credit Act. Provides that a pre-Broadway production must be performed with the goal of having a presentation scheduled for Broadway's Theater District in New York City after its Illinois presentation (currently, the production must have a presentation scheduled for Broadway's Theater District in New York City within 12 months after its Illinois presentation). Provides that the total amount of tax credits awarded pursuant to the Act for the State fiscal year ending on June 30, 2024 shall not exceed $4,000,000 (currently, $2,000,000). Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-28 - Referred to Assignments [SB3905 Detail]

Download: Illinois-2023-SB3905-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3905 Introduced 2/28/2024, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
35 ILCS 17/10-10
35 ILCS 17/10-20
Amends the Live Theater Production Tax Credit Act. Provides that a pre-Broadway production must be performed with the goal of having a presentation scheduled for Broadway's Theater District in New York City after its Illinois presentation (currently, the production must have a presentation scheduled for Broadway's Theater District in New York City within 12 months after its Illinois presentation). Provides that the total amount of tax credits awarded pursuant to the Act for the State fiscal year ending on June 30, 2024 shall not exceed $4,000,000 (currently, $2,000,000). Effective immediately.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Live Theater Production Tax Credit Act is
amended by changing Sections 10-10 and 10-20 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. For credits awarded under this Act in State Fiscal
Year 2023, "accredited theater production" also includes any
commercial Broadway touring show.
"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 a live stage production

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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 within 12 months 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
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.

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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
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

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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
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

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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
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

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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 and the State fiscal
year ending on June 30, 2024 shall not exceed $4,000,000 in
either of those fiscal years. For the State fiscal year ending
on June 30, 2023 and the State fiscal year ending on June 30,
2024, no more than $2,000,000 in credits may be awarded in
either of those fiscal years to accredited theater productions
that are not commercial Broadway touring shows, and no more
than $2,000,000 in credits may be awarded in either of those
fiscal years to commercial Broadway touring shows. 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.)