Sen. Elgie R. Sims, Jr.
Filed: 3/6/2019
 
 


 




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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;


13  (3) is a production in respect of a game, 
14 questionnaire, or contest;


15  (4) is a sports event or activity;


16  (5) is a gala presentation or awards show;


17  (6) is a finished production that solicits funds;


18  (7) is a production produced by a film production 
19 company if records, as
required
by 18
U.S.C. 2257, are to 
20 be maintained by that film production company with respect

21 to any
performer portrayed in that single media or 
22 multimedia program; or


23  (8) is a production produced primarily for industrial, 
24 corporate, or
institutional purposes.


25 "Accredited animated production" means an accredited 
26production in which movement and characters' performances are 
 
 
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1created using a frame-by-frame technique and a significant 
2number of major characters are animated. Motion capture by 
3itself is not an animation technique. 
4 "Accredited production certificate" means a certificate 
5issued by the
Department certifying that the production is an 
6accredited production that
meets the guidelines of this Act.

7 "Applicant" means a taxpayer that is a film production 
8company that is
operating or has operated an accredited 
9production located within the State of
Illinois and that
(i) 
10owns the copyright in the accredited production throughout the

11Illinois production period or (ii)
has contracted directly with 
12the owner of the copyright in the
accredited production
or a 
13person acting on behalf of the owner
to provide services for 
14the production, where the owner
of the copyright is not an 
15eligible production corporation.


16 "Credit" means:

17  (1) for an accredited production approved by the 
18 Department on or before January 1, 2005 and commencing 
19 before May 1, 2006, the amount equal to 25% of the Illinois 
20 labor
expenditure approved by the Department.
The 
21 applicant is deemed to have paid, on its balance due day 
22 for the year, an
amount equal to 25% of its qualified 
23 Illinois labor expenditure for the tax
year. For Illinois 
24 labor expenditures generated by the employment of 
25 residents of geographic areas of high poverty or high 
26 unemployment, as determined by the Department, in an 
 
 
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1 accredited production commencing before May 1, 2006 and

2 approved by the Department after January 1, 2005, the 
3 applicant shall receive an enhanced credit of 10% in 
4 addition to the 25% credit; and
5  (2) for an accredited production commencing on or after 
6 May 1, 2006, the amount equal to:
7   (i) 20% of the Illinois production spending for the 
8 taxable year; plus
9   (ii) 15% of the Illinois labor expenditures 
10 generated by the employment of residents of geographic 
11 areas of high poverty or high unemployment, as 
12 determined by the Department; and

13  (3) for an accredited production commencing on or after 
14 January 1, 2009, the amount equal to: 
15   (i) 30% of the Illinois production spending for the 
16 taxable year; plus 
17   (ii) 15% of the Illinois labor expenditures 
18 generated by the employment of residents of geographic 
19 areas of high poverty or high unemployment, as 
20 determined by the Department. 
21 "Department" means the Department of Commerce and Economic 
22Opportunity.

23 "Director" means the Director of Commerce and Economic 
24Opportunity.

25 "Illinois labor expenditure" means
salary or wages paid to 
26employees of the
applicant for services on the accredited

 
 
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1production;


2 To qualify as an Illinois labor expenditure, the 
3expenditure must be:


4  (1) Reasonable in the circumstances.


5  (2) Included in the federal income tax basis of the 
6 property.


7  (3) Incurred by the applicant for services on or after 
8 January 1, 2004.


9  (4) Incurred for the production stages of the 
10 accredited production, from
the final
script stage to the 
11 end of the post-production stage.


12  (5) Limited to the first $25,000 of wages paid or 
13 incurred to each
employee of a production commencing before 
14 May 1, 2006 and the first $100,000 of wages paid or 
15 incurred to each
employee of
a production commencing on or 
16 after May 1, 2006.

17  (6) For a production commencing before May 1, 2006, 
18 exclusive of the salary or wages paid to or incurred for 
19 the 2 highest
paid
employees of the production.

20  (7) Directly attributable to the accredited 
21 production.


22  (8) (Blank).


23  (9) Paid to persons resident in Illinois at the time 
24 the payments were
made.


25  (10) Paid for services rendered in Illinois.


26 "Illinois production spending" means the expenses incurred 
 
 
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1by the applicant for an accredited production, including, 
2without limitation, all of the following:
3  (1) expenses to purchase, from vendors within 
4 Illinois, tangible personal property that is used in the 
5 accredited production;
6  (2) expenses to acquire services, from vendors in 
7 Illinois, for film production, editing, or processing; and
8  (3) the compensation, not to exceed $100,000 for any 
9 one employee, other than an employee specified in item (4), 
10 for contractual or salaried employees who are Illinois 
11 residents performing services with respect to the 
12 accredited production; and .
13  (4) the compensation, not to exceed $1,000,000 per 
14 employee, for up to 4 contractual or salaried employees who 
15 perform services with respect to the accredited 
16 production; the employees referenced under this item (4) 
17 are not required to be residents of the State. 
18 "Qualified production facility" means stage facilities in 
19the State in which television shows and films are or are 
20intended to be regularly produced and that contain at least one 
21sound stage of at least 15,000 square feet.

22 Rulemaking authority to implement this amendatory Act of 
23the 95th General Assembly, if any, is conditioned on the rules 
24being adopted in accordance with all provisions of the Illinois 
25Administrative Procedure Act and all rules and procedures of 
26the Joint Committee on Administrative Rules; any purported rule 
 
 
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1not so adopted, for whatever reason, is unauthorized. 
2(Source: P.A. 97-796, eff. 7-13-12.)".