Illinois 2023-2024 Regular Session

Illinois House Bill HB3616 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3616 Introduced , by Rep. Steven Reick SYNOPSIS AS INTRODUCED: 35 ILCS 16/1035 ILCS 16/1535 ILCS 16/35 Amends the Film Production Services Tax Credit Act of 2008. Provides that an accredited production may not include intense or persistent depictions of firearm violence. Provides for the recapture of credits if the taxpayer fails to comply with the provisions of the Act because the production includes intense or persistent depictions of firearm violence. Effective immediately. LRB103 29478 HLH 55873 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3616 Introduced , by Rep. Steven Reick SYNOPSIS AS INTRODUCED: 35 ILCS 16/1035 ILCS 16/1535 ILCS 16/35 35 ILCS 16/10 35 ILCS 16/15 35 ILCS 16/35 Amends the Film Production Services Tax Credit Act of 2008. Provides that an accredited production may not include intense or persistent depictions of firearm violence. Provides for the recapture of credits if the taxpayer fails to comply with the provisions of the Act because the production includes intense or persistent depictions of firearm violence. Effective immediately. LRB103 29478 HLH 55873 b LRB103 29478 HLH 55873 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3616 Introduced , by Rep. Steven Reick SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 16/1035 ILCS 16/1535 ILCS 16/35 35 ILCS 16/10 35 ILCS 16/15 35 ILCS 16/35
4	4	35 ILCS 16/10
5	5	35 ILCS 16/15
6	6	35 ILCS 16/35
7	7	Amends the Film Production Services Tax Credit Act of 2008. Provides that an accredited production may not include intense or persistent depictions of firearm violence. Provides for the recapture of credits if the taxpayer fails to comply with the provisions of the Act because the production includes intense or persistent depictions of firearm violence. Effective immediately.
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13	13	1 AN ACT concerning revenue.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The Film Production Services Tax Credit Act of
17	17	5 2008 is amended by changing Sections 10, 15, and 35 as follows:
18	18	6 (35 ILCS 16/10)
19	19	7 Sec. 10. Definitions. As used in this Act:
20	20	8 "Accredited production" means: (i) for productions
21	21	9 commencing before May 1, 2006, a film, video, or television
22	22	10 production that has been certified by the Department in which
23	23	11 the aggregate Illinois labor expenditures included in the cost
24	24	12 of the production, in the period that ends 12 months after the
25	25	13 time principal filming or taping of the production began,
26	26	14 exceed $100,000 for productions of 30 minutes or longer, or
27	27	15 $50,000 for productions of less than 30 minutes; and (ii) for
28	28	16 productions commencing on or after May 1, 2006, a film, video,
29	29	17 or television production that has been certified by the
30	30	18 Department in which the Illinois production spending included
31	31	19 in the cost of production in the period that ends 12 months
32	32	20 after the time principal filming or taping of the production
33	33	21 began exceeds $100,000 for productions of 30 minutes or longer
34	34	22 or exceeds $50,000 for productions of less than 30 minutes.
35	35	23 "Accredited production" does not include a production that:
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39	39	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3616 Introduced , by Rep. Steven Reick SYNOPSIS AS INTRODUCED:
40	40	35 ILCS 16/1035 ILCS 16/1535 ILCS 16/35 35 ILCS 16/10 35 ILCS 16/15 35 ILCS 16/35
41	41	35 ILCS 16/10
42	42	35 ILCS 16/15
43	43	35 ILCS 16/35
44	44	Amends the Film Production Services Tax Credit Act of 2008. Provides that an accredited production may not include intense or persistent depictions of firearm violence. Provides for the recapture of credits if the taxpayer fails to comply with the provisions of the Act because the production includes intense or persistent depictions of firearm violence. Effective immediately.
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47	47	A BILL FOR
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74	74	1 (1) is news, current events, or public programming, or
75	75	2 a program that includes weather or market reports;
76	76	3 (2) is a talk show;
77	77	4 (3) is a production in respect of a game,
78	78	5 questionnaire, or contest;
79	79	6 (4) is a sports event or activity;
80	80	7 (5) is a gala presentation or awards show;
81	81	8 (6) is a finished production that solicits funds;
82	82	9 (7) is a production produced by a film production
83	83	10 company if records, as required by 18 U.S.C. 2257, are to
84	84	11 be maintained by that film production company with respect
85	85	12 to any performer portrayed in that single media or
86	86	13 multimedia program; or
87	87	14 (8) is a production produced primarily for industrial,
88	88	15 corporate, or institutional purposes; or .
89	89	16 (9) is a production submitted to the Department for
90	90	17 certification on or after the effective date of this
91	91	18 amendatory Act of the 103rd General Assembly that includes
92	92	19 intense or persistent depictions of firearm violence, as
93	93	20 defined by the Department by rule under subsection (h) of
94	94	21 Section 15.
95	95	22 "Accredited animated production" means an accredited
96	96	23 production in which movement and characters' performances are
97	97	24 created using a frame-by-frame technique and a significant
98	98	25 number of major characters are animated. Motion capture by
99	99	26 itself is not an animation technique.
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110	110	1 "Accredited production certificate" means a certificate
111	111	2 issued by the Department certifying that the production is an
112	112	3 accredited production that meets the guidelines of this Act.
113	113	4 "Applicant" means a taxpayer that is a film production
114	114	5 company that is operating or has operated an accredited
115	115	6 production located within the State of Illinois and that (i)
116	116	7 owns the copyright in the accredited production throughout the
117	117	8 Illinois production period or (ii) has contracted directly
118	118	9 with the owner of the copyright in the accredited production
119	119	10 or a person acting on behalf of the owner to provide services
120	120	11 for the production, where the owner of the copyright is not an
121	121	12 eligible production corporation.
122	122	13 "Credit" means:
123	123	14 (1) for an accredited production approved by the
124	124	15 Department on or before January 1, 2005 and commencing
125	125	16 before May 1, 2006, the amount equal to 25% of the Illinois
126	126	17 labor expenditure approved by the Department. The
127	127	18 applicant is deemed to have paid, on its balance due day
128	128	19 for the year, an amount equal to 25% of its qualified
129	129	20 Illinois labor expenditure for the tax year. For Illinois
130	130	21 labor expenditures generated by the employment of
131	131	22 residents of geographic areas of high poverty or high
132	132	23 unemployment, as determined by the Department, in an
133	133	24 accredited production commencing before May 1, 2006 and
134	134	25 approved by the Department after January 1, 2005, the
135	135	26 applicant shall receive an enhanced credit of 10% in
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146	146	1 addition to the 25% credit; and
147	147	2 (2) for an accredited production commencing on or
148	148	3 after May 1, 2006, the amount equal to:
149	149	4 (i) 20% of the Illinois production spending for
150	150	5 the taxable year; plus
151	151	6 (ii) 15% of the Illinois labor expenditures
152	152	7 generated by the employment of residents of geographic
153	153	8 areas of high poverty or high unemployment, as
154	154	9 determined by the Department; and
155	155	10 (3) for an accredited production commencing on or
156	156	11 after January 1, 2009, the amount equal to:
157	157	12 (i) 30% of the Illinois production spending for
158	158	13 the taxable year; plus
159	159	14 (ii) 15% of the Illinois labor expenditures
160	160	15 generated by the employment of residents of geographic
161	161	16 areas of high poverty or high unemployment, as
162	162	17 determined by the Department.
163	163	18 "Department" means the Department of Commerce and Economic
164	164	19 Opportunity.
165	165	20 "Director" means the Director of Commerce and Economic
166	166	21 Opportunity.
167	167	22 "Illinois labor expenditure" means salary or wages paid to
168	168	23 employees of the applicant for services on the accredited
169	169	24 production.
170	170	25 To qualify as an Illinois labor expenditure, the
171	171	26 expenditure must be:
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182	182	1 (1) Reasonable in the circumstances.
183	183	2 (2) Included in the federal income tax basis of the
184	184	3 property.
185	185	4 (3) Incurred by the applicant for services on or after
186	186	5 January 1, 2004.
187	187	6 (4) Incurred for the production stages of the
188	188	7 accredited production, from the final script stage to the
189	189	8 end of the post-production stage.
190	190	9 (5) Limited to the first $25,000 of wages paid or
191	191	10 incurred to each employee of a production commencing
192	192	11 before May 1, 2006 and the first $100,000 of wages paid or
193	193	12 incurred to each employee of a production commencing on or
194	194	13 after May 1, 2006 and prior to July 1, 2022. For
195	195	14 productions commencing on or after July 1, 2022, limited
196	196	15 to the first $500,000 of wages paid or incurred to each
197	197	16 nonresident or resident employee of a production company
198	198	17 or loan out company that provides in-State services to a
199	199	18 production, whether those wages are paid or incurred by
200	200	19 the production company, loan out company, or both, subject
201	201	20 to withholding payments provided for in Article 7 of the
202	202	21 Illinois Income Tax Act. For purposes of calculating
203	203	22 Illinois labor expenditures for a television series, the
204	204	23 nonresident wage limitations provided under this
205	205	24 subparagraph are applied to the entire season.
206	206	25 (6) For a production commencing before May 1, 2006,
207	207	26 exclusive of the salary or wages paid to or incurred for
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218	218	1 the 2 highest paid employees of the production.
219	219	2 (7) Directly attributable to the accredited
220	220	3 production.
221	221	4 (8) (Blank).
222	222	5 (9) Prior to July 1, 2022, paid to persons resident in
223	223	6 Illinois at the time the payments were made. For a
224	224	7 production commencing on or after July 1, 2022, paid to
225	225	8 persons resident in Illinois and nonresidents at the time
226	226	9 the payments were made. For purposes of this subparagraph,
227	227	10 only wages paid to nonresidents working in the following
228	228	11 positions shall be considered Illinois labor expenditures:
229	229	12 Writer, Director, Director of Photography, Production
230	230	13 Designer, Costume Designer, Production Accountant, VFX
231	231	14 Supervisor, Editor, Composer, and Actor, subject to the
232	232	15 limitations set forth under this subparagraph. For an
233	233	16 accredited Illinois production spending of $25,000,000 or
234	234	17 less, no more than 2 nonresident actors' wages shall
235	235	18 qualify as an Illinois labor expenditure. For an
236	236	19 accredited production with Illinois production spending of
237	237	20 more than $25,000,000, no more than 4 nonresident actor's
238	238	21 wages shall qualify as Illinois labor expenditures.
239	239	22 (10) Paid for services rendered in Illinois.
240	240	23 "Illinois production spending" means the expenses incurred
241	241	24 by the applicant for an accredited production, including,
242	242	25 without limitation, all of the following:
243	243	26 (1) expenses to purchase, from vendors within
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254	254	1 Illinois, tangible personal property that is used in the
255	255	2 accredited production;
256	256	3 (2) expenses to acquire services, from vendors in
257	257	4 Illinois, for film production, editing, or processing; and
258	258	5 (3) for a production commencing before July 1, 2022,
259	259	6 the compensation, not to exceed $100,000 for any one
260	260	7 employee, for contractual or salaried employees who are
261	261	8 Illinois residents performing services with respect to the
262	262	9 accredited production. For a production commencing on or
263	263	10 after July 1, 2022, the compensation, not to exceed
264	264	11 $500,000 for any one employee, for contractual or salaried
265	265	12 employees who are Illinois residents or nonresident
266	266	13 employees, subject to the limitations set forth under
267	267	14 Section 10 of this Act.
268	268	15 "Loan out company" means a personal service corporation or
269	269	16 other entity that is under contract with the taxpayer to
270	270	17 provide specified individual personnel, such as artists, crew,
271	271	18 actors, producers, or directors for the performance of
272	272	19 services used directly in a production. "Loan out company"
273	273	20 does not include entities contracted with by the taxpayer to
274	274	21 provide goods or ancillary contractor services such as
275	275	22 catering, construction, trailers, equipment, or
276	276	23 transportation.
277	277	24 "Qualified production facility" means stage facilities in
278	278	25 the State in which television shows and films are or are
279	279	26 intended to be regularly produced and that contain at least
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290	290	1 one sound stage of at least 15,000 square feet.
291	291	2 Rulemaking authority to implement Public Act 95-1006, if
292	292	3 any, is conditioned on the rules being adopted in accordance
293	293	4 with all provisions of the Illinois Administrative Procedure
294	294	5 Act and all rules and procedures of the Joint Committee on
295	295	6 Administrative Rules; any purported rule not so adopted, for
296	296	7 whatever reason, is unauthorized.
297	297	8 (Source: P.A. 102-558, eff. 8-20-21; 102-700, eff. 4-19-22.)
298	298	9 (35 ILCS 16/15)
299	299	10 Sec. 15. Powers of the Department. The Department, in
300	300	11 addition to those powers granted under the Civil
301	301	12 Administrative Code of Illinois, is granted and has all the
302	302	13 powers necessary or convenient to carry out and effectuate the
303	303	14 purposes and provisions of this Act, including, but not
304	304	15 limited to, power and authority to:
305	305	16 (a) Adopt rules deemed necessary and appropriate for the
306	306	17 administration of the tax credit program; establish forms for
307	307	18 applications, notifications, contracts, or any other
308	308	19 agreements; and accept applications at any time during the
309	309	20 year.
310	310	21 (b) Assist applicants pursuant to the provisions of this
311	311	22 Act to promote, foster, and support film production and its
312	312	23 related job creation or retention within the State.
313	313	24 (c) Gather information and conduct inquiries, in the
314	314	25 manner and by the methods as it deems desirable, including any
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325	325	1 information required for the Department to comply with Section
326	326	2 45 and, without limitation, gathering information with respect
327	327	3 to applicants for the purpose of making any designations or
328	328	4 certifications necessary or desirable or to gather information
329	329	5 to assist the Department with any recommendation or guidance
330	330	6 in the furtherance of the purposes of this Act, including, but
331	331	7 not limited to, information as to whether the applicant
332	332	8 participated in training, education, and recruitment programs
333	333	9 that are organized in cooperation with Illinois colleges and
334	334	10 universities, labor organizations, and the motion picture
335	335	11 industry, and are designed to promote and encourage the
336	336	12 training and hiring of Illinois residents who represent the
337	337	13 diversity of the Illinois population.
338	338	14 (d) Provide for sufficient personnel to permit
339	339	15 administration, staffing, operation, and related support
340	340	16 required to adequately discharge its duties and
341	341	17 responsibilities described in this Act from funds as may be
342	342	18 appropriated by the General Assembly for the administration of
343	343	19 this Act.
344	344	20 (e) Require applicants, upon written request, to issue any
345	345	21 necessary authorization to the appropriate federal, state, or
346	346	22 local authority for the release of information concerning a
347	347	23 project being considered under the provisions of this Act,
348	348	24 with the information requested to include, but not be limited
349	349	25 to, financial reports, returns, or records relating to the
350	350	26 applicant or the accredited production.
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361	361	1 (f) Require that an applicant must at all times keep
362	362	2 proper books of record and account in accordance with
363	363	3 generally accepted accounting principles consistently applied,
364	364	4 with the books, records, or papers related to the accredited
365	365	5 production in the custody or control of the taxpayer open for
366	366	6 reasonable Department inspection and audits, and including,
367	367	7 without limitation, the making of copies of the books,
368	368	8 records, or papers, and the inspection or appraisal of any of
369	369	9 the assets of the applicant or the accredited production.
370	370	10 (g) Take whatever actions are necessary or appropriate to
371	371	11 protect the State's interest in the event of bankruptcy,
372	372	12 default, foreclosure, or noncompliance with the terms and
373	373	13 conditions of financial assistance or participation required
374	374	14 under this Act, including the power to sell, dispose, lease,
375	375	15 or rent, upon terms and conditions determined by the Director
376	376	16 to be appropriate, real or personal property that the
377	377	17 Department may receive as a result of these actions.
378	378	18 (h) Adopt rules for the purpose of determining whether a
379	379	19 production includes intense or persistent depictions of
380	380	20 firearm violence, using as guidance in the adoption of those
381	381	21 rules the Motion Picture Association of America's
382	382	22 classification and rating rules.
383	383	23 For the purpose of this subsection (h):
384	384	24 "Firearm" has the meaning given to that term in
385	385	25 Section 1.1 of the Firearm Owners Identification Card Act.
386	386	26 "Intense or persistent depictions of firearm violence"
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397	397	1 means one or more depictions of a firearm being used to
398	398	2 commit violence of a type and nature that would typically
399	399	3 result in an "R" rating from the Motion Picture
400	400	4 Association of America on the basis of violence.
401	401	5 If the Department determines that a production that is
402	402	6 accredited on or after the effective date of this amendatory
403	403	7 Act of the 103rd General Assembly does not comply with the
404	404	8 provisions of this Act because the production includes intense
405	405	9 or persistent depictions of firearm violence, the Department
406	406	10 shall provide notice to the taxpayer of the alleged
407	407	11 noncompliance and allow the taxpayer a hearing under the
408	408	12 provisions of the Illinois Administrative Procedure Act. The
409	409	13 Department's decision resulting from a hearing conducted under
410	410	14 this subsection is a final administrative decision for
411	411	15 purposes of review under the Administrative Review Law. If,
412	412	16 after allowing the taxpayer to exhaust all administrative
413	413	17 remedies, it is determined that the taxpayer failed to comply
414	414	18 with the provisions of this Act because the production
415	415	19 includes intense or persistent depictions of firearm violence,
416	416	20 the Department of Revenue shall recapture from the taxpayer
417	417	21 the entire credit amount previously awarded under this Act for
418	418	22 that production.
419	419	23 (Source: P.A. 95-720, eff. 5-27-08.)
420	420	24 (35 ILCS 16/35)
421	421	25 Sec. 35. Issuance of Tax Credit Certificate.
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432	432	1 (a) In order to qualify for a tax credit under this Act, an
433	433	2 applicant must file an application, on forms prescribed by the
434	434	3 Department, providing information necessary to calculate the
435	435	4 tax credit, and any additional information as required by the
436	436	5 Department.
437	437	6 (a-5) For productions that are accredited on or after the
438	438	7 effective date of this amendatory Act of the 103rd General
439	439	8 Assembly, in addition to any other information required by the
440	440	9 Department under subsection (a), as part of the application
441	441	10 process, the Department shall require the applicant to (i)
442	442	11 certify that the production will not include intense or
443	443	12 persistent depictions of firearm violence and (ii) agree that,
444	444	13 if the Department determines that the production does include
445	445	14 intense or persistent depictions of firearm violence, the
446	446	15 Department may void the tax credit agreement and recapture any
447	447	16 credit amounts previously awarded to the applicant for that
448	448	17 particular production.
449	449	18 (b) Upon satisfactory review of the application, the
450	450	19 Department shall issue a Tax Credit Certificate stating the
451	451	20 amount of the tax credit to which the applicant is entitled.
452	452	21 (Source: P.A. 95-720, eff. 5-27-08.)
453	453	22 Section 99. Effective date. This Act takes effect upon
454	454	23 becoming law.
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