Illinois 2025-2026 Regular Session

Illinois House Bill HB1424 Compare Versions

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

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1424 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED: 35 ILCS 16/10 Amends the Film Production Services Tax Credit Act of 2008. Provides that the credit under the Act shall include an additional amount equal to 30% of the Illinois labor expenditures generated as a result of work performed in Illinois by an actor who portrays, in the production, a woman working in a STEM-related field. LRB104 05872 HLH 15903 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1424 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED: 35 ILCS 16/10 35 ILCS 16/10 Amends the Film Production Services Tax Credit Act of 2008. Provides that the credit under the Act shall include an additional amount equal to 30% of the Illinois labor expenditures generated as a result of work performed in Illinois by an actor who portrays, in the production, a woman working in a STEM-related field. LRB104 05872 HLH 15903 b LRB104 05872 HLH 15903 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1424 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 16/10 35 ILCS 16/10
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5	5	Amends the Film Production Services Tax Credit Act of 2008. Provides that the credit under the Act shall include an additional amount equal to 30% of the Illinois labor expenditures generated as a result of work performed in Illinois by an actor who portrays, in the production, a woman working in a STEM-related field.
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8	8	A BILL FOR
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11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Film Production Services Tax Credit Act of
15	15	5 2008 is amended by changing Section 10 as follows:
16	16	6 (35 ILCS 16/10)
17	17	7 Sec. 10. Definitions. As used in this Act:
18	18	8 "Accredited production" means: (i) for productions
19	19	9 commencing before May 1, 2006, a film, video, or television
20	20	10 production that has been certified by the Department in which
21	21	11 the aggregate Illinois labor expenditures included in the cost
22	22	12 of the production, in the period that ends 12 months after the
23	23	13 time principal filming or taping of the production began,
24	24	14 exceed $100,000 for productions of 30 minutes or longer, or
25	25	15 $50,000 for productions of less than 30 minutes; and (ii) for
26	26	16 productions commencing on or after May 1, 2006, a film, video,
27	27	17 or television production that has been certified by the
28	28	18 Department in which the Illinois production spending included
29	29	19 in the cost of production in the period that ends 12 months
30	30	20 after the time principal filming or taping of the production
31	31	21 began exceeds $100,000 for productions of 30 minutes or longer
32	32	22 or exceeds $50,000 for productions of less than 30 minutes.
33	33	23 "Accredited production" does not include a production that:
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1424 Introduced , by Rep. Janet Yang Rohr SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 16/10 35 ILCS 16/10
39	39	35 ILCS 16/10
40	40	Amends the Film Production Services Tax Credit Act of 2008. Provides that the credit under the Act shall include an additional amount equal to 30% of the Illinois labor expenditures generated as a result of work performed in Illinois by an actor who portrays, in the production, a woman working in a STEM-related field.
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43	43	A BILL FOR
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68	68	1 (1) is news, current events, or public programming, or
69	69	2 a program that includes weather or market reports;
70	70	3 (2) is a talk show produced for local or regional
71	71	4 markets;
72	72	5 (3) (blank);
73	73	6 (4) is a sports event or activity;
74	74	7 (5) is a gala presentation or awards show;
75	75	8 (6) is a finished production that solicits funds;
76	76	9 (7) is a production produced by a film production
77	77	10 company if records, as required by 18 U.S.C. 2257, are to
78	78	11 be maintained by that film production company with respect
79	79	12 to any performer portrayed in that single media or
80	80	13 multimedia program; or
81	81	14 (8) is a production produced primarily for industrial,
82	82	15 corporate, or institutional purposes.
83	83	16 "Accredited animated production" means an accredited
84	84	17 production in which movement and characters' performances are
85	85	18 created using a frame-by-frame technique and a significant
86	86	19 number of major characters are animated. Motion capture by
87	87	20 itself is not an animation technique.
88	88	21 "Accredited production certificate" means a certificate
89	89	22 issued by the Department certifying that the production is an
90	90	23 accredited production that meets the guidelines of this Act.
91	91	24 "Applicant" means a taxpayer that is a film production
92	92	25 company that is operating or has operated an accredited
93	93	26 production located within the State of Illinois and that (i)
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104	104	1 owns the copyright in the accredited production throughout the
105	105	2 Illinois production period or (ii) has contracted directly
106	106	3 with the owner of the copyright in the accredited production
107	107	4 or a person acting on behalf of the owner to provide services
108	108	5 for the production, where the owner of the copyright is not an
109	109	6 eligible production corporation.
110	110	7 "Credit" means:
111	111	8 (1) for an accredited production approved by the
112	112	9 Department on or before January 1, 2005 and commencing
113	113	10 before May 1, 2006, the amount equal to 25% of the Illinois
114	114	11 labor expenditure approved by the Department. The
115	115	12 applicant is deemed to have paid, on its balance due day
116	116	13 for the year, an amount equal to 25% of its qualified
117	117	14 Illinois labor expenditure for the tax year. For Illinois
118	118	15 labor expenditures generated by the employment of
119	119	16 residents of geographic areas of high poverty or high
120	120	17 unemployment, as determined by the Department, in an
121	121	18 accredited production commencing before May 1, 2006 and
122	122	19 approved by the Department after January 1, 2005, the
123	123	20 applicant shall receive an enhanced credit of 10% in
124	124	21 addition to the 25% credit; and
125	125	22 (2) for an accredited production commencing on or
126	126	23 after May 1, 2006 and before January 1, 2009, the amount
127	127	24 equal to:
128	128	25 (i) 20% of the Illinois production spending for
129	129	26 the taxable year; plus
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140	140	1 (ii) 15% of the Illinois labor expenditures
141	141	2 generated by the employment of residents of geographic
142	142	3 areas of high poverty or high unemployment, as
143	143	4 determined by the Department; and
144	144	5 (3) for an accredited production commencing on or
145	145	6 after January 1, 2009 and before January 1, 2026, the
146	146	7 amount equal to:
147	147	8 (i) 30% of the Illinois production spending for
148	148	9 the taxable year; plus
149	149	10 (ii) 15% of the Illinois labor expenditures
150	150	11 generated by the employment of residents of geographic
151	151	12 areas of high poverty or high unemployment, as
152	152	13 determined by the Department; and .
153	153	14 (4) for an accredited production commencing on or
154	154	15 after January 1, 2026, the amount equal to:
155	155	16 (i) 30% of the Illinois production spending for
156	156	17 the taxable year; plus
157	157	18 (ii) 15% of the Illinois labor expenditures
158	158	19 generated by the employment of residents of geographic
159	159	20 areas of high poverty or high unemployment, as
160	160	21 determined by the Department; plus
161	161	22 (iii) 30% of the Illinois labor expenditures
162	162	23 generated as a result of work performed in Illinois by
163	163	24 an actor who portrays, in the production, a woman
164	164	25 working in a STEM-related field.
165	165	26 For the purposes of calculating the additional credit
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176	176	1 under subparagraph (iii) of this paragraph (4):
177	177	2 (A) if the total production spending for the
178	178	3 production is $25,000,000 or less, then the wages of
179	179	4 each resident Illinois resident actor described in
180	180	5 that subparagraph (iii) and up to 2 eligible
181	181	6 non-resident actors described in that subparagraph
182	182	7 (iii) may be used to calculate the additional credit
183	183	8 under that subparagraph (iii); and
184	184	9 (B) if the total production spending for the
185	185	10 production is more than $25,000,000, then the wages of
186	186	11 each resident Illinois resident actor described in
187	187	12 that subparagraph (iii) and up to 4 eligible
188	188	13 non-resident actors described in that subparagraph
189	189	14 (iii) may be used to calculate the additional credit
190	190	15 under that subparagraph (iii).
191	191	16 "Department" means the Department of Commerce and Economic
192	192	17 Opportunity.
193	193	18 "Director" means the Director of Commerce and Economic
194	194	19 Opportunity.
195	195	20 "Illinois labor expenditure" means salary or wages paid to
196	196	21 employees of the applicant for services on the accredited
197	197	22 production.
198	198	23 To qualify as an Illinois labor expenditure, the
199	199	24 expenditure must be:
200	200	25 (1) Reasonable in the circumstances.
201	201	26 (2) Included in the federal income tax basis of the
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212	212	1 property.
213	213	2 (3) Incurred by the applicant for services on or after
214	214	3 January 1, 2004.
215	215	4 (4) Incurred for the production stages of the
216	216	5 accredited production, from the final script stage to the
217	217	6 end of the post-production stage.
218	218	7 (5) Limited to the first $25,000 of wages paid or
219	219	8 incurred to each employee of a production commencing
220	220	9 before May 1, 2006 and the first $100,000 of wages paid or
221	221	10 incurred to each employee of a production commencing on or
222	222	11 after May 1, 2006 and prior to July 1, 2022. For
223	223	12 productions commencing on or after July 1, 2022, limited
224	224	13 to the first $500,000 of wages paid or incurred to each
225	225	14 eligible nonresident or resident employee of a production
226	226	15 company or loan out company that provides in-State
227	227	16 services to a production, whether those wages are paid or
228	228	17 incurred by the production company, loan out company, or
229	229	18 both, subject to withholding payments provided for in
230	230	19 Article 7 of the Illinois Income Tax Act. For purposes of
231	231	20 calculating Illinois labor expenditures for a television
232	232	21 series, the eligible nonresident wage limitations provided
233	233	22 under this subparagraph are applied to the entire season.
234	234	23 For the purpose of this paragraph (5), an eligible
235	235	24 nonresident is a nonresident whose wages qualify as an
236	236	25 Illinois labor expenditure under the provisions of
237	237	26 paragraph (9) that apply to that production.
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248	248	1 (6) For a production commencing before May 1, 2006,
249	249	2 exclusive of the salary or wages paid to or incurred for
250	250	3 the 2 highest paid employees of the production.
251	251	4 (7) Directly attributable to the accredited
252	252	5 production.
253	253	6 (8) (Blank).
254	254	7 (9) Prior to July 1, 2022, paid to persons resident in
255	255	8 Illinois at the time the payments were made. For a
256	256	9 production commencing on or after July 1, 2022, paid to
257	257	10 persons resident in Illinois and nonresidents at the time
258	258	11 the payments were made.
259	259	12 For purposes of this subparagraph, if the production
260	260	13 is accredited by the Department before the effective date
261	261	14 of this amendatory Act of the 102nd General Assembly, only
262	262	15 wages paid to nonresidents working in the following
263	263	16 positions shall be considered Illinois labor expenditures:
264	264	17 Writer, Director, Director of Photography, Production
265	265	18 Designer, Costume Designer, Production Accountant, VFX
266	266	19 Supervisor, Editor, Composer, and Actor, subject to the
267	267	20 limitations set forth under this subparagraph. For an
268	268	21 accredited Illinois production spending of $25,000,000 or
269	269	22 less, no more than 2 nonresident actors' wages shall
270	270	23 qualify as an Illinois labor expenditure. For an
271	271	24 accredited production with Illinois production spending of
272	272	25 more than $25,000,000, no more than 4 nonresident actor's
273	273	26 wages shall qualify as Illinois labor expenditures.
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284	284	1 For purposes of this subparagraph, if the production
285	285	2 is accredited by the Department on or after the effective
286	286	3 date of this amendatory Act of the 102nd General Assembly,
287	287	4 wages paid to nonresidents shall qualify as Illinois labor
288	288	5 expenditures only under the following conditions:
289	289	6 (A) the nonresident must be employed in a
290	290	7 qualified position;
291	291	8 (B) for each of those accredited productions, the
292	292	9 wages of not more than 9 nonresidents who are employed
293	293	10 in a qualified position other than Actor shall qualify
294	294	11 as Illinois labor expenditures;
295	295	12 (C) for an accredited production with Illinois
296	296	13 production spending of $25,000,000 or less, no more
297	297	14 than 2 nonresident actors' wages shall qualify as
298	298	15 Illinois labor expenditures; and
299	299	16 (D) for an accredited production with Illinois
300	300	17 production spending of more than $25,000,000, no more
301	301	18 than 4 nonresident actors' wages shall qualify as
302	302	19 Illinois labor expenditures.
303	303	20 As used in this paragraph (9), "qualified position"
304	304	21 means: Writer, Director, Director of Photography,
305	305	22 Production Designer, Costume Designer, Production
306	306	23 Accountant, VFX Supervisor, Editor, Composer, or Actor.
307	307	24 (10) Paid for services rendered in Illinois.
308	308	25 "Illinois production spending" means the expenses incurred
309	309	26 by the applicant for an accredited production, but does not
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320	320	1 include any monetary prize or the cost of any non-monetary
321	321	2 prize awarded pursuant to a production in respect of a game,
322	322	3 questionnaire, or contest. "Illinois production spending"
323	323	4 includes, without limitation, all of the following:
324	324	5 (1) expenses to purchase, from vendors within
325	325	6 Illinois, tangible personal property that is used in the
326	326	7 accredited production;
327	327	8 (2) expenses to acquire services, from vendors in
328	328	9 Illinois, for film production, editing, or processing; and
329	329	10 (3) for a production commencing before July 1, 2022,
330	330	11 the compensation, not to exceed $100,000 for any one
331	331	12 employee, for contractual or salaried employees who are
332	332	13 Illinois residents performing services with respect to the
333	333	14 accredited production. For a production commencing on or
334	334	15 after July 1, 2022, the compensation, not to exceed
335	335	16 $500,000 for any one employee, for contractual or salaried
336	336	17 employees who are Illinois residents or nonresident
337	337	18 employees, subject to the limitations set forth under
338	338	19 Section 10 of this Act.
339	339	20 "Loan out company" means a personal service corporation or
340	340	21 other entity that is under contract with the taxpayer to
341	341	22 provide specified individual personnel, such as artists, crew,
342	342	23 actors, producers, or directors for the performance of
343	343	24 services used directly in a production. "Loan out company"
344	344	25 does not include entities contracted with by the taxpayer to
345	345	26 provide goods or ancillary contractor services such as
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