Bill Amendment: IL HB5612 | 2023-2024 | 103rd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: FILM TAX-WORKFORCE FUND
Status: 2024-05-31 - House Committee Amendment No. 2 Rule 19(c) / Re-referred to Rules Committee [HB5612 Detail]
Download: Illinois-2023-HB5612-House_Amendment_002.html
Bill Title: FILM TAX-WORKFORCE FUND
Status: 2024-05-31 - House Committee Amendment No. 2 Rule 19(c) / Re-referred to Rules Committee [HB5612 Detail]
Download: Illinois-2023-HB5612-House_Amendment_002.html
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1 | AMENDMENT TO HOUSE BILL 5612 | ||||||
2 | AMENDMENT NO. ______. Amend House Bill 5612 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Income Tax Act is amended by | ||||||
5 | changing Section 213 as follows:
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6 | (35 ILCS 5/213) | ||||||
7 | Sec. 213. Film production services credit. | ||||||
8 | (a) For tax years beginning on or after January 1, 2004, a | ||||||
9 | taxpayer who has been awarded a tax credit under the Film | ||||||
10 | Production Services Tax Credit Act or under the Film | ||||||
11 | Production Services Tax Credit Act of 2008 is entitled to a | ||||||
12 | credit against the taxes imposed under subsections (a) and (b) | ||||||
13 | of Section 201 of this Act in an amount determined by the | ||||||
14 | Department of Commerce and Economic Opportunity under those | ||||||
15 | Acts. If the taxpayer is a partnership or Subchapter S | ||||||
16 | corporation, the credit is allowed to the partners or |
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1 | shareholders in accordance with the determination of income | ||||||
2 | and distributive share of income under Sections 702 and 704 | ||||||
3 | and Subchapter S of the Internal Revenue Code. | ||||||
4 | (b) Beginning July 1, 2024, taxpayers who have been | ||||||
5 | awarded a tax credit under the Film Production Services Tax | ||||||
6 | Credit Act of 2008 shall pay to the Department of Commerce and | ||||||
7 | Economic Opportunity, after determination of the tax credit | ||||||
8 | amount but prior to the issuance of a tax credit certificate | ||||||
9 | pursuant to Section 35 of the Film Production Services Tax | ||||||
10 | Credit Act of 2008, a fee equal to 2.5% of the credit amount | ||||||
11 | awarded to the taxpayer under the Film Production Services Tax | ||||||
12 | Credit Act of 2008 that is attributable to wages paid to | ||||||
13 | nonresidents, as described in Section 10 of the Film | ||||||
14 | Production Services Tax Credit Act of 2008, and an additional | ||||||
15 | fee equal to 0.25% of the amount generated by subtracting the | ||||||
16 | credit amount awarded to the taxpayer under the Film | ||||||
17 | Production Services Tax Credit Act of 2008 that is | ||||||
18 | attributable to wages paid to nonresidents from the total | ||||||
19 | credit amount awarded to the taxpayer under that Act. All fees | ||||||
20 | collected under this subsection shall be deposited into the | ||||||
21 | Illinois Production Workforce Development Fund. No tax credit | ||||||
22 | certificate shall be issued by the Department of Commerce and | ||||||
23 | Economic Opportunity until the total fees owed according to | ||||||
24 | this subsection have been received by the Department of | ||||||
25 | Commerce and Economic Opportunity. | ||||||
26 | (c) A transfer of this credit may be made by the taxpayer |
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1 | earning the credit within one year after the credit is awarded | ||||||
2 | in accordance with rules adopted by the Department of Commerce | ||||||
3 | and Economic Opportunity. Beginning July 1, 2023 and through | ||||||
4 | June 30, 2024 , if a credit is transferred under this Section by | ||||||
5 | the taxpayer, then the transferor taxpayer shall pay to the | ||||||
6 | Department of Commerce and Economic Opportunity, upon | ||||||
7 | notification of a transfer, a fee equal to 2.5% of the | ||||||
8 | transferred credit amount eligible for nonresident wages, as | ||||||
9 | described in Section 10 of the Film Production Services Tax | ||||||
10 | Credit Act of 2008, and an additional fee of 0.25% of the total | ||||||
11 | amount of the transferred credit that is not calculated on | ||||||
12 | nonresident wages, which shall be deposited into the Illinois | ||||||
13 | Production Workforce Development Fund. | ||||||
14 | (d) The Department, in cooperation with the Department of | ||||||
15 | Commerce and Economic Opportunity, must prescribe rules to | ||||||
16 | enforce and administer the provisions of this Section. This | ||||||
17 | Section is exempt from the provisions of Section 250 of this | ||||||
18 | Act. | ||||||
19 | (e) The credit may not be carried back. If the amount of | ||||||
20 | the credit exceeds the tax liability for the year, the excess | ||||||
21 | may be carried forward and applied to the tax liability of the | ||||||
22 | 5 taxable years following the excess credit year. The credit | ||||||
23 | shall be applied to the earliest year for which there is a tax | ||||||
24 | liability. If there are credits from more than one tax year | ||||||
25 | that are available to offset a liability, the earlier credit | ||||||
26 | shall be applied first. In no event shall a credit under this |
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1 | Section reduce the taxpayer's liability to less than zero. | ||||||
2 | (Source: P.A. 102-700, eff. 4-19-22.)
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3 | Section 10. The Film Production Services Tax Credit Act of | ||||||
4 | 2008 is amended by changing Section 46 as follows:
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5 | (35 ILCS 16/46) | ||||||
6 | Sec. 46. Illinois Production Workforce Development Fund. | ||||||
7 | (a) The Illinois Production Workforce Development Fund is | ||||||
8 | created as a special fund in the State Treasury. Beginning | ||||||
9 | July 1, 2023 July 1, 2022 , amounts paid to the Department of | ||||||
10 | Commerce and Economic Opportunity pursuant to Section 213 of | ||||||
11 | the Illinois Income Tax Act shall be deposited into the Fund. | ||||||
12 | The Fund shall be used exclusively to provide grants to | ||||||
13 | community-based organizations, labor organizations, private | ||||||
14 | and public universities, community colleges, and other | ||||||
15 | organizations and institutions that may be deemed appropriate | ||||||
16 | by the Department to administer workforce training programs | ||||||
17 | that support efforts to recruit, hire, promote, retain, | ||||||
18 | develop, and train a diverse and inclusive workforce in the | ||||||
19 | film industry. | ||||||
20 | (b) Pursuant to Section 213 of the Illinois Income Tax | ||||||
21 | Act, taxpayers who have been awarded a tax credit under this | ||||||
22 | Act shall pay to the Department of Commerce and Economic | ||||||
23 | Opportunity, after determination of the tax credit amount but | ||||||
24 | prior to the issuance of a tax credit certificate, a fee equal |
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1 | to 2.5% of the credit amount awarded to the taxpayer under the | ||||||
2 | Film Production Services Tax Credit Act of 2008 that is | ||||||
3 | attributable to wages paid to nonresidents, as described in | ||||||
4 | Section 10 of the Film Production Services Tax Credit Act of | ||||||
5 | 2008, and an additional fee equal to 0.25% of the amount | ||||||
6 | generated by subtracting the credit amount awarded to the | ||||||
7 | taxpayer under the Film Production Services Tax Credit Act of | ||||||
8 | 2008 that is attributable to wages paid to nonresidents from | ||||||
9 | the total credit amount awarded to the taxpayer under that | ||||||
10 | Act. All fees collected under this subsection shall be | ||||||
11 | deposited into the Illinois Production Workforce Development | ||||||
12 | Fund. No tax credit certificate shall be issued by the | ||||||
13 | Department of Commerce and Economic Opportunity until the | ||||||
14 | total fees owed according to this subsection have been | ||||||
15 | received by the Department of Commerce and Economic | ||||||
16 | Opportunity. the Fund shall receive deposits in amounts not to | ||||||
17 | exceed 0.25% of the amount of each credit certificate issued | ||||||
18 | that is not calculated on out-of-state wages and transferred | ||||||
19 | or claimed on an Illinois tax return in the quarter such credit | ||||||
20 | was transferred or claimed. In addition, such amount shall | ||||||
21 | also include 2.5% of the credit amount calculated on wages | ||||||
22 | paid to nonresidents that is transferred or claimed on an | ||||||
23 | Illinois tax return in the quarter such credit was transferred | ||||||
24 | or claimed. | ||||||
25 | (c) At the request of the Department, the State | ||||||
26 | Comptroller and the State Treasurer may advance amounts to the |
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1 | Fund on an annual basis not to exceed $1,000,000 in any fiscal | ||||||
2 | year. The fund from which the moneys are advanced shall be | ||||||
3 | reimbursed in the same fiscal year for any such advance | ||||||
4 | payments as described in this Section. The method of | ||||||
5 | reimbursement shall be set forth in rules. | ||||||
6 | (d) Of the appropriated funds in a given fiscal year, 50% | ||||||
7 | of the appropriated funds shall be reserved for organizations | ||||||
8 | that meet one of the following criteria. The organization is: | ||||||
9 | (1) a minority-owned business, as defined by the Business | ||||||
10 | Enterprise for Minorities, Women, and Persons with | ||||||
11 | Disabilities Act; (2) located in an underserved area, as | ||||||
12 | defined by the Economic Development for a Growing Economy Tax | ||||||
13 | Credit Act; or (3) on an annual basis, training a cohort of | ||||||
14 | program participants where at least 50% of the program | ||||||
15 | participants are either a minority person, as defined by the | ||||||
16 | Business Enterprise for Minorities, Women, and Persons with | ||||||
17 | Disabilities Act, or reside in an underserved area, as defined | ||||||
18 | by the Economic Development for a Growing Economy Tax Credit | ||||||
19 | Act. | ||||||
20 | (e) The Illinois Production Workforce Development Fund | ||||||
21 | shall be administered by the Department. The Department may | ||||||
22 | adopt rules necessary to administer the provisions of this | ||||||
23 | Section. | ||||||
24 | (f) Notwithstanding any other law to the contrary, the | ||||||
25 | Illinois Production Workforce Development Fund is not subject | ||||||
26 | to sweeps, administrative charge-backs, or any other fiscal or |
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1 | budgetary maneuver that would in any way transfer any amounts | ||||||
2 | from the Illinois Production Workforce Development Fund. | ||||||
3 | (g) By June 30 of each fiscal year, the Department must | ||||||
4 | submit to the General Assembly a report that includes the | ||||||
5 | following information: (1) an identification of the | ||||||
6 | organizations and institutions that received funding to | ||||||
7 | administer workforce training programs during the fiscal year; | ||||||
8 | (2) the number of total persons trained and the number of | ||||||
9 | persons trained per workforce training program in the fiscal | ||||||
10 | year; and (3) in the aggregate, per organization, the number | ||||||
11 | of persons identified as a minority person or that reside in an | ||||||
12 | underserved area that received training in the fiscal year. | ||||||
13 | (Source: P.A. 102-700, eff. 4-19-22.)
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