§ 10-10 — Definitions

Illinois § 10-10

• Jurisdiction: Illinois
• Topic: GOVERNMENT
• Ch. 35: REVENUE
• Act 35 ILCS 17/: Live Theater Production Tax Credit Act.
• Art.: Article 10 - Live Theater Production Tax Credit Act

Text

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 on or after July 1, 2022, "accredited theater production" also includes any commercial Broadway touring show. For credits awarded under this Act on or after July 1, 2024, "accredited theater production" also includes non-profit theater productions. "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 that, (i) 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 after 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. "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. "Non-profit theater production" means a live stage production that is at least 75 minutes in length with a written script that (i) is produced by a 501(c)3 non-profit registered in the State of Illinois for at least 5 years, (ii) has Illinois production spending of not less than $10,000, as shown on the applicant's application for the credit, and (iii) has a minimum annual operating budget of $25,000 or more, as shown on the applicant's application for the credit. "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 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. 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 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 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 or, if the live theater production is a non-profit theater production, a seating capacity of 50 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.

Legislative History

(Source: P.A. 102-1112, eff. 12-21-22; 103-592, eff. 6-7-24.)