Current through Register Vol. 48, No. 52, December 27, 2024
The applicant may request a tax credit certificate from the
Department certifying the actual amount of the credit awarded to the applicant
at any time following the completion of the accredited production, but in no
event later than two years following the completion of the production. In a
case in which a single application was filed for two or more productions, a
single tax credit certificate may, at the request of the applicant, be issued
for more than one production. The tax credit will be issued upon the
Department's verification that all costs submitted qualify as the applicant's
Illinois production spending and verification that the applicant has met or
made good-faith efforts in achieving the goals of the diversity plan (see
Section 528.20) included with its application.
a) If an accredited production is not
completed prior to the close of the applicant's taxable year, at the election
of the applicant, a tax credit certificate dated as of the last day of the
taxable year may be used for:
1) Illinois
labor expenditures incurred during that taxable year or within 60 days after
the close of that taxable year; or
2) Illinois production spending (see Section
10 of the Act) incurred during that taxable year.
b) In the case of an accredited production
commencing on or after May 1, 2006 in which some Illinois production spending
is incurred in a taxable year of the applicant and some is incurred after the
close of that taxable year:
1) The applicant
may request a single tax credit certificate for all Illinois production
spending incurred; or
2) The
applicant may submit a separate request for a tax credit certificate for each
taxable year in which Illinois production spending is incurred.
c) With each request for a tax
credit certificate filed on or after January 18, 2007, the applicant shall
provide:
1) An itemized statement of the
Illinois labor expenditures or Illinois production spending for which the
credit is claimed and of Illinois labor expenditures generated by the
employment of residents of geographic areas of high poverty or high
unemployment for which additional credit is claimed;
2) Copies of the books and records of the
applicant for the accredited production, showing the Illinois labor
expenditures or Illinois production spending for which the credit is claimed,
all documentation necessary to support its computation, and detailed vendor
cost documentation for post-production services, including but not limited to,
a listing of all Illinois resident post-production staff and crew who worked on
the production and their respective wages and fringe benefits, and payments
made to sub-vendors domiciled in Illinois, if post-production spending
represents more than 50% of qualifying Illinois spending. Only Illinois
resident wages and fringe benefits (up to $500,000 per resident) and payments
made to Illinois domiciled sub-vendors are qualified;
3) An attestation by a licensed certified
public accountant (CPA), in the form prescribed by the Department, that the
computations are supported by the copies of the books, records and other
documents of the applicant that are attached to the request and that the
licensed CPA has examined the books, records and other documents according to
procedures agreed upon by the Department. An examination of the books, records
or other documents must be performed by the licensed CPA quarterly or at the
conclusion of production if production lasted less than a quarter. The
attestation and examination must be performed by a licensed CPA:
A) who is qualified and independent of the
applicant under the professional standards established by the American
Institute of Certified Public Accountants, specifically the Statements on
Standards of Attestation Engagements at AT Sec. 101 (Attest Engagements) and AT
Sec. 201 (Agree-Upon Procedures Engagements); and
B) whose engagement to provide the
attestation was approved by the Department before work on the engagement was
commenced; and
d) With each request for a tax credit filed
after January 1, 2025, the applicant shall provide all items listed in
subsection (c) of this Section, and:
1)
Disclosure of all related party transactions including:
A) The name of the related party,
B) The nature of the relationship between the
related party and the accredited production,
C) The nature of the transaction,
and
D) The amount of the
transaction; and
2) A
sworn affidavit by the applicant that, to the best of the affiant's knowledge,
information, and belief all accounts, documents, records, and other information
provided to the CPA and Department were true and correct and that all related
party transactions were accurately reported in accordance with this
Section.
