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Illinois Statutes Chapter 35. Revenue § 19/50-40. Amount and payment of the tax credit award

Current as of January 01, 2025 | Updated by Findlaw Staff

§ 50-40. Amount and payment of the tax credit award.

(a) For taxable years beginning on or after January 1, 2025, the Department shall determine the amount of the tax award under this Act. The award may not exceed 10% of the Illinois labor expenditures for the State-certified production if the QMC payroll of the qualified music company for the taxable year does not exceed $150,000 or 15% of the Illinois labor expenditures for the State-certified production if the QMC payroll of the qualified music company for the taxable year exceeds $150,000, plus all of the following:

(1) an additional 15% of the Illinois labor expenditures for the State-certified production generated by the employment of Illinois residents in geographic areas of high poverty or high unemployment in each tax year, as determined by the Department; and

(2) an additional 7% of the Illinois labor expenditures for the State-certified production generated by the employment of individuals who are employed at a wage of no less than the general prevailing hourly rate as paid for work of a similar character in the locality in which the work is performed; and

(3) an additional 7% of the Illinois labor expenditures for the State-certified production incurred by a qualified music company and spent on post-production sound recording for television or film work completed in Illinois.

(b) To the extent that the base investment by a qualified music company is expended on a sound recording production of a resident copyright, the investor shall be allowed an additional 10% increase in the base investment rate.

(c) The aggregate amount of credits certified for all investors pursuant to this Section during any calendar year shall not exceed $2,000,000. No more than $200,000 in tax credits may be granted per calendar year for any single qualified music company.

(d) A business is eligible for participation in the program if the business meets all of the following criteria:

(1) The business is engaged directly or indirectly in the production, distribution, and promotion of music.

(2) The business is approved by the Director of Commerce and Economic Opportunity.

(e) Upon approval of a tax credit award under this Act, the Department shall issue a tax credit certificate to the applicant.

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Cite this article: FindLaw.com - Illinois Statutes Chapter 35. Revenue § 19/50-40. Amount and payment of the tax credit award - last updated January 01, 2025 | https://codes.findlaw.com/il/chapter-35-revenue/il-st-sect-35-19-50-40/

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