Illinois Administrative Code › Title 14 - COMMERCE › Part 532 - ILLINOIS LIVE THEATER PRODUCTION TAX CREDIT PROGRAM › Section 532.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
The following definitions are applicable to this Part:
"Accredited Theater Production" means a for-profit live stage
				presentation in a qualified production facility, as defined in this Section,
				that is either a pre-Broadway production or a long-run production for which the
				aggregate Illinois labor and marketing expenditures exceed $100,000.
				[35 ILCS 17/10-10
				]
"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 the Act. [35 ILCS 17
				/10-10]
"Act" means the Live Theater Production Tax Credit Act [35 ILCS
				17 ].
"Applicant" means:
a taxpayer that is 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:
owns or licenses the theatrical rights of the stage
				presentation for the Illinois production period; or
has contracted or will contract directly with theowner 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 the 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 apply for
				and obtain accredited theater production certificates, stage accredited theater
				productions, and 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. [35 ILCS
				17/10-10 ]
"Broadway's Theater District" means the theater district
				located in Midtown Manhattan New York and shall include any theater with more
				than 500 seats that the American Theater Wing and the Broadway League have
				deemed eligible for the Tony Awards or any theaters that appear on the Broadway
				box-office charts.
"Department" means the Illinois Department of Commerce and
				Economic Opportunity. [35 ILCS 17/10-10 ]
"Director" means the Director of the Department. [35 ILCS
				17/10-10]
"Diversity Data or Information" means data pertaining to
				gender, race, ethnicity and disability of all employees of the
				applicant.
"Diversity Plan" means a written document through which the
				applicant assures the Department that minorities, females and persons with
				disabilities will have equal opportunities in recruitment, selection,
				appointment, promotion, training and related employment areas in the accredited
				production. The diversity plan must also describe the manner in which the
				applicant plans on hiring vendors certified by the Business Enterprise Council
				under the Business Enterprise for Minorities, Females, and Persons with
				Disabilities Act [30 ILCS 575 ] with respect to the accredited production. The
				diversity plan must also detail the manner in which the applicant proposes to
				achieve its goals to ensure employment of protected classes (minorities,
				females and persons with disabilities) to achieve a diverse workforce rather
				than merely to assure nondiscrimination.
"Economic Impact Data" means data pertaining to the types of
				jobs (production, talent and vendor) created and retained in Illinois, as well
				as the total amount an applicant spends in Illinois on the accredited theater
				production.
"Employee" means any individual who is an employee of the
				applicant for purposes of employment taxes imposed under subtitle C of the
				Internal Revenue Code (42 USC subtitle C), any production staff or crew and any
				individual in a non-talent position.
"Female-Owned Business" means a business concern that is at
				least 51% owned by one or more females, or, in the case of a corporation, at
				least 51% of the stock is owned by one or more females, and the management and
				daily business operations of which are controlled by one or more of the females
				who own it. [30
				ILCS 575/2(A)(4) ]
"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:
incurred or paid by the applicant on or after June 1, 2012 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;
directly attributable to the accredited theater
				production;
limited to the first $100,000 of wages incurred or paid to each
				employee of an accredited theater production in each tax year;
included in the federal income tax basis of the
				property;
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;
paid to persons residing in Illinois at the time payments were
				made; and
reasonable in the circumstances. [35 ILCS 17/10-10]
"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 and associated
				to the performance run in that qualified production facility, including, but
				not limited to, expenditure for:
national marketing, public relations and the creation and
				placement of print, electronic, television, billboard and other forms of
				advertising; and
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. [35 ILCS 17/10-10]
"Illinois Resident" means an individual who is domiciled in
				this State during the accredited theater production. Except in a case when the
				applicant has actual knowledge, as shown in its books and records, that an
				individual is not an Illinois resident, the possession by an individual of an
				Illinois driver's license or other identification issued by this State prior to
				the commencement of the accredited theater production shall be sufficient proof
				that the individual is an Illinois resident and the address on the license or
				identification shall be deemed correct.
"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 of a tax
				year. [35 ILCS 17/10-10]
"Minority" means a person who is a citizen or lawful resident
				of the United States and whoisAfrican American (a person having origins in any
				of the black racial groups in Africa); Hispanic (a person of Spanish or
				Portuguese culture with origins in Mexico, South or Central America or the
				Caribbean Islands, regardless of race); Asian American (a person having origins
				in any of the original peoples of the Far East, Southeast Asia, the Indian
				Subcontinent or the Pacific Islands); or Native American or Alaskan Native (a
				person having origins in any of the original peoples of North America).
				[30
				ILCS 575/2(A)(1) ]
"Minority-Owned Business" means a business concern that is at
				least 51% owned by one or more minority persons or, in the case of a
				corporation, at least 51% of the stock is owned by one or more minority
				persons, and the management and daily business operations of which are
				controlled by one or more of the minority individuals who own it.
				[30
				ILCS 575/2(A)(3) ]
"Non-Talent" means any person who is not a performer. A
				performer includes, but is not limited to, principal actors, ensemble actors,
				understudies, swings and members of the orchestra ensemble that are part of the
				theatrical performance.
"Person with a Disability" means a person who is a citizen or
				lawful resident of the United States and is a person qualifying as being
				disabled under Section 2(A)(2.1 ) of the Business Enterprise for Minorities,
				Females, and Person with Disabilities Act. [30
				ILCS 575/2(A) (2.05 ]
"Pre-Broadway Production" means a live stage production that,
				in its original or adaptive version, is performed in a qualified production
				facility having a presentation scheduled for Broadway's Theater District in New
				York City within 12 months after its Illinois presentation. [35 ILCS
				17/10-10]
"Qualified Production Facility" means an existing and permanent
				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, and dressing rooms, storage areas and
				other ancillary amenities necessary for the accredited theater production.
				[35 ILCS 17/10-10
				]
"State" means the State of Illinois.
"Tax year" means a calendar year for the period January 1 to
				and including December 31. [35 ILCS 17/10-10]
"Theater 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 the Act. [35 ILCS 17/10-10]
"Training Plan" means a written document through which the
				applicant pledges to provide training, education and recruitment in accordance
				with the Act.
"Vendor" means an Illinois based supplier of any goods or
				services. Expenditures for purchases of tangible personal property or services
				from a vendor shall mean:
Purchases of tangible personal property for use in Illinois on
				an accredited theater production from a person who is registered under the
				Illinois Retailers' Occupation Tax Act [35 ILCS 120 ] (ROTA). A copy of the
				purchase receipt showing that the purchase was made at an Illinois location and
				that ROT was paid shall be sufficient proof that the purchase was made from a
				vendor in Illinois. For tangible personal property ordered by mail, telephone
				or internet, a copy of the seller's ROTA registration certificate along with a
				receipt showing that Illinois Use Tax was collected by the vendor shall be
				sufficient proof that the purchase was made from a vendor in Illinois.
				Documentation that shows that Illinois Use Tax was collected by the vendor, but
				either does not show an Illinois address for the sale or is not accompanied by
				a ROTA registration certificate, shall not be sufficient proof that the
				purchase was made from a vendor in Illinois.
The lease or rental of real property located in Illinois for
				use in an accredited theater production, including hotels or other lodging for
				employees working on the accredited theater production.
The lease or rental of an automobile (as defined in the
				Illinois Automobile Renting Occupation and Use Tax Act [35 ILCS 155 ]) for use
				in an accredited theater production on which the renter collects the Illinois
				Automobile Renting Occupation and Use Tax from the rentee.
The lease or rental of other tangible personal property for use
				in an accredited theater production if the owner of the property has paid
				Illinois Use Tax on the property. A copy of the invoice or receipt for the
				lease or rental showing an Illinois address for the lessor, and showing that no
				other state's sales tax is collected from the lessee, shall be sufficient proof
				that the transaction was with an vendor in Illinois.
The purchase of financial services (including insurance and the
				borrowing of funds) from a lender or insurer whose commercial domicile is in
				this State.
The purchase of other services with respect to an accredited
				theater production from an Illinois resident or from a person whose commercial
				domicile is in this State. For purposes of this definition only, the commercial
				domicile of a person is in this State if the person's business address (as
				shown in the records of the applicant) is in this State.
"Vendor-Related Positions" means jobs obtained or created
				through a subcontractor, which includes, but is not limited to, security,
				janitorial, printing, florist, dry cleaners and limousine
				services.