Illinois Administrative Code › Title 86 - REVENUE › Part 100 - INCOME TAX › Subpart B - CREDITS › Section 100.2185 - Film Production Services Credit (IITA Section 213)

Current through Register Vol. 48, No. 28, July 12, 2024
a) For taxable years beginning on or after
				January 1, 2004, and prior to January 1, 2027, a person awarded a credit under
				the Film Production Services Tax Credit Act of 2008 [ 35 ILCS 16 ]
is
				entitled to a credit against the taxes imposed under IITA Section 201(a) and
				(b) in an amount determined by the Department of Commerce and Economic
				Opportunity.
(IITA Section 213) The amount of the credit shall be the
				amount shown on the Tax Credit Certificate issued by the Department of Commerce
				and Economic Opportunity under 14 Ill. Adm. Code
				528.70
				or the Certificate of Transfer issued by the Department of Commerce and
				Economic Opportunity under 14 Ill. Adm. Code
				528.85.
b) Year in which Credit is Taken. The credit
				allowed under this Section shall be taken in the taxable year that includes the
				date of the Tax Credit Certificate issued by the Department of Commerce and
				Economic Opportunity under 14 Ill. Adm. Code 528.70.
c) In the case of a credit earned by a
				partnership or subchapter S corporation, the credit passes through to the
				owners as provided in the partnership agreement under IRC section 704(a) or in
				proportion to their ownership of the stock of the subchapter S corporation
				under IRC section 1366(a). The credit earned by a partnership or subchapter S
				corporation will be treated as earned by its owners as of the last day of the
				taxable year of the partnership or subchapter S corporation in which the Tax
				Credit Certificate is issued by the Department of Commerce and Economic
				Opportunity under 14 Ill. Adm. Code
				528.70
				and shall be allowed to each owner in the taxable year of the owner in which
				the taxable year of the partnership or subchapter S corporation ends.
d) For tax years ending prior to July 11,
				2005 (the effective date of PA 94-171),
the credit may not be
				carried
forward or
back
. For tax years ending on or
				after July 11, 2005,
if the amount of the credit exceeds the tax
				liability for the year, the excess may be carried forward and applied to the
				tax liability of the 5 taxable years following the excess credit year. The
				credit shall be applied to the earliest year for which there is a tax
				liability. If there are credits from more than one tax year that are available
				to offset a liability, the earlier credit shall be applied first
.
In no event shall a credit under this Section reduce the taxpayer's
				liability to less than zero.
(IITA Section 213)
e) Transfer of Credit.
A transfer of
				this credit may be made by the person earning the credit within one year after
				the credit is awarded in accordance with rules adopted by the Department of
				Commerce and Economic Opportunity
. (IITA Section 213)
1) Transfers shall be made pursuant to 14
				Ill. Adm. Code 528.85.
2) A credit
				may be transferred to a partnership or subchapter S corporation, in which case
				the partners or shareholders of the transferee shall be entitled to the
				transferred credit in the amounts determined under subsection (c).
3) A credit may be transferred after the end
				of the taxable year of the transferee in which the credit is to be taken under
				subsection (b). If the transferee has already filed its return for that taxable
				year, it will need to file a corrected or amended return, for that taxable
				year, claiming the credit.