Illinois Administrative Code › Title 14 - COMMERCE › Part 532 - ILLINOIS LIVE THEATER PRODUCTION TAX CREDIT PROGRAM › Section 532.110 - Transfer of Theater Tax Credit Award

Current through Register Vol. 48, No. 28, July 12, 2024
a) A sale, assignment, or transfer of the
			 credit may be made by the taxpayer earning the credit within one year after the
			 credit is awarded in accordance with this Part. [35 ILCS
			 5/222(c) ]
b) For purposes of this Section, a tax credit
			 is earned on the date that the theater tax credit award is issued under Section
			 532.80.
c) For purposes of this Section, a tax credit
			 earned by a partnership, limited liability company or Subchapter S corporation,
			 the tax credit is allowed to the partners, unit holders, or shareholders in
			 accordance with the determination of income and distributive share of income
			 under sections 702 and 704 and subchapter S of the Internal Revenue Code.
			 [35 ILCS
			 5/222(b) ]
d) The tax credit award may not be carried
			 back. 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 years
			 following the excess credit year. The tax credit award 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 liability, the earlier
			 credit shall be applied first. In no event may a credit under this Section
			 reduce the taxpayer's liability to less than zero. [35 ILCS
			 5/222(e) ]
e) Transfer of a theater tax credit award
			 shall be made as follows:
1) The applicant
			 earning the credit shall request the transfer from the Department, in writing,
			 identifying the transferees (name, tax identification number, mailing address)
			 and the amount to be transferred, and the applicant shall return the theater
			 tax credit award to the Department, together with its transfer
			 request.
2) A request for transfer
			 may be submitted with the applicant's request for the theater tax credit award
			 under Section 532.80, in which case the Department may issue the requested
			 certificates of transfer in lieu of the tax credit award.
3) If the transfer request is timely and
			 meets the requirements of this Section, the Department shall issue a
			 certificate of transfer, identifying the original theater tax credit award and
			 stating the amount of the credit transferred.
4) If the applicant earning the credit
			 transfers less than the full amount of the credit, the Department shall issue a
			 certificate of transfer to the applicant identifying the original theater tax
			 credit award and stating the amount of tax credit retained by the
			 applicant.
5) If the person
			 transferring the credit is a partner or shareholder in a partnership or
			 Subchapter S corporation that earned the credit, that person shall submit to
			 the Department, in lieu of the original theater tax credit award, copies of the
			 tax credit awards and copies of the Schedule K-1-P received by that person from
			 the partnership or Subchapter S corporation stating that person's share of the
			 credit.