Illinois Administrative Code › Title 14 - COMMERCE › Part 528 - ILLINOIS FILM PRODUCTION SERVICES TAX CREDIT PROGRAM › Section 528.85 - Transfer of Tax Credit

Current through Register Vol. 48, No. 28, July 12, 2024
a)
A
			 transfer of the credit may be made by the applicant earning the credit within
			 one year after the credit is awarded in accordance with rules adopted by the
			 Department of Commerce and Economic Opportunity. Beginning July 1, 2023,
			 credits transferred under this Section are subject to a transfer fee
pursuant to Section 528.85(e)(2)
.
(Section 213 of the Illinois Income Tax Act)
b) For purposes of this provision, a tax
			 credit is earned on the date that the tax credit certificate is issued under
			 Section 528.70.
c) Tax credits earned by an applicant in a
			 taxable year ending prior to July 11, 2005 may not be transferred.
d) For purposes of this Section, a tax credit
			 earned by a partnership or subchapter S corporation shall be treated as having
			 been earned by its partners in the amounts determined under 86 Ill. Adm. Code
			 100.2185(c).
e) Transfer of a tax credit 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 to each transferee, and the applicant shall return the tax
			 credit certificate to the Department, together with its transfer request. The
			 applicant is allowed to transfer or allocate a single credit to no more than 10
			 transferees.
2)
Beginning
			 July 1, 2023 the transferor shall pay to the Department, upon notification of a
			 transfer, a fee equal to
			 2.5 % of the transferred credit
			 amount eligible for nonresident wages, as described in Section 10 of the Film
			 Production Services Tax Credit Act of 2008, and an additional fee of
			 0.25 % of the total amount of
			 the transferred credit that is not calculated on nonresident wages, which shall
			 be deposited into the Illinois Production Workforce Development
			 Fund.
3) A request for
			 transfer may be submitted with the applicant's request for the tax credit
			 certificate under Section 528.70. The Department may issue the requested
			 certificates of transfer in lieu of the tax credit certificate.
4) If the transfer request is made within one
			 year of issuance and meets the requirements of this Section, the Department
			 shall issue a certificate of transfer to each transferee, identifying the
			 original tax credit certificate and stating the amount of the credit
			 transferred.
5) 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 tax credit certificate and stating the amount of tax credit
			 retained by the applicant.
6) 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, either the original tax credit certificate or copies of the tax
			 credit certificates 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.