Section 528.40 Application Process and Requirements

TITLE 14: COMMERCE

CHAPTER I: DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY

PART 528 ILLINOIS FILM PRODUCTION SERVICES TAX CREDIT PROGRAM

SECTION 528.40 APPLICATION PROCESS AND REQUIREMENTS

Section 528.40  Application Process and Requirements

The Department will accept and evaluate applications from

eligible applicants in accordance with the following provisions:

a)         An applicant

proposing a film, television or commercial production planned to be located in

the State shall submit its application at least 24 hours prior to the start of principal

filming or taping.

b)         Written

applications will be required and must be submitted on the standard application

form provided by the Department.  Applications shall be submitted to the Department's

office stated on the application.  The applicant must provide the following

information:

1)         Legal

name, address, and telephone number of applicant.

2)         Name,

title, and telephone number of primary contact person.

3)         Type

of business entity:

A)        Individual

or Sole Proprietorship

B)        Partnership

C)        Corporation

D)        Subchapter

S Corporation

E)        Limited

Liability Company

F)         Other

(applicant will provide description).

4)         Date of

incorporation or formation.

5)         Federal

Employer Identification Number (FEIN) or Tax Identification Number (TIN).

6)         Production

title.

7)         Type

of production – a description stating that the production is one of the

following:

A)        Feature

film

B)        Television

program

C)        Commercial

D)        Other

(applicant will provide description).

8)         Length

of production.

9)         Date principal

filming or taping begins in Illinois.

10)        Estimated

number of shoot days in Illinois.

11)        Estimated

total budget of production.

12)        Estimated

total Illinois labor expenditure.

13)        Estimated

total budget of post-production

program

C)        Commercial

D)        Other

(applicant will provide description).

8)         Length

of production.

9)         Date principal

filming or taping begins in Illinois.

10)        Estimated

number of shoot days in Illinois.

11)        Estimated

total budget of production.

12)        Estimated

total Illinois labor expenditure.

13)        Estimated

total budget of post-production.

14)        Estimated

number of Illinois residents to be hired to work on the production.

15)        A diversity

plan.

16)        Documentation

evidencing applicant's intention to participate in training, education and

recruitment programs, if available, offered by Illinois colleges, universities,

labor organizations and the motion picture industry that are designed to

promote training and hiring of Illinois residents who represent the diversity

of the Illinois population.

17)        A

written statement evidencing that the receipt of the credit is essential to the

decision to operate the accredited production in Illinois.

18)        A

story line or log line.

19)        Certification

that the applicant will provide detailed vendor cost documentation for

post-production services, including, but not limited to, a listing of all

Illinois resident post-production staff and crew who worked on the production

and their respective wages and fringe benefits, and payments made to

sub-vendors domiciled in Illinois, if post-production spending represents more

than 50% of qualifying Illinois spending.  Only Illinois resident wages and

fringe benefits (up to $100,000 per resident) and payments made to Illinois

domiciled sub-vendors are qualified

post-production staff and crew who worked on the production

and their respective wages and fringe benefits, and payments made to

sub-vendors domiciled in Illinois, if post-production spending represents more

than 50% of qualifying Illinois spending.  Only Illinois resident wages and

fringe benefits (up to $100,000 per resident) and payments made to Illinois

domiciled sub-vendors are qualified.

20)        Certification

that the applicant is and will remain in good standing with applicable State

authorities, is not currently operating under or subject to any cease and

desist order or subject to any informal or formal regulatory action, and, to

the best of the applicant's knowledge, is not currently the subject of any

investigation by any State or federal regulatory, law enforcement or legal

authority.  Should the applicant become the subject of an investigation by any State

or federal regulatory, law enforcement or legal authority, the applicant shall

promptly notify the Department of that investigation.  The applicant

acknowledges that, should it become delinquent in its good standing status with

any applicable State authority or if it later becomes subject to a cease and

desist order or memorandum of understanding, or is found in violation pursuant

to any regulatory action or any court action or proceeding before any

administrative agency, the Department is authorized to deny the applicant's

request for a tax credit certificate.

c)         The

applicant is responsible for the accuracy of all data, information, and

documentation included in the application.  Once submitted, applications shall

become the property of the Department

rsuant

to any regulatory action or any court action or proceeding before any

administrative agency, the Department is authorized to deny the applicant's

request for a tax credit certificate.

c)         The

applicant is responsible for the accuracy of all data, information, and

documentation included in the application.  Once submitted, applications shall

become the property of the Department.

d)        Upon

written request, the applicants shall issue any necessary authorization to the

appropriate federal, State or local authority for the release of information

concerning a production being considered under this Part, including but not

limited to financial reports, and records relating to the applicant or the accredited

production for which the credit is requested.

e)         In

the case of a television series or any other production intended to be shown in

two or more episodes, the applicant may elect to treat each episode as a

separate production or to treat two or more episodes as a single production for

all purposes of the Act.  A single application may be filed for two or more

productions, provided that the application clearly describes each separate

production.  For example, the application may state that each episode shall be

treated as a separate production or that all episodes filmed or intended to be

shown during a specific period of time will be treated as a single production.

f)         Above-the-line

(ATL) spending exceeding 40% of the total Illinois production spending is not

an Illinois labor expenditure unless the Department determines that inclusion as

an Illinois labor expenditure of above-the-line spending for the production in

an amount that exceeds 40% of the production's total Illinois production

spending is necessary for the production to meet the requirements set forth in subsection

spending exceeding 40% of the total Illinois production spending is not

an Illinois labor expenditure unless the Department determines that inclusion as

an Illinois labor expenditure of above-the-line spending for the production in

an amount that exceeds 40% of the production's total Illinois production

spending is necessary for the production to meet the requirements set forth in subsection

(a) of Section 30 of the Act.  [35 ILCS 16/30(a)] An applicant may request a

waiver of the 40% ATL cap by submitting a written request to the department

with their Illinois Film Tax Credit application.

1)         The request must

include:

A)        a

narrative explanation demonstrating why the inclusion of the ATL expenditures

in excess of 40% is necessary for the production to occur in Illinois;

B)        an

itemized budget including detailed ATL information identifying the roles

compensation and residency status of all above the line personnel;

C)        a description

of the anticipated economic impact of the production in Illinois including

number of local hire vendors and locations used; and

D)        an

attestation by an authorized officer of the applicant confirming the accuracy

and necessity of the request.

2)         The

Department will evaluate waiver requests on a case-by-case basis. In

determining whether to approve a waiver, the Department will consider following

factors:

A)        whether

the inclusion of additional above the line spend is essential to the production

achieving the statutory Illinois production spending minimums;

B)        whether

the key above-the-line personnel are integral to financing distribution or

viability of the production;

C)        whether

above the line expenditures are reasonable under the circumstance and

consistent with industry standards;

D)        the

extent to which the production supports Illinois based talent training programs

or underrepresented communities;

E)        the

overall economic impact of the production in Illinois; and

F)         any

ot

ancing distribution or

viability of the production;

C)        whether

above the line expenditures are reasonable under the circumstance and

consistent with industry standards;

D)        the

extent to which the production supports Illinois based talent training programs

or underrepresented communities;

E)        the

overall economic impact of the production in Illinois; and

F)         any

other relevant information demonstrating alignment with the objectives of the

Illinois Film Tax Credit Program.

3)         Approval

of the waiver does not guarantee final certification of the credit and is

subject to compliance with all applicable provisions of the Act.