Section 528.70 Request for Tax Credit Certificate

TITLE 14: COMMERCE

CHAPTER I: DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY

PART 528 ILLINOIS FILM PRODUCTION SERVICES TAX CREDIT PROGRAM

SECTION 528.70 REQUEST FOR TAX CREDIT CERTIFICATE

Section 528.70  Request for Tax Credit Certificate

The applicant may request a tax credit

certificate from the Department certifying the actual amount of the credit awarded

to the applicant at any time following the completion of the accredited production,

but in no event later than two years following the completion of the

production.  In a case in which a single application was filed for two or more

productions, a single tax credit certificate may, at the request of the applicant,

be issued for more than one production. The tax credit will be issued upon the

Department's verification that all costs submitted qualify as the applicant's

Illinois production spending and verification that the applicant has met or

made good-faith efforts in achieving the goals of the diversity plan (see Section

528.20) included with its application.

a)         If an

accredited production is not completed prior to the close of the applicant's

taxable year, at the election of the applicant, a tax credit certificate dated

as of the last day of the taxable year may be used for:

1)         Illinois

labor expenditures incurred during that taxable year or within 60 days after

the close of that taxable year; or

2)         Illinois

production spending (see Section 10 of the Act) incurred during that taxable

year.

b)         In

the case of an accredited production commencing on or after May 1, 2006 in

which some Illinois production spending is incurred in a taxable year of the applicant

and some is incurred after the close of that taxable year:

1)         The applicant

may request a single tax credit certificate for all Illinois production spending

incurred; or

2)         The

applicant may submit a separate request for a tax credit certificate for each

taxable year in which Illinois production spending is incurred

ction spending is incurred in a taxable year of the applicant

and some is incurred after the close of that taxable year:

1)         The applicant

may request a single tax credit certificate for all Illinois production spending

incurred; or

2)         The

applicant may submit a separate request for a tax credit certificate for each

taxable year in which Illinois production spending is incurred.

c)         With

each request for a tax credit certificate filed on or after January 18, 2007,

the applicant shall provide:

1)         An

itemized statement of the Illinois labor expenditures or Illinois production spending

for which the credit is claimed and of Illinois labor expenditures generated by

the

employment of

residents of geographic areas of high poverty

or high unemployment for which additional credit is claimed;

2)         Copies

of the books and records of the applicant for the accredited production,

showing the Illinois labor expenditures or Illinois production spending for

which the credit is claimed, all documentation necessary to support its

computation, and detailed vendor cost documentation for post-production and

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

Illinois resident post-production and virtual 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 and

virtual production spending represents more than 50% of qualifying Illinois

spending

n and

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

Illinois resident post-production and virtual 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 and

virtual production spending represents more than 50% of qualifying Illinois

spending.  Only Illinois resident wages and fringe benefits (up to $500,000 per

resident) and payments made to Illinois domiciled sub-vendors are qualified;

3)         An

attestation by a licensed certified public accountant (CPA), in the form

prescribed by the Department, that the computations are supported by the copies

of the applicant's books, records and other documents attached to the request;

that the licensed CPA has examined such books, records and other documents in

accordance with the Department's Agreed Upon Procedures; and that related party

transactions, pursuant to ASC 850, are properly reported and accounted for as

required by Section 528.70(d).  An examination of the books, records and other

documents must be performed by the licensed CPA quarterly or at the conclusion

of production if production lasted less than one quarter.  The examination and

attestation must be performed by a licensed CPA:

A)        who

is qualified and independent of the applicant under the professional standards

established by the American Institute of Certified Public Accountants,

specifically the Statements on Standards of Attestation Engagements at AT Sec.

101 (Attest Engagements) and AT Sec. 201 (Agree-Upon Procedures Engagements);

and

B)        whose

engagement to provide the attestation was approved by the Department before

work on the engagement was commenced

under the professional standards

established by the American Institute of Certified Public Accountants,

specifically the Statements on Standards of Attestation Engagements at AT Sec.

101 (Attest Engagements) and AT Sec. 201 (Agree-Upon Procedures Engagements);

and

B)        whose

engagement to provide the attestation was approved by the Department before

work on the engagement was commenced.

d)         With

each request for a tax credit filed after January 1, 2025, the applicant shall

provide all items listed in subsection (c) of this Section, and:

1)         Disclosure

of all related party transactions including:

A)        The

name of the related party,

B)        The

nature of the relationship between the related party and the accredited

production,

C)        The

nature of the transaction, and

D)        The amount

of the transaction; and

2)         A

sworn affidavit by the applicant that, to the best of the affiant's knowledge,

information, and belief all accounts, documents, records, and other information

provided to the CPA and Department were true and correct and that all related

party transactions were accurately reported in accordance with this Section.