Illinois § 50-10

§ 50-10.

Definitions. As used in this Act: "Department" means the Department of Commerce and Economic Opportunity. "Expenditure in the State" means (i) an expenditure to acquire, from a source within the State, property that is subject to tax under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, or the Retailers' Occupation Tax Act or (ii) an expenditure for compensation for services performed within the State that is subject to State income tax under the Illinois Income Tax Act. "Illinois labor expenditure" means gross salary or wages, including, but not limited to, taxes, benefits, and any other consideration incurred or paid to artist employees of the applicant for services rendered to and on behalf of the qualified music company, provided that the expenditure is: (1) incurred or paid by the applicant on or after the effective date of this Act for services related to any portion of a qualified music company from rehearsals, performances, and any other qualified music company related activities; (2) limited to the first $100,000 of wages incurred or paid to each employee of a qualified music production in each tax year; (3) paid in the tax year for which the applicant is claiming the tax credit award; (4) paid to persons residing in Illinois at the time payments were made; and (5) reasonable under the circumstances. "Qualified music company" means an entity that (i) is authorized to do business in Illinois, (ii) is engaged directly or indirectly in the production, distribution, or promotion of music, (iii) is certified by the Department as meeting the eligibility requirements of this Act, and (iv) has executed a contract with the Department providing the terms and conditions for its participation. "Qualified music company payroll" or "QMC payroll" means wages reported by the qualified music company in box 1 of each W-2 form prepared for an employee of the qualified music company who is an Illinois resident. "Resident copyright" means the copyright of a musical composition written by an Illinois resident or owned by an Illinois-domiciled music company, as evidenced by documents of ownership, including, but not limited to, registration with the United States Copyright Office. "Sound recording" means a recording of music, poetry, or a spoken-word performance made, in whole or in part, in Illinois. "Sound recording" does not include the audio portions of dialogue or words spoken and recorded as part of television news coverage or athletic events. "Sound recording production company" means a company engaged in the business of producing sound recordings. "Sound recording production company" does not include any person or company, or any company owned, affiliated, or controlled, in whole or in part, by any company or person, that is in default on a loan made by the State or a loan guaranteed by the State, nor which has ever declared bankruptcy under which an obligation of the company or person to pay or repay public funds or moneys was discharged as a part of the bankruptcy. "State-certified production" means a sound recording production, or a series of productions, including, but not limited to, master and demonstration recordings, occurring over the course of a 12-month period, and the base production-related investment that is approved by the Department after receipt by the Department of a complete application for initial certification of a production. "Tax credit award" means the issuance to a taxpayer by the Department of a tax credit award against the taxes imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act as provided in this Act. (Source: P.A. 103-592, eff. 6-7-24; 103-1055, eff. 12-20-24.)