SB1730 104TH GENERAL ASSEMBLY

LRB104 05552 HLH 15582 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1730

Introduced 2/5/2025, by Sen. Steve Stadelman

SYNOPSIS AS INTRODUCED:

New Act
20 ILCS 605/605-1118 new
30 ILCS 105/5.1030 new

Creates the Music Incubator Rebate Act. Provides that the Department of Commerce and Economic Opportunity shall administer a music incubator rebate program under which the Department of Commerce and Economic Opportunity shall provide to the operators of eligible music venues and to eligible music festival promoters a full or partial rebate of the retailers' occupation taxes paid by those operators or eligible music festival promoters on the sale of beer and wine on the premises of the eligible music venue or at the location of the qualified music festival as part of the qualified music festival. Provides that moneys shall be paid from the Music Incubator Fund. Contains provisions creating the Music Incubator Fund. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois and the State Finance Act to make conforming changes. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Music Incubator Rebate Act.

Section 5. Definitions. As used in this Act:

"Applicant" means the operator of an eligible music venue who applies for a rebate under this Act or an eligible music festival promoter who applies for a rebate under this Act.

"Department" means the Department of Commerce and Economic Opportunity.

"Eligible music festival promoter" means a music festival promoter that has held, at least once during the 2-year period immediately preceding the date of the application for a rebate under this Act, a qualified music festival in a county in the State with a population of less than 100,000.

"Eligible music venue" means a retail establishment that:

(1) has a dedicated audience capacity of not more than 3,000 persons;

(2) has live performance and audience space;

(3) has space for the storage of audio equipment or musical instruments;

(4) provides technical sound and lighting support, either in-house or through a contract with a vendor;

(5) hosts live music performances on the premises 5 or more nights per week, on average, whereby the musical artist receives as compensation a specified percentage of ticket sales or other sales that occur incident to the performance or a guaranteed amount in advance of the performance;

(6) requires a cover charge to attend one or more of the live music performances, either through ticketing or through the imposition of a front door entrance fee; and

(7) maintains hours of operation that coincide with live music performance show times.

"Qualified music festival" means an event that:

(1) occurs over one or more days at a single location;

(2) is marketed in a printed or electronic publication;

(3) features performances by one or more musical artists who enter into a written contract with a music festival promoter under which the artist receives as compensation a specified percentage of ticket sales or other sales that occur incident to the performance or a guaranteed amount in advance of the performance;

(4) requires a cover charge to attend one or more of the performances, either through ticketing or through the imposition of a front door entrance fee; and

(5) results in the employment or contracting of the services of one or more people who are tasked with 2 or more of the following positions or services:

(A) sound engineer;

(B) booker;

(C) promoter;

(D) stage manager; or

(E) security personnel.

"Retailers' occupation tax" means the tax imposed under the Retailers' Occupation Tax Act and any retailers' occupation tax imposed by a unit of local government.

Section 10. Program established.

(a) For State fiscal years beginning on or after January 1, 2025, the Department shall administer a music incubator rebate program under which the Department shall provide to the operators of eligible music venues and to eligible music festival promoters, from moneys appropriated from the Music Incubator Fund, a full or partial rebate of the retailers' occupation taxes paid by those operators and eligible music festival promoters on the sale of beer and wine on the premises of the eligible music venue or at the location of the qualified music festival as part of the qualified music festival. The rebates are to assist eligible music venues and eligible music festival promoters in their efforts to support and continue to bring to local communities in this State live musical performances, including the recruitment of musical performance artists.

(b) The Department may not provide a rebate under this Section in any State fiscal year to an eligible music venue or an eligible music festival promoter in an amount that exceeds the lesser of:

(1) the amount of retailers' occupation taxes paid by the music venue or music festival promoter in the preceding 12-month period; or

(2) $100,000.

Section 15. Rebate application. Applicants shall apply to the Department for a rebate under this Act using an online portal on the Department's public Internet website that allows a music venue or music festival promoter to submit the application to the Department for consideration.

The application must:

(1) state the amount of eligible retailers' occupation tax receipts for which the applicant is seeking a rebate;

(2) include sufficient evidence for the Department to determine that the music venue or promoter qualifies for a rebate; and

(3) include any other information the Department determines necessary to administer the program under this Act.

After reviewing applications for a rebate under this Act, the Department shall grant rebates to eligible music venues and music festival promoters that the Department determines provide or have committed to provide the most economic benefit to the communities in which the music venues are located or the festivals are held, as applicable, and to the Illinois music industry, including live music performers.

Section 20. Music Incubator Fund. The Music Incubator Fund is hereby created as a special fund in the State treasury. The Fund may receive gifts, grants, and moneys transferred or deposited from any lawful source. Moneys in the Fund shall be used by the Department to award rebates under this Act.

Section 25. Rules. The Department shall adopt rules for the implementation of this Act.

Section 900. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-1118 as follows:

(20 ILCS 605/605-1118 new)

Sec. 605-1118. Music Incubator Rebate Act. The Department shall award rebates as provided in the Music Incubator Rebate Act.

Section 905. The State Finance Act is amended by adding Section 5.1030 as follows:

(30 ILCS 105/5.1030 new)

Sec. 5.1030. The Music Incubator Fund.

Section 999. Effective date. This Act takes effect upon becoming law.