| CAST & CREW ENTERTAINMENT SERVICES |
WEDNESDAY, MARCH 8, 2017
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In this Issue
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ENACTED
Signed by the Governor
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Colorado (S 161)
On March 1, 2017, Governor Hickenlooper signed
Senate Bill 161
which, effective immediately,
appropriate
s
$3 million to the Colorado Office of Film, Television, and
Media through June 30, 2018.
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Virginia (H 1665)
On February 21, 2017, Governor Terry McAuliffe signed House Bill 1665 extending the sunset date of the Virginia motion picture production tax credit program from December 31, 2018 to December 31, 2021.
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ON THE GOVERNOR'S DESK
Awaiting Signature
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Virginia (H 1543)
House Bill 1543
proposes to extend the sunset date of the sales and use tax exemption for audiovisual works from July 1, 2019 to July 1, 2022.
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PROPOSED LEGISLATION
Still in the House or Senate
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Florida (H 7005)
House Bill 7005 proposes the following with regard to the film incentive program in Florida:
- Officially repeals the entertainment industry credit and provides that:
- No new or additional applications or certifications shall be approved;
- No new letters of certification may be issued;
- No new contracts or agreements may be executed; and,
- No new awards may be made;
- Removes the exemption from tax for:
- Items used in production services;
- Manufacturing related to production activities;
- Equipment used in motion picture or television production; and,
- Education and job training related to production services.
If enacted, the amendments would take effect July 1, 2017.
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Illinois (H 2642) & (S 1253)
House Bill 2642 and Senate Bill 1253 propose extending the sunset date of the state's production incentive program from May 6, 2021 to December 31, 2026. If enacted, the bill would take effect upon approval.
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Kentucky (H 263)
House Bill 263 amends the existing production incentive program by converting the refundable tax credit to a nonrefundable and nontransferable credit. If approved, the law would apply to tax years beginning on or after January 1, 2018.
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Maryland (H 150)
House Bill 150 proposes to appropriate $5 million to the Film Production Program for fiscal year 2018 (July 1, 2017 - June 30, 2018).
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Maryland (S 723)
Senate Bill 723 proposes to allow certain independent film companies to qualify for a tax credit. Highlights of the incentive are as follows:
- Creates a tax credit equal to 25% of qualified in-state costs;
- Establishes a per project cap of $125,000;
- Reserves the first $500,000 of annual funding for Maryland small or independent film entities; and,
- Exempts productions with total direct costs of $500,000 or less from an audit requirement.
In order for an independent film entity to qualify, the production company must:
- Be incorporated in the state for at least one year;
- Meet the minimum spend requirement of $25,000;
- Have a workforce comprised of at least 40% Maryland residents; and,
- Film at least 50% of a project in state.
If approved, the provisions would apply to credit certificates issued after June 30, 2017.
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Minnesota (H 1081)
House Bill 1081 proposes to appropriate $1.5 million to the film production jobs program for each of fiscal year 2018 (July 1, 2017 - June 30, 2018) and 2019 (July 1, 2018 - June 30, 2019).
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Nevada (A 137)
Assembly Bill 137 proposes to fund the film incentive program with $15 million. If passed, this act becomes effective July 1, 2017.
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New Mexico (H 412)
House Bill 412 proposes to revise provisions relating to the state's gross receipt tax, including:
- Allowing a seller to provide alternative evidence in lieu of a nontaxable transaction certificate to support a deduction of gross receipts; and,
- Repealing the existing deduction for receipts from sales to qualified film production companies.
If enacted, the law would take effect July 1, 2018.
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New Mexico (S 332)
Introduced by Republican Senator Craig Brandt,
Senate Bill 332 proposes to suspend, through June 30, 2017, payments of the refundable portion of the film production tax credit or the film and television tax credit due to any taxpayer until the aggregate amount of the payments suspended equals $20 million. Beginning July 1, 2017, the taxation and revenue department shall, in the order they are due, make the payments of the refundable portion of the tax credits that were suspended. If enacted, the law would take effect immediately.
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New Mexico (S 390)
Senate Bill 390 proposes reducing the contiguous space designated for film production use at a qualified production facility from 50 acres to 45 acres.
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New York (A 5386)
Assembly Bill 5386 proposes expanding the list of projects eligible for the empire state film production credit to include animated short films and broadcast series and/or features. If enacted, the bill will apply to taxable years beginning on or after January 1, 2018.
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Louisiana (LAC 61:I.Chapter 16)
On February 20, 2017, the Louisiana Department of Economic Development amended the rules for the Motion Picture Investor Tax Credit Program in LAC 61:I.Chapter 16. Highlights of the amendments are below:
- Revises the definition of "Louisiana resident" and provides additional definitions for certain terms involved in the incentive program, including "procurement company" and "Louisiana publisher."
- Provides further guidance on the credits available for use of a Louisiana screenplay and for productions with a base investment of more than $50,000 but less than $300,000.
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Louisiana (LAC 61:III.2701)
On February 20, 2017, the Louisiana Department of Revenue adopted LAC 61:III.2701 which creates a Public Registry of Motion Picture Investor Tax Brokers and provides detailed definitions of "brokers" and "sellers". The new rule also outlines the procedures for application to the registry and prohibits the sale or broker
ing
of tax credits without prior registration.
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Production Incentives
Joe Bessacini
Vice President, Film & TV Production Incentives
818-480-4427
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Deirdre Owens
Vice President, Production Incentive Financing
818-972-3201
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