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2. An amount equal to 25 percent of the production expenditures paid by the
15claimant in the taxable year to produce an accredited production.
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3. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the
17claimant paid in the taxable year on the purchase of tangible personal property and
18taxable services that are used directly in producing an accredited production in this
19state, including all stages from the final script stage to the distribution of the finished
20production.
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(c)
Limitations. 1. No amount of the salary or wages paid under par. (b) 1. may
22be the basis for a credit under this subsection unless the salary or wages are paid for
23services rendered after December 31, 2005, and directly incurred to produce the
24accredited production.
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12. The total amount of the credit that may be claimed by a claimant under par.
2(b) 1. shall not exceed an amount equal to the first $25,000 of salary or wages paid
3to each of the claimant's employees, as described in par. (b), in the taxable year, not
4including the salary or wages paid to the claimant's 2 highest paid employees, as
5described in par. (b), in the taxable year.
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3. No credit may be allowed under this subsection unless the claimant files an
7application with the department of commerce, at the time and in the manner
8prescribed by the department of commerce, and the department of commerce
9approves the application.
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4. Partnerships, limited liability companies, and tax-option corporations may
11not claim the credit under this subsection, but the eligibility for, and the amount of,
12the credit are based on their payment of wages and salaries. A partnership, limited
13liability company, or tax-option corporation shall compute the amount of credit that
14each of its partners, members, or shareholders may claim and shall provide that
15information to each of them. Partners, members of limited liability companies, and
16shareholders of tax-option corporations may claim the credit in proportion to their
17ownership interest.
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(d)
Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
19credit under s. 71.28 (4), applies to the credits under this subsection. Section 71.28
20(4) (f), as it applies to the credit under s. 71.28 (4), applies to the credits under par.
21(b) 1. and 3.
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2. If the allowable amount of the claim under par. (b) 2. exceeds the tax
23otherwise due under s. 71.43 or no tax is due under s. 71.43, the amount of the claim
24not used to offset the tax due shall be certified by the department of revenue to the
1department of administration for payment by check, share draft, or other draft
2drawn from the appropriation account under s. 20.835 (2) (bm).
SB563, s. 17
3Section
17. 71.47 (5h) of the statutes is created to read:
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71.47
(5h) Film production company investment credit. (a)
Definitions. In
5this subsection:
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1. "Claimant" means a person who files a claim under this subsection and who
7does business in this state as a film production company.
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2. "Film production company" means an entity that creates films, videos,
9electronic games, broadcast advertisement, or television productions, not including
10the productions described under s. 71.47 (5f) (a) 1. a. to h.
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3. "Physical work" does not include preliminary activities such as planning,
12designing, securing financing, researching, developing specifications, or stabilizing
13property to prevent deterioration.
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4. "Previously owned property" means real property that the claimant or a
15related person owned during the 2 years prior to doing business in this state as a film
16production company and for which the claimant may not deduct a loss from the sale
17of the property to, or an exchange of the property with, the related person under
18section
267 of the Internal Revenue Code.
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(b)
Filing claims. Subject to the limitations provided in this subsection, for
20taxable years beginning after December 31, 2005, a claimant may claim as a credit
21against the tax imposed under s. 71.43, up to the amount of the taxes, for the first
223 taxable years that the claimant is doing business in this state as a film production
23company, an amount that is equal to 15 percent of the following that the claimant
24paid in the taxable year to establish a film production company in this state:
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1. The purchase price of depreciable, tangible personal property.
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12. The amount expended to acquire, construct, rehabilitate, remodel, or repair
2real property.
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(c)
Limitations. 1. A claimant may claim the credit under par. (b) 1., if the
4tangible personal property is purchased after December 31, 2005, and the personal
5property is used for at least 50 percent of its use in the claimant's business as a film
6production company.
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2. A claimant may claim the credit under par. (b) 2. for an amount expended
8to construct, rehabilitate, remodel, or repair real property, if the claimant began the
9physical work of construction, rehabilitation, remodeling, or repair, or any
10demolition or destruction in preparation for the physical work, after December 31,
112005, or if the completed project is placed in service after December 31, 2005.
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3. A claimant may claim the credit under par. (b) 2. for an amount expended
13to acquire real property, if the property is not previously owned property and if the
14claimant acquires the property after December 31, 2005, or if the completed project
15is placed in service after December 31, 2005.
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4. No claim may be allowed under this subsection unless the department of
17commerce certifies, in writing, that the credits claimed under this subsection are for
18expenses related to establishing a film production company in this state and the
19claimant submits a copy of the certification with the claimant's return.
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5. Partnerships, limited liability companies, and tax-option corporations may
21not claim the credit under this subsection, but the eligibility for, and the amount of,
22the credit are based on their payment of amounts under par. (b). A partnership,
23limited liability company, or tax-option corporation shall compute the amount of
24credit that each of its partners, members, or shareholders may claim and shall
25provide that information to each of them. Partners, members of limited liability
1companies, and shareholders of tax-option corporations may claim the credit in
2proportion to their ownership interests.
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(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
4s. 71.28 (4), applies to the credits under this subsection.
SB563, s. 18
5Section
18. 71.49 (1) (epp) of the statutes is created to read:
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71.49
(1) (epp) Film production services credit under s. 71.47 (5f).
SB563, s. 19
7Section
19. 71.49 (1) (epr) of the statutes is created to read:
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71.49
(1) (epr) Film production company investment credit under s. 71.47 (5h).
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77.92
(4) "Net business income," with respect to a partnership, means taxable
12income as calculated under section
703 of the Internal Revenue Code; plus the items
13of income and gain under section
702 of the Internal Revenue Code, including taxable
14state and municipal bond interest and excluding nontaxable interest income or
15dividend income from federal government obligations; minus the items of loss and
16deduction under section
702 of the Internal Revenue Code, except items that are not
17deductible under s. 71.21; plus guaranteed payments to partners under section
707 18(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
19(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), (5b),
and (5f), (5g)
,
20and (5h); and plus or minus, as appropriate, transitional adjustments, depreciation
21differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but
22excluding income, gain, loss, and deductions from farming. "Net business income,"
23with respect to a natural person, estate, or trust, means profit from a trade or
1business for federal income tax purposes and includes net income derived as an
2employee as defined in section
3121 (d) (3) of the Internal Revenue Code.