SB1026,20,1817
a. News, current events, or public programming or a program that includes
18weather or market reports.
SB1026,20,1919
b. A talk show.
SB1026,20,2020
c. A production with respect to a questionnaire or contest.
SB1026,20,2121
d. A sports event or sports activity.
SB1026,20,2222
e. A gala presentation or awards show.
SB1026,20,2323
f. A finished production that solicits funds.
SB1026,21,3
1g. A production for which the production company is required under
18 USC
22257 to maintain records with respect to a performer portrayed in a single media or
3multimedia program.
SB1026,21,54
h. A production produced primarily for industrial, corporate, or institutional
5purposes.
SB1026,21,116
2. “Claimant" means a film production company, as defined in sub. (5h) (a) 2.,
7that operates an accredited production in this state, if the company owns the
8copyright in the accredited production or has contracted directly with the copyright
9owner or a person acting on the owner's behalf and if the company has a viable plan,
10as determined by the state film office, for the commercial distribution of the finished
11production.
SB1026,21,1612
3. “Commercial domicile" means the location from which a trade or business
13is principally managed and directed, based on any factors the state film office
14determines are appropriate, including the location where the greatest number of
15employees of the trade or business work, the trade or business has its office or base
16of operations, or from which the employees are directed or controlled.
SB1026,22,717
4. “Production expenditures" means any expenditure that is incurred in this
18state and directly used to produce an accredited production, including expenditures
19for writing, budgeting, casting, location scouts, set construction and operation,
20wardrobes, makeup, clothing accessories, photography, sound recording, sound
21synchronization, sound mixing, lighting, editing, film processing, film transferring,
22special effects, visual effects, renting or leasing facilities or equipment, renting or
23leasing motor vehicles, food, lodging, and any other similar pre-production,
24production, and post-production expenditure as determined by the state film office.
25“Production expenditures" includes expenditures for music that is performed,
1composed, or recorded by a musician who is a resident of this state or published or
2distributed by an entity that has its commercial domicile in this state; air travel that
3is purchased from a travel agency or company that has its commercial domicile in
4this state; and insurance that is purchased from an insurance agency or company
5that has its commercial domicile in this state. “Production expenditures" does not
6include salary or wages or expenditures for the marketing and distribution of an
7accredited production.
SB1026,22,108
(b)
Filing claims. Subject to the limitations provided in this subsection, for
9taxable years beginning after December 31, 2023, a claimant may claim as a credit
10against the tax imposed under s. 71.43 any of the following amounts:
SB1026,22,1411
1. An amount equal to 25 percent of the salary or wages paid by the claimant
12to the claimant's employees in the taxable year for services rendered in this state to
13produce an accredited production and paid to employees who were residents of this
14state at the time that they were paid.
SB1026,22,1615
2. An amount equal to 25 percent of the production expenditures paid by the
16claimant in the taxable year to produce an accredited production.
SB1026,22,2117
3. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the
18claimant paid in the taxable year on the purchase of tangible personal property and
19taxable services that are used directly in producing an accredited production in this
20state, including all stages from the final script stage to the distribution of the finished
21production.
SB1026,22,2522
(c)
Limitations. 1. No amount of the salary or wages paid under par. (b) 1. may
23be the basis for a credit under this subsection unless the salary or wages are paid for
24services rendered after December 31, 2023, and directly incurred to produce the
25accredited production.
SB1026,23,6
12. The total amount of the credits that may be claimed by a claimant under par.
2(b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages paid
3to each of the claimant's employees, as described in par. (b) 1., in the taxable year,
4not including the salary or wages paid to the claimant's 2 highest-paid employees,
5as described in par. (b) 1., in the taxable year, if the claimant's budgeted production
6expenditures are $1,000,000 or more.
SB1026,23,107
3. No credit may be allowed under this subsection unless the claimant files an
8application with the state film office, at the time and in the manner prescribed by the
9office, and the office approves the application. The claimant shall submit a copy of
10the approved application with the claimant's return.
SB1026,23,1811
4. Partnerships, limited liability companies, and tax-option corporations may
12not claim the credit under this subsection, but the eligibility for, and the amount of,
13the credit are based on their payment of amounts under par. (b). A partnership,
14limited liability company, or tax-option corporation shall compute the amount of
15credit that each of its partners, members, or shareholders may claim and shall
16provide that information to each of them. Partners, members of limited liability
17companies, and shareholders of tax-option corporations may claim the credit in
18proportion to their ownership interest.
SB1026,23,2219
(d)
Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
20credit under s. 71.28 (4), applies to the credits under this subsection. Section 71.28
21(4) (f), as it applies to the credit under s. 71.28 (4), applies to the credits under par.
22(b) 1. and 3.
SB1026,24,223
2. If the allowable amount of the claim under par. (b) 2. exceeds the tax
24otherwise due under s. 71.43 or no tax is due under s. 71.43, the amount of the claim
25not 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).
SB1026,24,1133. Any person, including a nonprofit entity described in section
501 (c) (3) of the
4Internal Revenue Code, may sell or otherwise transfer a credit under this subsection,
5in whole or in part, to another person who is subject to the taxes imposed under s.
671.02, 71.23, or 71.43, if the person notifies the department of the transfer, and
7submits with the notification a copy of the transfer documents, and the department
8certifies ownership of the credit. The transferee may first use the credit to offset tax
9of the transferor in the taxable year in which the transfer occurs and may use the
10credit only to offset tax in taxable years in which the credit is otherwise allowed to
11be claimed and carried forward by the original claimant.
SB1026,21
12Section
21. 71.47 (5h) of the statutes is created to read:
SB1026,24,1413
71.47
(5h) Film production company investment credit. (a)
Definitions. In
14this subsection:
SB1026,24,1615
1. “Claimant" means a person who files a claim under this subsection and who
16does business in this state as a film production company.
SB1026,24,1917
2. “Film production company" means an entity that creates films, videos,
18broadcast advertisement, or television productions, not including the productions
19described under sub. (5f) (a) 1. a. to h.
SB1026,24,2220
3. “Physical work" does not include preliminary activities such as planning,
21designing, securing financing, researching, developing specifications, or stabilizing
22property to prevent deterioration.
SB1026,25,223
4. “Previously owned property" means real property that the claimant or a
24related person owned during the 2 years prior to doing business in this state as a film
25production company and for which the claimant may not deduct a loss from the sale
1of the property to, or an exchange of the property with, the related person under
2section
267 of the Internal Revenue Code.
SB1026,25,43
5. “Used exclusively" means used to the exclusion of all other uses except for
4other use not exceeding 5 percent of total use.
SB1026,25,105
(b)
Filing claims. Subject to the limitations provided in this subsection, for
6taxable years beginning after December 31, 2023, a claimant may claim as a credit
7against the tax imposed under s. 71.43, up to the amount of the taxes, for the first
83 taxable years that the claimant is doing business in this state as a film production
9company, an amount that is equal to 25 percent of the following that the claimant
10paid in the taxable year to establish a film production company in this state:
SB1026,25,1111
1. The purchase price of depreciable, tangible personal property.
SB1026,25,1312
2. The amount expended to acquire, construct, rehabilitate, remodel, or repair
13real property.
SB1026,25,1614
(c)
Limitations. 1. A claimant may claim the credit under par. (b) 1., if the
15tangible personal property is purchased after December 31, 2023, and the personal
16property is used exclusively in the claimant's business as a film production company.
SB1026,25,2117
2. A claimant may claim the credit under par. (b) 2. for an amount expended
18to construct, rehabilitate, remodel, or repair real property, if the claimant began the
19physical work of construction, rehabilitation, remodeling, or repair, or any
20demolition or destruction in preparation for the physical work, after December 31,
212023, or if the completed project is placed in service after December 31, 2023.
SB1026,25,2522
3. A claimant may claim the credit under par. (b) 2. for an amount expended
23to acquire real property, if the property is not previously owned property and if the
24claimant acquires the property after December 31, 2023, or if the completed project
25is placed in service after December 31, 2023.
SB1026,26,4
14. No claim may be allowed under this subsection unless the state film office
2certifies, in writing, that the credits claimed under this subsection are for expenses
3related to establishing a film production company in this state and the claimant
4submits a copy of the certification with the claimant's return.
SB1026,26,125
5. Partnerships, limited liability companies, and tax-option corporations may
6not claim the credit under this subsection, but the eligibility for, and the amount of,
7the credit are based on their payment of amounts under par. (b). A partnership,
8limited liability company, or tax-option corporation shall compute the amount of
9credit that each of its partners, members, or shareholders may claim and shall
10provide that information to each of them. Partners, members of limited liability
11companies, and shareholders of tax-option corporations may claim the credit in
12proportion to their ownership interests.
SB1026,26,1413
(d)
Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
14under s. 71.28 (4), applies to the credits under this subsection.
SB1026,26,23152. Any person, including a nonprofit entity described in section
501 (c) (3) of the
16Internal Revenue Code, may sell or otherwise transfer a credit under this subsection,
17in whole or in part, to another person who is subject to the taxes imposed under s.
1871.02, 71.23, or 71.43, if the person notifies the department of the transfer, and
19submits with the notification a copy of the transfer documents, and the department
20certifies ownership of the credit. The transferee may first use the credit to offset tax
21of the transferor in the taxable year in which the transfer occurs and may use the
22credit only to offset tax in taxable years in which the credit is otherwise allowed to
23be claimed and carried forward by the original claimant.
SB1026,22
24Section
22. 71.49 (1) (epr) of the statutes is created to read:
SB1026,26,2525
71.49
(1) (epr) Film production company investment credit under s. 71.47 (5h).
SB1026,23
1Section
23. 71.49 (1) (eps) of the statutes is created to read:
SB1026,27,22
71.49
(1) (eps) Film production services credit under s. 71.47 (5f) (b) 1. and 3.
SB1026,24
3Section
24. 71.49 (1) (f) of the statutes is amended to read:
SB1026,27,84
71.49
(1) (f) The total of farmland preservation credit under subch. IX, jobs
5credit under s. 71.47 (3q), enterprise zone jobs credit under s. 71.47 (3w), business
6development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1.,
film
7production services credit under s. 71.47 (5f) (b) 2., and estimated tax payments
8under s. 71.48.