SB231,5,33(7) The department shall promulgate rules to administer this section. SB231,54Section 5. 71.05 (6) (a) 15. of the statutes is amended to read: SB231,5,10571.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm), 6(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5f), (5h), 7(5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership, 8limited liability company, or tax-option corporation that has added that amount to 9the partnership’s, company’s, or tax-option corporation’s income under s. 71.21 (4) 10or 71.34 (1k) (g). SB231,611Section 6. 71.07 (5f) of the statutes is created to read: SB231,5,131271.07 (5f) Film production services credit. (a) Definitions. In this 13subsection: SB231,5,21141. “Accredited production” means a film, video, broadcast advertisement, or 15television production, as approved by the state film office, for which the aggregate 16salary and wages included in the cost of the production for the period ending 12 17months after the month in which the principal filming or taping of the production 18begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for 19a production that is less than 30 minutes. “Accredited production” includes a 20scripted, unscripted, reality, or competition production, but does not include any of 21the following, regardless of the production costs: SB231,5,2322a. News, current events, or public programming or a program that includes 23weather or market reports. SB231,5,2424b. A talk show. SB231,6,1
1c. A sports event or sports activity. SB231,6,22d. A gala presentation or awards show. SB231,6,33e. A finished production that solicits funds. SB231,6,64f. A production for which the production company is required under 18 USC 52257 to maintain records with respect to a performer portrayed in a single media or 6multimedia program. SB231,6,87g. A production produced primarily for industrial, corporate, or institutional 8purposes. SB231,6,1492. “Claimant” means a film production company, as defined in sub. (5h) (a) 2., 10that operates an accredited production in this state, if the company owns the 11copyright in the accredited production or has contracted directly with the copyright 12owner or a person acting on the owner’s behalf and if the company has a viable plan, 13as determined by the state film office, for the commercial distribution of the 14finished production. SB231,6,19153. “Commercial domicile” means the location from which a trade or business 16is principally managed and directed, based on any factors the state film office 17determines are appropriate, including the location where the greatest number of 18employees of the trade or business work, the trade or business has its office or base 19of operations, or from which the employees are directed or controlled. SB231,7,12204. “Production expenditures” means any expenditures that are incurred in 21this state and directly used to produce an accredited production, including 22expenditures for writing, budgeting, casting, location scouts, set construction and 23operation, wardrobes, makeup, clothing accessories, photography, sound recording,
1sound synchronization, sound mixing, lighting, editing, film processing, film 2transferring, special effects, visual effects, renting or leasing facilities or 3equipment, renting or leasing motor vehicles, food, lodging, and any other similar 4pre-production, production, and post-production expenditure as determined by the 5state film office. “Production expenditures” includes expenditures for music that is 6performed, composed, or recorded by a musician who is a resident of this state or 7published or distributed by an entity that has its commercial domicile in this state; 8air travel that is purchased from a travel agency or company that has its commercial 9domicile in this state; and insurance that is purchased from an insurance agency or 10company that has its commercial domicile in this state. “Production expenditures” 11does not include salary or wages or expenditures for the marketing and distribution 12of an accredited production. SB231,7,1513(b) Filing claims. Subject to the limitations provided in this subsection, for 14taxable years beginning after December 31, 2025, a claimant may claim as a credit 15against the tax imposed under s. 71.02 any of the following amounts: SB231,7,19161. An amount equal to 30 percent of the salary or wages paid by the claimant 17to the claimant’s employees in the taxable year for services rendered in this state to 18produce an accredited production and paid to employees who were residents of this 19state at the time that they were paid. SB231,7,21202. An amount equal to 30 percent of the production expenditures paid by the 21claimant in the taxable year to produce an accredited production. SB231,8,3223. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the 23claimant paid in the taxable year on the purchase of tangible personal property and
1taxable services that are used directly in producing an accredited production in this 2state, including all stages from the final script stage to the distribution of the 3finished production. SB231,8,74(c) Limitations. 1. No amount of the salary or wages paid under par. (b) 1. 5may be the basis for a credit under this subsection unless the salary or wages are 6paid for services rendered after December 31, 2025, and directly incurred to 7produce the accredited production. SB231,8,1382. The total amount of the credits that may be claimed by a claimant under 9par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages 10paid to each of the claimant’s employees, as described in par. (b) 1., in the taxable 11year, not including the salary or wages paid to the claimant’s 2 highest-paid 12employees, as described in par. (b) 1., in the taxable year, if the claimant’s budgeted 13production expenditures are $1,000,000 or more. SB231,8,17143. No credit may be allowed under this subsection unless the claimant files an 15application with the state film office, at the time and in the manner prescribed by 16the office, and the office approves the application. The claimant shall submit a copy 17of the approved application with the claimant’s return. SB231,9,2184. Partnerships, limited liability companies, and tax-option corporations may 19not claim the credit under this subsection, but the eligibility for, and the amount of, 20the credit are based on their payment of amounts under par. (b). A partnership, 21limited liability company, or tax-option corporation shall compute the amount of 22credit that each of its partners, members, or shareholders may claim and shall 23provide 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 interest. SB231,9,63(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the 4credit under s. 71.28 (4), applies to the credits under this subsection. Section 71.28 5(4) (f), as it applies to the credit under s. 71.28 (4), applies to the credits under par. 6(b) 1. and 3. SB231,9,1172. If the allowable amount of the claim under par. (b) 2. exceeds the tax 8otherwise due under s. 71.02 or no tax is due under s. 71.02, the amount of the 9claim not used to offset the tax due shall be certified by the department of revenue 10to the department of administration for payment by check, share draft, or other 11draft drawn from the appropriation account under s. 20.835 (2) (bm). SB231,9,20123. Any person, including a nonprofit entity described in section 501 (c) (3) of 13the Internal Revenue Code, may sell or otherwise transfer a credit under this 14subsection, in whole or in part, to another person who is subject to the taxes 15imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the 16transfer, and submits with the notification a copy of the transfer documents, and 17the department certifies ownership of the credit. The transferee may first use the 18credit to offset tax of the transferor in the taxable year in which the transfer occurs 19and may use the credit only to offset tax in taxable years in which the credit is 20otherwise allowed to be claimed and carried forward by the original claimant. SB231,721Section 7. 71.07 (5h) of the statutes is created to read: SB231,9,232271.07 (5h) Film production company investment credit. (a) Definitions. 23In this subsection: