Connecticut 2023 Regular Session

Connecticut House Bill HB06919 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06919-R01-
4		-	HB.docx
5		-	1 of 6
	3	+	LCO No. 4585 1 of 6
6	4
7		-	General Assembly ~~Substitute~~ Bill No. 6919
	5	+	General Assembly Raised Bill No. 6919
8	6		January Session, 2023
	7	+	LCO No. 4585
9	8
	9	+
	10	+	Referred to Committee on FINANCE, REVENUE AND
	11	+	BONDING
	12	+
	13	+
	14	+	Introduced by:
	15	+	(FIN)
10	16
11	17
12	18
13	19
14	20		AN ACT ESTABLISHING A TAX CREDIT FOR CERTAIN PRE -
15	21		BROADWAY AND POST-BROADWAY THEATER PRODUCTIONS.
16	22		Be it enacted by the Senate and House of Representatives in General
17	23		Assembly convened:
18	24
19		-	Section 1. (NEW) (Effective January 1, 2024, and applicable to income 1
20		-	~~and~~ taxable years commencing on or after January 1, 2024) (a) As used in 2
21		-	~~this~~ section: 3
	25	+	Section 1. (NEW) (Effective January 1, 2024, and applicable to income and 1
	26	+	taxable years commencing on or after January 1, 2024) (a) As used in this 2
	27	+	section: 3
22	28		(1) "Accredited theater production" means a for-profit live stage 4
23	29		presentation that is a pre-Broadway production or a post-Broadway 5
24	30		production and is performed at a qualified production facility; 6
25	31		(2) "Advertising and public relations expenditures" means costs 7
26	32		incurred within the state by an accredited theater production for goods 8
27	33		or services related to the national marketing of, public relations for and 9
28	34		creation and placement of print, electronic, television, billboard and 10
29		-	other forms of advertising to promote the accredited theater 11
30		-	production; 12
31		-	(3) "Payroll" means all salaries, wages, fees and other compensation, 13
32		-	including related benefits for services performed within the state, not 14
33		-	exceeding two hundred fifty thousand dollars per week; 15
34		-	(4) "Pre-Broadway production" means a live stage presentation that, 16
35		-	in its original or adaptive version, is performed at a qualified 17 Substitute Bill No. 6919
	35	+	other forms of advertising to promote the accredited theater production; 11
	36	+	(3) "Payroll" means all salaries, wages, fees and other compensation, 12
	37	+	including related benefits for services performed within the state, not 13 Raised Bill No. 6919
36	38
37	39
38		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06919-
39		-	R01-HB.docx }
40		-	2 of 6
41	40
42		-	production facility and is scheduled to be presented in New York 18
43		-	City's Broadway theater district not later than twelve months after the 19
44		-	end date of such performance or performances in the state; 20
45		-	(5) "Post-Broadway production" means a live stage presentation 21
46		-	that, in its original or adaptive version, is performed at a qualified 22
47		-	production facility and opens its national tour in the state following a 23
48		-	performance or performances of such presentation in New York City's 24
49		-	Broadway theater district; 25
50		-	(6) "Production and performance expenditures" means a 26
51		-	contemporaneous exchange of cash or cash equivalent for goods or 27
52		-	services related to the development, production or performance of or 28
53		-	operating expenditures incurred in the state for an accredited theater 29
54		-	production, including, but not limited to, (A) expenditures for design, 30
55		-	construction and operation, including sets, special and visual effects, 31
56		-	costumes, wardrobe, make-up and accessories, (B) costs associated 32
57		-	with sound, lighting, staging, facility expenses, rentals, per diems and 33
58		-	accommodations, and (C) payroll, advertising and public relations 34
59		-	expenditures and transportation expenditures; 35
60		-	(7) "Qualified production facility" means a facility located in the 36
61		-	state at which live stage presentations are, or are intended to be, 37
62		-	exclusively performed and that contains at least one stage, a seating 38
63		-	capacity of one thousand or more seats and dressing rooms, storage 39
64		-	areas and other ancillary amenities necessary for an accredited theater 40
65		-	production; and 41
66		-	(8) (A) "Transportation expenditures" means expenditures for (i) the 42
67		-	packaging, crating and transporting, to and from the state, of sets, 43
68		-	costumes and other tangible property and equipment used or to be 44
69		-	used in an accredited theater production, and (ii) the transporting of 45
70		-	cast and crew members of an accredited theater production to and 46
71		-	from the state. 47
72		-	(B) "Transportation expenditures" does not include any costs for the 48 Substitute Bill No. 6919
	41	+	LCO No. 4585 2 of 6
	42	+
	43	+	exceeding two hundred fifty thousand dollars per week; 14
	44	+	(4) "Pre-Broadway production" means a live stage presentation that, 15
	45	+	in its original or adaptive version, is performed at a qualified production 16
	46	+	facility and is scheduled to be presented in New York City's Broadway 17
	47	+	theater district not later than twelve months after the end date of such 18
	48	+	performance or performances in the state; 19
	49	+	(5) "Post-Broadway production" means a live stage presentation that, 20
	50	+	in its original or adaptive version, is performed at a qualified production 21
	51	+	facility and opens its national tour in the state following a performance 22
	52	+	or performances of such presentation in New York City's Broadway 23
	53	+	theater district; 24
	54	+	(6) "Production and performance expenditures" means a 25
	55	+	contemporaneous exchange of cash or cash equivalent for goods or 26
	56	+	services related to the development, production or performance of or 27
	57	+	operating expenditures incurred in the state for an accredited theater 28
	58	+	production, including, but not limited to, (A) expenditures for design, 29
	59	+	construction and operation, including sets, special and visual effects, 30
	60	+	costumes, wardrobe, make-up and accessories, (B) costs associated with 31
	61	+	sound, lighting, staging, facility expenses, rentals, per diems and 32
	62	+	accommodations, and (C) payroll, advertising and public relations 33
	63	+	expenditures and transportation expenditures; 34
	64	+	(7) "Qualified production facility" means a facility located in the state 35
	65	+	at which live stage presentations are, or are intended to be, exclusively 36
	66	+	performed and that contains at least one stage, a seating capacity of one 37
	67	+	thousand or more seats and dressing rooms, storage areas and other 38
	68	+	ancillary amenities necessary for an accredited theater production; and 39
	69	+	(8) (A) "Transportation expenditures" means expenditures for (i) the 40
	70	+	packaging, crating and transporting, to and from the state, of sets, 41
	71	+	costumes and other tangible property and equipment used or to be used 42
	72	+	in an accredited theater production, and (ii) the transporting of cast and 43
	73	+	crew members of an accredited theater production to and from the state. 44 Raised Bill No. 6919
73	74
74	75
75		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06919-
76		-	R01-HB.docx }
77		-	3 of 6
78	76
79		-	transporting of tangible property and equipment that are or will be 49
80		-	used only for filming and not in an accredited theater production or 50
81		-	any indirect costs, expenditures that are or will be reimbursed by a 51
82		-	third party or any amounts that are paid to an individual or entity as a 52
83		-	result of such individual's or entity's participation in profits from the 53
84		-	exploitation of an accredited theater production. 54
85		-	(b) (1) Any production company that receives a final accredited 55
86		-	theater production certificate pursuant to the provisions of subsection 56
87		-	(c) of this section shall be allowed a credit against the tax imposed by 57
88		-	chapter 207, 208, 212 or 229 of the general statutes, other than the 58
89		-	liability imposed by section 12-707 of the general statutes, of thirty per 59
90		-	cent of the production and performance expenditures of the accredited 60
91		-	theater production. 61
92		-	(2) If the production company is an S corporation or an entity 62
93		-	treated as a partnership for federal income tax purposes, the credit 63
94		-	may be claimed by the production company's shareholders or 64
95		-	partners. If the production company is a single member limited 65
96		-	liability company that is disregarded as an entity separate from its 66
97		-	owner, the credit may be claimed by such limited liability company's 67
98		-	owner, provided such owner is subject to the tax imposed under 68
99		-	chapter 208 or 229 of the general statutes. 69
100		-	(3) The credit allowed under this section (A) shall be claimed for the 70
101		-	income or taxable year in which the credit was earned and may be 71
102		-	carried forward for not more than three immediately succeeding 72
103		-	income or taxable years, and (B) may be sold, assigned or otherwise 73
104		-	transferred, in whole or in part. 74
105		-	(c) (1) Any individual, firm, partnership, trust, estate or other entity 75
106		-	that is a production company of an accredited theater production or a 76
107		-	sole proprietor, owner or member of a partnership that is a production 77
108		-	company of an accredited theater production may apply to the 78
109		-	Commissioner of Economic and Community Development, in such 79
110		-	form and manner as prescribed by the commissioner, for initial 80 Substitute Bill No. 6919
	77	+	LCO No. 4585 3 of 6
	78	+
	79	+	(B) "Transportation expenditures" does not include any costs for the 45
	80	+	transporting of tangible property and equipment that are or will be used 46
	81	+	only for filming and not in an accredited theater production or any 47
	82	+	indirect costs, expenditures that are or will be reimbursed by a third 48
	83	+	party or any amounts that are paid to an individual or entity as a result 49
	84	+	of such individual's or entity's participation in profits from the 50
	85	+	exploitation of an accredited theater production. 51
	86	+	(b) (1) Any applicant that receives a final accredited theater 52
	87	+	production certificate pursuant to the provisions of subsection (c) of this 53
	88	+	section shall be allowed a credit against the tax imposed by chapter 207, 54
	89	+	208, 212 or 229 of the general statutes, other than the liability imposed 55
	90	+	by section 12-707 of the general statutes, of thirty per cent of the 56
	91	+	production and performance expenditures of the accredited theater 57
	92	+	production. 58
	93	+	(2) If the taxpayer is an S corporation or an entity treated as a 59
	94	+	partnership for federal income tax purposes, the credit may be claimed 60
	95	+	by the taxpayer's shareholders or partners. If the taxpayer is a single 61
	96	+	member limited liability company that is disregarded as an entity 62
	97	+	separate from its owner, the credit may be claimed by such limited 63
	98	+	liability company's owner, provided such owner is subject to the tax 64
	99	+	imposed under chapter 208 or 229 of the general statutes. 65
	100	+	(3) The credit allowed under this section (A) shall be claimed for the 66
	101	+	income or taxable year in which the credit was earned and may be 67
	102	+	carried forward for not more than three immediately succeeding income 68
	103	+	or taxable years, and (B) may be sold, assigned or otherwise transferred, 69
	104	+	in whole or in part. 70
	105	+	(c) (1) Any individual, firm, partnership, trust, estate or other entity 71
	106	+	that is a production company of an accredited theater production or a 72
	107	+	sole proprietor, owner or member of a partnership that is a production 73
	108	+	company of an accredited theater production may apply to the 74
	109	+	Commissioner of Economic and Community Development, in such 75
	110	+	form and manner as prescribed by the commissioner, for initial 76 Raised Bill No. 6919
111	111
112	112
113		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06919-
114		-	R01-HB.docx }
115		-	4 of 6
116	113
117		-	certification of an accredited theater production. The application shall 81
118		-	include information about the accredited theater production and the 82
119		-	production company presenting such production, the applicant's 83
120		-	relationship to such production or production company, the qualified 84
121		-	production facility at which such production will be performed and 85
122		-	any other information and data the commissioner deems necessary to 86
123		-	evaluate the application. If the commissioner approves the application, 87
124		-	the commissioner shall issue a notice of initial certification to the 88
125		-	production company and the Commissioner of Revenue Services. 89
126		-	(2) Upon completion of the accredited theater production 90
127		-	performance or performances, the production company shall submit 91
128		-	an application to the Commissioner of Economic and Community 92
129		-	Development for a final certification of the accredited theater 93
130		-	production. Such application shall include a cost report and a 94
131		-	certification by a certified public accountant that such report, in such 95
132		-	accountant's opinion, is accurate. The commissioner shall make a 96
133		-	determination, not later than thirty days after a complete application 97
134		-	has been submitted under this subdivision, whether to approve a final 98
135		-	accredited theater production certificate and the amount of the credit 99
136		-	to be allowed. 100
137		-	(3) The total amount of credits allowed pursuant to this section shall 101
138		-	not exceed ten million dollars in any one fiscal year. 102
139		-	(4) If the commissioner approves a final accredited theater 103
140		-	production certificate, the commissioner shall (A) issue such certificate 104
141		-	to the production company and specify the amount of the credit 105
142		-	allowed, and (B) provide notice of such final certification and the 106
143		-	amount of the credit allowed to the Commissioner of Revenue 107
144		-	Services. 108
145		-	(d) Any production company that submits information to the 109
146		-	Commissioner of Economic and Community Development that such 110
147		-	production company knows to be fraudulent or false shall, in addition 111
148		-	to any other penalties provided by law, be liable for a penalty equal to 112 Substitute Bill No. 6919
	114	+	LCO No. 4585 4 of 6
	115	+
	116	+	certification of an accredited theater production. The application shall 77
	117	+	include information about the accredited theater production and the 78
	118	+	production company presenting such production, the applicant's 79
	119	+	relationship to such production or production company, the qualified 80
	120	+	production facility at which such production will be performed and any 81
	121	+	other information and data the commissioner deems necessary to 82
	122	+	evaluate the application. If the commissioner approves the application, 83
	123	+	the commissioner shall issue a notice of initial certification to the 84
	124	+	production company and the Commissioner of Revenue Services. 85
	125	+	(2) Upon completion of the accredited theater production 86
	126	+	performance or performances, the applicant shall submit an application 87
	127	+	to the Commissioner of Economic and Community Development for a 88
	128	+	final certification of the accredited theater production. Such application 89
	129	+	shall include a cost report and a certification by a certified public 90
	130	+	accountant that such report, in such accountant's opinion, is accurate. 91
	131	+	The commissioner shall make a determination, not later than thirty days 92
	132	+	after a complete application has been submitted under this subdivision, 93
	133	+	whether to approve a final accredited theater production certificate and 94
	134	+	the amount of the credit to be allowed. 95
	135	+	(3) The total amount of credits allowed pursuant to this section shall 96
	136	+	not exceed ten million dollars in any one fiscal year. 97
	137	+	(4) If the commissioner approves a final accredited theater 98
	138	+	production certificate, the commissioner shall (A) issue such certificate 99
	139	+	to the applicant and specify the amount of the credit allowed, and (B) 100
	140	+	provide notice of such final certification and the amount of the credit 101
	141	+	allowed to the Commissioner of Revenue Services. 102
	142	+	(d) Any applicant that submits information to the Commissioner of 103
	143	+	Economic and Community Development that such applicant knows to 104
	144	+	be fraudulent or false shall, in addition to any other penalties provided 105
	145	+	by law, be liable for a penalty equal to the amount of such applicant's 106
	146	+	credit allowed under this section. 107
	147	+	(e) No credits sold, assigned or otherwise transferred pursuant to this 108 Raised Bill No. 6919
149	148
150	149
151		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06919-
152		-	R01-HB.docx }
153		-	5 of 6
154	150
155		-	the amount of such production company's credit allowed under this 113
156		-	section. 114
157		-	(e) No credits sold, assigned or otherwise transferred pursuant to 115
158		-	this section shall be subject to a post-certification remedy and the 116
159		-	Commissioners of Economic and Community Development and 117
160		-	Revenue Services shall have no right, except in the case of possible 118
161		-	material misrepresentation or fraud, to conduct any further or 119
162		-	additional review, examination or audit of the production and 120
163		-	performance expenditures for which such credits were allowed. The 121
164		-	sole and exclusive remedy of the commissioners shall be to seek 122
165		-	collection of the amount of such credits from the production company 123
166		-	that committed the fraud or misrepresentation. 124
167		-	(f) The Commissioners of Economic and Community Development 125
168		-	and Revenue Services may, for purposes of determining the 126
169		-	correctness of any credit claimed pursuant to this section, examine any 127
170		-	books, papers and records relating to the information or data provided 128
171		-	with an application for a final certification of the accredited theater 129
172		-	production. 130
173		-	(g) Not later than March 1, 2025, and annually thereafter, the 131
174		-	Commissioner of Economic and Community De velopment shall 132
175		-	submit a report, in accordance with the provisions of section 11-4a of 133
176		-	the general statutes, to the joint standing committees of the General 134
177		-	Assembly having cognizance of matters relating to commerce and 135
178		-	finance, revenue and bonding. Such report shall include, but not be 136
179		-	limited to, information about any production companies that have 137
180		-	applied in the preceding calendar year for initial or final certification of 138
181		-	an accredited theater production, the status of such applications, 139
182		-	descriptions of the production company, the accredited theater 140
183		-	production and the qualified production facility at which the 141
184		-	accredited theater production is or was presented and the amount of 142
185		-	any credits allowed pursuant to this section in the preceding calendar 143
186		-	year. 144 Substitute Bill No. 6919
	151	+	LCO No. 4585 5 of 6
187	152
188		-
189		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06919-
190		-	R01-HB.docx }
191		-	6 of 6
192		-
	153	+	section shall be subject to a post-certification remedy and the 109
	154	+	Commissioners of Economic and Community Development and 110
	155	+	Revenue Services shall have no right, except in the case of possible 111
	156	+	material misrepresentation or fraud, to conduct any further or 112
	157	+	additional review, examination or audit of the production and 113
	158	+	performance expenditures for which such credits were allowed. The 114
	159	+	sole and exclusive remedy of the commissioners shall be to seek 115
	160	+	collection of the amount of such credits from the applicant that 116
	161	+	committed the fraud or misrepresentation. 117
	162	+	(f) The Commissioners of Economic and Community Development 118
	163	+	and Revenue Services may, for purposes of determining the correctness 119
	164	+	of any credit claimed pursuant to this section, examine any books, 120
	165	+	papers and records relating to the information or data provided with an 121
	166	+	application for a final certification of the accredited theater production. 122
	167	+	(g) Not later than March 1, 2025, and annually thereafter, the 123
	168	+	Commissioner of Economic and Community Development shall submit 124
	169	+	a report, in accordance with the provisions of section 11-4a of the general 125
	170	+	statutes, to the joint standing committees of the General Assembly 126
	171	+	having cognizance of matters relating to commerce and finance, revenue 127
	172	+	and bonding. Such report shall include, but not be limited to, 128
	173	+	information about any production companies that have applied in the 129
	174	+	preceding calendar year for initial or final certification of an accredited 130
	175	+	theater production, the status of such applications, descriptions of the 131
	176	+	production company, the accredited theater production and the 132
	177	+	qualified production facility at which the accredited theater production 133
	178	+	is or was presented and the amount of any credits allowed pursuant to 134
	179	+	this section in the preceding calendar year. 135
193	180		This act shall take effect as follows and shall amend the following
194	181		sections:
195	182
196	183		Section 1 January 1, 2024, and
197	184		applicable to income and
198	185		taxable years commencing
199	186		on or after January 1, 2024
200		-	New section
	187	+	New section Raised Bill No. 6919
201	188
202		-	FIN Joint Favorable Subst.
	189	+
	190	+
	191	+	LCO No. 4585 6 of 6
	192	+
	193	+
	194	+	Statement of Purpose:
	195	+	To establish a credit for certain expenditures of accredited theater
	196	+	productions at qualifying production facilities in the state.
	197	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	198	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	199	+	underlined.]
203	200