Maryland 2022 Regular Session

Maryland House Bill HB432 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0432
6	6
7	7	HOUSE BILL 432
8	8	Q3 2lr2061
9	9
10	10	By: Delegate Wells
11	11	Introduced and read first time: January 20, 2022
12	12	Assigned to: Ways and Means
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Income Tax – Film Production Activity Tax Credit – Alterations 2
19	19
20	20	FOR the purpose of altering the aggregate amount of film production activity tax credit 3
21	21	certificates that the Secretary of Commerce may issue each fiscal year; and generally 4
22	22	relating to the film production activity tax credit. 5
23	23
24	24	BY repealing and reenacting, without amendments, 6
25	25	Article – Tax – General 7
26	26	Section 10–730(a)(1), (3), and (6) and (b) 8
27	27	Annotated Code of Maryland 9
28	28	(2016 Replacement Volume and 2021 Supplement) 10
29	29
30	30	BY repealing and reenacting, with amendments, 11
31	31	Article – Tax – General 12
32	32	Section 10–730(f) 13
33	33	Annotated Code of Maryland 14
34	34	(2016 Replacement Volume and 2021 Supplement) 15
35	35
36	36	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
37	37	That the Laws of Maryland read as follows: 17
38	38
39	39	Article – Tax – General 18
40	40
41	41	10–730. 19
42	42
43	43	(a) (1) In this section the following words have the meanings indicated. 20
44	44
45	45	(3) (i) “Film production activity” means: 21
46	46
47	47	1. the production of a film or video project that is intended 22
48	48	for nationwide commercial distribution; and 23 2 HOUSE BILL 432
49	49
50	50
51	51
52	52	2. for a television series, each season of the television series. 1
53	53
54	54	(ii) “Film production activity” includes the production of: 2
55	55
56	56	1. a feature film; 3
57	57
58	58	2. a television project; 4
59	59
60	60	3. a commercial; 5
61	61
62	62	4. a corporate film; or 6
63	63
64	64	5. a music video. 7
65	65
66	66	(iii) “Film production activity” does not include production of: 8
67	67
68	68	1. a student film; 9
69	69
70	70	2. a noncommercial personal video; 10
71	71
72	72	3. a sports broadcast; 11
73	73
74	74	4. a broadcast of a live event; 12
75	75
76	76	5. a talk show; 13
77	77
78	78	6. a video, computer, or social networking game; 14
79	79
80	80	7. pornography; 15
81	81
82	82	8. an infomercial; 16
83	83
84	84	9. a digital project; 17
85	85
86	86	10. an animation project; or 18
87	87
88	88	11. a multimedia project. 19
89	89
90	90	(6) “Qualified film production entity” means an entity that: 20
91	91
92	92	(i) is carrying out a film production activity; and 21
93	93
94	94	(ii) the Secretary determines to be eligible for the tax credit under 22
95	95	this section in accordance with subsection (c) of this section. 23
96	96
97	97	(b) (1) A qualified film production entity may claim a credit against the State 24 HOUSE BILL 432 3
98	98
99	99
100	100	income tax for film production activities in the State in an amount equal to the amount 1
101	101	stated in the final tax credit certificate approved by the Secretary for film production 2
102	102	activities. 3
103	103
104	104	(2) If the tax credit allowed under this section in any taxable year exceeds 4
105	105	the total tax otherwise payable by the qualified film production entity for that taxable year, 5
106	106	the qualified film production entity may claim a refund in the amount of the excess. 6
107	107
108	108	(f) (1) Except as provided in paragraph (2) of this subsection, the Secretary 7
109	109	may not issue tax credit certificates for credit amounts in the aggregate totaling more than: 8
110	110
111	111	(i) for fiscal year 2014, $25,000,000; 9
112	112
113	113	(ii) for fiscal year 2015, $7,500,000; 10
114	114
115	115	(iii) for fiscal year 2016, $7,500,000; 11
116	116
117	117	(iv) for fiscal year 2019, $8,000,000; 12
118	118
119	119	(v) for fiscal year 2020, $11,000,000; [and] 13
120	120
121	121	(vi) for EACH OF fiscal [year] YEARS 2021 and [each fiscal year 14
122	122	thereafter] 2022, $12,000,000; 15
123	123
124	124	(VII) FOR FISCAL YEAR 2023, $25,000,000; AND 16
125	125
126	126	(VIII) FOR FISCAL YEAR 2024 AND EACH FISCAL YEAR 17
127	127	THEREAFTER , $50,000,000. 18
128	128
129	129	(2) If the aggregate credit amounts under the tax credit certificates issued 19
130	130	by the Secretary total less than the maximum provided under paragraph (1) of this 20
131	131	subsection in any fiscal year, any excess amount may be carried forward and issued under 21
132	132	tax credit certificates in a subsequent fiscal year. 22
133	133
134	134	(3) The Secretary may not issue tax credit certificates for credit amounts 23
135	135	totaling more than $10,000,000 in the aggregate for a single film production activity. 24
136	136
137	137	(4) (i) For fiscal year 2019 and each fiscal year thereafter, the Secretary 25
138	138	shall make 10% of the credit amount authorized under paragraph (1) of this subsection 26
139	139	available for Maryland small or independent film entities. 27
140	140
141	141	(ii) If the total amount of credits applied for by Maryland small or 28
142	142	independent film entities is less than the amount made available under subparagraph (i) 29
143	143	of this paragraph, the Secretary shall make available the unused amount of credits for use 30
144	144	by qualified film production entities. 31
145	145	4 HOUSE BILL 432
146	146
147	147
148	148	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
149	149	1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 2