SECONDREGULARSESSION
HOUSEBILLNO.2106
101STGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEGREGORY(51).
4643H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection135.750,RSMo,andtoenactinlieuthereofonenewsectionrelatingtotax
creditsforqualifiedmotionmediaprojects.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section135.750,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection135.750,toreadasfollows:
135.750.1.Thissectionshallbereferredtoasthe"ShowMOAct".
2 2.Asusedinthissection,thefollowingtermsmean:
3 (1)["Highlycompensatedindividual",anyindividualwhoreceivescompensationin
4excessofonemilliondollarsinconnectionwithasinglequalifiedfilmproductionproject]
5"Above-the-lineindividual",anyindividualhiredorcreditedonscreenforaqualified
6motionmediaproductionprojectasanytypeofproducer,principalcastthatisata
7ScreenActorsGuildschedulefandabovepaymentrate,screenwriter,anddirector;
8 (2)"Qualified[film] motionmediaproductionproject",anyfilm[, video,
9commercial,ortelevisionproduction] orseriesproduction,includingvideos,
10commercials,videogames,webisodes,musicvideos,content-basedmobile
11applications,virtualreality,augmentedreality,multimedia,andnewmedia,aswellas
12stand-alonevisualeffectsandpostproductionforsuchmotionmediaproductionproject,
13asapprovedbythedepartmentofeconomicdevelopmentandtheofficeoftheMissourifilm
14commission,thatfeaturesastatementandlogodesignatedbythedepartmentof
15economicdevelopmentinthecreditsofthecompletedproductionindicatingthatthe
16projectwasfilmedinMissouriandthatisunderthirtyminutesinlengthwith[an]expected
17[in-stateexpenditurebudget] qualifyingexpensesinexcessoffiftythousanddollars[,] or
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18[that] isoverthirtyminutesinlengthwith[an]expected[in-stateexpenditurebudget]
19qualifyingexpensesinexcessofonehundredthousanddollars.Regardlessoftheproduction
20costs,"qualified[filmproduction] motionmediaproject"shallnotincludeany:
21 (a)Newsorcurrenteventsprogramming;
22 (b)Talkshow;
23 (c)Productionproducedprimarilyforindustrial,corporate,orinstitutionalpurposes,
24andforinternaluse;
25 (d)Sportseventorsportsprogram;
26 (e)Galapresentationorawardsshow;
27 (f)Infomercialoranyproductionthatdirectlysolicitsfunds;
28 (g)Politicalad;
29 (h)Productionthatisconsideredobscene,asdefinedinsection573.010;
30 (3)"Qualifyingexpenses",thesumofthetotalamountspentinthisstateforthe
31followingbyaproductioncompanyinconnectionwithaqualified[film] motionmedia
32productionproject:
33 (a)Goodsandservicesleasedorpurchasedbytheproductioncompany.Forgoods
34withapurchasepriceoftwenty-fivethousanddollarsormore,theamountincludedin
35qualifyingexpensesshallbethepurchasepricelessthefairmarketvalueofthegoodsatthe
36timetheproductioniscompleted;
37 (b)Compensationandwagespaidbytheproductioncompanyonwhichthe
38productioncompanyremittedwithholdingpaymentstothedepartmentofrevenueunder
39chapter143.Forpurposesofthissection,compensationandwages[shallnotincludeany
40amountspaidtoahighlycompensatedindividual] paidtoallabove-the-lineindividuals
41shallbelimitedtotwenty-fivepercentoftheoverallqualifyingexpenses;
42 (4)"Taxcredit",acreditagainstthetaxotherwisedueunderchapter143,excluding
43withholdingtaximposedbysections143.191to143.265,orotherwisedueunderchapter148;
44 (5)"Taxpayer",anyindividual,partnership,orcorporationasdescribedinsection
45143.441,143.471,orsection148.370thatissubjecttothetaximposedinchapter143,
46excludingwithholdingtaximposedbysections143.191to143.265,orthetaximposedin
47chapter148oranycharitableorganizationwhichisexemptfromfederalincometaxand
48whoseMissouriunrelatedbusinesstaxableincome,ifany,wouldbesubjecttothestate
49incometaximposedunderchapter143.
50 [2.ForalltaxableyearsbeginningonorafterJanuary1,1999,butendingonor
51beforeDecember31,2007,ataxpayershallbegrantedataxcreditforuptofiftypercentof
52theamountofinvestmentinproductionorproduction-relatedactivitiesinanyfilmproduction
53projectwithanexpectedin-stateexpenditurebudgetinexcessofthreehundredthousand
54dollars.ForalltaxableyearsbeginningonorafterJanuary1,2008,ataxpayershallbe
HB2106 2 55allowedataxcreditforuptothirty-fivepercentoftheamountofqualifyingexpensesina
56qualifiedfilmproductionproject.Eachfilmproductioncompanyshallbelimitedtoone
57qualifiedfilmproductionprojectperyear.]
58 3.(1)ForalltaxyearsbeginningonorafterJanuary1,2022,ataxpayershallbe
59allowedataxcreditequaltotwentypercentofqualifyingexpenses.
60 (2)Anadditionalfivepercentmaybeearnedforqualifyingexpensesifatleast
61fiftypercentofthequalifiedmotionmediaproductionprojectisfilmedinMissouri.
62 (3)Anadditionalfivepercentmaybeearnedforqualifyingexpensesifatleast
63fifteenpercentofthequalifiedmotionmediaproductionprojectthatisfilmedin
64MissouritakesplaceinaruralorblightedareainMissouri.
65 (4)Anadditionalfivepercentmaybeearnedforqualifyingexpensesifatleast
66threedepartmentsofthequalifiedmotionmediaproductionhireaMissouriresident
67readytoadvancetothenextlevelinaspecializedcraftpositionorlearnanewskillset.
68 (5)Anadditionalfivepercentmaybeearnedforqualifyingexpensesifthe
69departmentofeconomicdevelopmentdeterminesthatthescriptofthequalifiedmotion
70mediaproductionprojectpositivelymarketsacityorregionofthestate,theentirestate,
71oratouristattractionlocatedinthestate,andthequalifiedmotionmediaproduction
72providesnolessthanfivehighresolutionphotographscontainingcast,withtherights
73clearedforpromotionalusebytheMissourifilmcommission,accompaniedbyalist
74withthetitleofproduction,location,namesandtitlesoftheindividualsshowninthe
75photographs,andphotographercredit.
76 (6)Thetotaldollaramountoftaxcreditsauthorizedpursuanttosubdivision(1)
77ofthissubsectionshallbeincreasedbytenpercentforqualifiedfilmproductionprojects
78locatedinacountyofthesecond,third,orfourthclass.
79 (7)Activitiesqualifyingataxpayerforthetaxcreditpursuanttothissubsectionshall
80beapprovedbytheofficeoftheMissourifilmcommissionandthedepartmentofeconomic
81development.
82 4.Aqualifiedmotionmediaproductionprojectshallnotbeeligiblefortax
83creditspursuanttothissectionunlesssuchprojectemploysthefollowingnumberof
84MissouriregisteredapprenticesorveteransresidinginMissouriwithtransferable
85skills:
86 (1)Ifthequalifyingexpensesarelessthanfivemilliondollars,two;
87 (2)Ifthequalifyingexpensesareatleastfivemilliondollarsbutlessthanten
88milliondollars,three;
89 (3)Ifthequalifyingexpensesareatleasttenmilliondollarsbutlessthanfifteen
90milliondollars,six;or
91 (4)Ifthequalifyingexpensesareatleastfifteenmilliondollars,eight.
HB2106 3 92 [3.]5.Taxpayersshallapplyforthe[film] motionmediaproductiontaxcreditby
93submittinganapplicationtothedepartmentofeconomicdevelopment,onaformprovidedby
94thedepartment.Aspartoftheapplication,theexpected[in-stateexpenditures] qualifying
95expensesofthequalified[film] motionmediaproductionprojectshallbedocumented.In
96addition,theapplicationshallincludeaneconomicimpactstatement,showingtheeconomic
97impactfromtheactivitiesofthe[film] qualifiedmotionmediaproductionproject.Such
98economicimpactstatementshallindicatetheimpactontheregionofthestateinwhichthe
99[film] qualifiedmotionmediaproductionorproduction-relatedactivitiesarelocatedandon
100thestateasawhole.Finalapplicationsshallbeaccompaniedbyareportbyacertified
101publicaccountantlocatedandlicensedbythestateofMissouri,preparedattheexpense
102oftheapplicant,attestingthattheamountsinthefinalapplicationarequalifying
103expenses.
104 [4.ForalltaxableyearsendingonorbeforeDecember31,2007,taxcreditscertified
105pursuanttosubsection2ofthissectionshallnotexceedonemilliondollarspertaxpayerper
106year,andshallnotexceedatotalforalltaxcreditscertifiedofonemillionfivehundred
107thousanddollarsperyear.]6.Forall[taxable] taxyearsbeginningonorafterJanuary1,
108[2008] 2022, thetotalamountoftaxcredits[certifiedundersubsection1of]authorizedby
109thissectionforfilmproductionshallnotexceedatotal[foralltaxcreditscertified] of[four]
110eightmillion[fivehundredthousand] dollarsperyear,andthetotalamountofalltax
111creditsauthorizedbythissectionforseriesproductionshallnotexceedatotalofeight
112milliondollarsperyear. Taxpayersmaycarryforwardunusedcreditsforuptofivetax
113periods,providedallsuchcreditsshallbeclaimedwithintentaxperiodsfollowingthetax
114periodinwhichthe[film] qualifiedmotionmediaproductionorproduction-relatedactivities
115forwhichthecreditsarecertifiedbythedepartmentoccurred.
116 [5.]7.Notwithstandinganyprovisionoflawtothecontrary,anytaxpayermaysell,
117assign,exchange,conveyorotherwisetransfertaxcreditsallowedinsubsection[2]3ofthis
118section.Thetaxpayeracquiringthetaxcreditsmayusetheacquiredcreditstooffsetthetax
119liabilitiesotherwiseimposedbychapter143,excludingwithholdingtaximposedbysections
120143.191to143.265,orchapter148.Unusedacquiredcreditsmaybecarriedforwardforupto
121fivetaxperiods,providedallsuchcreditsshallbeclaimedwithintentaxperiodsfollowing
122thetaxperiodinwhichthe[film] qualifiedmotionmediaproductionorproduction-related
123activitiesforwhichthecreditsarecertifiedbythedepartmentoccurred.
124 [6.]8.Undersection23.253oftheMissourisunsetact:
125 (1)Theprovisionsofthe[new] programauthorizedunderthissectionshall
126automaticallysunset[sixyearsafterNovember28,2007] onDecember31,2030, unless
127reauthorizedbyanactofthegeneralassembly;and
HB2106 4 128 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissectionshall
129automaticallysunsetonDecemberthirty-first,twelveyearsaftertheeffectivedateofthe
130reauthorizationofthissection;and
131 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryearimmediately
132followingthecalendaryearinwhichtheprogramauthorizedunderthissectionissunset; and
133 (4)Theprovisionsofthissubsectionshallnotbeconstruedtolimitorinanyway
134impairthedepartment'sabilitytoredeemtaxcreditsauthorizedonorbeforethedate
135theprogramauthorizedpursuanttothissectionexpiresorataxpayer'sabilityto
136redeemsuchtaxcredits.
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HB2106 5