HCSHB2106--SHOWMOACT
SPONSOR: Gregory(51)
COMMITTEEACTION:Voted"DoPasswithHCS"bytheSpecial
CommitteeonTourismbyavoteof9to0.
ThefollowingisasummaryoftheHouseCommitteeSubstituteforHB
2106.
Thisbillestablishesthe"ShowMOAct".
Thisbillreauthorizesataxcreditforcertainexpensesrelatedto
theproductionofqualifiedmotionmediaproductionprojects,as
definedinthebill.Taxcreditsforsuchexpensesunderprevious
lawexpiredonNovember28,2013.
ForalltaxyearsbeginningonorafterJanuary1,2023,thisbill
authorizesataxcreditequalto20%ofqualifyingexpenses,as
definedinthebill,associatedwiththeproductionofaqualified
motionmediaproductionproject. Anadditional5%maybeawarded
foreachofthefollowingconditionsiftheyaremet:
(1)Atleast50%ofthequalifiedfilmproductionprojectis
filmedinMissouri;
(2)Atleast15%oftheprojecttakesplaceinaruralorblighted
area;
(3)AtleastthreedepartmentsoftheproductionhireaMissouri
residentreadytoadvancetothenextlevelinaspecializedcraft
positionorlearnanewskillset;
(4)TheDepartmentofEconomicDevelopmentdeterminesthatthe
scriptforsuchprojectpositivelymarketsacityorregionofthe
state,theentirestate,oratouristattractionlocatedinthe
state,andtheproductionprovidescertainadvertisingmaterials,
asdescribedinthebill.
Thetotaldollaramountoftaxcreditsawardedtoaqualifiedfilm
productionprojectmaybeincreasedby10%ifsuchprojectis
locatedinacountyofthesecond,third,orfourthclass.
Aqualifiedmotionmediaproductionprojectshallnotbeeligible
fortaxcreditspursuanttothisbillunlesssuchprojectemploys
thefollowingnumberofMissouriregisteredapprenticesorveterans
residinginMissouriwithtransferableskills:
(1)Ifthequalifyingexpensesarelessthan$5million,two; (2)Ifthequalifyingexpensesareatleast$5millionbutless
than$10million,three;
(3)Ifthequalifyingexpensesareatleast$10millionbutless
than$15million,six;or
(4)Ifthequalifyingexpensesareatleast$15million,eight.
Finalapplicationsforthetaxcreditshallbeaccompaniedbya
reportbyacertifiedpublicaccountantlocatedandlicensedbythe
stateofMissouri,preparedattheexpenseoftheapplicant,
attestingthattheamountsinthefinalapplicationarequalifying
expenses.
Thetotalamountoftaxcreditsauthorizedbythisbillforfilm
productionshallnotexceed$8millionperyearandthetotal
amountoftaxcreditsforseriesproductionauthorizedbythisbill
shallnotexceed$8millionperyear.
ThisbillshallsunsetonDecember31,2030.
ThisbillissimilartoSB732(2022).
Thefollowingisasummaryofthepublictestimonyfromthe
committeehearing. Thetestimonywasbasedontheintroduced
versionofthebill.
PROPONENTS: SupporterssaythatthiswillboostMissouri'seconomy
andboosttourism. Missourihasmanydifferentlandscapesthat
filmmakerswouldlovetouse,buttheygotodifferentstates
becausetheyhavetaxcredits. Peoplelikevisitingfamousfilm
locationsandthiscouldhavealastingimpactontourism. This
billwouldalsocreatejobsforpeoplewhowanttoworkonthe
productions.
TestifyingforthebillwereRepresentative Gregory;Associated
IndustriesofMissouri;Branson/LakesAreaChamberofCommerce;
ColePayne;MichelleDavidsonBratcher;StephaneShannon;Cityof
IndependenceandSt.LouisConventionandVisitorCenter;Cityof
KansasCity;KansasCityChamberofCommerce;HallmarkCards;and
theMissouriCitizensForTheArts.
OPPONENTS: Thosewhoopposethebillsaythatweshouldnothave
anymoretaxcredits.
TestifyingagainstthebillwasArnieC.Dienoff
OTHERS:Otherstestifyingonthebillsaytherearemanydifferent kindsoftaxcreditsofferedforfilmingandproduction. Thetax
creditpercentagerange,thetypeofcredititis(refundableor
transferable,rebate,etc)andthetotalyearlycaparethemajor
factorsindeterminingwhethertheincentivesarerobustenoughto
attractanysignificantfilmandtelevisionproductiontothe
state.Missourineedstoofferacreditthatismoreenticingthan
stateswithsimilarlandscapesthatalsohavetaxcredits.
TestifyingonthebillwasSterlingRMacer.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonycanbefoundunderTestimonyonthebillpageon
theHousewebsite.