| 1 | 1 | | SECONDREGULARSESSION |
|---|
| 2 | 2 | | HOUSEBILLNO.2473 |
|---|
| 3 | 3 | | 101STGENERALASSEMBLY |
|---|
| 4 | 4 | | INTRODUCEDBYREPRESENTATIVEAPPELBAUM. |
|---|
| 5 | 5 | | 5208H.01I DANARADEMANMILLER,ChiefClerk |
|---|
| 6 | 6 | | ANACT |
|---|
| 7 | 7 | | Torepealsection135.750,RSMo,andtoenactinlieuthereofonenewsectionrelatingtotax |
|---|
| 8 | 8 | | creditsforqualifiedmotionmediaprojects. |
|---|
| 9 | 9 | | BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: |
|---|
| 10 | 10 | | SectionA.Section135.750,RSMo,isrepealedandonenewsectionenactedinlieu |
|---|
| 11 | 11 | | 2thereof,tobeknownassection135.750,toreadasfollows: |
|---|
| 12 | 12 | | 135.750.1.Thissectionshallbereferredtoasthe"ShowMOAct". |
|---|
| 13 | 13 | | 2 2.Asusedinthissection,thefollowingtermsmean: |
|---|
| 14 | 14 | | 3 (1)["Highlycompensatedindividual",anyindividualwhoreceivescompensationin |
|---|
| 15 | 15 | | 4excessofonemilliondollarsinconnectionwithasinglequalifiedfilmproductionproject] |
|---|
| 16 | 16 | | 5"Above-the-lineindividual",anyindividualhiredorcreditedon-screenforaqualified |
|---|
| 17 | 17 | | 6motionmediaproductionprojectasanytypeofproducer,principalcastataScreen |
|---|
| 18 | 18 | | 7ActorsGuildScheduleForabovepaymentrate,screenwriter,orthedirector; |
|---|
| 19 | 19 | | 8 (2)"Qualified[film] motionmediaproductionproject",anyfilm[, video, |
|---|
| 20 | 20 | | 9commercial,ortelevisionproduction] orseriesproduction,includingvideos, |
|---|
| 21 | 21 | | 10commercials,videogames,webisodes,musicvideos,content-basedmobile |
|---|
| 22 | 22 | | 11applications,virtualreality,augmentedreality,multimedia,andnewmedia,aswellas |
|---|
| 23 | 23 | | 12standalonevisualeffectsandpostproductionforsuchmotionmediaproductionproject, |
|---|
| 24 | 24 | | 13asapprovedbythedepartmentofeconomicdevelopmentandtheofficeoftheMissourifilm |
|---|
| 25 | 25 | | 14commission,thatfeaturesastatementandlogodesignatedbythedepartmentof |
|---|
| 26 | 26 | | 15economicdevelopmentinthecreditsofthecompletedproductionindicatingthatthe |
|---|
| 27 | 27 | | 16projectwasfilmedinMissouriandthatisunderthirtyminutesinlengthwith[an]expected |
|---|
| 28 | 28 | | 17[in-stateexpenditurebudget] qualifyingexpensesinexcessoffiftythousanddollars[,] or |
|---|
| 29 | 29 | | EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis |
|---|
| 30 | 30 | | intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18[that] isoverthirtyminutesinlengthwith[an]expected[in-stateexpenditurebudget] |
|---|
| 31 | 31 | | 19qualifyingexpensesinexcessofonehundredthousanddollars.Regardlessoftheproduction |
|---|
| 32 | 32 | | 20costs,"qualified[filmproduction] motionmediaproject"shallnotincludeany: |
|---|
| 33 | 33 | | 21 (a)Newsorcurrenteventsprogramming; |
|---|
| 34 | 34 | | 22 (b)Talkshow; |
|---|
| 35 | 35 | | 23 (c)Productionproducedprimarilyforindustrial,corporate,orinstitutionalpurposes, |
|---|
| 36 | 36 | | 24andforinternaluse; |
|---|
| 37 | 37 | | 25 (d)Sportseventorsportsprogram; |
|---|
| 38 | 38 | | 26 (e)Galapresentationorawardsshow; |
|---|
| 39 | 39 | | 27 (f)Infomercialoranyproductionthatdirectlysolicitsfunds; |
|---|
| 40 | 40 | | 28 (g)Politicalad; |
|---|
| 41 | 41 | | 29 (h)Productionthatisconsideredobscene,asdefinedinsection573.010; |
|---|
| 42 | 42 | | 30 (3)"Qualifyingexpenses",thesumofthetotalamountspentinthisstateforthe |
|---|
| 43 | 43 | | 31followingbyaproductioncompanyinconnectionwithaqualified[film] motionmedia |
|---|
| 44 | 44 | | 32productionproject: |
|---|
| 45 | 45 | | 33 (a)Goodsandservicesleasedorpurchasedbytheproductioncompany.Forgoods |
|---|
| 46 | 46 | | 34withapurchasepriceoftwenty-fivethousanddollarsormore,theamountincludedin |
|---|
| 47 | 47 | | 35qualifyingexpensesshallbethepurchasepricelessthefairmarketvalueofthegoodsatthe |
|---|
| 48 | 48 | | 36timetheproductioniscompleted; |
|---|
| 49 | 49 | | 37 (b)Compensationandwagespaidbytheproductioncompanyonwhichthe |
|---|
| 50 | 50 | | 38productioncompanyremittedwithholdingpaymentstothedepartmentofrevenueunder |
|---|
| 51 | 51 | | 39chapter143.Forpurposesofthissection,compensationandwages[shallnotincludeany |
|---|
| 52 | 52 | | 40amountspaidtoahighlycompensatedindividual] paidtoallabove-the-lineindividuals |
|---|
| 53 | 53 | | 41shallbelimitedtotwenty-fivepercentoftheoverallqualifyingexpenses; |
|---|
| 54 | 54 | | 42 (4)"Taxcredit",acreditagainstthetaxotherwisedueunderchapter143,excluding |
|---|
| 55 | 55 | | 43withholdingtaximposedbysections143.191to143.265,orotherwisedueunderchapter148; |
|---|
| 56 | 56 | | 44 (5)"Taxpayer",anyindividual,partnership,orcorporationasdescribedinsection |
|---|
| 57 | 57 | | 45143.441,143.471,orsection148.370thatissubjecttothetaximposedinchapter143, |
|---|
| 58 | 58 | | 46excludingwithholdingtaximposedbysections143.191to143.265,orthetaximposedin |
|---|
| 59 | 59 | | 47chapter148oranycharitableorganizationwhichisexemptfromfederalincometaxand |
|---|
| 60 | 60 | | 48whoseMissouriunrelatedbusinesstaxableincome,ifany,wouldbesubjecttothestate |
|---|
| 61 | 61 | | 49incometaximposedunderchapter143. |
|---|
| 62 | 62 | | 50 [2.ForalltaxableyearsbeginningonorafterJanuary1,1999,butendingonor |
|---|
| 63 | 63 | | 51beforeDecember31,2007,ataxpayershallbegrantedataxcreditforuptofiftypercentof |
|---|
| 64 | 64 | | 52theamountofinvestmentinproductionorproduction-relatedactivitiesinanyfilmproduction |
|---|
| 65 | 65 | | 53projectwithanexpectedin-stateexpenditurebudgetinexcessofthreehundredthousand |
|---|
| 66 | 66 | | 54dollars.ForalltaxableyearsbeginningonorafterJanuary1,2008,ataxpayershallbe |
|---|
| 67 | 67 | | HB2473 2 55allowedataxcreditforuptothirty-fivepercentoftheamountofqualifyingexpensesina |
|---|
| 68 | 68 | | 56qualifiedfilmproductionproject.Eachfilmproductioncompanyshallbelimitedtoone |
|---|
| 69 | 69 | | 57qualifiedfilmproductionprojectperyear.] |
|---|
| 70 | 70 | | 58 3.(1)ForalltaxyearsbeginningonorafterJanuary1,2022,ataxpayershallbe |
|---|
| 71 | 71 | | 59allowedataxcreditequaltotwentypercentofqualifyingexpenses. |
|---|
| 72 | 72 | | 60 (2)Anadditionalfivepercentmaybeearnedforqualifyingexpensesifatleast |
|---|
| 73 | 73 | | 61fiftypercentofthequalifiedmotionmediaproductionprojectisfilmedinMissouri. |
|---|
| 74 | 74 | | 62 (3)Anadditionalfivepercentmaybeearnedforqualifyingexpensesifatleast |
|---|
| 75 | 75 | | 63fifteenpercentofthequalifiedmotionmediaproductionprojectthatisfilmedin |
|---|
| 76 | 76 | | 64MissouritakesplaceinaruralorblightedareainMissouri. |
|---|
| 77 | 77 | | 65 (4)Anadditionalfivepercentmaybeearnedforqualifyingexpensesifatleast |
|---|
| 78 | 78 | | 66threedepartmentsofthequalifiedmotionmediaproductionhireaMissouriresident |
|---|
| 79 | 79 | | 67readytoadvancetothenextlevelinaspecializedcraftpositionorlearnanewskillset. |
|---|
| 80 | 80 | | 68 (5)Anadditionalfivepercentmaybeearnedforqualifyingexpensesifthe |
|---|
| 81 | 81 | | 69departmentofeconomicdevelopmentdeterminesthatthescriptofthequalifiedmotion |
|---|
| 82 | 82 | | 70mediaproductionprojectpositivelymarketsacityorregionofthestate,theentirestate, |
|---|
| 83 | 83 | | 71oratouristattractionlocatedinthestate,andthequalifiedmotionmediaproduction |
|---|
| 84 | 84 | | 72providesnolessthanfivehigh-resolutionphotographscontainingthecast,withthe |
|---|
| 85 | 85 | | 73rightsclearedforpromotionalusebytheMissourifilmcommission,accompaniedbya |
|---|
| 86 | 86 | | 74listwiththetitleofproduction,location,namesandtitlesoftheindividualsshowninthe |
|---|
| 87 | 87 | | 75photographs,andphotographercredit. |
|---|
| 88 | 88 | | 76 (6)Thetotaldollaramountoftaxcreditsauthorizedundersubdivision(1)ofthis |
|---|
| 89 | 89 | | 77subsectionshallbeincreasedbytenpercentforqualifiedmotionmediaproduction |
|---|
| 90 | 90 | | 78projectslocatedinacountyofthesecond,third,orfourthclass. |
|---|
| 91 | 91 | | 79 (7)Activitiesqualifyingataxpayerforthetaxcreditpursuanttothissubsectionshall |
|---|
| 92 | 92 | | 80beapprovedbytheofficeoftheMissourifilmcommissionandthedepartmentofeconomic |
|---|
| 93 | 93 | | 81development. |
|---|
| 94 | 94 | | 82 [3.]4.Aqualifiedmotionmediaproductionprojectshallnotbeeligiblefortax |
|---|
| 95 | 95 | | 83creditspursuanttothissectionunlesssuchprojectemploysthefollowingnumberof |
|---|
| 96 | 96 | | 84MissouriregisteredapprenticesorveteransresidinginMissouriwithtransferable |
|---|
| 97 | 97 | | 85skills: |
|---|
| 98 | 98 | | 86 (1)Ifthequalifyingexpensesarelessthanfivemilliondollars,two; |
|---|
| 99 | 99 | | 87 (2)Ifthequalifyingexpensesareatleastfivemilliondollarsbutlessthanten |
|---|
| 100 | 100 | | 88milliondollars,three; |
|---|
| 101 | 101 | | 89 (3)Ifthequalifyingexpensesareatleasttenmilliondollarsbutlessthanfifteen |
|---|
| 102 | 102 | | 90milliondollars,six;or |
|---|
| 103 | 103 | | 91 (4)Ifthequalifyingexpensesareatleastfifteenmilliondollars,eight. |
|---|
| 104 | 104 | | HB2473 3 92 5.Taxpayersshallapplyforthe[film] motionmediaproductiontaxcreditby |
|---|
| 105 | 105 | | 93submittinganapplicationtothedepartmentofeconomicdevelopment,onaformprovidedby |
|---|
| 106 | 106 | | 94thedepartment.Aspartoftheapplication,theexpected[in-stateexpenditures] qualifying |
|---|
| 107 | 107 | | 95expensesofthequalified[film] motionmediaproductionprojectshallbedocumented.In |
|---|
| 108 | 108 | | 96addition,theapplicationshallincludeaneconomicimpactstatement,showingtheeconomic |
|---|
| 109 | 109 | | 97impactfromtheactivitiesofthe[film] qualifiedmotionmediaproductionproject.Such |
|---|
| 110 | 110 | | 98economicimpactstatementshallindicatetheimpactontheregionofthestateinwhichthe |
|---|
| 111 | 111 | | 99[film] qualifiedmotionmediaproductionorproduction-relatedactivitiesarelocatedandon |
|---|
| 112 | 112 | | 100thestateasawhole.Finalapplicationsshallbeaccompaniedbyareportbyacertified |
|---|
| 113 | 113 | | 101publicaccountantlocatedandlicensedbythestateofMissouri,preparedattheexpense |
|---|
| 114 | 114 | | 102oftheapplicant,attestingthattheamountsinthefinalapplicationarequalifying |
|---|
| 115 | 115 | | 103expenses. |
|---|
| 116 | 116 | | 104 [4.ForalltaxableyearsendingonorbeforeDecember31,2007,taxcreditscertified |
|---|
| 117 | 117 | | 105pursuanttosubsection2ofthissectionshallnotexceedonemilliondollarspertaxpayerper |
|---|
| 118 | 118 | | 106year,andshallnotexceedatotalforalltaxcreditscertifiedofonemillionfivehundred |
|---|
| 119 | 119 | | 107thousanddollarsperyear.]6.Forall[taxable] taxyearsbeginningonorafterJanuary1, |
|---|
| 120 | 120 | | 108[2008] 2022, thetotalamountoftaxcredits[certifiedundersubsection1of]authorizedby |
|---|
| 121 | 121 | | 109thissectionforfilmproductionshallnotexceedatotal[foralltaxcreditscertified] of[four] |
|---|
| 122 | 122 | | 110eightmillion[fivehundredthousand] dollarsperyear,andthetotalamountofalltax |
|---|
| 123 | 123 | | 111creditsauthorizedbythissectionforseriesproductionshallnotexceedatotalofeight |
|---|
| 124 | 124 | | 112milliondollarsperyear. Taxpayersmaycarryforwardunusedcreditsforuptofivetax |
|---|
| 125 | 125 | | 113periods,providedallsuchcreditsshallbeclaimedwithintentaxperiodsfollowingthetax |
|---|
| 126 | 126 | | 114periodinwhichthe[film] qualifiedmotionmediaproductionorproduction-relatedactivities |
|---|
| 127 | 127 | | 115forwhichthecreditsarecertifiedbythedepartmentoccurred. |
|---|
| 128 | 128 | | 116 [5.]7.Notwithstandinganyprovisionoflawtothecontrary,anytaxpayermaysell, |
|---|
| 129 | 129 | | 117assign,exchange,conveyorotherwisetransfertaxcreditsallowedinsubsection[2]3ofthis |
|---|
| 130 | 130 | | 118section.Thetaxpayeracquiringthetaxcreditsmayusetheacquiredcreditstooffsetthetax |
|---|
| 131 | 131 | | 119liabilitiesotherwiseimposedbychapter143,excludingwithholdingtaximposedbysections |
|---|
| 132 | 132 | | 120143.191to143.265,orchapter148.Unusedacquiredcreditsmaybecarriedforwardforupto |
|---|
| 133 | 133 | | 121fivetaxperiods,providedallsuchcreditsshallbeclaimedwithintentaxperiodsfollowing |
|---|
| 134 | 134 | | 122thetaxperiodinwhichthe[film] qualifiedmotionmediaproductionorproduction-related |
|---|
| 135 | 135 | | 123activitiesforwhichthecreditsarecertifiedbythedepartmentoccurred. |
|---|
| 136 | 136 | | 124 [6.]8.Undersection23.253oftheMissourisunsetact: |
|---|
| 137 | 137 | | 125 (1)Theprovisionsofthe[new] programauthorizedunderthissectionshall |
|---|
| 138 | 138 | | 126automaticallysunset[sixyearsafterNovember28,2007] onDecember31,2030, unless |
|---|
| 139 | 139 | | 127reauthorizedbyanactofthegeneralassembly;and |
|---|
| 140 | 140 | | HB2473 4 128 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissectionshall |
|---|
| 141 | 141 | | 129automaticallysunsetonDecemberthirty-first,twelveyearsaftertheeffectivedateofthe |
|---|
| 142 | 142 | | 130reauthorizationofthissection;and |
|---|
| 143 | 143 | | 131 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryearimmediately |
|---|
| 144 | 144 | | 132followingthecalendaryearinwhichtheprogramauthorizedunderthissectionissunset; and |
|---|
| 145 | 145 | | 133 (4)Theprovisionsofthissubsectionshallnotbeconstruedtolimitorinanyway |
|---|
| 146 | 146 | | 134impairthedepartment'sabilitytoredeemtaxcreditsauthorizedonorbeforethedate |
|---|
| 147 | 147 | | 135theprogramauthorizedpursuanttothissectionexpires,orataxpayer'sabilityto |
|---|
| 148 | 148 | | 136redeemsuchtaxcredits. |
|---|
| 149 | 149 | | âś” |
|---|
| 150 | 150 | | HB2473 5 |
|---|