SECONDREGULARSESSION
HOUSEBILLNO.2558
101STGENERALASSEMBLY
INTRODUCEDBYREPRESENTATIVEMOSLEY.
5219H.01I DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection135.750,RSMo,andtoenactinlieuthereofonenewsectionrelatingtotax
creditsforqualifiedfilmprojects.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section135.750,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection135.750,toreadasfollows:
135.750.1.Thisactshallbereferredtoasthe"ShowMissouriFilmandDigital
2MediaAct".
3 2.Asusedinthissection,thefollowingtermsmean:
4 (1)"Highlycompensatedindividual",anyindividualwhoreceivescompensationin
5excessof[onemillion] twohundredfiftythousanddollarsinconnectionwithasingle
6qualifiedfilmproductionproject;
7 (2)"Qualifiedfilmproductionproject",anyfilm,video,commercial,ortelevision
8production,asapprovedbythedepartmentofeconomicdevelopmentandtheofficeofthe
9Missourifilmcommission,thatfeaturesastatementorlogodesignatedbythe
10departmentofeconomicdevelopmentinthecreditsofthefilmindicatingthatthe
11projectwasfilmedinMissouriandthatisunderthirtyminutesinlengthwithanexpected
12in-stateexpenditurebudgetinexcessoffiftythousanddollars[,] or[that] isoverthirty
13minutesinlengthwithanexpectedin-stateexpenditurebudgetinexcessofonehundred
14thousanddollars.Regardlessoftheproductioncosts,"qualifiedfilmproductionproject"shall
15notincludeany:
16 (a)Newsorcurrenteventsprogramming;
17 (b)Talkshow;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 (c)Productionproducedprimarilyforindustrial,corporate,orinstitutionalpurposes,
19andforinternaluse;
20 (d)Sportseventorsportsprogram;
21 (e)Galapresentationorawardsshow;
22 (f)Infomercialoranyproductionthatdirectlysolicitsfunds;
23 (g)Politicalad;
24 (h)Productionthatisconsideredobscene,asdefinedinsection573.010;
25 (3)"Qualifyingin-stateexpenses",thesumofthetotalamountspentinthisstatefor
26thefollowingbyaproductioncompanyinconnectionwithaqualifiedfilmproduction
27project:
28 (a)Goodsandservicesleasedorpurchasedbytheproductioncompany.Forgoods
29withapurchasepriceoftwenty-fivethousanddollarsormore,theamountincludedin
30qualifyingin-stateexpensesshallbethepurchasepricelessthefairmarketvalueofthegoods
31atthetimetheproductioniscompleted;
32 (b)CompensationandwagespaidbytheproductioncompanytoMissouriresidents
33onwhichtheproductioncompanyremittedwithholdingpaymentstothedepartmentof
34revenueunderchapter143.Forpurposesofthissection,compensationandwagesshallnot
35includeanyamountspaidtoahighlycompensatedindividual;
36 (4)"Qualifyingout-of-stateexpenses",thesumofallcompensationandwages
37paidbytheproductioncompanytonon-Missouriresidentsonwhichtheproduction
38companyremittedwithholdingpaymentstothedepartmentofrevenueunderchapter
39143.Forpurposesofthissection,compensationandwagesshallnotincludeany
40amountspaidtoahighlycompensatedindividual;
41 (5)"Taxcredit",acreditagainstthetaxotherwisedueunderchapter143,excluding
42withholdingtaximposedbysections143.191to143.265,orotherwisedueunderchapter148;
43 [(5)](6)"Taxpayer",anyindividual,partnership,orcorporationasdescribedin
44section143.441,143.471,orsection148.370thatissubjecttothetaximposedinchapter143,
45excludingwithholdingtaximposedbysections143.191to143.265,orthetaximposedin
46chapter148oranycharitableorganizationwhichisexemptfromfederalincometaxand
47whoseMissouriunrelatedbusinesstaxableincome,ifany,wouldbesubjecttothestate
48incometaximposedunderchapter143.
49 [2.]3.(1)Forall[taxable] taxyearsbeginningonorafterJanuary1,1999,but
50endingonorbeforeDecember31,2007,ataxpayershallbegrantedataxcreditforuptofifty
51percentoftheamountofinvestmentinproductionorproduction-relatedactivitiesinanyfilm
52productionprojectwithanexpectedin-stateexpenditurebudgetinexcessofthreehundred
53thousanddollars.
HB2558 2 54 (2)Forall[taxable] taxyearsbeginningonorafterJanuary1,2008,butendingon
55orbeforeNovember28,2013,ataxpayershallbeallowedataxcreditforuptothirty-five
56percentoftheamountofqualifyingexpensesinaqualifiedfilmproductionproject.
57 (3)ForalltaxyearsbeginningonorafterJanuary1,2022,ataxpayershallbe
58allowedataxcreditequaltotwenty-fivepercentofqualifyingin-stateexpensesandten
59percentofqualifyingout-of-stateexpenses.Anadditionalfivepercentmaybeearned
60forbothqualifyingin-stateexpensesandqualifyingout-of-stateexpensesifatleastfifty
61percentofthequalifiedfilmproductionprojectisfilmedinMissouri.Anadditionalfive
62percentmaybeearnedforbothqualifyingin-stateexpensesandqualifyingout-of-state
63expensesifthedepartmentofeconomicdevelopmentdeterminesthatthescriptofthe
64qualifiedfilmproductionprojectpositivelymarketsacityorregionofthestate,the
65entirestate,oratouristattractionlocatedinthestate. Eachfilmproductioncompany
66shallbelimitedtoonequalifiedfilmproductionprojectperyear.Activitiesqualifyinga
67taxpayerforthetaxcreditpursuanttothissubsectionshallbeapprovedbytheofficeofthe
68Missourifilmcommissionandthedepartmentofeconomicdevelopment.
69 [3.]4.Taxpayersshallapplyforthefilmproductiontaxcreditbysubmittingan
70applicationtothedepartmentofeconomicdevelopment,onaformprovidedbythe
71department.Aspartoftheapplication,theexpectedin-stateexpendituresofthequalified
72filmproductionprojectshallbedocumented.Inaddition,theapplicationshallincludean
73economicimpactstatement,showingtheeconomicimpactfromtheactivitiesofthefilm
74productionproject.Sucheconomicimpactstatementshallindicatetheimpactontheregion
75ofthestateinwhichthefilmproductionorproduction-relatedactivitiesarelocatedandonthe
76stateasawhole.
77 [4.]5.Forall[taxable] taxyearsendingonorbeforeDecember31,2007,taxcredits
78certifiedpursuanttosubsection[2]3ofthissectionshallnotexceedonemilliondollarsper
79taxpayerperyear,andshallnotexceedatotalforalltaxcreditscertifiedofonemillionfive
80hundredthousanddollarsperyear.Forall[taxable] taxyearsbeginningonorafterJanuary1,
812008,taxcreditscertifiedundersubsection1ofthissectionshallnotexceedatotalforalltax
82creditscertifiedoffourmillionfivehundredthousanddollarsperyear.Taxpayersmaycarry
83forwardunusedcreditsforuptofivetaxperiods,providedallsuchcreditsshallbeclaimed
84withintentaxperiodsfollowingthetaxperiodinwhichthefilmproductionorproduction-
85relatedactivitiesforwhichthecreditsarecertifiedbythedepartmentoccurred.
86 [5.]6.Notwithstandinganyprovisionoflawtothecontrary,anytaxpayermaysell,
87assign,exchange,conveyorotherwisetransfertaxcreditsallowedinsubsection[2]3ofthis
88section.Thetaxpayeracquiringthetaxcreditsmayusetheacquiredcreditstooffsetthetax
89liabilitiesotherwiseimposedbychapter143,excludingwithholdingtaximposedbysections
90143.191to143.265,orchapter148.Unusedacquiredcreditsmaybecarriedforwardforupto
HB2558 3 91fivetaxperiods,providedallsuchcreditsshallbeclaimedwithintentaxperiodsfollowing
92thetaxperiodinwhichthefilmproductionorproduction-relatedactivitiesforwhichthe
93creditsarecertifiedbythedepartmentoccurred.
94 [6.]7.Undersection23.253oftheMissourisunsetact:
95 (1)Theprovisionsofthe[new] programauthorizedunderthissectionshall
96automaticallysunset[sixyearsafterNovember28,2007] onDecember31,2028, unless
97reauthorizedbyanactofthegeneralassembly;and
98 (2)Ifsuchprogramisreauthorized,theprogramauthorizedunderthissectionshall
99automaticallysunsetonDecemberthirty-firsttwelveyearsaftertheeffectivedateofthe
100reauthorizationofthissection;and
101 (3)ThissectionshallterminateonSeptemberfirstofthecalendaryearimmediately
102followingthecalendaryearinwhichtheprogramauthorizedunderthissectionissunset.
âś”
HB2558 4