| 1 | 1 | | MISSISSIPPI LEGISLATURE 2025 Regular Session To: Ways and Means By: Representative Harness House Bill 1222 AN ACT TO AMEND SECTION 57-89-7, MISSISSIPPI CODE OF 1972, TO REVISE THE MISSISSIPPI MOTION PICTURE INCENTIVE ACT BY INCREASING THE REBATE PERCENTAGES ON THE BASE INVESTMENT MADE BY A MOTION PICTURE PRODUCTION COMPANY FROM 25% TO 40%; TO PROVIDE AND ADDITIONAL 10% REBATE FOR PRODUCTIONS WHICH FEATURE MISSISSIPPI'S CULTURAL, HISTORICAL AND NATURAL LANDMARKS, AND IDENTIFYING WHICH SUCH FEATURES SHALL BE GIVEN PRIORITY FOR SAID ADDITIONAL REBATE; TO DEFINE "ELIGIBLE EXPENDITURES"; TO REMOVE THE ANNUAL CAPS ON REBATES FOR INDIVIDUAL PRODUCTIONS AND AGGREGATE YEARLY DISBURSEMENTS; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. Section 57-89-7, Mississippi Code of 1972, is amended as follows: 57-89-7. (1) (a) A motion picture production company that expends at least Fifty Thousand Dollars ($50,000.00) in base investment, payroll and/or fringes, and eligible expenditures in the state shall be entitled to a rebate of a portion of the base investment made by the motion picture production company. Subject to the provisions of this section, the amount of the rebate shall be equal to * * *twenty‑five percent (25%) forty percent (40%) of the base investment made by the motion picture production company. (b) In addition to the rebates authorized under paragraphs (a), (c) and (d) of this subsection, a motion picture production company may receive a rebate equal to twenty-five percent (25%) of payroll and fringes paid for any employee who is not a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968. However, if the payroll and fringes paid for an employee exceeds Five Million Dollars ($5,000,000.00), then the rebate is authorized only for the first Five Million Dollars ($5,000,000.00) of such payroll and fringes. (c) In addition to the rebates authorized under paragraphs (a), (b) and (d) of this subsection, a motion picture production company may receive a rebate equal to thirty percent (30%) of payroll and fringes paid for any employee who is a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968. However, if the payroll and fringes paid for an employee exceeds Five Million Dollars ($5,000,000.00), then the rebate is authorized only for the first Five Million Dollars ($5,000,000.00) of such payroll and fringes. (d) In addition to the rebates authorized in paragraphs (a), (b) and (c) of this subsection, a motion picture production company may receive an additional rebate equal to five percent (5%) of the payroll and fringes paid for any employee who is an honorably discharged veteran of the United States Armed Forces and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968. (e) In addition to the rebates authorized in paragraphs (a), (b), (c) and (d) of this subsection, a motion picture production company whose production primarily features Mississippi's cultural, historical or natural landmarks, shall be entitled to an additional rebate equal to ten percent (10%) of the base investment made by the motion picture production company, provided that such cultural, historical or natural landmarks: (i) Include, but not be limited to, Civil Rights' history, the origins of Blues and Country Music, or the Mississippi River; or (ii) Are set in iconic locations within the state, with priority given to the City of Vicksburg, City of Natchez and regions within the Mississippi Delta. ( * * *ef) Base investment, payroll and/or fringes for which a rebate may be requested under this section: (i) may not be used or included for the purpose of satisfying any minimum investment required in order to be eligible for a rebate under Section 57-89-51 and (ii) may not be used for and shall not be eligible for any rebate authorized under Section 57-89-51. ( * * *fg) If a motion picture has physical production activities and/or post-production activities both inside and outside the state, then the motion picture production company shall be required to provide an itemized accounting for each employee regarding such activities inside and outside the state for the purposes of proration of eligible payroll based on the percentage of activities performed in the state. * * *(g) The total amount of rebates authorized for a motion picture project shall not exceed Ten Million Dollars ($10,000,000.00) in the aggregate. * * *(h) The total amount of rebates authorized in any fiscal year shall not exceed Twenty Million Dollars ($20,000,000.00) in the aggregate. For purposes of this subsection, the term "eligible expenditures" include, but are not limited to, in-state labor under paragraph (c), equipment rentals, lodging accommodations, catering and local transportation or fleet services. (2) A motion picture production company desiring a rebate under this section must submit a rebate request to the Department of Revenue upon completion of the project. The request must include a detailed accounting of the base investment made by the motion picture production company and any other information required by the Department of Revenue. Rebates made by the Department of Revenue under this section shall be made from current income tax collections. The Department of Revenue shall not approve any application for a rebate under subsection (1)(b) of this section after July 1, 2017. (3) The Department of Revenue shall have all powers necessary to implement and administer the provisions of this section, and the Department of Revenue shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section. (4) The State Auditor may conduct performance and compliance audits under this article according to Section 7-7-211(o) and may bill the oversight agency. SECTION 2. This act shall take effect and be in force from and after July 1, 2025. |
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| 2 | 2 | | |
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| 3 | 3 | | MISSISSIPPI LEGISLATURE |
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| 4 | 4 | | |
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| 5 | 5 | | 2025 Regular Session |
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| 6 | 6 | | |
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| 7 | 7 | | To: Ways and Means |
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| 8 | 8 | | |
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| 9 | 9 | | By: Representative Harness |
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| 10 | 10 | | |
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| 11 | 11 | | # House Bill 1222 |
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| 12 | 12 | | |
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| 13 | 13 | | AN ACT TO AMEND SECTION 57-89-7, MISSISSIPPI CODE OF 1972, TO REVISE THE MISSISSIPPI MOTION PICTURE INCENTIVE ACT BY INCREASING THE REBATE PERCENTAGES ON THE BASE INVESTMENT MADE BY A MOTION PICTURE PRODUCTION COMPANY FROM 25% TO 40%; TO PROVIDE AND ADDITIONAL 10% REBATE FOR PRODUCTIONS WHICH FEATURE MISSISSIPPI'S CULTURAL, HISTORICAL AND NATURAL LANDMARKS, AND IDENTIFYING WHICH SUCH FEATURES SHALL BE GIVEN PRIORITY FOR SAID ADDITIONAL REBATE; TO DEFINE "ELIGIBLE EXPENDITURES"; TO REMOVE THE ANNUAL CAPS ON REBATES FOR INDIVIDUAL PRODUCTIONS AND AGGREGATE YEARLY DISBURSEMENTS; AND FOR RELATED PURPOSES. |
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| 14 | 14 | | |
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| 15 | 15 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: |
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| 16 | 16 | | |
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| 17 | 17 | | SECTION 1. Section 57-89-7, Mississippi Code of 1972, is amended as follows: |
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| 18 | 18 | | |
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| 19 | 19 | | 57-89-7. (1) (a) A motion picture production company that expends at least Fifty Thousand Dollars ($50,000.00) in base investment, payroll and/or fringes, and eligible expenditures in the state shall be entitled to a rebate of a portion of the base investment made by the motion picture production company. Subject to the provisions of this section, the amount of the rebate shall be equal to * * *twenty‑five percent (25%) forty percent (40%) of the base investment made by the motion picture production company. |
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| 20 | 20 | | |
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| 21 | 21 | | (b) In addition to the rebates authorized under paragraphs (a), (c) and (d) of this subsection, a motion picture production company may receive a rebate equal to twenty-five percent (25%) of payroll and fringes paid for any employee who is not a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968. However, if the payroll and fringes paid for an employee exceeds Five Million Dollars ($5,000,000.00), then the rebate is authorized only for the first Five Million Dollars ($5,000,000.00) of such payroll and fringes. |
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| 22 | 22 | | |
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| 23 | 23 | | (c) In addition to the rebates authorized under paragraphs (a), (b) and (d) of this subsection, a motion picture production company may receive a rebate equal to thirty percent (30%) of payroll and fringes paid for any employee who is a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968. However, if the payroll and fringes paid for an employee exceeds Five Million Dollars ($5,000,000.00), then the rebate is authorized only for the first Five Million Dollars ($5,000,000.00) of such payroll and fringes. |
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| 24 | 24 | | |
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| 25 | 25 | | (d) In addition to the rebates authorized in paragraphs (a), (b) and (c) of this subsection, a motion picture production company may receive an additional rebate equal to five percent (5%) of the payroll and fringes paid for any employee who is an honorably discharged veteran of the United States Armed Forces and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968. |
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| 26 | 26 | | |
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| 27 | 27 | | (e) In addition to the rebates authorized in paragraphs (a), (b), (c) and (d) of this subsection, a motion picture production company whose production primarily features Mississippi's cultural, historical or natural landmarks, shall be entitled to an additional rebate equal to ten percent (10%) of the base investment made by the motion picture production company, provided that such cultural, historical or natural landmarks: |
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| 28 | 28 | | |
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| 29 | 29 | | (i) Include, but not be limited to, Civil Rights' history, the origins of Blues and Country Music, or the Mississippi River; or |
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| 30 | 30 | | |
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| 31 | 31 | | (ii) Are set in iconic locations within the state, with priority given to the City of Vicksburg, City of Natchez and regions within the Mississippi Delta. |
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| 32 | 32 | | |
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| 33 | 33 | | ( * * *ef) Base investment, payroll and/or fringes for which a rebate may be requested under this section: (i) may not be used or included for the purpose of satisfying any minimum investment required in order to be eligible for a rebate under Section 57-89-51 and (ii) may not be used for and shall not be eligible for any rebate authorized under Section 57-89-51. |
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| 34 | 34 | | |
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| 35 | 35 | | ( * * *fg) If a motion picture has physical production activities and/or post-production activities both inside and outside the state, then the motion picture production company shall be required to provide an itemized accounting for each employee regarding such activities inside and outside the state for the purposes of proration of eligible payroll based on the percentage of activities performed in the state. |
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| 36 | 36 | | |
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| 37 | 37 | | * * *(g) The total amount of rebates authorized for a motion picture project shall not exceed Ten Million Dollars ($10,000,000.00) in the aggregate. |
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| 38 | 38 | | |
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| 39 | 39 | | * * *(h) The total amount of rebates authorized in any fiscal year shall not exceed Twenty Million Dollars ($20,000,000.00) in the aggregate. For purposes of this subsection, the term "eligible expenditures" include, but are not limited to, in-state labor under paragraph (c), equipment rentals, lodging accommodations, catering and local transportation or fleet services. |
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| 40 | 40 | | |
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| 41 | 41 | | (2) A motion picture production company desiring a rebate under this section must submit a rebate request to the Department of Revenue upon completion of the project. The request must include a detailed accounting of the base investment made by the motion picture production company and any other information required by the Department of Revenue. Rebates made by the Department of Revenue under this section shall be made from current income tax collections. The Department of Revenue shall not approve any application for a rebate under subsection (1)(b) of this section after July 1, 2017. |
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| 42 | 42 | | |
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| 43 | 43 | | (3) The Department of Revenue shall have all powers necessary to implement and administer the provisions of this section, and the Department of Revenue shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section. |
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| 44 | 44 | | |
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| 45 | 45 | | (4) The State Auditor may conduct performance and compliance audits under this article according to Section 7-7-211(o) and may bill the oversight agency. |
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| 46 | 46 | | |
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| 47 | 47 | | SECTION 2. This act shall take effect and be in force from and after July 1, 2025. |
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