As Introduced
136th General Assembly
Regular Session S. B. No. 159
2025-2026
Senators Patton, Timken
Cosponsors: Senators Lang, O'Brien, Antonio, Smith
To amend sections 122.85, 5726.98, 5747.98, and
5751.98 and to repeal sections 122.852, 5726.59,
5747.67, and 5751.55 of the Revised Code to
modify the film and theater production tax
credit and to repeal the film and theater
capital improvement tax credit.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 122.85, 5726.98, 5747.98, and
5751.98 of the Revised Code be amended to read as follows:
Sec. 122.85. (A) As used in this section and in sections
5726.55, 5733.59, 5747.66, and 5751.54 of the Revised Code:
(1) "Tax credit-eligible production" means a motion
picture or broadway theatrical production certified by the
director of development under division (B) of this section as
qualifying the production company for a tax credit under section
5726.55, 5733.59, 5747.66, or 5751.54 of the Revised Code.
(2) "Certificate owner" means a production company to
which a tax credit certificate is issued.
(3) "Production company" means an individual, corporation,
partnership, limited liability company, or other form of
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19 S. B. No. 159 Page 2
As Introduced
business association that is registered with the secretary of
state and that is producing a motion picture or broadway
theatrical production.
(4) "Eligible expenditures" means expenditures made after
June 30, 2009, for goods or services purchased and consumed in
this state by a production company directly for the production
of a tax credit-eligible production, for postproduction
activities, or for advertising and promotion of the production.
"Eligible expenditures" do not include qualified
expenditures for which a production company receives a tax
credit under section 122.852 of the Revised Code.
"Eligible expenditures" include expenditures for cast and
crew wages, accommodations, costs of set construction and
operations, editing and related services, photography, sound
synchronization, lighting, wardrobe, makeup and accessories,
film processing, transfer, sound mixing, special and visual
effects, music, location fees, and the purchase or rental of
facilities and equipment.
(5) "Motion picture" means entertainment content created
in whole or in part within this state for distribution or
exhibition to the general public, including, but not limited to,
feature-length films; documentaries; long-form, specials,
miniseries, series, and interstitial television programming;
interactive web sites; sound recordings; videos; music videos;
interactive television; interactive games; video games;
commercials; any format of digital media; and any trailer,
pilot, video teaser, or demo created primarily to stimulate the
sale, marketing, promotion, or exploitation of future investment
in either a product or a motion picture by any means and media
in any digital media format, film, or videotape, provided the
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49 S. B. No. 159 Page 3
As Introduced
motion picture qualifies as a motion picture. "Motion picture"
does not include any television program created primarily as
news, weather, or financial market reports, a production
featuring current events or sporting events, an awards show or
other gala event, a production whose sole purpose is
fundraising, a long-form production that primarily markets a
product or service or in-house corporate advertising or other
similar productions, a production for purposes of political
advocacy, or any production for which records are required to be
maintained under 18 U.S.C. 2257 with respect to sexually
explicit content.
(6) "Broadway theatrical production" means a prebroadway
production, long run production, or tour launch that is
directed, managed, and performed by a professional cast and crew
and that is directly associated with New York city's broadway
theater district.
(7) "Prebroadway production" means a live stage production
that is scheduled for presentation in New York city's broadway
theater district after the original or adaptive version is
performed in a qualified production facility.
(8) "Long run production" means a live stage production
that is scheduled to be performed at a qualified production
facility for more than five weeks, with an average of at least
six performances per week.
(9) "Tour launch" means a live stage production for which
the activities comprising the technical period are conducted at
a qualified production facility before a tour of the original or
adaptive version of the production begins.
(10) "Qualified production facility" means a facility
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78 S. B. No. 159 Page 4
As Introduced
located in this state that is used in the development or
presentation to the public of theater productions.
(11) "Investment intent letter" means a letter that
satisfies all of the following:
(a) Is executed on official letterhead of the production
company, investor, or investment entity;
(b) Clearly states the amount of investment being
committed;
(c) Specifies the date on which the investment is to be
made available;
(d) Identifies the motion picture or broadway theatrical
production to which the funds are allocated.
(B) For the purpose of encouraging and developing strong
film and theater industries in this state, the director of
development may certify a motion picture or broadway theatrical
production produced by a production company as a tax credit-
eligible production. In the case of a television series, the
director may certify the production of each episode of the
series as a separate tax credit-eligible production. A
production company shall apply for certification of a motion
picture or broadway theatrical production as a tax credit-
eligible production on a form and in the manner prescribed by
the director. Each application shall include the following
information:
(1) The name and telephone number of the production
company;
(2) The name and telephone number of the company's contact
person;
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106 S. B. No. 159 Page 5
As Introduced
(3) A list of the first preproduction date through the
last production and postproduction dates in Ohio and, in the
case of a broadway theatrical production, a list of each
scheduled performance in a qualified production facility;
(4) The Ohio production office or qualified production
facility address and telephone number;
(5) The total production budget;
(6) The total budgeted eligible expenditures and the
percentage that amount is of the total production budget of the
motion picture or broadway theatrical production;
(7) In the case of a motion picture, the total percentage
of the production being shot in Ohio;
(8) The level of employment of cast and crew who reside in
Ohio;
(9) A synopsis of the script;
(10) In the case of a motion picture, the shooting script;
(11) A creative elements list that includes the names of
the principal cast and crew and the producer and director;
(12) Documentation of financial ability to undertake and
complete the motion picture or broadway theatrical production,
including documentation that shows that the company has secured
funding equal to at least fifty per cent of the total production
budget, which may be in the form of an investment intent letter ;
(13) Estimated value of the tax credit based upon total
budgeted eligible expenditures;
(14) Estimated amount of state and local taxes to be
generated in this state from the production;
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133 S. B. No. 159 Page 6
As Introduced
(15) Estimated economic impact of the production in this
state;
(16) Any other information considered necessary by the
director.
Within ninety days after certification of a motion picture
or broadway theatrical production as a tax credit-eligible
production, and any time thereafter upon the request of the
director, the production company shall present to the director
sufficient evidence of reviewable progress. If the production
company fails to present sufficient evidence, the director may
rescind the certification. If the production of a motion picture
or broadway theatrical production does not begin within ninety
days after the date it is certified as a tax credit-eligible
production, the director shall rescind the certification unless
the director finds that the production company shows good cause
for the delay, meaning that the production was delayed due to
unforeseeable circumstances beyond the production company's
control or due to action or inaction by a government agency.
Upon rescission, the director shall notify the applicant that
the certification has been rescinded. Nothing in this section
prohibits an applicant whose tax credit-eligible production
certification has been rescinded from submitting a subsequent
application for certification.
(C)(1) A production company whose motion picture or
broadway theatrical production has been certified as a tax
credit-eligible production may apply to the director of
development on or after July 1, 2009, for a refundable credit
against the tax imposed by section 5726.02, 5733.06, 5747.02, or
5751.02 of the Revised Code. The director in consultation with
the tax commissioner shall prescribe the form and manner of the
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163 S. B. No. 159 Page 7
As Introduced
application and the information or documentation required to be
submitted with the application.
The credit is determined as follows:
(a) If the total budgeted eligible expenditures stated in
the application submitted under division (B) of this section or
the actual eligible expenditures as finally determined under
division (D) of this section, whichever is least, is less than
or equal to three hundred thousand dollars, no credit is
allowed;
(b) If the total budgeted eligible expenditures stated in
the application submitted under division (B) of this section or
the actual eligible expenditures as finally determined under
division (D) of this section, whichever is least, is greater
than three hundred thousand dollars, the credit equals thirty
per cent of the least of such budgeted or actual eligible
expenditure amounts.
(2) Except as provided in division (C)(4) of this section,
if the director of development approves a production company's
application for a credit, the director shall issue a tax credit
certificate to the company. The director in consultation with
the tax commissioner shall prescribe the form and manner of
issuing certificates. The director shall assign a unique
identifying number to each tax credit certificate and shall
record the certificate in a register devised and maintained by
the director for that purpose. The certificate shall state the
amount of the eligible expenditures on which the credit is based
and the amount of the credit. Upon the issuance of a
certificate, the director shall certify to the tax commissioner
the name of the production company to which the certificate was
issued, the amount of eligible expenditures shown on the
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193 S. B. No. 159 Page 8
As Introduced
certificate, the amount of the credit, and any other information
required by the rules adopted to administer this section.
(3) The amount of eligible expenditures for which a tax
credit may be claimed is subject to inspection and examination
by the tax commissioner or employees of the commissioner under
section 5703.19 of the Revised Code and any other applicable
law. Once the eligible expenditures are finally determined under
section 5703.19 of the Revised Code and division (D) of this
section, the credit amount is not subject to adjustment unless
the director determines an error was committed in the
computation of the credit amount.
(4) No tax credit certificate may be issued before the
completion of the tax credit-eligible production. The amount of
tax credit allowed per fiscal year shall not exceed the sum of
(a) fifty one hundred million dollars, (b) the difference
between the maximum credit amount for that fiscal year under
section 122.852 of the Revised Code and the amount the director
of development elects to allow under this section pursuant to
division (D)(1) of section 122.852 of the Revised Code, and (c)
the difference between the maximum amount of credits that could
have been awarded in the previous fiscal year under this section
and the amount actually awarded. Out of that sum, five million
dollars shall be reserved for broadway theatrical productions,
and the balance may be allowed for any tax credit-eligible
production. For any fiscal year in which less than five million
dollars of tax credits are allowed for broadway theatrical
productions, the amount of the five million dollars not allowed
and added to the maximum annual amount for the following fiscal
year shall be reserved for broadway theatrical productions in
the following fiscal year.
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223 S. B. No. 159 Page 9
As Introduced
(5) The Except as otherwise provided in this division, the
director shall review and approve applications for tax credits
in two rounds each fiscal year on a first-come, first-served,
basis. The first round of credits shall be awarded not later
than the last day of July of the fiscal year, and the second
round of credits shall be awarded not later than the last day of
the ensuing January. The amount of credits awarded in the first
round of applications each fiscal year shall not exceed one-half
of the maximum allowance for the fiscal year calculated
If, at any time, all complete and pending, but unapproved,
applications would, if all approved, result in awarded credits
in excess of the limit established under division (C)(4) of this
section, two million five hundred thousand dollars of which
shall be reserved for broadway theatrical productions. For each
round, the director shall rank the complete and pending
applications on the basis of the extent of positive economic
impact each tax credit-eligible production is likely to have in
this state and the effect on developing a permanent workforce in
motion picture or theatrical production industries in the state.
For the purpose of such ranking, the director shall give
priority to tax-credit eligible productions that are television
series or miniseries due to the long-term commitment typically
associated with such productions. The economic impact ranking
shall be based on the production company's total expenditures in
this state directly associated with the tax credit-eligible
production. The effect on developing a permanent workforce in
the motion picture or theatrical production industries shall be
evaluated first by the number of new jobs created and second by
amount of payroll added with respect to employees in this state.
The When ranking is required under this division, the
director shall approve productions in the order of their
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254 S. B. No. 159 Page 10
As Introduced
ranking, from those with the greatest positive economic impact
and workforce development effect to those with the least
positive economic impact and workforce development effect.
(D) A production company whose motion picture or broadway
theatrical production has been certified as a tax credit-
eligible production shall engage, at the company's expense, an
independent certified public accountant to examine the company's
production, postproduction, and advertising and promotion
expenditures to identify the expenditures that qualify as
eligible expenditures. The certified public accountant shall
review and certify to the director all contract and expense
items greater than or equal to ten thousand dollars and review
and certify to the director not less than fifty per cent of the
contracts and expense items less than ten thousand dollars. The
certified public accountant shall then issue a report to the
company and to the director of development certifying the
company's eligible expenditures and any other information
required by the director . Upon receiving and examining the
report, the director may disallow any expenditure the director
determines is not an eligible expenditure. If the director
disallows an expenditure, the director shall issue a written
notice to the production company stating that the expenditure is
disallowed and the reason for the disallowance. Upon examination
of the report and disallowance of any expenditures, the director
shall determine finally the lesser of the total budgeted
eligible expenditures stated in the application submitted under
division (B) of this section or the actual eligible expenditures
for the purpose of computing the amount of the credit.
(E) No credit shall be allowed under section 5726.55,
5733.59, 5747.66, or 5751.54 of the Revised Code unless the
director has reviewed the report and made the determination
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285 S. B. No. 159 Page 11
As Introduced
prescribed by division (D) of this section.
(F) This state reserves the right to refuse the use of
this state's name in the credits of any tax credit-eligible
motion picture production or program of any broadway theatrical
production.
(G)(1) The director of development in consultation with
the tax commissioner shall adopt rules for the administration of
this section, including rules setting forth and governing the
criteria for determining whether a motion picture or broadway
theatrical production is a tax credit-eligible production;
activities that constitute the production or postproduction of a
motion picture or broadway theatrical production; reporting
sufficient evidence of reviewable progress; expenditures that
qualify as eligible expenditures; a schedule and deadlines for
applications to be submitted and reviewed; a competitive process
for approving credits based on likely economic impact in this
state and development of a permanent workforce in motion picture
or theatrical production industries in this state; consideration
of geographic distribution of credits; and implementation of the
program described in division (H) of this section. The rules
shall be adopted under Chapter 119. of the Revised Code.
(2) To cover the administrative costs of the program, the
director shall require each applicant to pay an application fee
equal to the lesser of ten thousand dollars or one per cent of
the estimated value of the tax credit as stated in the
application. The fees collected shall be credited to the tax
incentives operating fund created in section 122.174 of the
Revised Code. All grants, gifts, fees, and contributions made to
the director for marketing and promotion of the motion picture
industry within this state shall also be credited to the fund.
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315 S. B. No. 159 Page 12
As Introduced
(H) The director of development shall establish a program
for the training of Ohio residents who are or wish to be
employed in the film or multimedia industry. Under the program,
the director shall:
(1) Certify individuals as film and multimedia trainees.
In order to receive such a certification, an individual must be
an Ohio resident, have participated in relevant on-the-job
training or have completed a relevant training course approved
by the director, and have met any other requirements established
by the director.
(2) Accept applications from production companies that
intend to hire and provide on-the-job training to one or more
certified film and multimedia trainees who will be employed in
the company's tax credit-eligible production;
(3) Upon completion of a tax-credit eligible production,
and upon the receipt of any salary information and other
documentation required by the director, authorize a
reimbursement payment to each production company whose
application was approved under division (H)(2) of this section.
The payment shall equal fifty per cent of the salaries paid to
film and multimedia trainees employed in the production.
Sec. 5726.98. (A) To provide a uniform procedure for
calculating the amount of tax due under section 5726.02 of the
Revised Code, a taxpayer shall claim any credits to which the
taxpayer is entitled under this chapter in the following order:
The nonrefundable job retention credit under division (B)
of section 5726.50 of the Revised Code;
The nonrefundable credit for purchases of qualified low-
income community investments under section 5726.54 of the
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344 S. B. No. 159 Page 13
As Introduced
Revised Code;
The nonrefundable credit for qualified research expenses
under section 5726.56 of the Revised Code;
The nonrefundable credit for qualifying dealer in
intangibles taxes under section 5726.57 of the Revised Code;
The nonrefundable Ohio low-income housing tax credit under
section 5726.58 of the Revised Code;
The nonrefundable affordable single-family home credit
under section 5726.60 of the Revised Code;
The nonrefundable welcome home Ohio (WHO) program credit
under section 122.633 of the Revised Code;
The nonrefundable opportunity zone investment credit under
section 5726.61 of the Revised Code;
The refundable credit for rehabilitating an historic
building under section 5726.52 of the Revised Code;
The refundable job retention or job creation credit under
division (A) of section 5726.50 of the Revised Code;
The refundable credit under section 5726.53 of the Revised
Code for losses on loans made under the Ohio venture capital
program under sections 150.01 to 150.10 of the Revised Code;
The refundable motion picture and broadway theatrical
production credit under section 5726.55 of the Revised Code ;
The refundable credit for film and theater capital
improvement projects under section 5726.59 of the Revised Code .
(B) For any credit except the refundable credits
enumerated in this section, the amount of the credit for a
taxable year shall not exceed the tax due after allowing for any
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371 S. B. No. 159 Page 14
As Introduced
other credit that precedes it in the order required under this
section. Any excess amount of a particular credit may be carried
forward if authorized under the section creating that credit.
Nothing in this chapter shall be construed to allow a taxpayer
to claim, directly or indirectly, a credit more than once for a
taxable year.
Sec. 5747.98. (A) To provide a uniform procedure for
calculating a taxpayer's aggregate tax liability under section
5747.02 of the Revised Code, a taxpayer shall claim any credits
to which the taxpayer is entitled in the following order:
Either the retirement income credit under division (B) of
section 5747.055 of the Revised Code or the lump sum retirement
income credits under divisions (C), (D), and (E) of that
section;
Either the senior citizen credit under division (F) of
section 5747.055 of the Revised Code or the lump sum
distribution credit under division (G) of that section;
The dependent care credit under section 5747.054 of the
Revised Code;
The credit for displaced workers who pay for job training
under section 5747.27 of the Revised Code;
The campaign contribution credit under section 5747.29 of
the Revised Code;
The twenty-dollar personal exemption credit under section
5747.022 of the Revised Code;
The joint filing credit under division (G)(E) of section
5747.05 of the Revised Code;
The earned income credit under section 5747.71 of the
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399 S. B. No. 159 Page 15
As Introduced
Revised Code;
The nonrefundable credit for education expenses under
section 5747.72 of the Revised Code;
The nonrefundable credit for donations to scholarship
granting organizations under section 5747.73 of the Revised
Code;
The nonrefundable credit for tuition paid to a
nonchartered nonpublic school under section 5747.75 of the
Revised Code;
The nonrefundable vocational job credit under section
5747.057 of the Revised Code;
The nonrefundable job retention credit under division (B)
of section 5747.058 of the Revised Code;
The enterprise zone credit under section 5709.66 of the
Revised Code;
The credit for beginning farmers who participate in a
financial management program under division (B) of section
5747.77 of the Revised Code;
The credit for commercial vehicle operator training
expenses under section 5747.82 of the Revised Code;
The nonrefundable welcome home Ohio (WHO) program credit
under section 122.633 of the Revised Code;
The credit for selling or renting agricultural assets to
beginning farmers under division (A) of section 5747.77 of the
Revised Code;
The credit for purchases of qualifying grape production
property under section 5747.28 of the Revised Code;
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426 S. B. No. 159 Page 16
As Introduced
The small business investment credit under section 5747.81
of the Revised Code;
The nonrefundable lead abatement credit under section
5747.26 of the Revised Code;
The opportunity zone investment credit under section
5747.86 of the Revised Code;
The enterprise zone credits under section 5709.65 of the
Revised Code;
The research and development credit under section 5747.331
of the Revised Code;
The credit for rehabilitating a historic building under
section 5747.76 of the Revised Code;
The nonrefundable Ohio low-income housing tax credit under
section 5747.83 of the Revised Code;
The nonrefundable affordable single-family home credit
under section 5747.84 of the Revised Code;
The nonresident credit under division (A) of section
5747.05 of the Revised Code;
The credit for a resident's out-of-state income under
division (B) of section 5747.05 of the Revised Code;
The refundable motion picture and broadway theatrical
production credit under section 5747.66 of the Revised Code;
The refundable credit for film and theater capital
improvement projects under section 5747.67 of the Revised Code;
The refundable jobs creation credit or job retention
credit under division (A) of section 5747.058 of the Revised
Code;
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
448
449
450
451
452
453 S. B. No. 159 Page 17
As Introduced
The refundable credit for taxes paid by a qualifying
entity granted under section 5747.059 of the Revised Code;
The refundable credits for taxes paid by a qualifying
pass-through entity granted under division (I) of section
5747.08 of the Revised Code;
The refundable credit under section 5747.80 of the Revised
Code for losses on loans made to the Ohio venture capital
program under sections 150.01 to 150.10 of the Revised Code;
The refundable credit for rehabilitating a historic
building under section 5747.76 of the Revised Code;
The refundable credit under section 5747.39 of the Revised
Code for taxes levied under section 5747.38 of the Revised Code
paid by an electing pass-through entity.
(B) For any credit, except the refundable credits
enumerated in this section and the credit granted under division
(H) of section 5747.08 of the Revised Code, the amount of the
credit for a taxable year shall not exceed the taxpayer's
aggregate amount of tax due under section 5747.02 of the Revised
Code, after allowing for any other credit that precedes it in
the order required under this section. Any excess amount of a
particular credit may be carried forward if authorized under the
section creating that credit. Nothing in this chapter shall be
construed to allow a taxpayer to claim, directly or indirectly,
a credit more than once for a taxable year.
Sec. 5751.98. (A) To provide a uniform procedure for
calculating the amount of tax due under this chapter, a taxpayer
shall claim any credits to which it is entitled in the following
order:
The nonrefundable jobs retention credit under division (B)
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476
477
478
479
480
481
482 S. B. No. 159 Page 18
As Introduced
of section 5751.50 of the Revised Code;
The nonrefundable credit for qualified research expenses
under division (B) of section 5751.51 of the Revised Code;
The nonrefundable credit for a borrower's qualified
research and development loan payments under division (B) of
section 5751.52 of the Revised Code;
The nonrefundable credit for calendar years 2010 to 2029
for unused net operating losses under division (B) of section
5751.53 of the Revised Code;
The refundable motion picture and broadway theatrical
production credit under section 5751.54 of the Revised Code;
The refundable credit for film and theater capital
improvement projects under section 5751.55 of the Revised Code;
The refundable jobs creation credit or job retention
credit under division (A) of section 5751.50 of the Revised
Code;
The refundable credit for calendar year 2030 for unused
net operating losses under division (C) of section 5751.53 of
the Revised Code.
(B) For any credit except the refundable credits
enumerated in this section, the amount of the credit for a tax
period shall not exceed the tax due after allowing for any other
credit that precedes it in the order required under this
section. Any excess amount of a particular credit may be carried
forward if authorized under the section creating the credit.
Section 2. That existing sections 122.85, 5726.98,
5747.98, and 5751.98 of the Revised Code are hereby repealed.
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
509 S. B. No. 159 Page 19
As Introduced
Section 3. That sections 122.852, 5726.59, 5747.67, and
5751.55 of the Revised Code are hereby repealed.
510
511