2025 - 2026 LEGISLATURE
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2025 ASSEMBLY BILL 231
May 2, 2025 - Introduced by Representatives ARMSTRONG, CALLAHAN, HURD,
BROWN, DOYLE, EMERSON, GOODWIN, GREEN, JOHNSON, KITCHENS, KREIBICH,
MAXEY, MELOTIK, MIRESSE, MOSES, MURSAU, O'CONNOR, PRADO, SNYDER,
STEFFEN, SWEARINGEN, TITTL, WICHGERS and ZIMMERMAN, cosponsored by
Senators BRADLEY, TESTIN, DRAKE, FEYEN, LARSON, PFAFF, QUINN and
SPREITZER. Referred to Committee on Ways and Means.
AN ACT to amend 71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4.,
71.30 (3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10. and 71.49 (1) (f); to create 13.94 (1)
(zm), 15.448, 20.835 (2) (bm), 41.152, 71.07 (5f), 71.07 (5h), 71.10 (4) (fs), 71.10
(4) (ft), 71.28 (5f), 71.28 (5h), 71.30 (3) (epr), 71.30 (3) (eps), 71.47 (5f), 71.47
(5h), 71.49 (1) (epr) and 71.49 (1) (eps) of the statutes; relating to: creating a
tax credit for expenses related to film production services and for capital
investments made by a film production company, granting rule-making
authority, and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates income and franchise tax credits for film production
companies and creates the State Film Office, attached to the Department of
Tourism, to implement the tax credit accreditations and allocations. Under the bill,
a film production company may claim a credit in an amount that is equal to 30
percent of the salary or wages paid to the company[s employees in the taxable year
for services rendered in this state to produce a film, video, broadcast advertisement,
or television production, as approved by the State Film Office, and paid to
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employees who were residents of this state at the time that they were paid. The
total amount of the credits that may be claimed by a taxpayer may not exceed an
amount that is equal to the first $250,000 of salary or wages paid to each of the
taxpayer[s employees in the taxable year, not including the salary or wages paid to
the taxpayer[s two highest-paid employees in the taxable year, for a production with
budgeted expenditures of $1,000,000 or more. If the total amount of the credits
claimed by a taxpayer exceeds the taxpayer[s tax liability, the state will not issue a
refund, but the taxpayer may carry forward any remaining credit to subsequent
taxable years.
Under the bill, a film production company may claim an income and franchise
tax credit in an amount that is equal to 30 percent of the production expenditures
paid by the company in the taxable year to produce a film, video, broadcast
advertisement, or television production. If the total amount of the credits claimed
by the company exceeds the company[s tax liability, the state will issue a refund.
The bill also allows a film production company to claim an income and
franchise tax credit, for the first three taxable years that the company is doing
business in this state, in an amount that is equal to 30 percent of the amount that
the claimant paid in the taxable year to purchase depreciable tangible personal
property or to acquire, construct, rehabilitate, remodel, or repair real property.
Under the bill, a film production company may claim an income and franchise
tax credit in an amount that is equal to the amount of sales and use taxes that the
claimant paid for tangible personal property and taxable services that are used to
produce a film, video, broadcast advertisement, or television production in this
state.
The bill provides that the State Film Office may not allocate more than
$10,000,000 in film production and investment tax credits in each fiscal year. The
bill also requires the State Film Office to annually submit a report to the legislature
that specifies the number of persons who submitted credit applications in the
previous year and the amount of the credits allocated to each such applicant and to
make recommendations on improving the efficiency of the program. Finally, the bill
requires the Legislative Audit Bureau to biennially prepare a performance
evaluation audit of the accreditation program implemented by the State Film
Office.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. 13.94 (1) (zm) of the statutes is created to read:
13.94 (1) (zm) Biennially, beginning in 2027, prepare a performance
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evaluation audit of the program to accredit productions for purposes of ss. 71.07 (5f)
and (5h), 71.28 (5f) and (5h), and 71.47 (5f) and (5h) by the state film office.
SECTION 2. 15.448 of the statutes is created to read:
15.448 Same; offices. (1) STATE FILM OFFICE. There is created a state film
office in the department of tourism. The director of the office shall be appointed by
the secretary of tourism.
SECTION 3. 20.835 (2) (bm) of the statutes is created to read:
20.835 (2) (bm) Film production services credit. A sum sufficient to make the
payments under ss. 71.07 (5f) (d) 2., 71.28 (5f) (d) 2., and 71.47 (5f) (d) 2.
SECTION 4. 41.152 of the statutes is created to read:
41.152 Film production tax credits. (1) The state film office shall
implement a program to accredit productions for purposes of ss. 71.07 (5f) and (5h),
71.28 (5f) and (5h), and 71.47 (5f) and (5h). Application for accreditation shall be
made to the office in each taxable year for which accreditation is desired.
(2) If the state film office accredits a production under sub. (1), the office shall
determine the amount of the production[s production expenditures, as defined in s.
71.07 (5f) (a) 4. The state film office shall not issue an accreditation under sub. (1)
without first receiving written confirmation from the applicant that the applicant
has retained a certified public accountant located in this state to conduct periodic
audits to ensure compliance with this section and ss. 71.07 (5f) and (5h), 71.28 (5f)
and (5h), and 71.47 (5f) and (5h), as prescribed by rule by the office. An entity
applying for a tax credit under s. 71.07 (5f), 71.28 (5f), or 71.47 (5f) that does not
have its commercial domicile in this state shall indicate that on its application
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along with the amount of production expenditures it anticipates spending in this
state and the amount of expenditures, if any, it anticipates spending in another
state on the same production.
(3) The state film office shall notify the department of revenue of every
production accredited under sub. (1), the amount of the production[s production
expenditures, as defined in s. 71.07 (5f) (a) 4., and the amount of the tax credits
under ss. 71.07 (5f) and (5h), 71.28 (5f) and (5h), and 71.47 (5f) and (5h) allocated to
the applicant for the taxable year for which the applicant[s claim relates.
(4) The state film office may not allocate more than $10,000,000 in tax credits
under ss. 71.07 (5f) and (5h), 71.28 (5f) and (5h), and 71.47 (5f) and (5h) in each
fiscal year and no more than $1,000,000 in tax credits to any single applicant in
each fiscal year.
(5) Each applicant who produces an accredited production, as defined in s.
71.07 (5f) (a) 1., that is eligible for a tax credit under s. 71.07 (5f), 71.28 (5f), or
71.47 (5f) shall include in the finished production an acknowledgment to the state
of Wisconsin and the state film office as designed by the state film office, including
a logo designed by the state film office.
(6) Annually, beginning in 2027, the state film office shall prepare a report
specifying the number of persons who submitted tax credit applications in the
previous year and the amount of the tax credits allocated to each such applicant.
The report shall also provide recommendations and suggestions on improving the
efficiency of the program implemented under this section. The office shall submit
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the report to the legislature, in the manner provided under s. 13.172 (2), no later
than April 30 each year.
(7) The department shall promulgate rules to administer this section.
SECTION 5. 71.05 (6) (a) 15. of the statutes is amended to read:
71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm),
(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5f), (5h),
(5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership,
limited liability company, or tax-option corporation that has added that amount to
the partnership[s, company[s, or tax-option corporation[s income under s. 71.21 (4)
or 71.34 (1k) (g).
SECTION 6. 71.07 (5f) of the statutes is created to read:
71.07 (5f) FILM PRODUCTION SERVICES CREDIT. (a) Definitions. In this
subsection:
1. XAccredited productionY means a film, video, broadcast advertisement, or
television production, as approved by the state film office, for which the aggregate
salary and wages included in the cost of the production for the period ending 12
months after the month in which the principal filming or taping of the production
begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for
a production that is less than 30 minutes. XAccredited productionY includes a
scripted, unscripted, reality, or competition production, but does not include any of
the following, regardless of the production costs:
a. News, current events, or public programming or a program that includes
weather or market reports.
b. A talk show.
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c. A sports event or sports activity.
d. A gala presentation or awards show.
e. A finished production that solicits funds.
f. A production for which the production company is required under 18 USC
2257 to maintain records with respect to a performer portrayed in a single media or
multimedia program.
g. A production produced primarily for industrial, corporate, or institutional
purposes.
2. XClaimantY means a film production company, as defined in sub. (5h) (a) 2.,
that operates an accredited production in this state, if the company owns the
copyright in the accredited production or has contracted directly with the copyright
owner or a person acting on the owner[s behalf and if the company has a viable plan,
as determined by the state film office, for the commercial distribution of the
finished production.
3. XCommercial domicileY means the location from which a trade or business
is principally managed and directed, based on any factors the state film office
determines are appropriate, including the location where the greatest number of
employees of the trade or business work, the trade or business has its office or base
of operations, or from which the employees are directed or controlled.
4. XProduction expendituresY means any expenditures that are incurred in
this state and directly used to produce an accredited production, including
expenditures for writing, budgeting, casting, location scouts, set construction and
operation, wardrobes, makeup, clothing accessories, photography, sound recording,
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sound synchronization, sound mixing, lighting, editing, film processing, film
transferring, special effects, visual effects, renting or leasing facilities or
equipment, renting or leasing motor vehicles, food, lodging, and any other similar
pre-production, production, and post-production expenditure as determined by the
state film office. XProduction expendituresY includes expenditures for music that is
performed, composed, or recorded by a musician who is a resident of this state or
published or distributed by an entity that has its commercial domicile in this state;
air travel that is purchased from a travel agency or company that has its commercial
domicile in this state; and insurance that is purchased from an insurance agency or
company that has its commercial domicile in this state. XProduction expendituresY
does not include salary or wages or expenditures for the marketing and distribution
of an accredited production.
(b) Filing claims. Subject to the limitations provided in this subsection, for
taxable years beginning after December 31, 2025, a claimant may claim as a credit
against the tax imposed under s. 71.02 any of the following amounts:
1. An amount equal to 30 percent of the salary or wages paid by the claimant
to the claimant[s employees in the taxable year for services rendered in this state to
produce an accredited production and paid to employees who were residents of this
state at the time that they were paid.
2. An amount equal to 30 percent of the production expenditures paid by the
claimant in the taxable year to produce an accredited production.
3. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the
claimant paid in the taxable year on the purchase of tangible personal property and
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taxable services that are used directly in producing an accredited production in this
state, including all stages from the final script stage to the distribution of the
finished production.
(c) Limitations. 1. No amount of the salary or wages paid under par. (b) 1.
may be the basis for a credit under this subsection unless the salary or wages are
paid for services rendered after December 31, 2025, and directly incurred to
produce the accredited production.
2. The total amount of the credits that may be claimed by a claimant under
par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages
paid to each of the claimant[s employees, as described in par. (b) 1., in the taxable
year, not including the salary or wages paid to the claimant[s 2 highest-paid
employees, as described in par. (b) 1., in the taxable year, if the claimant[s budgeted
production expenditures are $1,000,000 or more.
3. No credit may be allowed under this subsection unless the claimant files an
application with the state film office, at the time and in the manner prescribed by
the office, and the office approves the application. The claimant shall submit a copy
of the approved application with the claimant[s return.
4. Partnerships, limited liability companies, and tax-option corporations may
not claim the credit under this subsection, but the eligibility for, and the amount of,
the credit are based on their payment of amounts under par. (b). A partnership,
limited liability company, or tax-option corporation shall compute the amount of
credit that each of its partners, members, or shareholders may claim and shall
provide that information to each of them. Partners, members of limited liability
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companies, and shareholders of tax-option corporations may claim the credit in
proportion to their ownership interest.
(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
credit under s. 71.28 (4), applies to the credits under this subsection. Section 71.28
(4) (f), as it applies to the credit under s. 71.28 (4), applies to the credits under par.
(b) 1. and 3.
2. If the allowable amount of the claim under par. (b) 2. exceeds the tax
otherwise due under s. 71.02 or no tax is due under s. 71.02, the amount of the
claim not used to offset the tax due shall be certified by the department of revenue
to the department of administration for payment by check, share draft, or other
draft drawn from the appropriation account under s. 20.835 (2) (bm).
3. Any person, including a nonprofit entity described in section 501 (c) (3) of
the Internal Revenue Code, may sell or otherwise transfer a credit under this
subsection, in whole or in part, to another person who is subject to the taxes
imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
transfer, and submits with the notification a copy of the transfer documents, and
the department certifies ownership of the credit. The transferee may first use the
credit to offset tax of the transferor in the taxable year in which the transfer occurs
and may use the credit only to offset tax in taxable years in which the credit is
otherwise allowed to be claimed and carried forward by the original claimant.
SECTION 7. 71.07 (5h) of the statutes is created to read:
71.07 (5h) FILM PRODUCTION COMPANY INVESTMENT CREDIT. (a) Definitions.
In this subsection:
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1. XClaimantY means a person who files a claim under this subsection and
who does business in this state as a film production company.
2. XFilm production companyY means an entity that creates films, videos,
broadcast advertisement, or television productions, not including the productions
described under sub. (5f) (a) 1. a. to g.
3. XPhysical workY does not include preliminary activities such as planning,
designing, securing financing, researching, developing specifications, or stabilizing
property to prevent deterioration.
4. XPreviously owned propertyY means real property that the claimant or a
related person owned during the 2 years prior to doing business in this state as a
film production company and for which the claimant may not deduct a loss from the
sale of the property to, or an exchange of the property with, the related person
under section 267 of the Internal Revenue Code.
5. XUsed exclusivelyY means used to the exclusion of all other uses except for
other use not exceeding 5 percent of total use.
(b) Filing claims. Subject to the limitations provided in this subsection, for
taxable years beginning after December 31, 2025, a claimant may claim as a credit
against the tax imposed under s. 71.02, up to the amount of the taxes, for the first 3
taxable years that the claimant is doing business in this state as a film production
company, an amount that is equal to 30 percent of the following that the claimant
paid in the taxable year to establish a film production company in this state:
1. The purchase price of depreciable, tangible personal property.
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2. The amount expended to acquire, construct, rehabilitate, remodel, or repair
real property.
(c) Limitations. 1. A claimant may claim the credit under par. (b) 1., if the
tangible personal property is purchased after December 31, 2025, and the personal
property is used exclusively in the claimant[s business as a film production
company.
2. A claimant may claim the credit under par. (b) 2. for an amount expended to
construct, rehabilitate, remodel, or repair real property, if the claimant began the
physical work of construction, rehabilitation, remodeling, or repair, or any
demolition or destruction in preparation for the physical work, after December 31,
2025, or if the completed project is placed in service after December 31, 2025.
3. A claimant may claim the credit under par. (b) 2. for an amount expended to
acquire real property, if the property is not previously owned property and if the
claimant acquires the property after December 31, 2025, or if the completed project
is placed in service after December 31, 2025.
4. No claim may be allowed under this subsection unless the state film office
certifies, in writing, that the credits claimed under this subsection are for expenses
related to establishing a film production company in this state and the claimant
submits a copy of the certification with the claimant[s return.
5. Partnerships, limited liability companies, and tax-option corporations may
not claim the credit under this subsection, but the eligibility for, and the amount of,
the credit are based on their payment of amounts under par. (b). A partnership,
limited liability company, or tax-option corporation shall compute the amount of
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credit that each of its partners, members, or shareholders may claim and shall
provide that information to each of them. Partners, members of limited liability
companies, and shareholders of tax-option corporations may claim the credit in
proportion to their ownership interests.
(d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
under s. 71.28 (4), applies to the credits under this subsection.
2. Any person, including a nonprofit entity described in section 501 (c) (3) of
the Internal Revenue Code, may sell or otherwise transfer a credit under this
subsection, in whole or in part, to another person who is subject to the taxes
imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
transfer, and submits with the notification a copy of the transfer documents, and
the department certifies ownership of the credit. The transferee may first use the
credit to offset tax of the transferor in the taxable year in which the transfer occurs
and may use the credit only to offset tax in taxable years in which the credit is
otherwise allowed to be claimed and carried forward by the original claimant.
SECTION 8. 71.10 (4) (fs) of the statutes is created to read:
71.10 (4) (fs) Film production company investment credit under s. 71.07 (5h).
SECTION 9. 71.10 (4) (ft) of the statutes is created to read:
71.10 (4) (ft) Film production services credit under s. 71.07 (5f) (b) 1. and 3.
SECTION 10. 71.10 (4) (i) of the statutes is amended to read:
71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
beyond under s. 71.613, homestead credit under subch. VIII, jobs tax credit under s.
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71.07 (3q), business development credit under s. 71.07 (3y), research credit under s.
71.07 (4k) (e) 2. a., film production services credit under s. 71.07 (5f) (b) 2., veterans
and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs
credit under s. 71.07 (3w), electronics and information technology manufacturing
zone credit under s. 71.07 (3wm), earned income tax credit under s. 71.07 (9e),
estimated tax payments under s. 71.09, and taxes withheld under subch. X.
SECTION 11. 71.21 (4) (a) of the statutes is amended to read:
71.21 (4) (a) The amount of the credits computed by a partnership under s.
71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
(5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to
partners shall be added to the partnership[s income.
SECTION 12. 71.26 (2) (a) 4. of the statutes is amended to read:
71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5f), (5g), (5h), (5i), (5j), (5k),
(5r), (5rm), (6n), and (10) and not passed through by a partnership, limited liability
company, or tax-option corporation that has added that amount to the
partnership[s, limited liability company[s, or tax-option corporation[s income under
s. 71.21 (4) or 71.34 (1k) (g).
SECTION 13. 71.28 (5f) of the statutes is created to read:
71.28 (5f) FILM PRODUCTION SERVICES CREDIT. (a) Definitions. In this
subsection:
1. XAccredited productionY means a film, video, broadcast advertisement, or
television production, as approved by the state film office, for which the aggregate
salary and wages included in the cost of the production for the period ending 12
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months after the month in which the principal filming or taping of the production
begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for
a production that is less than 30 minutes. XAccredited productionY includes a
scripted, unscripted, reality, or competition production, but does not include any of
the following, regardless of the production costs:
a. News, current events, or public programming or a program that includes
weather or market reports.
b. A talk show.
c. A sports event or sports activity.
d. A gala presentation or awards show.
e. A finished production that solicits funds.
f. A production for which the production company is required under 18 USC
2257 to maintain records with respect to a performer portrayed in a single media or
multimedia program.
g. A production produced primarily for industrial, corporate, or institutional
purposes.
2. XClaimantY means a film production company, as defined in sub. (5h) (a) 2.,
that operates an accredited production in this state, if the company owns the
copyright in the accredited production or has contracted directly with the copyright
owner or a person acting on the owner[s behalf and if the company has a viable plan,
as determined by the state film office, for the commercial distribution of the
finished production.
3. XCommercial domicileY means the location from which a trade or business
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is principally managed and directed, based on any factors the state film office
determines are appropriate, including the location where the greatest number of
employees of the trade or business work, the trade or business has its office or base
of operations, or from which the employees are directed or controlled.
4. XProduction expendituresY means any expenditures that are incurred in
this state and directly used to produce an accredited production, including
expenditures for writing, budgeting, casting, location scouts, set construction and
operation, wardrobes, makeup, clothing accessories, photography, sound recording,
sound synchronization, sound mixing, lighting, editing, film processing, film
transferring, special effects, visual effects, renting or leasing facilities or
equipment, renting or leasing motor vehicles, food, lodging, and any other similar
pre-production, production, and post-production expenditure as determined by the
state film office. XProduction expendituresY includes expenditures for music that is
performed, composed, or recorded by a musician who is a resident of this state or
published or distributed by an entity that has its commercial domicile in this state;
air travel that is purchased from a travel agency or company that has its commercial
domicile in this state; and insurance that is purchased from an insurance agency or
company that has its commercial domicile in this state. XProduction expendituresY
does not include salary or wages or expenditures for the marketing and distribution
of an accredited production.
(b) Filing claims. Subject to the limitations provided in this subsection, for
taxable years beginning after December 31, 2025, a claimant may claim as a credit
against the tax imposed under s. 71.23 any of the following amounts:
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1. An amount equal to 30 percent of the salary or wages paid by the claimant
to the claimant[s employees in the taxable year for services rendered in this state to
produce an accredited production and paid to employees who were residents of this
state at the time that they were paid.
2. An amount equal to 30 percent of the production expenditures paid by the
claimant in the taxable year to produce an accredited production.
3. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the
claimant paid in the taxable year on the purchase of tangible personal property and
taxable services that are used directly in producing an accredited production in this
state, including all stages from the final script stage to the distribution of the
finished production.
(c) Limitations. 1. No amount of the salary or wages paid under par. (b) 1.
may be the basis for a credit under this subsection unless the salary or wages are
paid for services rendered after December 31, 2025, and directly incurred to
produce the accredited production.
2. The total amount of the credits that may be claimed by a claimant under
par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages
paid to each of the claimant[s employees, as described in par. (b) 1., in the taxable
year, not including the salary or wages paid to the claimant[s 2 highest-paid
employees, as described in par. (b) 1., in the taxable year, if the claimant[s budgeted
production expenditures are $1,000,000 or more.
3. No credit may be allowed under this subsection unless the claimant files an
application with the state film office, at the time and in the manner prescribed by
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the office, and the office approves the application. The claimant shall submit a copy
of the approved application with the claimant[s return.
4. Partnerships, limited liability companies, and tax-option corporations may
not claim the credit under this subsection, but the eligibility for, and the amount of,
the credit are based on their payment of amounts under par. (b). A partnership,
limited liability company, or tax-option corporation shall compute the amount of
credit that each of its partners, members, or shareholders may claim and shall
provide that information to each of them. Partners, members of limited liability
companies, and shareholders of tax-option corporations may claim the credit in
proportion to their ownership interest.
(d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
under sub. (4), applies to the credits under this subsection. Subsection (4) (f), as it
applies to the credit under sub. (4), applies to the credits under par. (b) 1. and 3.
2. If the allowable amount of the claim under par. (b) 2. exceeds the tax
otherwise due under s. 71.23 or no tax is due under s. 71.23, the amount of the
claim not used to offset the tax due shall be certified by the department of revenue
to the department of administration for payment by check, share draft, or other
draft drawn from the appropriation account under s. 20.835 (2) (bm).
3. Any person, including a nonprofit entity described in section 501 (c) (3) of
the Internal Revenue Code, may sell or otherwise transfer a credit under this
subsection, in whole or in part, to another person who is subject to the taxes
imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
transfer, and submits with the notification a copy of the transfer documents, and
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the department certifies ownership of the credit. The transferee may first use the
credit to offset tax of the transferor in the taxable year in which the transfer occurs
and may use the credit only to offset tax in taxable years in which the credit is
otherwise allowed to be claimed and carried forward by the original claimant.
SECTION 14. 71.28 (5h) of the statutes is created to read:
71.28 (5h) FILM PRODUCTION COMPANY INVESTMENT CREDIT. (a) Definitions.
In this subsection:
1. XClaimantY means a person who files a claim under this subsection and
who does business in this state as a film production company.
2. XFilm production companyY means an entity that creates films, videos,
broadcast advertisement, or television productions, not including the productions
described under sub. (5f) (a) 1. a. to g.
3. XPhysical workY does not include preliminary activities such as planning,
designing, securing financing, researching, developing specifications, or stabilizing
property to prevent deterioration.
4. XPreviously owned propertyY means real property that the claimant or a
related person owned during the 2 years prior to doing business in this state as a
film production company and for which the claimant may not deduct a loss from the
sale of the property to, or an exchange of the property with, the related person
under section 267 of the Internal Revenue Code.
5. XUsed exclusivelyY means used to the exclusion of all other uses except for
other use not exceeding 5 percent of total use.
(b) Filing claims. Subject to the limitations provided in this subsection, for
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taxable years beginning after December 31, 2025, a claimant may claim as a credit
against the tax imposed under s. 71.23, up to the amount of the taxes, for the first 3
taxable years that the claimant is doing business in this state as a film production
company, an amount that is equal to 30 percent of the following that the claimant
paid in the taxable year to establish a film production company in this state:
1. The purchase price of depreciable, tangible personal property.
2. The amount expended to acquire, construct, rehabilitate, remodel, or repair
real property.
(c) Limitations. 1. A claimant may claim the credit under par. (b) 1., if the
tangible personal property is purchased after December 31, 2025, and the personal
property is used exclusively in the claimant[s business as a film production
company.
2. A claimant may claim the credit under par. (b) 2. for an amount expended to
construct, rehabilitate, remodel, or repair real property, if the claimant began the
physical work of construction, rehabilitation, remodeling, or repair, or any
demolition or destruction in preparation for the physical work, after December 31,
2025, or if the completed project is placed in service after December 31, 2025.
3. A claimant may claim the credit under par. (b) 2. for an amount expended to
acquire real property, if the property is not previously owned property and if the
claimant acquires the property after December 31, 2025, or if the completed project
is placed in service after December 31, 2025.
4. No claim may be allowed under this subsection unless the state film office
certifies, in writing, that the credits claimed under this subsection are for expenses
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related to establishing a film production company in this state and the claimant
submits a copy of the certification with the claimant[s return.
5. Partnerships, limited liability companies, and tax-option corporations may
not claim the credit under this subsection, but the eligibility for, and the amount of,
the credit are based on their payment of amounts under par. (b). A partnership,
limited liability company, or tax-option corporation shall compute the amount of
credit that each of its partners, members, or shareholders may claim and shall
provide that information to each of them. Partners, members of limited liability
companies, and shareholders of tax-option corporations may claim the credit in
proportion to their ownership interests.
(d) Administration. 1. Subsection (4) (e) to (h), as it applies to the credit
under sub. (4), applies to the credits under this subsection.
2. Any person, including a nonprofit entity described in section 501 (c) (3) of
the Internal Revenue Code, may sell or otherwise transfer a credit under this
subsection, in whole or in part, to another person who is subject to the taxes
imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
transfer, and submits with the notification a copy of the transfer documents, and
the department certifies ownership of the credit. The transferee may first use the
credit to offset tax of the transferor in the taxable year in which the transfer occurs
and may use the credit only to offset tax in taxable years in which the credit is
otherwise allowed to be claimed and carried forward by the original claimant.
SECTION 15. 71.30 (3) (epr) of the statutes is created to read:
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71.30 (3) (epr) Film production company investment credit under s. 71.28
(5h).
SECTION 16. 71.30 (3) (eps) of the statutes is created to read:
71.30 (3) (eps) Film production services credit under s. 71.28 (5f) (b) 1. and 3.
SECTION 17. 71.30 (3) (f) of the statutes is amended to read:
71.30 (3) (f) The total of farmland preservation credit under subch. IX, jobs
credit under s. 71.28 (3q), enterprise zone jobs credit under s. 71.28 (3w), electronics
and information technology manufacturing zone credit under s. 71.28 (3wm),
business development credit under s. 71.28 (3y), research credit under s. 71.28 (4)
(k) 1., film production services credit under s. 71.28 (5f) (b) 2., and estimated tax
payments under s. 71.29.
SECTION 18. 71.34 (1k) (g) of the statutes is amended to read:
71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
(3wm), (3y), (4), (5), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and
passed through to shareholders.
SECTION 19. 71.45 (2) (a) 10. of the statutes is amended to read:
71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5f), (5g),
(5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a
partnership, limited liability company, or tax-option corporation that has added
that amount to the partnership[s, limited liability company[s, or tax-option
corporation[s income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit
computed under s. 71.47 (3), (3t), (4), (4m), and (5).
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SECTION 20. 71.47 (5f) of the statutes is created to read:
71.47 (5f) FILM PRODUCTION SERVICES CREDIT. (a) Definitions. In this
subsection:
1. XAccredited productionY means a film, video, broadcast advertisement, or
television production, as approved by the state film office, for which the aggregate
salary and wages included in the cost of the production for the period ending 12
months after the month in which the principal filming or taping of the production
begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for
a production that is less than 30 minutes. XAccredited productionY includes a
scripted, unscripted, reality, or competition production, but does not include any of
the following, regardless of the production costs:
a. News, current events, or public programming or a program that includes
weather or market reports.
b. A talk show.
c. A sports event or sports activity.
d. A gala presentation or awards show.
e. A finished production that solicits funds.
f. A production for which the production company is required under 18 USC
2257 to maintain records with respect to a performer portrayed in a single media or
multimedia program.
g. A production produced primarily for industrial, corporate, or institutional
purposes.
2. XClaimantY means a film production company, as defined in sub. (5h) (a) 2.,
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that operates an accredited production in this state, if the company owns the
copyright in the accredited production or has contracted directly with the copyright
owner or a person acting on the owner[s behalf and if the company has a viable plan,
as determined by the state film office, for the commercial distribution of the
finished production.
3. XCommercial domicileY means the location from which a trade or business
is principally managed and directed, based on any factors the state film office
determines are appropriate, including the location where the greatest number of
employees of the trade or business work, the trade or business has its office or base
of operations, or from which the employees are directed or controlled.
4. XProduction expendituresY means any expenditures that are incurred in
this state and directly used to produce an accredited production, including
expenditures for writing, budgeting, casting, location scouts, set construction and
operation, wardrobes, makeup, clothing accessories, photography, sound recording,
sound synchronization, sound mixing, lighting, editing, film processing, film
transferring, special effects, visual effects, renting or leasing facilities or
equipment, renting or leasing motor vehicles, food, lodging, and any other similar
pre-production, production, and post-production expenditure as determined by the
state film office. XProduction expendituresY includes expenditures for music that is
performed, composed, or recorded by a musician who is a resident of this state or
published or distributed by an entity that has its commercial domicile in this state;
air travel that is purchased from a travel agency or company that has its commercial
domicile in this state; and insurance that is purchased from an insurance agency or
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company that has its commercial domicile in this state. XProduction expendituresY
does not include salary or wages or expenditures for the marketing and distribution
of an accredited production.
(b) Filing claims. Subject to the limitations provided in this subsection, for
taxable years beginning after December 31, 2025, a claimant may claim as a credit
against the tax imposed under s. 71.43 any of the following amounts:
1. An amount equal to 30 percent of the salary or wages paid by the claimant
to the claimant[s employees in the taxable year for services rendered in this state to
produce an accredited production and paid to employees who were residents of this
state at the time that they were paid.
2. An amount equal to 30 percent of the production expenditures paid by the
claimant in the taxable year to produce an accredited production.
3. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the
claimant paid in the taxable year on the purchase of tangible personal property and
taxable services that are used directly in producing an accredited production in this
state, including all stages from the final script stage to the distribution of the
finished production.
(c) Limitations. 1. No amount of the salary or wages paid under par. (b) 1.
may be the basis for a credit under this subsection unless the salary or wages are
paid for services rendered after December 31, 2025, and directly incurred to
produce the accredited production.
2. The total amount of the credits that may be claimed by a claimant under
par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages
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paid to each of the claimant[s employees, as described in par. (b) 1., in the taxable
year, not including the salary or wages paid to the claimant[s 2 highest-paid
employees, as described in par. (b) 1., in the taxable year, if the claimant[s budgeted
production expenditures are $1,000,000 or more.
3. No credit may be allowed under this subsection unless the claimant files an
application with the state film office, at the time and in the manner prescribed by
the office, and the office approves the application. The claimant shall submit a copy
of the approved application with the claimant[s return.
4. Partnerships, limited liability companies, and tax-option corporations may
not claim the credit under this subsection, but the eligibility for, and the amount of,
the credit are based on their payment of amounts under par. (b). A partnership,
limited liability company, or tax-option corporation shall compute the amount of
credit that each of its partners, members, or shareholders may claim and shall
provide that information to each of them. Partners, members of limited liability
companies, and shareholders of tax-option corporations may claim the credit in
proportion to their ownership interest.
(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
credit under s. 71.28 (4), applies to the credits under this subsection. Section 71.28
(4) (f), as it applies to the credit under s. 71.28 (4), applies to the credits under par.
(b) 1. and 3.
2. If the allowable amount of the claim under par. (b) 2. exceeds the tax
otherwise due under s. 71.43 or no tax is due under s. 71.43, the amount of the
claim not used to offset the tax due shall be certified by the department of revenue
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to the department of administration for payment by check, share draft, or other
draft drawn from the appropriation account under s. 20.835 (2) (bm).
3. Any person, including a nonprofit entity described in section 501 (c) (3) of
the Internal Revenue Code, may sell or otherwise transfer a credit under this
subsection, in whole or in part, to another person who is subject to the taxes
imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
transfer, and submits with the notification a copy of the transfer documents, and
the department certifies ownership of the credit. The transferee may first use the
credit to offset tax of the transferor in the taxable year in which the transfer occurs
and may use the credit only to offset tax in taxable years in which the credit is
otherwise allowed to be claimed and carried forward by the original claimant.
SECTION 21. 71.47 (5h) of the statutes is created to read:
71.47 (5h) FILM PRODUCTION COMPANY INVESTMENT CREDIT. (a) Definitions.
In this subsection:
1. XClaimantY means a person who files a claim under this subsection and
who does business in this state as a film production company.
2. XFilm production companyY means an entity that creates films, videos,
broadcast advertisement, or television productions, not including the productions
described under sub. (5f) (a) 1. a. to g.
3. XPhysical workY does not include preliminary activities such as planning,
designing, securing financing, researching, developing specifications, or stabilizing
property to prevent deterioration.
4. XPreviously owned propertyY means real property that the claimant or a
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related person owned during the 2 years prior to doing business in this state as a
film production company and for which the claimant may not deduct a loss from the
sale of the property to, or an exchange of the property with, the related person
under section 267 of the Internal Revenue Code.
5. XUsed exclusivelyY means used to the exclusion of all other uses except for
other use not exceeding 5 percent of total use.
(b) Filing claims. Subject to the limitations provided in this subsection, for
taxable years beginning after December 31, 2025, a claimant may claim as a credit
against the tax imposed under s. 71.43, up to the amount of the taxes, for the first 3
taxable years that the claimant is doing business in this state as a film production
company, an amount that is equal to 30 percent of the following that the claimant
paid in the taxable year to establish a film production company in this state:
1. The purchase price of depreciable, tangible personal property.
2. The amount expended to acquire, construct, rehabilitate, remodel, or repair
real property.
(c) Limitations. 1. A claimant may claim the credit under par. (b) 1., if the
tangible personal property is purchased after December 31, 2025, and the personal
property is used exclusively in the claimant[s business as a film production
company.
2. A claimant may claim the credit under par. (b) 2. for an amount expended to
construct, rehabilitate, remodel, or repair real property, if the claimant began the
physical work of construction, rehabilitation, remodeling, or repair, or any
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demolition or destruction in preparation for the physical work, after December 31,
2025, or if the completed project is placed in service after December 31, 2025.
3. A claimant may claim the credit under par. (b) 2. for an amount expended to
acquire real property, if the property is not previously owned property and if the
claimant acquires the property after December 31, 2025, or if the completed project
is placed in service after December 31, 2025.
4. No claim may be allowed under this subsection unless the state film office
certifies, in writing, that the credits claimed under this subsection are for expenses
related to establishing a film production company in this state and the claimant
submits a copy of the certification with the claimant[s return.
5. Partnerships, limited liability companies, and tax-option corporations may
not claim the credit under this subsection, but the eligibility for, and the amount of,
the credit are based on their payment of amounts under par. (b). A partnership,
limited liability company, or tax-option corporation shall compute the amount of
credit that each of its partners, members, or shareholders may claim and shall
provide that information to each of them. Partners, members of limited liability
companies, and shareholders of tax-option corporations may claim the credit in
proportion to their ownership interests.
(d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
under s. 71.28 (4), applies to the credits under this subsection.
2. Any person, including a nonprofit entity described in section 501 (c) (3) of
the Internal Revenue Code, may sell or otherwise transfer a credit under this
subsection, in whole or in part, to another person who is subject to the taxes
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imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
transfer, and submits with the notification a copy of the transfer documents, and
the department certifies ownership of the credit. The transferee may first use the
credit to offset tax of the transferor in the taxable year in which the transfer occurs
and may use the credit only to offset tax in taxable years in which the credit is
otherwise allowed to be claimed and carried forward by the original claimant.
SECTION 22. 71.49 (1) (epr) of the statutes is created to read:
71.49 (1) (epr) Film production company investment credit under s. 71.47
(5h).
SECTION 23. 71.49 (1) (eps) of the statutes is created to read:
71.49 (1) (eps) Film production services credit under s. 71.47 (5f) (b) 1. and 3.
SECTION 24. 71.49 (1) (f) of the statutes is amended to read:
71.49 (1) (f) The total of farmland preservation credit under subch. IX, jobs
credit under s. 71.47 (3q), enterprise zone jobs credit under s. 71.47 (3w), business
development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1., film
production services credit under s. 71.47 (5f) (b) 2., and estimated tax payments
under s. 71.48.
SECTION 25. Fiscal changes.
(1) STATE FILM OFFICE. In the schedule under s. 20.005 (3) for the
appropriation to the department of tourism under s. 20.380 (1) (a), the dollar
amount for fiscal year 2025-26 is increased by $199,300 to increase the authorized
FTE positions for the state film office by 3.0 GPR positions for administration of the
film production services credit and the film production company investment credit.
In the schedule under s. 20.005 (3) for the appropriation to the department of
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tourism under s. 20.380 (1) (a), the dollar amount for fiscal year 2026-27 is
increased by $254,000 to provide funding for the position authorized under this
subsection.
SECTION 26. Effective date.
(1) This act takes effect on the day after publication, or on the 2nd day after
publication of the 2025 biennial budget act, whichever is later.
(END)
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