HP1005, LD 1409, item 2, Document Text

Amend the bill by striking out all of the emergency preamble (page 1, lines 1 to 13 in L.D.).

Amend the bill in section 1 in §13090-L in subsection 2-A in paragraph B-3 in the last line (page 2, line 16 in L.D.) by inserting after the following: " media production" the following: ' or any single item with a value of $500,000 or more that is not owned and retained for use in future productions by a major visual media production company'

Amend the bill in section 1 in §13090-L in subsection 2-A in paragraph D in the 4th line (page 2, line 27 in L.D.) by inserting after the following: "medium" the following: ' , including the Internet,'

Amend the bill in section 1 in §13090-L by striking out all of subsection 3-A (page 4, lines 11 to 41 and page 5, lines 1 to 13 in L.D.) and inserting the following:

‘ 3-A. Requirements for major visual media production certificate. Applications for a major visual media production certificate must be made on a form prescribed and furnished by the department. The applicant must:

A. Provide payment for a nonrefundable application fee equal to 0.2% of the estimated amount of the tax credit for which the major visual media production company is requesting certification, which may not be less than $200 or more than $5,000;

B. Provide the names of the principals involved in the major visual media production and contact information for them;

C. Provide a certificate of insurance for the major visual media production;

D. Provide financial information that demonstrates that the major visual media production is fully financed and has an overall budget of at least $1,000,000 if applying for the 25% credit under Title 36, section 5219-II, subsection 1;

E. Provide projections of the number of positions required for the major visual media production, the number of residents of the State employed and the economic impact on the State;

F. Provide evidence that the major visual media production company is not owned by, affiliated with or controlled by, in whole or in part, a person that is in default on a loan made by the State or a loan guaranteed by the State;

G. Provide a projected schedule for preproduction, production and postproduction of the major visual media production that shows that the production will begin within 60 days after certification pursuant to subsection 3-B;

H. Demonstrate, by certifying in writing, that the major visual media production would not occur within the State absent the availability of the tax credit for which the major visual media production company is requesting certification;

I. Include, in the certified major visual media production, an on-screen credit for the State of Maine as described in subsection 3, paragraph E; and

J. Provide any other information required to demonstrate to the satisfaction of the commissioner that the major visual media production company has met, or will meet, the requirements of this subsection.’

Amend the bill by striking out all of section 2 (page 6, lines 9 to 20 in L.D.) and inserting the following:

‘Sec. 2. 36 MRSA §5219-II is enacted to read:

§ 5219-II. Certified major visual media production credit

1. Credit allowed. A major visual media production company, as defined in Title 5, section 13090-L, subsection 2-A, paragraph B-2, is allowed a credit against the taxes imposed by this Part in an amount equal to a percentage of major visual media production expenses, as defined in Title 5, section 13090-L, subsection 2-A, paragraph B-3, up to 25% of major visual media production expenses.

2. Limitation. Taxpayers claiming a credit under section 5219-W or 5219-Y are not eligible for this credit. The credit allowed by this section may be used only for the taxable year in which the major visual media production, as defined in Title 5, section 13090-L, subsection 2-A, paragraph B-1, is completed.

3. Refundable. The credit allowed under this section is fully refundable.

4. Repeal. This section is repealed December 31, 2017.’

Amend the bill by striking out all of the emergency clause (page 6, lines 21 and 22 in L.D.) and inserting the following:

‘Sec. 3. Application. This Act applies to tax years beginning on or after January 1, 2013.’

SUMMARY

This amendment changes the bill by removing the emergency provisions and clarifying that the credit is fully refundable. It clarifies that a visual media production may include content produced for the Internet and that the certified major visual media production credit must be claimed in the taxable year in which the major visual media production is completed. It removes the 35% credit for major visual media productions of over $100,000,000, the requirement for 50% of the positions to be filled by in-state residents and the requirement for the productions to include trailers and commercials. It provides that the application fee, which is 0.2% of tax credit, is nonrefundable and can be no less than $200 and no more than $5,000. It specifies that a major visual media production expense does not include any single item with a value of $500,000 or more that is not owned and retained for use in future productions by a major visual media production company. It repeals the credit on December 31, 2017.

HP1005 LD 1409	Session - 126th Maine Legislature C "A", Filing Number H-401, Sponsored by		LR 1750 Item 2
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