1.__Generally.__A media production company is allowed a reimbursement of 100% of Maine withholding taxes that have been paid pursuant to chapter 827 that are related to certified production wages, except that for Maine withholding related to employees who are Maine residents, the reimbursement rate is 200%.

2.__Procedure for reimbursement.__On or before the 15th day of the month immediately following receipt of a tax reimbursement certificate pursuant to Title 5, section 13090-L, subsection 4, a media production company shall report to the State Tax Assessor and to the department that portion of certified production wages deducted and withheld by it during the project period, together with any additional information the assessor may reasonably require.__The assessor shall report to the commissioner the reimbursement amount to which each media production company is entitled.__The commissioner shall deposit the reported amounts on or before June 30th of each year in a media__production reimbursement account established, maintained and administered by the commissioner, and shall pay the reported amounts to each certified media production company on or before July 31st of each year.

3.__Audit process.__This chapter may not be construed to limit the authority of the State Tax Assessor to conduct an audit of any qualified business.__When the assessor determines that a distribution larger than that authorized by this chapter has been received by any person, the assessor may enforce repayment of the overpayment by assessment pursuant to the provisions of chapter 7 or may apply the overpayment against subsequent reimbursements made pursuant to this chapter.__If the assessor determines that an overpayment is the result of fraud on the part of a media production company, the assessor may disqualify that company from receiving any future distributions pursuant to this chapter.

Sec. 3. Application. That section of this Act that enacts the Maine Revised Statutes, Title 36, chapter 919-A applies to income taxes withheld on or after January 1, 2006.

SUMMARY

This bill establishes a tax benefit for media production companies making productions in whole or in part in Maine. Under the bill, a media production company that meets certain criteria is allowed a reimbursement of taxes withheld from wages related to the Maine production.