135.750. Tax credit for qualified film production projects--definitions--application--cap--transfer of credits--sunset provision.
Tax credit for qualified film productionprojects--definitions--application--cap--transfer ofcredits--sunset provision.
135.750. 1. As used in this section, the following terms mean:
(1) "Highly compensated individual", any individual who receivescompensation in excess of one million dollars in connection with a singlequalified film production project;
(2) "Qualified film production project", any film, video, commercial,or television production, as approved by the department of economicdevelopment and the office of the Missouri film commission, that is underthirty minutes in length with an expected in-state expenditure budget inexcess of fifty thousand dollars, or that is over thirty minutes in lengthwith an expected in-state expenditure budget in excess of one hundredthousand dollars. Regardless of the production costs, "qualified filmproduction project" shall not include any:
(a) News or current events programming;
(b) Talk show;
(c) Production produced primarily for industrial, corporate, orinstitutional purposes, and for internal use;
(d) Sports event or sports program;
(e) Gala presentation or awards show;
(f) Infomercial or any production that directly solicits funds;
(g) Political ad;
(h) Production that is considered obscene, as defined in section573.010, RSMo;
(3) "Qualifying expenses", the sum of the total amount spent in thisstate for the following by a production company in connection with aqualified film production project:
(a) Goods and services leased or purchased by the production company.For goods with a purchase price of twenty-five thousand dollars or more,the amount included in qualifying expenses shall be the purchase price lessthe fair market value of the goods at the time the production is completed;
(b) Compensation and wages paid by the production company on whichthe production company remitted withholding payments to the department ofrevenue under chapter 143, RSMo. For purposes of this section,compensation and wages shall not include any amounts paid to a highlycompensated individual;
(4) "Tax credit", a credit against the tax otherwise due underchapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to143.265, RSMo, or otherwise due under chapter 148, RSMo;
(5) "Taxpayer", any individual, partnership, or corporation asdescribed in section 143.441, 143.471, RSMo, or section 148.370, RSMo, thatis subject to the tax imposed in chapter 143, RSMo, excluding withholdingtax imposed by sections 143.191 to 143.265, RSMo, or the tax imposed inchapter 148, RSMo, or any charitable organization which is exempt fromfederal income tax and whose Missouri unrelated business taxable income, ifany, would be subject to the state income tax imposed under chapter 143,RSMo.
2. For all taxable years beginning on or after January 1, 1999, butending on or before December 31, 2007, a taxpayer shall be granted a taxcredit for up to fifty percent of the amount of investment in production orproduction-related activities in any film production project with anexpected in-state expenditure budget in excess of three hundred thousanddollars. For all taxable years beginning on or after January 1, 2008, ataxpayer shall be allowed a tax credit for up to thirty-five percent of theamount of qualifying expenses in a qualified film production project. Eachfilm production company shall be limited to one qualified film productionproject per year. Activities qualifying a taxpayer for the tax creditpursuant to this subsection shall be approved by the office of the Missourifilm commission and the department of economic development.
3. Taxpayers shall apply for the film production tax credit bysubmitting an application to the department of economic development, on aform provided by the department. As part of the application, the expectedin-state expenditures of the qualified film production project shall bedocumented. In addition, the application shall include an economic impactstatement, showing the economic impact from the activities of the filmproduction project. Such economic impact statement shall indicate theimpact on the region of the state in which the film production orproduction-related activities are located and on the state as a whole.
4. For all taxable years ending on or before December 31, 2007, taxcredits certified pursuant to subsection 2 of this section shall not exceedone million dollars per taxpayer per year, and shall not exceed a total forall tax credits certified of one million five hundred thousand dollars peryear. For all taxable years beginning on or after January 1, 2008, taxcredits certified under subsection 1 of this section shall not exceed atotal for all tax credits certified of four million five hundred thousanddollars per year. Taxpayers may carry forward unused credits for up tofive tax periods, provided all such credits shall be claimed within ten taxperiods following the tax period in which the film production orproduction-related activities for which the credits are certified by thedepartment occurred.
5. Notwithstanding any provision of law to the contrary, any taxpayermay sell, assign, exchange, convey or otherwise transfer tax creditsallowed in subsection 2 of this section. The taxpayer acquiring the taxcredits may use the acquired credits to offset the tax liabilitiesotherwise imposed by chapter 143, RSMo, excluding withholding tax imposedby sections 143.191 to 143.265, RSMo, or chapter 148, RSMo. Unusedacquired credits may be carried forward for up to five tax periods,provided all such credits shall be claimed within ten tax periods followingthe tax period in which the film production or production-relatedactivities for which the credits are certified by the department occurred.
6. Under section 23.253, RSMo, of the Missouri sunset act:
(1) The provisions of the new program authorized under this sectionshall automatically sunset six years after November 28, 2007, unlessreauthorized by an act of the general assembly; and
(2) If such program is reauthorized, the program authorized underthis section shall automatically sunset twelve years after the effectivedate of the reauthorization of this section; and
(3) This section shall terminate on September first of the calendaryear immediately following the calendar year in which the programauthorized under this section is sunset.
(L. 1998 S.B. 827 § 2, A.L. 1999 H.B. 701, A.L. 2004 S.B. 1394, A.L. 2007 1st Ex. Sess H.B. 1)Effective 11-28-07
Sunset date 11-28-13, unless reauthorized
Termination date 9-01-14, unless reauthorized
CROSS REFERENCES:
Annual report for tax credits, RSMo 320.092
Tax Credit Accountability Act of 2004, additional requirements, RSMo 135.800 to 135.830