63M-1-1804 - Motion picture incentives -- Standards to qualify for an incentive -- Limitations -- Content of agreement between office and motion picture company.
63M-1-1804. Motion picture incentives -- Standards to qualify for an incentive --Limitations -- Content of agreement between office and motion picture company.
(1) In addition to the requirements for receiving a motion picture incentive as set forth inthis part, the office, in accordance with Title 63G, Chapter 3, Utah Administrative RulemakingAct, shall make rules establishing the standards that a motion picture company must meet toqualify for the motion picture incentive.
(2) The office shall ensure that those standards include the following:
(a) an incentive may only be issued for a within-the-state production of:
(i) a television series;
(ii) a made-for-television movie; or
(iii) a motion picture, including feature films and independent films;
(b) financing has been obtained and is in place for the production; and
(c) the economic impact of the production on the state represents new incrementaleconomic activity in the state as opposed to existing economic activity.
(3) The office may also consider giving preference to a production that stimulateseconomic activity in rural areas of the state or that has Utah content, such as recognizing that theproduction was made in the state or uses Utah as Utah in the production.
(4) (a) The office, with advice from the board, may enter into an agreement with amotion picture company that meets the standards established under this section and satisfies theother qualification requirements under this part.
(b) Subject to Subsection 63M-1-1803(3), the office may commit or authorize a motionpicture incentive to a motion picture company if that incentive does not exceed 20% of thedollars left in the state by the motion picture company.
(c) A cash rebate incentive from the Motion Picture Incentive Restricted Account maynot exceed $500,000 per production.
(5) The office shall ensure that the agreement entered into with a motion picturecompany under Subsection (4)(a):
(a) details the requirements that the motion picture company must meet to qualify for anincentive under this part;
(b) specifies:
(i) the nature of the incentive; and
(ii) the maximum amount of the motion picture incentive that the motion picturecompany may earn for a taxable year and over the life of the production;
(c) establishes the length of time over which the motion picture company may claim themotion picture incentive;
(d) requires the motion picture company to retain records supporting its claim for amotion picture incentive for at least four years after the motion picture company claims theincentive under this part; and
(e) requires the motion picture company to submit to audits for verification of theclaimed motion picture incentive.
Amended by Chapter 278, 2010 General Session