Budget Amendment ID: FY2015-S4-13
OTH 13
Film Tax Credit Cap
Messrs. Montigny and Eldridge and Ms. Jehlen moved that the proposed new text be amended moved that the bill be amended by inserting after Section ___
SECTION ___Subsection (l) of section 6 of chapter 62 of the General Laws, as so appearing, is hereby amended by adding the following paragraph:-
Notwithstanding any other provision of this section, the cumulative amount of credits allowed under this subsection together with section 38X of chapter 63 for all productions, shall not exceed $40,000,000 for credits deemed attributable to any one fiscal year beginning with the fiscal year commencing on July 1, 2014.
SECTION___. Section 38X of chapter 63 of the General Laws, inserted by section 82 of chapter 173 of the acts of 2008, is hereby amended by adding the following subsection:-
(g) Notwithstanding any other provision of this section, the cumulative amount of credits allowed under this section together with subsection (l) of section 6 of chapter 62 for all productions, shall not exceed $40,000,000 for credits deemed attributable to any one fiscal year, beginning with the fiscal year that commences on July 1, 2014.
SECTION___. In order to implement paragraph (8) of subsection (l) of section 6 of chapter 62 and subsection (g) of section 38X of chapter 63 of the General Laws, the department of revenue, in this section called the department, shall issue and implement rules or guidelines which may include but are not limited to the following:
(a) Any motion picture production company seeking a credit for a production that commences filming after January 23, 2014 shall file a production notice with the department, stating the amount of estimated expenses qualifying for the credit for the production and other information required by the department.
(b) Production notices received by the department on or after January 23, 2014 and before January 23, 2015 shall be considered to be attributable to fiscal year 2015 and shall reduce the available credit for fiscal year 2015, in the order in which they are received, by not more than the amount of the credit calculated with respect to the estimated qualifying expenses stated in the notices. Production notices received by the department in each subsequent 12 month period shall be considered to be attributable to each subsequent fiscal year and shall reduce the available credit for that fiscal year, in the order in which they are received, by not more than the amount of the credit calculated with respect to the estimated qualifying expenses stated in the notices.
(c) A production company shall not be allowed a credit for a production commencing filming after January 23, 2014 unless filming commences within 90 days after the department has responded favorably to the notice and any credit shall not be allowed in excess of the amount of credit calculated with respect to the estimated qualifying expenses stated in the notice. A production company that does not commence filming within the required 90 day period will not be allowed a credit for that production and the credit otherwise attributable to that production will be available to other productions subject to the notice procedures and credit limits contained in this subsection (c).
(d) All productions commencing filming after January 23, 2014 are subject to the notice procedures and credit limits provided in this subsection (C) and shall not qualify for any credit under subsection (l) of section 6 of chapter 62 or section 38X of chapter 63 of the General Laws in any fiscal year except as allowed through those notice procedures and subject to those credit limits.
(e) Credit certificates issued by the department that are attributed to a particular fiscal year under this section will reduce the available credits for such year regardless of the production dates to which those credit certificates relate.”
SECTION___ Notwithstanding any general or special law to the contrary, all additional tax revenues generated or received by the Commonwealth as a result of the capping of the cumulative amount of tax credits allowed under subsection (l) of section 6 of chapter 62 of the General Laws together with section 38X of chapter 63 as provided herein in Section__ shall be used for the drug insurance program authorized in section 39 of chapter 19A of the general laws.