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7 LONG TITLE
8 General Description:
9 This bill modifies the Motion Picture Incentive Fund.
10 Highlighted Provisions:
11 This bill:
12 ▸ increases the maximum cash rebate incentive from $500,000 to $2,500,000 for a
13 motion picture project.
14 Money Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 None
18 Utah Code Sections Affected:
19 AMENDS:
20 63M-1-1804, as last amended by Laws of Utah 2011, Chapter 338
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22 Be it enacted by the Legislature of the state of Utah:
23 Section 1. Section 63M-1-1804 is amended to read:
24 63M-1-1804. Motion picture incentives -- Standards to qualify for an incentive --
25 Limitations -- Content of agreement between office and motion picture company or
26 digital media company.
27 (1) In addition to the requirements for receiving a motion picture incentive as set forth
28 in this part, the office, in accordance with Title 63G, Chapter 3, Utah Administrative
29 Rulemaking Act, shall make rules establishing:
30 (a) the standards that a motion picture company or digital media company must meet to
31 qualify for the motion picture incentive; and
32 (b) criteria for determining the amount of the incentive.
33 (2) The office shall ensure that those standards include the following:
34 (a) an incentive may only be issued for a state approved production by a motion picture
35 company or digital media company;
36 (b) financing has been obtained and is in place for the production; and
37 (c) the economic impact of the production on the state represents new incremental
38 economic activity in the state as opposed to existing economic activity.
39 (3) With respect to a digital media project, the office shall consider economic
40 modeling, including the costs and benefits of the digital media project to state and local
41 governments in determining the motion picture incentive amount.
42 (4) The office may also consider giving preference to a production that stimulates
43 economic activity in rural areas of the state or that has Utah content, such as recognizing that
44 the production was made in the state or uses Utah as Utah in the production.
45 (5) (a) The office, with advice from the board, may enter into an agreement with a
46 motion picture company or digital media company that meets the standards established under
47 this section and satisfies the other qualification requirements under this part.
48 (b) Subject to Subsection 63M-1-1803(3), the office may commit or authorize a motion
49 picture incentive:
50 (i) to a motion picture company of up to 20% of the dollars left in the state by the
51 motion picture company, and a motion picture company can receive an additional 5%, not to
52 exceed 25% of the dollars left in the state by the motion picture company if the company
53 fulfills certain requirements determined by the office including:
54 (A) employing a significant percentage of cast and crew from Utah;
55 (B) highlighting the state of Utah and the Utah Film Commission in the motion picture
56 credits; or
57 (C) other promotion opportunities as agreed upon by the office and the motion picture
58 company; and
59 (ii) to a digital media company, if the incentive does not exceed 100% of the new state
60 revenue less the considerations under Subsection (3), but not to exceed 20% of the dollars left
61 in the state by the digital media company.
62 (c) A cash rebate incentive from the Motion Picture Incentive Restricted Account may
63 not exceed [
64 (d) The office may not give a cash rebate incentive from the Motion Picture Incentive
65 Restricted Account for a digital media project.
66 (6) The office shall ensure that the agreement entered into with a motion picture
67 company or digital media company under Subsection (5)(a):
68 (a) details the requirements that the motion picture company or digital media company
69 must meet to qualify for an incentive under this part;
70 (b) specifies:
71 (i) the nature of the incentive; and
72 (ii) the maximum amount of the motion picture incentive that the motion picture
73 company or digital media company may earn for a taxable year and over the life of the
74 production;
75 (c) establishes the length of time over which the motion picture company or digital
76 media company may claim the motion picture incentive;
77 (d) requires the motion picture company or digital media company to retain records
78 supporting its claim for a motion picture incentive for at least four years after the motion
79 picture company or digital media company claims the incentive under this part; and
80 (e) requires the motion picture company or digital media company to submit to audits
81 for verification of the claimed motion picture incentive.