1
2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to motion picture incentives.
10 Highlighted Provisions:
11 This bill:
12 ▸ removes the cap on cash rebate incentives allowed for any one motion picture.
13 Money Appropriated in this Bill:
14 None
15 Other Special Clauses:
16 None
17 Utah Code Sections Affected:
18 AMENDS:
19 63N-8-104, as renumbered and amended by Laws of Utah 2015, Chapter 283
20
21 Be it enacted by the Legislature of the state of Utah:
22 Section 1. Section 63N-8-104 is amended to read:
23 63N-8-104. Motion picture incentives -- Standards to qualify for an incentive --
24 Limitations -- Content of agreement between office and motion picture company or
25 digital media company.
26 (1) In addition to the requirements for receiving a motion picture incentive as set forth
27 in this part, the office, in accordance with Title 63G, Chapter 3, Utah Administrative
28 Rulemaking Act, shall make rules establishing:
29 (a) the standards that a motion picture company or digital media company must meet to
30 qualify for the motion picture incentive; and
31 (b) criteria for determining the amount of the incentive.
32 (2) The office shall ensure that those standards include the following:
33 (a) an incentive may only be issued for a [
34 a motion picture company or digital media company;
35 (b) financing has been obtained and is in place for the production; and
36 (c) the economic impact of the production on the state represents new incremental
37 economic activity in the state as opposed to existing economic activity.
38 (3) With respect to a digital media project, the office shall consider economic
39 modeling, including the costs and benefits of the digital media project to state and local
40 governments in determining the motion picture incentive amount.
41 (4) The office may also consider giving preference to a production that stimulates
42 economic activity in rural areas of the state or that has Utah content, such as recognizing that
43 the production was made in the state or uses Utah as Utah in the production.
44 (5) (a) The office, with advice from the board, may enter into an agreement with a
45 motion picture company or digital media company that meets the standards established under
46 this section and satisfies the other qualification requirements under this part.
47 (b) Subject to Subsection 63N-8-103(3), the office may commit or authorize a motion
48 picture incentive:
49 (i) to a motion picture company of up to 20% of the dollars left in the state by the
50 motion picture company, and a motion picture company can receive an additional 5%, not to
51 exceed 25% of the dollars left in the state by the motion picture company if the company
52 fulfills certain requirements determined by the office including:
53 (A) employing a significant percentage of cast and crew from Utah;
54 (B) highlighting the state of Utah and the Utah Film Commission in the motion picture
55 credits; or
56 (C) other promotion opportunities as agreed upon by the office and the motion picture
57 company; and
58 (ii) to a digital media company, if the incentive does not exceed 100% of the new state
59 revenue less the considerations under Subsection (3), but not to exceed 20% of the dollars left
60 in the state by the digital media company.
61 [
62
63 [
64 Incentive Restricted Account for a digital media project.
65 (6) The office shall ensure that the agreement entered into with a motion picture
66 company or digital media company under Subsection (5)(a):
67 (a) details the requirements that the motion picture company or digital media company
68 must meet to qualify for an incentive under this part;
69 (b) specifies:
70 (i) the nature of the incentive; and
71 (ii) the maximum amount of the motion picture incentive that the motion picture
72 company or digital media company may earn for a taxable year and over the life of the
73 production;
74 (c) establishes the length of time over which the motion picture company or digital
75 media company may claim the motion picture incentive;
76 (d) requires the motion picture company or digital media company to retain records
77 supporting its claim for a motion picture incentive for at least four years after the motion
78 picture company or digital media company claims the incentive under this part; and
79 (e) requires the motion picture company or digital media company to submit to audits
80 for verification of the claimed motion picture incentive.