SB231,20,1035. Partnerships, limited liability companies, and tax-option corporations may 4not claim the credit under this subsection, but the eligibility for, and the amount of, 5the credit are based on their payment of amounts under par. (b). A partnership, 6limited liability company, or tax-option corporation shall compute the amount of 7credit that each of its partners, members, or shareholders may claim and shall 8provide that information to each of them. Partners, members of limited liability 9companies, and shareholders of tax-option corporations may claim the credit in 10proportion to their ownership interests. SB231,20,1211(d) Administration. 1. Subsection (4) (e) to (h), as it applies to the credit 12under sub. (4), applies to the credits under this subsection. SB231,20,21132. Any person, including a nonprofit entity described in section 501 (c) (3) of 14the Internal Revenue Code, may sell or otherwise transfer a credit under this 15subsection, in whole or in part, to another person who is subject to the taxes 16imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the 17transfer, and submits with the notification a copy of the transfer documents, and 18the department certifies ownership of the credit. The transferee may first use the 19credit to offset tax of the transferor in the taxable year in which the transfer occurs 20and may use the credit only to offset tax in taxable years in which the credit is 21otherwise allowed to be claimed and carried forward by the original claimant. SB231,1522Section 15. 71.30 (3) (epr) of the statutes is created to read: SB231,21,2
171.30 (3) (epr) Film production company investment credit under s. 71.28 2(5h). SB231,163Section 16. 71.30 (3) (eps) of the statutes is created to read: SB231,21,4471.30 (3) (eps) Film production services credit under s. 71.28 (5f) (b) 1. and 3. SB231,175Section 17. 71.30 (3) (f) of the statutes is amended to read: SB231,21,11671.30 (3) (f) The total of farmland preservation credit under subch. IX, jobs 7credit under s. 71.28 (3q), enterprise zone jobs credit under s. 71.28 (3w), electronics 8and information technology manufacturing zone credit under s. 71.28 (3wm), 9business development credit under s. 71.28 (3y), research credit under s. 71.28 (4) 10(k) 1., film production services credit under s. 71.28 (5f) (b) 2., and estimated tax 11payments under s. 71.29. SB231,1812Section 18. 71.34 (1k) (g) of the statutes is amended to read: SB231,21,161371.34 (1k) (g) An addition shall be made for credits computed by a tax-option 14corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w), 15(3wm), (3y), (4), (5), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and 16passed through to shareholders. SB231,1917Section 19. 71.45 (2) (a) 10. of the statutes is amended to read: SB231,21,241871.45 (2) (a) 10. By adding to federal taxable income the amount of credit 19computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5f), (5g), 20(5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a 21partnership, limited liability company, or tax-option corporation that has added 22that amount to the partnership’s, limited liability company’s, or tax-option 23corporation’s income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit 24computed under s. 71.47 (3), (3t), (4), (4m), and (5). SB231,20
1Section 20. 71.47 (5f) of the statutes is created to read: SB231,22,3271.47 (5f) Film production services credit. (a) Definitions. In this 3subsection: SB231,22,1141. “Accredited production” means a film, video, broadcast advertisement, or 5television production, as approved by the state film office, for which the aggregate 6salary and wages included in the cost of the production for the period ending 12 7months after the month in which the principal filming or taping of the production 8begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for 9a production that is less than 30 minutes. “Accredited production” includes a 10scripted, unscripted, reality, or competition production, but does not include any of 11the following, regardless of the production costs: SB231,22,1312a. News, current events, or public programming or a program that includes 13weather or market reports. SB231,22,1414b. A talk show. SB231,22,1515c. A sports event or sports activity. SB231,22,1616d. A gala presentation or awards show. SB231,22,1717e. A finished production that solicits funds. SB231,22,2018f. A production for which the production company is required under 18 USC 192257 to maintain records with respect to a performer portrayed in a single media or 20multimedia program. SB231,22,2221g. A production produced primarily for industrial, corporate, or institutional 22purposes. SB231,23,5232. “Claimant” means a film production company, as defined in sub. (5h) (a) 2.,
1that operates an accredited production in this state, if the company owns the 2copyright in the accredited production or has contracted directly with the copyright 3owner or a person acting on the owner’s behalf and if the company has a viable plan, 4as determined by the state film office, for the commercial distribution of the 5finished production. SB231,23,1063. “Commercial domicile” means the location from which a trade or business 7is principally managed and directed, based on any factors the state film office 8determines are appropriate, including the location where the greatest number of 9employees of the trade or business work, the trade or business has its office or base 10of operations, or from which the employees are directed or controlled. SB231,24,3114. “Production expenditures” means any expenditures that are incurred in 12this state and directly used to produce an accredited production, including 13expenditures for writing, budgeting, casting, location scouts, set construction and 14operation, wardrobes, makeup, clothing accessories, photography, sound recording, 15sound synchronization, sound mixing, lighting, editing, film processing, film 16transferring, special effects, visual effects, renting or leasing facilities or 17equipment, renting or leasing motor vehicles, food, lodging, and any other similar 18pre-production, production, and post-production expenditure as determined by the 19state film office. “Production expenditures” includes expenditures for music that is 20performed, composed, or recorded by a musician who is a resident of this state or 21published or distributed by an entity that has its commercial domicile in this state; 22air travel that is purchased from a travel agency or company that has its commercial 23domicile in this state; and insurance that is purchased from an insurance agency or
1company that has its commercial domicile in this state. “Production expenditures” 2does not include salary or wages or expenditures for the marketing and distribution 3of an accredited production. SB231,24,64(b) Filing claims. Subject to the limitations provided in this subsection, for 5taxable years beginning after December 31, 2025, a claimant may claim as a credit 6against the tax imposed under s. 71.43 any of the following amounts: SB231,24,1071. An amount equal to 30 percent of the salary or wages paid by the claimant 8to the claimant’s employees in the taxable year for services rendered in this state to 9produce an accredited production and paid to employees who were residents of this 10state at the time that they were paid. SB231,24,12112. An amount equal to 30 percent of the production expenditures paid by the 12claimant in the taxable year to produce an accredited production. SB231,24,17133. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the 14claimant paid in the taxable year on the purchase of tangible personal property and 15taxable services that are used directly in producing an accredited production in this 16state, including all stages from the final script stage to the distribution of the 17finished production. SB231,24,2118(c) Limitations. 1. No amount of the salary or wages paid under par. (b) 1. 19may be the basis for a credit under this subsection unless the salary or wages are 20paid for services rendered after December 31, 2025, and directly incurred to 21produce the accredited production. SB231,25,4222. The total amount of the credits that may be claimed by a claimant under 23par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages
1paid to each of the claimant’s employees, as described in par. (b) 1., in the taxable 2year, not including the salary or wages paid to the claimant’s 2 highest-paid 3employees, as described in par. (b) 1., in the taxable year, if the claimant’s budgeted 4production expenditures are $1,000,000 or more. SB231,25,853. No credit may be allowed under this subsection unless the claimant files an 6application with the state film office, at the time and in the manner prescribed by 7the office, and the office approves the application. The claimant shall submit a copy 8of the approved application with the claimant’s return. SB231,25,1694. Partnerships, limited liability companies, and tax-option corporations may 10not claim the credit under this subsection, but the eligibility for, and the amount of, 11the credit are based on their payment of amounts under par. (b). A partnership, 12limited liability company, or tax-option corporation shall compute the amount of 13credit that each of its partners, members, or shareholders may claim and shall 14provide that information to each of them. Partners, members of limited liability 15companies, and shareholders of tax-option corporations may claim the credit in 16proportion to their ownership interest. SB231,25,2017(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the 18credit under s. 71.28 (4), applies to the credits under this subsection. Section 71.28 19(4) (f), as it applies to the credit under s. 71.28 (4), applies to the credits under par. 20(b) 1. and 3. SB231,26,2212. If the allowable amount of the claim under par. (b) 2. exceeds the tax 22otherwise due under s. 71.43 or no tax is due under s. 71.43, the amount of the 23claim not used to offset the tax due shall be certified by the department of revenue
1to the department of administration for payment by check, share draft, or other 2draft drawn from the appropriation account under s. 20.835 (2) (bm). SB231,26,1133. Any person, including a nonprofit entity described in section 501 (c) (3) of 4the Internal Revenue Code, may sell or otherwise transfer a credit under this 5subsection, in whole or in part, to another person who is subject to the taxes 6imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the 7transfer, and submits with the notification a copy of the transfer documents, and 8the department certifies ownership of the credit. The transferee may first use the 9credit to offset tax of the transferor in the taxable year in which the transfer occurs 10and may use the credit only to offset tax in taxable years in which the credit is 11otherwise allowed to be claimed and carried forward by the original claimant. SB231,2112Section 21. 71.47 (5h) of the statutes is created to read: SB231,26,141371.47 (5h) Film production company investment credit. (a) Definitions. 14In this subsection: SB231,26,16151. “Claimant” means a person who files a claim under this subsection and 16who does business in this state as a film production company. SB231,26,19172. “Film production company” means an entity that creates films, videos, 18broadcast advertisement, or television productions, not including the productions 19described under sub. (5f) (a) 1. a. to g. SB231,26,22203. “Physical work” does not include preliminary activities such as planning, 21designing, securing financing, researching, developing specifications, or stabilizing 22property to prevent deterioration. SB231,27,4234. “Previously owned property” means real property that the claimant or a
1related person owned during the 2 years prior to doing business in this state as a 2film production company and for which the claimant may not deduct a loss from the 3sale of the property to, or an exchange of the property with, the related person 4under section 267 of the Internal Revenue Code. SB231,27,655. “Used exclusively” means used to the exclusion of all other uses except for 6other use not exceeding 5 percent of total use. SB231,27,127(b) Filing claims. Subject to the limitations provided in this subsection, for 8taxable years beginning after December 31, 2025, a claimant may claim as a credit 9against the tax imposed under s. 71.43, up to the amount of the taxes, for the first 3 10taxable years that the claimant is doing business in this state as a film production 11company, an amount that is equal to 30 percent of the following that the claimant 12paid in the taxable year to establish a film production company in this state: SB231,27,13131. The purchase price of depreciable, tangible personal property. SB231,27,15142. The amount expended to acquire, construct, rehabilitate, remodel, or repair 15real property. SB231,27,1916(c) Limitations. 1. A claimant may claim the credit under par. (b) 1., if the 17tangible personal property is purchased after December 31, 2025, and the personal 18property is used exclusively in the claimant’s business as a film production 19company. SB231,28,2202. A claimant may claim the credit under par. (b) 2. for an amount expended to 21construct, rehabilitate, remodel, or repair real property, if the claimant began the 22physical work of construction, rehabilitation, remodeling, or repair, or any
1demolition or destruction in preparation for the physical work, after December 31, 22025, or if the completed project is placed in service after December 31, 2025. SB231,28,633. A claimant may claim the credit under par. (b) 2. for an amount expended to 4acquire real property, if the property is not previously owned property and if the 5claimant acquires the property after December 31, 2025, or if the completed project 6is placed in service after December 31, 2025. SB231,28,1074. No claim may be allowed under this subsection unless the state film office 8certifies, in writing, that the credits claimed under this subsection are for expenses 9related to establishing a film production company in this state and the claimant 10submits a copy of the certification with the claimant’s return. SB231,28,18115. Partnerships, limited liability companies, and tax-option corporations may 12not claim the credit under this subsection, but the eligibility for, and the amount of, 13the credit are based on their payment of amounts under par. (b). A partnership, 14limited liability company, or tax-option corporation shall compute the amount of 15credit that each of its partners, members, or shareholders may claim and shall 16provide that information to each of them. Partners, members of limited liability 17companies, and shareholders of tax-option corporations may claim the credit in 18proportion to their ownership interests. SB231,28,2019(d) Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit 20under s. 71.28 (4), applies to the credits under this subsection. SB231,29,6212. Any person, including a nonprofit entity described in section 501 (c) (3) of 22the Internal Revenue Code, may sell or otherwise transfer a credit under this 23subsection, in whole or in part, to another person who is subject to the taxes
1imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the 2transfer, and submits with the notification a copy of the transfer documents, and 3the department certifies ownership of the credit. The transferee may first use the 4credit to offset tax of the transferor in the taxable year in which the transfer occurs 5and may use the credit only to offset tax in taxable years in which the credit is 6otherwise allowed to be claimed and carried forward by the original claimant. SB231,227Section 22. 71.49 (1) (epr) of the statutes is created to read: SB231,29,9871.49 (1) (epr) Film production company investment credit under s. 71.47 9(5h). SB231,2310Section 23. 71.49 (1) (eps) of the statutes is created to read: SB231,29,111171.49 (1) (eps) Film production services credit under s. 71.47 (5f) (b) 1. and 3. SB231,2412Section 24. 71.49 (1) (f) of the statutes is amended to read: SB231,29,171371.49 (1) (f) The total of farmland preservation credit under subch. IX, jobs 14credit under s. 71.47 (3q), enterprise zone jobs credit under s. 71.47 (3w), business 15development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1., film 16production services credit under s. 71.47 (5f) (b) 2., and estimated tax payments 17under s. 71.48. SB231,30,319(1) State film office. In the schedule under s. 20.005 (3) for the 20appropriation to the department of tourism under s. 20.380 (1) (a), the dollar 21amount for fiscal year 2025-26 is increased by $199,300 to increase the authorized 22FTE positions for the state film office by 3.0 GPR positions for administration of the 23film production services credit and the film production company investment credit. 24In the schedule under s. 20.005 (3) for the appropriation to the department of
1tourism under s. 20.380 (1) (a), the dollar amount for fiscal year 2026-27 is 2increased by $254,000 to provide funding for the position authorized under this 3subsection. SB231,30,65(1) This act takes effect on the day after publication, or on the 2nd day after 6publication of the 2025 biennial budget act, whichever is later.
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