SB970,,10 71.07 (11) Digital interactive media credit. (a) Definitions. In this subsection:

SB970,,11 1. “Claimant” means a person who engages in qualified activities, owns a copyright in digital interactive media or entertainment or has contracted directly with the copyright owner or a person acting on behalf of the copyright owner, has a viable plan for the commercial distribution of the digital interactive media or entertainment, as determined by the department, and files a claim under this subsection.

SB970,,12 2. “Digital interactive media or entertainment” means a product or platform intended for commercial production, use, or distribution, that has primarily an entertainment purpose, and that satisfies all of the following:

SB970,,13 a. Contains at least 2 of the following types of data: text, sound, fixed images, animated images, video, or 3-dimensional geometry.

SB970,,14 b. Uses discrete values that are ordinarily symbolized numerically to represent information for input, processing, transmission, and storage, including information input, processed, transmitted, and stored via the Internet.

SB970,,15 c. Uses a system for inputting, processing, transmitting, or storing information or data in which users of the system are able to respond to the system by inputting, processing, transmitting, or storing information or data in response to the information or data provided to them through the system.

SB970,,16 d. Uses communication tools to store, transmit, distribute, and deliver information and data, including distributed networks such as the Internet and physical media such as compact discs, CD-ROM, DVD, and other removable storage drives or devices.

SB970,,17 3. “Digital interactive media or entertainment” does not include any of the following:

SB970,,18 a. Software designed and developed primarily for the internal or operational purposes of an entity.

SB970,,19 b. Largely static Internet sites designed primarily to provide information about a person, business, company, or firm, including Internet sites that are primarily social media, user generated videos, podcasting, interactive advertising, or journalism.

SB970,,20 c. Products or services regulated under chs. 562 to 569 or any software or application primarily involving gambling or wagering.

SB970,,21 d. Software or applications that contain content in violation of s. 944.21.

SB970,,22 4. “Eligible expenditures” means expenditures in this state directly related to qualified activities and that have economic substance and a business purpose, including all of the following:

SB970,,23 a. Testing software, source code development, patches, updates, sprites, 3-dimensional models, engine development and other back-end programming activities, performance and motion capture, audio production, tool development, original scoring, and level design.

SB970,,24 b. Photography, sound synchronization, lighting, and related services.

SB970,,25 c. Information technology support, data analysis, and activities related to a community of users of digital interactive media or entertainment.

SB970,,26 d. Leases of facilities and equipment.

SB970,,27 e. Prepackaged audio files, video files, photographic files, or libraries.

SB970,,28 f. Licenses to use prerecorded audio files, video files, or photographic files.

SB970,,29 g. Development associated with producing audio files and video files used in the production of end products of digital interactive media or entertainment.

SB970,,30 h. Accountants and lawyers whose work is directly related to qualified activities and who are licensed or otherwise authorized to practice in this state.

SB970,,31 5. “Eligible expenditures” does not include any of the following:

SB970,,32 a. Expenditures related to marketing, promotion, or distribution.

SB970,,33 b. Administrative, payroll, or management services that are not directly related to management of qualified activities.

SB970,,34 c. Any expenditure that is later reimbursed by the state.

SB970,,35 d. Costs related to the transfer of tax credits.

SB970,,36 e. Amounts that are paid to persons as a result of their participation in profits from a digital interactive media or entertainment production.

SB970,,37 f. Any reimbursement required under s. 71.748 (2).

SB970,,38 g. Interest expenses for loans.