AB50,134321Section 1343. 71.28 (4) (k) 1. c. of the statutes is amended to read: AB50,707,32271.28 (4) (k) 1. c. For taxable years beginning after December 31, 2023, the 23amount of the claim not used to offset the tax due, not to exceed 25 percent of the 24allowable amount of the claim under par. (ad) 4., 5., or 6., or 7., shall be certified by
1the department of revenue to the department of administration for payment by 2check, share draft, or other draft drawn from the appropriation account under s. 320.835 (2) (d). AB50,13444Section 1344. 71.28 (5f) of the statutes is created to read: AB50,707,6571.28 (5f) Film production services credit. (a) Definitions. In this 6subsection: AB50,707,1371. “Accredited production” means a film, video, broadcast advertisement, or 8television production, as approved by the department of tourism, for which the 9aggregate salary and wages included in the cost of the production for the period 10ending 12 months after the month in which the principal filming or taping of the 11production begins exceeds $100,000 for a production that is 30 minutes or longer or 12$50,000 for a production that is less than 30 minutes. “Accredited production” does 13not include any of the following, regardless of the production costs: AB50,707,1514a. News, current events, or public programming or a program that includes 15weather or market reports. AB50,707,1616b. A talk show. AB50,707,1717c. A production with respect to a questionnaire or contest. AB50,707,1818d. A sports event or sports activity. AB50,707,1919e. A gala presentation or awards show. AB50,707,2020f. A finished production that solicits funds. AB50,707,2321g. A production for which the production company is required under 18 USC 222257 to maintain records with respect to a performer portrayed in a single media or 23multimedia program. AB50,708,2
1h. A production produced primarily for industrial, corporate, or institutional 2purposes. AB50,708,832. “Claimant” means a film production company, as defined in sub. (5h) (a) 2., 4that operates an accredited production in this state, if the company owns the 5copyright in the accredited production or has contracted directly with the copyright 6owner or a person acting on the owner’s behalf and if the company has a viable plan, 7as determined by the department of tourism, for the commercial distribution of the 8finished production. AB50,708,1393. “Commercial domicile” means the location from which a trade or business 10is principally managed and directed, based on any factors the department of 11tourism determines are appropriate, including the location where the greatest 12number of employees of the trade or business work, the trade or business has its 13office or base of operations, or from which the employees are directed or controlled. AB50,709,6144. “Production expenditures” means any expenditure that is incurred in this 15state and directly used to produce an accredited production, including expenditures 16for writing, budgeting, casting, location scouts, set construction and operation, 17wardrobes, makeup, clothing accessories, photography, sound recording, sound 18synchronization, sound mixing, lighting, editing, film processing, film transferring, 19special effects, visual effects, renting or leasing facilities or equipment, renting or 20leasing motor vehicles, food, lodging, and any other similar pre-production, 21production, and post-production expenditure as determined by the department of 22tourism. “Production expenditures” includes expenditures for music that is 23performed, composed, or recorded by a musician who is a resident of this state or
1published or distributed by an entity that has its commercial domicile in this state; 2air travel that is purchased from a travel agency or company that has its commercial 3domicile in this state; and insurance that is purchased from an insurance agency or 4company that has its commercial domicile in this state. “Production expenditures” 5does not include salary or wages or expenditures for the marketing and distribution 6of an accredited production. AB50,709,97(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. 71.23 any of the following amounts: AB50,709,13101. An amount equal to 25 percent of the salary or wages paid by the claimant 11to the claimant’s employees in the taxable year for services rendered in this state to 12produce an accredited production and paid to employees who were residents of this 13state at the time that they were paid. AB50,709,15142. An amount equal to 25 percent of the production expenditures paid by the 15claimant in the taxable year to produce an accredited production. AB50,709,20163. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the 17claimant paid in the taxable year on the purchase of tangible personal property and 18taxable services that are used directly in producing an accredited production in this 19state, including all stages from the final script stage to the distribution of the 20finished production. AB50,710,221(c) Limitations. 1. No amount of the salary or wages paid under par. (b) 1. 22may be the basis for a credit under this subsection unless the salary or wages are
1paid for services rendered after December 31, 2025, and directly incurred to 2produce the accredited production. AB50,710,832. The total amount of the credits that may be claimed by a claimant under 4par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages 5paid to each of the claimant’s employees, as described in par. (b) 1., in the taxable 6year, not including the salary or wages paid to the claimant’s 2 highest-paid 7employees, as described in par. (b) 1., in the taxable year, if the claimant’s budgeted 8production expenditures are $1,000,000 or more. AB50,710,1293. No credit may be allowed under this subsection unless the claimant files an 10application with the department of tourism, at the time and in the manner 11prescribed by the office, and the office approves the application. The claimant shall 12submit a copy of the approved application with the claimant’s return. AB50,710,20134. Partnerships, limited liability companies, and tax-option corporations may 14not claim the credit under this subsection, but the eligibility for, and the amount of, 15the credit are based on their payment of amounts under par. (b). A partnership, 16limited liability company, or tax-option corporation shall compute the amount of 17credit that each of its partners, members, or shareholders may claim and shall 18provide that information to each of them. Partners, members of limited liability 19companies, and shareholders of tax-option corporations may claim the credit in 20proportion to their ownership interest. AB50,710,2321(d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit 22under sub. (4), applies to the credits under this subsection. Subsection (4) (f), as it 23applies to the credit under sub. (4), applies to the credits under par. (b) 1. and 3. AB50,711,5
12. If the allowable amount of the claim under par. (b) 2. exceeds the tax 2otherwise due under s. 71.23 or no tax is due under s. 71.23, the amount of the 3claim not used to offset the tax due shall be certified by the department of revenue 4to the department of administration for payment by check, share draft, or other 5draft drawn from the appropriation account under s. 20.835 (2) (bm). AB50,711,1463. Any person, including a nonprofit entity described in section 501 (c) (3) of 7the Internal Revenue Code, may sell or otherwise transfer a credit under this 8subsection, in whole or in part, to another person who is subject to the taxes 9imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the 10transfer, and submits with the notification a copy of the transfer documents, and 11the department certifies ownership of the credit. The transferee may first use the 12credit to offset tax of the transferor in the taxable year in which the transfer occurs 13and may use the credit only to offset tax in taxable years in which the credit is 14otherwise allowed to be claimed and carried forward by the original claimant. AB50,134515Section 1345. 71.28 (5h) of the statutes is created to read: AB50,711,171671.28 (5h) Film production company investment credit. (a) Definitions. 17In this subsection: