Florida Senate - 2012                                    SB 2122
       
       
       
       By the Committee on Commerce and Tourism
       
       
       
       
       577-03545-12                                          20122122__
    1                        A bill to be entitled                      
    2         An act relating to the entertainment industry
    3         financial incentive program; amending s. 288.1254,
    4         F.S.; revising definitions; providing that a hurricane
    5         does not disqualify certain high-impact television
    6         series that are off-season certified productions from
    7         eligibility for an additional tax credit; deleting
    8         provisions limiting the amount of tax credits for
    9         high-impact television series and digital media
   10         productions; providing criteria for determining
   11         priority for tax credits that have not yet been
   12         certified; reducing the required percent of certain
   13         production components necessary to qualify for
   14         additional credits; providing for tax credits for
   15         fiscal years 2015-2016 through 2019-2020; providing
   16         for applicability of certification of tax credits;
   17         providing for repeal; providing for application;
   18         providing an effective date.
   19  
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Paragraphs (b), (d), and (f) of subsection (1),
   23  paragraph (b) of subsection (4), paragraph (a) of subsection
   24  (7), and subsection (11) of section 288.1254, Florida Statutes,
   25  are amended, present paragraphs (c) through (o) of subsection
   26  (1) of that section are redesignated as paragraphs (d) through
   27  (p), respectively, and a new paragraph (c) is added to that
   28  subsection, to read:
   29         288.1254 Entertainment industry financial incentive
   30  program.—
   31         (1) DEFINITIONS.—As used in this section, the term:
   32         (b) “Digital media project” means a production of
   33  interactive entertainment that is produced for distribution in
   34  commercial or educational markets. The term includes a video
   35  game or production intended for Internet or wireless
   36  distribution, digital animation, and visual effects, including,
   37  but not limited to, three-dimensional movie productions and
   38  movie conversions. The term does not include a production that
   39  contains obscene content that is obscene as defined in s.
   40  847.001(10).
   41         (c) “High-impact digital media” means a digital media
   42  project that has qualified expenditures greater than $4.5
   43  million.
   44         (e)(d) “Off-season certified production” means a feature
   45  film, independent film, or television series or pilot that which
   46  films 75 percent or more of its principal photography days from
   47  June 1 through November 30, or a high-impact television series
   48  that films principal photography during at least 75 percent of
   49  the days from June 1 through November 30.
   50         (g)(f) “Production” means a theatrical or direct-to-video
   51  motion picture; a made-for-television motion picture; visual
   52  effects or digital animation sequences produced in conjunction
   53  with a motion picture; a commercial; a music video; an
   54  industrial or educational film; an infomercial; a documentary
   55  film; a television pilot program; a presentation for a
   56  television pilot program; a television series, including, but
   57  not limited to, a drama, a reality show, a comedy, a soap opera,
   58  a telenovela, a game show, an awards show, or a miniseries
   59  production; or a digital media project by the entertainment
   60  industry. One season of a television series is considered one
   61  production. The term does not include a weather or market
   62  program; a sporting event or a sporting event broadcast; a
   63  sports show; a gala; a production that solicits funds; a home
   64  shopping program; a political program; a political documentary;
   65  political advertising; a gambling-related project or production;
   66  a concert production; or a local, regional, or Internet
   67  distributed-only news show or, current-events show; a sports
   68  news or sports recap show; a, pornographic production;, or any
   69  production deemed obscene under chapter 847 current-affairs
   70  show. A production may be produced on or by film, tape, or
   71  otherwise by means of a motion picture camera; electronic camera
   72  or device; tape device; computer; any combination of the
   73  foregoing; or any other means, method, or device.
   74         (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;
   75  ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;
   76  PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND
   77  ACQUISITIONS.—
   78         (b) Tax credit eligibility.—
   79         1. General production queue.—Ninety-four percent of tax
   80  credits authorized pursuant to subsection (6) in any state
   81  fiscal year must be dedicated to the general production queue.
   82  The general production queue consists of all qualified
   83  productions other than those eligible for the commercial and
   84  music video queue or the independent and emerging media
   85  production queue. A qualified production that demonstrates a
   86  minimum of $625,000 in qualified expenditures is eligible for
   87  tax credits equal to 20 percent of its actual qualified
   88  expenditures, up to a maximum of $8 million. A qualified
   89  production that incurs qualified expenditures during multiple
   90  state fiscal years may combine those expenditures to satisfy the
   91  $625,000 minimum threshold.
   92         a. An off-season certified production that is a feature
   93  film, independent film, or television series or pilot is
   94  eligible for an additional 5 percent 5-percent tax credit on
   95  actual qualified expenditures. An off-season certified
   96  production that does not complete 75 percent of principal
   97  photography, or a high-impact television series that is an off
   98  season certified production that does not film principal
   99  photography during at least 75 percent of the days from June 1
  100  through November 30, due to a disruption caused by a hurricane
  101  or tropical storm may not be disqualified from eligibility for
  102  the additional 5 percent 5-percent credit as a result of the
  103  disruption.
  104         b. If more than 25 percent of the sum of total tax credits
  105  awarded to productions after July 1, 2010, and total tax credits
  106  certified, but not yet awarded, to productions currently in this
  107  state has been awarded for television series, then no television
  108  series or pilot shall be eligible for tax credits under this
  109  subparagraph.
  110         c. The calculations required by this sub-subparagraph shall
  111  use only credits available to be certified and awarded on or
  112  after July 1, 2011.
  113         (I) If the provisions of sub-subparagraph b. are not
  114  applicable and less than 25 percent of the sum of the total tax
  115  credits awarded to productions and the total tax credits
  116  certified, but not yet awarded, to productions currently in this
  117  state has been to high-impact television series, any qualified
  118  high-impact television series shall be allowed first position in
  119  this queue for tax credit awards not yet certified.
  120         (II) If less than 20 percent of the sum of the total tax
  121  credits awarded to productions and the total tax credits
  122  certified, but not yet awarded, to productions currently in this
  123  state has been to digital media projects, any digital media
  124  project with qualified expenditures of greater than $4,500,000
  125  shall be allowed first position in this queue for tax credit
  126  awards not yet certified.
  127         b.(III)First priority in the queue for tax credit awards
  128  not yet certified shall be given to high-impact television
  129  series and high-impact digital media projects. For the purposes
  130  of determining priority position between a high-impact
  131  television series allowed first position and a high-impact
  132  digital media project allowed first position under this sub
  133  subparagraph, the first position shall go to the first
  134  application received. Thereafter, priority shall be determined
  135  by alternating between a high-impact television series and a
  136  high-impact digital media project tax credits shall be awarded
  137  on a first-come, first-served basis. However, if the Office of
  138  Film and Entertainment receives an application for a high-impact
  139  television series or high-impact digital media project that
  140  would be certified but for the alternating priority, the office
  141  may certify the project as being in the priority position if an
  142  application that would normally be prioritized is not received
  143  within 5 business days.
  144         c.d. A qualified production for which that incurs at least
  145  25 85 percent of its principal photography days occur qualified
  146  expenditures within a region designated as an underutilized
  147  region at the time that the production is certified is eligible
  148  for an additional 5 percent 5-percent tax credit.
  149         d.e.A Any qualified production that employs students
  150  enrolled full-time in a film and entertainment-related or
  151  digital media-related course of study at an institution of
  152  higher education in this state is eligible for an additional 15
  153  percent 15-percent tax credit on qualified expenditures that are
  154  wages, salaries, or other compensation paid to such students.
  155  The additional 15 percent 15-percent tax credit is shall also be
  156  applicable to persons hired within 12 months after of graduating
  157  from a film and entertainment-related or digital media-related
  158  course of study at an institution of higher education in this
  159  state. The additional 15 percent 15-percent tax credit applies
  160  shall apply to qualified expenditures that are wages, salaries,
  161  or other compensation paid to such recent graduates for 1 year
  162  after from the date of hiring.
  163         e.f. A qualified production for which 25 50 percent or more
  164  of its principal photography occurs at a qualified production
  165  facility, or a qualified digital media project or the digital
  166  animation component of a qualified production for which 25 50
  167  percent or more of the project’s or component’s qualified
  168  expenditures are related to a qualified digital media production
  169  facility, is shall be eligible for an additional 5 percent 5
  170  percent tax credit on actual qualified expenditures for
  171  production activity at that facility.
  172         f.g.A No qualified production is not shall be eligible for
  173  tax credits provided under this paragraph totaling more than 30
  174  percent of its actual qualified expenses.
  175         2. Commercial and music video queue.—Three percent of tax
  176  credits authorized pursuant to subsection (6) in any state
  177  fiscal year must be dedicated to the commercial and music video
  178  queue. A qualified production company that produces national or
  179  regional commercials or music videos may be eligible for a tax
  180  credit award if it demonstrates a minimum of $100,000 in
  181  qualified expenditures per national or regional commercial or
  182  music video and exceeds a combined threshold of $500,000 after
  183  combining actual qualified expenditures from qualified
  184  commercials and music videos during a single state fiscal year.
  185  After a qualified production company that produces commercials,
  186  music videos, or both reaches the threshold of $500,000, it is
  187  eligible to apply for certification for a tax credit award. The
  188  maximum credit award shall be equal to 20 percent of its actual
  189  qualified expenditures up to a maximum of $500,000. If there is
  190  a surplus at the end of a fiscal year after the Office of Film
  191  and Entertainment certifies and determines the tax credits for
  192  all qualified commercial and video projects, such surplus tax
  193  credits shall be carried forward to the following fiscal year
  194  and are be available to any eligible qualified productions under
  195  the general production queue.
  196         3. Independent and emerging media production queue.—Three
  197  percent of tax credits authorized pursuant to subsection (6) in
  198  any state fiscal year must be dedicated to the independent and
  199  emerging media production queue. This queue is intended to
  200  encourage Florida independent film and emerging media production
  201  in this state. Any qualified production, excluding commercials,
  202  infomercials, or music videos, which that demonstrates at least
  203  $100,000, but not more than $625,000, in total qualified
  204  expenditures is eligible for tax credits equal to 20 percent of
  205  its actual qualified expenditures. If a surplus exists at the
  206  end of a fiscal year after the Office of Film and Entertainment
  207  certifies and determines the tax credits for all qualified
  208  independent and emerging media production projects, such surplus
  209  tax credits shall be carried forward to the following fiscal
  210  year and are be available to any eligible qualified productions
  211  under the general production queue.
  212         4. Family-friendly productions.—A certified theatrical or
  213  direct-to-video motion picture production or video game
  214  determined by the Commissioner of Film and Entertainment, with
  215  the advice of the Florida Film and Entertainment Advisory
  216  Council, to be family-friendly, based on the review of the
  217  script and the review of the final release version, is eligible
  218  for an additional tax credit equal to 5 percent of its actual
  219  qualified expenditures. Family-friendly productions are those
  220  that have cross-generational appeal; would be considered
  221  suitable for viewing by children age 5 or older; are appropriate
  222  in theme, content, and language for a broad family audience;
  223  embody a responsible resolution of issues; and do not exhibit or
  224  imply any act of smoking, sex, nudity, or vulgar or profane
  225  language.
  226         (7) ANNUAL ALLOCATION OF TAX CREDITS.—
  227         (a) The aggregate amount of the tax credits that may be
  228  certified pursuant to paragraph (3)(d) may not exceed:
  229         1. For fiscal year 2010-2011, $53.5 million.
  230         2. For fiscal year 2011-2012, $74.5 million.
  231         3. For fiscal years 2012-2013, 2013-2014, and 2014-2015,
  232  $42 million per fiscal year.
  233         4. For fiscal year 2015-2016, $53.5 million.
  234         5. For fiscal year 2016-2017, $74.5 million.
  235         6. For fiscal years 2017-2018, 2018-2019, and 2019-2020,
  236  $42 million per fiscal year.
  237         (11) REPEAL.—This section is repealed July 1, 2020 July 1,
  238  2015, except that:
  239         (a) Tax credits certified under paragraph (3)(d) before
  240  July 1, 2015, may be awarded under paragraph (3)(f) on or after
  241  July 1, 2015, if the other requirements of this section are met.
  242         (b) Tax credits for fiscal years 2015-2016 through 2019
  243  2020 may not be certified until July 1, 2015.
  244         (c) Tax credits certified under paragraph (3)(d) before
  245  July 1, 2020, may be awarded under paragraph (3)(f) on or after
  246  July 1, 2020, if the other requirements of this section are met.
  247         (d)(b) Tax credits carried forward under paragraph (4)(e)
  248  remain valid for the period specified.
  249         (e)(c) Subsections (5), (8), and (9) shall remain in effect
  250  until July 1, 2025 July 1, 2020.
  251         Section 2. This act shall take effect upon becoming a law,
  252  and applies to credits awarded on or after that date.