Florida Senate - 2012 (PROPOSED COMMITTEE BILL) SPB 7212
FOR CONSIDERATION By the Committee on Commerce and Tourism
577-03070B-12 20127212__
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 application;
15 providing an effective date.
16
17 Be It Enacted by the Legislature of the State of Florida:
18
19 Section 1. Paragraphs (b), (d), and (f) of subsection (1),
20 and paragraph (b) of subsection (4) of section 288.1254, Florida
21 Statutes, are amended, present paragraphs (c) through (o) of
22 subsection (1) of that section are redesignated as paragraphs
23 (d) through (p), respectively, and a new paragraph (c) is added
24 to that subsection, to read:
25 288.1254 Entertainment industry financial incentive
26 program.—
27 (1) DEFINITIONS.—As used in this section, the term:
28 (b) “Digital media project” means a production of
29 interactive entertainment that is produced for distribution in
30 commercial or educational markets. The term includes a video
31 game or production intended for Internet or wireless
32 distribution, digital animation, and visual effects, including,
33 but not limited to, three-dimensional movie productions and
34 movie conversions. The term does not include a production that
35 contains obscene content that is obscene as defined in s.
36 847.001(10).
37 (c) “High-impact digital media” means a digital media
38 project that has qualified expenditures greater than $4.5
39 million.
40 (e)(d) “Off-season certified production” means a feature
41 film, independent film, or television series or pilot that which
42 films 75 percent or more of its principal photography days from
43 June 1 through November 30, or a high-impact television series
44 that films principal photography during at least 75 percent of
45 the days from June 1 through November 30.
46 (g)(f) “Production” means a theatrical or direct-to-video
47 motion picture; a made-for-television motion picture; visual
48 effects or digital animation sequences produced in conjunction
49 with a motion picture; a commercial; a music video; an
50 industrial or educational film; an infomercial; a documentary
51 film; a television pilot program; a presentation for a
52 television pilot program; a television series, including, but
53 not limited to, a drama, a reality show, a comedy, a soap opera,
54 a telenovela, a game show, an awards show, or a miniseries
55 production; or a digital media project by the entertainment
56 industry. One season of a television series is considered one
57 production. The term does not include a weather or market
58 program; a sporting event or a sporting event broadcast; a
59 sports show; a gala; a production that solicits funds; a home
60 shopping program; a political program; a political documentary;
61 political advertising; a gambling-related project or production;
62 a concert production; or a local, regional, or Internet
63 distributed-only news show or, current-events show; a sports
64 news or sports recap show; a, pornographic production;, or any
65 production deemed obscene under chapter 847 current-affairs
66 show. A production may be produced on or by film, tape, or
67 otherwise by means of a motion picture camera; electronic camera
68 or device; tape device; computer; any combination of the
69 foregoing; or any other means, method, or device.
70 (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES;
71 ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS;
72 PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND
73 ACQUISITIONS.—
74 (b) Tax credit eligibility.—
75 1. General production queue.—Ninety-four percent of tax
76 credits authorized pursuant to subsection (6) in any state
77 fiscal year must be dedicated to the general production queue.
78 The general production queue consists of all qualified
79 productions other than those eligible for the commercial and
80 music video queue or the independent and emerging media
81 production queue. A qualified production that demonstrates a
82 minimum of $625,000 in qualified expenditures is eligible for
83 tax credits equal to 20 percent of its actual qualified
84 expenditures, up to a maximum of $8 million. A qualified
85 production that incurs qualified expenditures during multiple
86 state fiscal years may combine those expenditures to satisfy the
87 $625,000 minimum threshold.
88 a. An off-season certified production that is a feature
89 film, independent film, or television series or pilot is
90 eligible for an additional 5 percent 5-percent tax credit on
91 actual qualified expenditures. An off-season certified
92 production that does not complete 75 percent of principal
93 photography, or a high-impact television series that is an off
94 season certified production that does not film principal
95 photography during at least 75 percent of the days from June 1
96 through November 30, due to a disruption caused by a hurricane
97 or tropical storm may not be disqualified from eligibility for
98 the additional 5 percent 5-percent credit as a result of the
99 disruption.
100 b. If more than 25 percent of the sum of total tax credits
101 awarded to productions after July 1, 2010, and total tax credits
102 certified, but not yet awarded, to productions currently in this
103 state has been awarded for television series, then no television
104 series or pilot shall be eligible for tax credits under this
105 subparagraph.
106 c. The calculations required by this sub-subparagraph shall
107 use only credits available to be certified and awarded on or
108 after July 1, 2011.
109 (I) If the provisions of sub-subparagraph b. are not
110 applicable and less than 25 percent of the sum of the total tax
111 credits awarded to productions and the total tax credits
112 certified, but not yet awarded, to productions currently in this
113 state has been to high-impact television series, any qualified
114 high-impact television series shall be allowed first position in
115 this queue for tax credit awards not yet certified.
116 (II) If less than 20 percent of the sum of the total tax
117 credits awarded to productions and the total tax credits
118 certified, but not yet awarded, to productions currently in this
119 state has been to digital media projects, any digital media
120 project with qualified expenditures of greater than $4,500,000
121 shall be allowed first position in this queue for tax credit
122 awards not yet certified.
123 b.(III) First priority in the queue for tax credit awards
124 not yet certified shall be given to high-impact television
125 series and high-impact digital media projects. For the purposes
126 of determining priority position between a high-impact
127 television series allowed first position and a high-impact
128 digital media project allowed first position under this sub
129 subparagraph, the first position shall go to the first
130 application received. Thereafter, priority shall be determined
131 by alternating between a high-impact television series and a
132 high-impact digital media project tax credits shall be awarded
133 on a first-come, first-served basis. However, if the Office of
134 Film and Entertainment receives an application for a high-impact
135 television series or high-impact digital media project that
136 would be certified but for the alternating priority, the office
137 may certify the project as being in the priority position if an
138 application that would normally be prioritized is not received
139 within 5 business days.
140 c.d. A qualified production for which that incurs at least
141 25 85 percent of its principal photography days occur qualified
142 expenditures within a region designated as an underutilized
143 region at the time that the production is certified is eligible
144 for an additional 5 percent 5-percent tax credit.
145 d.e. A Any qualified production that employs students
146 enrolled full-time in a film and entertainment-related or
147 digital media-related course of study at an institution of
148 higher education in this state is eligible for an additional 15
149 percent 15-percent tax credit on qualified expenditures that are
150 wages, salaries, or other compensation paid to such students.
151 The additional 15 percent 15-percent tax credit is shall also be
152 applicable to persons hired within 12 months after of graduating
153 from a film and entertainment-related or digital media-related
154 course of study at an institution of higher education in this
155 state. The additional 15 percent 15-percent tax credit applies
156 shall apply to qualified expenditures that are wages, salaries,
157 or other compensation paid to such recent graduates for 1 year
158 after from the date of hiring.
159 e.f. A qualified production for which 25 50 percent or more
160 of its principal photography occurs at a qualified production
161 facility, or a qualified digital media project or the digital
162 animation component of a qualified production for which 25 50
163 percent or more of the project’s or component’s qualified
164 expenditures are related to a qualified digital media production
165 facility, is shall be eligible for an additional 5 percent 5
166 percent tax credit on actual qualified expenditures for
167 production activity at that facility.
168 f.g. A No qualified production is not shall be eligible for
169 tax credits provided under this paragraph totaling more than 30
170 percent of its actual qualified expenses.
171 2. Commercial and music video queue.—Three percent of tax
172 credits authorized pursuant to subsection (6) in any state
173 fiscal year must be dedicated to the commercial and music video
174 queue. A qualified production company that produces national or
175 regional commercials or music videos may be eligible for a tax
176 credit award if it demonstrates a minimum of $100,000 in
177 qualified expenditures per national or regional commercial or
178 music video and exceeds a combined threshold of $500,000 after
179 combining actual qualified expenditures from qualified
180 commercials and music videos during a single state fiscal year.
181 After a qualified production company that produces commercials,
182 music videos, or both reaches the threshold of $500,000, it is
183 eligible to apply for certification for a tax credit award. The
184 maximum credit award shall be equal to 20 percent of its actual
185 qualified expenditures up to a maximum of $500,000. If there is
186 a surplus at the end of a fiscal year after the Office of Film
187 and Entertainment certifies and determines the tax credits for
188 all qualified commercial and video projects, such surplus tax
189 credits shall be carried forward to the following fiscal year
190 and are be available to any eligible qualified productions under
191 the general production queue.
192 3. Independent and emerging media production queue.—Three
193 percent of tax credits authorized pursuant to subsection (6) in
194 any state fiscal year must be dedicated to the independent and
195 emerging media production queue. This queue is intended to
196 encourage Florida independent film and emerging media production
197 in this state. Any qualified production, excluding commercials,
198 infomercials, or music videos, which that demonstrates at least
199 $100,000, but not more than $625,000, in total qualified
200 expenditures is eligible for tax credits equal to 20 percent of
201 its actual qualified expenditures. If a surplus exists at the
202 end of a fiscal year after the Office of Film and Entertainment
203 certifies and determines the tax credits for all qualified
204 independent and emerging media production projects, such surplus
205 tax credits shall be carried forward to the following fiscal
206 year and are be available to any eligible qualified productions
207 under the general production queue.
208 4. Family-friendly productions.—A certified theatrical or
209 direct-to-video motion picture production or video game
210 determined by the Commissioner of Film and Entertainment, with
211 the advice of the Florida Film and Entertainment Advisory
212 Council, to be family-friendly, based on the review of the
213 script and the review of the final release version, is eligible
214 for an additional tax credit equal to 5 percent of its actual
215 qualified expenditures. Family-friendly productions are those
216 that have cross-generational appeal; would be considered
217 suitable for viewing by children age 5 or older; are appropriate
218 in theme, content, and language for a broad family audience;
219 embody a responsible resolution of issues; and do not exhibit or
220 imply any act of smoking, sex, nudity, or vulgar or profane
221 language.
222 Section 2. This act shall take effect upon becoming a law,
223 and applies to credits awarded on or after that date.