PRIOR PRINTER'S NOS. 162, 2913, 2962, PRINTER'S NO. 4323
4148
No. 147 Session of 2003
INTRODUCED BY T. STEVENSON, BAKER, BISHOP, CAPPELLI, COSTA,
CREIGHTON, FEESE, FRANKEL, GEIST, GODSHALL, GOODMAN,
HENNESSEY, HERMAN, HERSHEY, HORSEY, HUTCHINSON, KELLER,
LAUGHLIN, LEACH, MANN, MARKOSEK, McCALL, NAILOR, PRESTON,
READSHAW, REICHLEY, ROEBUCK, SAINATO, SATHER, SEMMEL,
SOLOBAY, R. STEVENSON, THOMAS, TURZAI, WALKO, WATSON, WILT,
YOUNGBLOOD, ADOLPH, HARHAI, PICKETT, JAMES, PISTELLA, HARPER,
WASHINGTON, DAILEY, LEWIS AND MUSTIO, FEBRUARY 6, 2003
AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,
JULY 3, 2004
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," authorizing a film production tax credit; and
11 providing for the powers and duties of the Department of
12 Community and Economic Development and the Department of
13 Revenue.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
17 the Tax Reform Code of 1971, is amended by adding an article to
18 read:
19 ARTICLE XVII-C <--
1 FILM PRODUCTION TAX CREDIT
2 Section 1701-C. Scope of article.
3 This article relates to film production tax credits.
4 Section 1702-C. Definitions.
5 The following words and phrases when used in this article
6 shall have the meanings given to them in this section unless the
7 context clearly indicates otherwise:
8 "Department." The Department of Revenue of the Commonwealth.
9 "Film." The term includes a feature film, a television
10 series and a television show of 15 minutes or more in length,
11 intended for a national audience. The term does not include a
12 production featuring news, current events, weather and market
13 reports, or public programming, talk show, game show, sports
14 event, awards show or other gala event, a production that
15 solicits funds, a production that primarily markets a product or
16 service, a production containing obscene material or
17 performances as defined in 18 Pa.C.S. § 5903(b) (relating to
18 obscene and other sexual materials and performances), or a
19 production primarily for private, industrial, corporate or
20 institutional purposes.
21 "Film production tax credit." The credit provided under this
22 article.
23 "Pennsylvania production expense." A production expense
24 incurred in this Commonwealth.
25 "Production expense." An expense incurred in the production
26 of a film. The term includes wages and salaries of individuals
27 employed in the production of a film; the costs of construction,
28 operations, editing, photography, sound synchronization,
29 lighting, wardrobe and accessories and the cost of rental of
30 facilities and equipment. The term does not include expenses
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1 incurred in marketing or advertising a film.
2 "Qualified film production expense." A Pennsylvania
3 production expense if at least 60% of the production expenses
4 are Pennsylvania production expenses.
5 "Qualified tax liability." The liability for taxes imposed
6 under Article II, III, IV or VI. The term shall include the
7 liability for taxes imposed under Article III on a shareholder
8 of a Pennsylvania S corporation.
9 "Taxpayer." An entity subject to tax under Article II, III,
10 IV or VI. The term shall include the shareholder of a
11 Pennsylvania S corporation that receives a film production tax
12 credit.
13 Section 1703-C. Credit for qualified film production expenses.
14 (a) General rule.--A taxpayer who incurs a qualified film
15 production expense in a taxable year may apply for a film
16 production tax credit as provided in this article. A taxpayer
17 seeking a credit under this article must submit an application
18 to the department by September 15 for qualified film production
19 expenses incurred in the taxable year that ended in the prior
20 calendar year.
21 (b) Amount of credit.--A taxpayer that is qualified under
22 subsection (a) shall receive a film production tax credit for
23 the taxable year in the amount in accordance with the following:
24 (1) If the qualified film production expenses are
25 $10,000,000 or less, the credit shall be 15% of the qualified
26 film production expenses.
27 (2) If the qualified film production expenses are more
28 than $10,000,000, the credit shall be equal to the sum of
29 $1,500,000 and 20% of the qualified film production expenses
30 which are in excess of $10,000,000.
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1 (c) Notification.--By December 15 of the calendar year
2 following the close of the taxable year during which the
3 qualified film production expense was incurred, the department
4 shall notify the taxpayer of the amount of the taxpayer's film
5 production tax credit approved by the department.
6 Section 1704-C. Carryover, carryback, refund and assignment of
7 credit.
8 (a) General rule.--If the taxpayer cannot use the entire
9 amount of the film production tax credit for the taxable year in
10 which the film production tax credit is first approved, then the
11 excess may be carried over to succeeding taxable years and used
12 as a credit against the qualified tax liability of the taxpayer
13 for those taxable years. Each time that the film production tax
14 credit is carried over to a succeeding taxable year, it shall be
15 reduced by the amount that was used as a credit during the
16 immediately preceding taxable year. The film production tax
17 credit provided by this article may be carried over and applied
18 to succeeding taxable years for no more than three taxable years
19 following the first taxable year for which the taxpayer was
20 entitled to claim the credit.
21 (b) Application.--A film production tax credit approved by
22 the Department of Revenue for qualified film production expenses
23 in a taxable year first shall be applied against the taxpayer's
24 qualified tax liability for the current taxable year as of the
25 date on which the credit was approved before the film production
26 tax credit can be applied against any tax liability under
27 subsection (a).
28 (c) No carryback.--A taxpayer is not entitled to carry back
29 or obtain a refund of an unused film production tax credit.
30 (d) Sale or assignment.--A taxpayer, upon application to and
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1 approval by the Department of Community and Economic
2 Development, may sell or assign, in whole or in part, a film
3 production tax credit granted to the taxpayer under this article
4 if no claim for allowance of the credit is filed within one year
5 from the date the credit is approved by the Department of
6 Revenue under section 1703-C. The Department of Community and
7 Economic Development shall establish guidelines for the approval
8 of applications under this subsection.
9 (e) Purchasers and assignees.--The purchaser or assignee of
10 a portion of a film production tax credit under subsection (d)
11 shall immediately claim the credit in the taxable year in which
12 the purchase or assignment is made. The amount of the film
13 production credit that a purchaser or assignee may use against
14 any one qualified tax liability may not exceed 50% of such
15 qualified tax liability for the taxable year. The purchaser or
16 assignee may not carry over, carry back, obtain a refund of or
17 assign the film production tax credit. The purchaser or assignee
18 shall notify the Department of Revenue of the seller or assignor
19 of the film production tax credit in compliance with procedures
20 specified by the Department of Revenue.
21 Section 1705-C. Determination of qualified film production
22 expenses.
23 In prescribing standards for determining which production
24 expenses are considered qualified film production expenses for
25 purposes of computing the credit provided by this article, the
26 department shall consider:
27 (1) The location where the services are performed.
28 (2) The residence or business location of the person or
29 persons performing the service.
30 (3) The location where qualified film production
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1 supplies are consumed.
2 (4) Other factors established in regulation by the
3 department which are necessary for determination.
4 Section 1706-C. Time limitations.
5 A taxpayer is not entitled to a film production tax credit
6 for qualified film production expenses incurred in taxable years
7 ending after December 31, 2012.
8 Section 1707-C. Limitation on credits.
9 (a) General rule.--The total amount of credits approved by
10 the department shall not exceed $10,000,000 in any fiscal year.
11 (b) Exception.--If the total amount of film production tax
12 credits applied for by all taxpayers exceeds the amount
13 allocated for those credits, then the film production tax credit
14 to be received by each applicant shall be the product of the
15 allocated amount multiplied by the quotient of the film
16 production tax credit applied for by the applicant divided by
17 the total of all film production credits applied for by all
18 applicants, the algebraic equivalent of which is:
19 taxpayer's film production tax credit = amount allocated
20 for those credits X (film production tax credit applied
21 for by the applicant/total of all film production tax
22 credits applied for by all applicants).
23 Section 1708-C. Pennsylvania S corporation shareholder pass-
24 through.
25 (a) General rule.--If a Pennsylvania S corporation does not
26 have an eligible tax liability against which the film production
27 tax credit may be applied, a shareholder of the Pennsylvania S
28 corporation is entitled to a film production tax credit equal to
29 the film production tax credit determined for the Pennsylvania S
30 corporation for the taxable year multiplied by the percentage of
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1 the Pennsylvania S corporation's distributive income to which
2 the shareholder is entitled.
3 (b) Limitation.--The credit provided under subsection (a) is
4 in addition to any film production tax credit to which a
5 shareholder of a Pennsylvania S corporation is otherwise
6 entitled under this article. However, a Pennsylvania S
7 corporation and a shareholder of a Pennsylvania S corporation
8 may not claim a credit under this article for the same qualified
9 film production expense.
10 Section 1709-C. Report to General Assembly.
11 The secretary shall submit an annual report to the General
12 Assembly indicating the effectiveness of the film production tax
13 credit provided by this article no later than March 15 following
14 the year in which the credits were approved. The report shall
15 include the names of all taxpayers utilizing the credit as of
16 the date of the report and the amount of credits approved and
17 utilized by each taxpayer. Notwithstanding any law providing for
18 the confidentiality of tax records, the information contained in
19 the report shall be public information. The report may also
20 include any recommendations for changes in the calculation or
21 administration of the credit.
22 Section 1710-C. Termination.
23 The department shall not approve a film production tax credit
24 under this article for taxable years ending after December 31,
25 2012.
26 Section 1711-C. Regulations.
27 The department shall promulgate regulations necessary for the
28 implementation and administration of this article.
29 Section 2. This act shall apply to qualified film production
30 expenses incurred after December 31, 2003, and taxable years
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1 commencing on or after January 1, 2004.
2 Section 3. This act shall take effect immediately.
3 ARTICLE XVII-C <--
4 FILM PRODUCTION TAX CREDIT
5 SECTION 1701-C. SCOPE OF ARTICLE.
6 THIS ARTICLE RELATES TO FILM PRODUCTION TAX CREDITS.
7 SECTION 1702-C. DEFINITIONS.
8 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
9 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
10 CONTEXT CLEARLY INDICATES OTHERWISE:
11 "DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
12 "FILM." THE TERM INCLUDES A FEATURE FILM, A TELEVISION
13 SERIES AND A TELEVISION SHOW OF 15 MINUTES OR MORE IN LENGTH,
14 INTENDED FOR A NATIONAL AUDIENCE. THE TERM DOES NOT INCLUDE A
15 PRODUCTION FEATURING NEWS, CURRENT EVENTS, WEATHER AND MARKET
16 REPORTS, OR PUBLIC PROGRAMMING, TALK SHOW, GAME SHOW, SPORTS
17 EVENT, AWARDS SHOW OR OTHER GALA EVENT, A PRODUCTION THAT
18 SOLICITS FUNDS, A PRODUCTION THAT PRIMARILY MARKETS A PRODUCT OR
19 SERVICE, A PRODUCTION CONTAINING OBSCENE MATERIAL OR
20 PERFORMANCES AS DEFINED IN 18 PA.C.S. § 5903(B) (RELATING TO
21 OBSCENE AND OTHER SEXUAL MATERIALS AND PERFORMANCES), OR A
22 PRODUCTION PRIMARILY FOR PRIVATE, INDUSTRIAL, CORPORATE OR
23 INSTITUTIONAL PURPOSES.
24 "FILM PRODUCTION TAX CREDIT." THE CREDIT PROVIDED UNDER THIS
25 ARTICLE.
26 "PASS-THROUGH ENTITY." A PARTNERSHIP AS DEFINED IN SECTION
27 301(N.0) OR A PENNSYLVANIA S CORPORATION AS DEFINED IN SECTION
28 301(N.1).
29 "PENNSYLVANIA PRODUCTION EXPENSE." A PRODUCTION EXPENSE
30 INCURRED IN THIS COMMONWEALTH.
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1 "PRODUCTION EXPENSE." AN EXPENSE INCURRED IN THE PRODUCTION
2 OF A FILM. THE TERM INCLUDES WAGES AND SALARIES OF INDIVIDUALS
3 EMPLOYED IN THE PRODUCTION OF A FILM ON WHICH THE TAXES IMPOSED
4 BY ARTICLE III OR IV HAVE BEEN PAID OR ACCRUED; THE COSTS OF
5 CONSTRUCTION, OPERATIONS, EDITING, PHOTOGRAPHY, SOUND
6 SYNCHRONIZATION, LIGHTING, WARDROBE AND ACCESSORIES AND THE COST
7 OF RENTAL OF FACILITIES AND EQUIPMENT. THE TERM DOES NOT INCLUDE
8 EXPENSES INCURRED IN MARKETING OR ADVERTISING A FILM.
9 "QUALIFIED FILM PRODUCTION EXPENSE." A PENNSYLVANIA
10 PRODUCTION EXPENSE IF AT LEAST 60% OF THE TOTAL PRODUCTION
11 EXPENSES ARE PENNSYLVANIA PRODUCTION EXPENSES.
12 "QUALIFIED TAX LIABILITY." THE LIABILITY FOR TAXES IMPOSED
13 UNDER ARTICLE III, IV OR VI. THE TERM SHALL NOT INCLUDE ANY TAX
14 WITHHELD BY AN EMPLOYER FROM AN EMPLOYE UNDER ARTICLE III.
15 "TAXPAYER." AN ENTITY SUBJECT TO TAX UNDER ARTICLE III, IV
16 OR VI.
17 SECTION 1703-C. CREDIT FOR QUALIFIED FILM PRODUCTION EXPENSES.
18 (A) GENERAL RULE.--A TAXPAYER WHO INCURS A QUALIFIED FILM
19 PRODUCTION EXPENSE IN A TAXABLE YEAR MAY APPLY FOR A FILM
20 PRODUCTION TAX CREDIT AS PROVIDED IN THIS ARTICLE. A TAXPAYER
21 SEEKING A CREDIT UNDER THIS ARTICLE MUST SUBMIT AN APPLICATION
22 TO THE DEPARTMENT BY FEBRUARY 15 FOR QUALIFIED FILM PRODUCTION
23 EXPENSES INCURRED IN THE TAXABLE YEAR THAT ENDED IN THE PRIOR
24 CALENDAR YEAR.
25 (B) AMOUNT OF CREDIT.--A TAXPAYER THAT IS QUALIFIED UNDER
26 SUBSECTION (A) SHALL RECEIVE A FILM PRODUCTION TAX CREDIT FOR
27 THE TAXABLE YEAR IN THE AMOUNT OF 20% OF THE QUALIFIED FILM
28 PRODUCTION EXPENSES.
29 (C) NOTIFICATION.--BY AUGUST 15 OF THE CALENDAR YEAR
30 FOLLOWING THE CLOSE OF THE TAXABLE YEAR DURING WHICH THE
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1 QUALIFIED FILM PRODUCTION EXPENSE WAS INCURRED, THE DEPARTMENT
2 SHALL NOTIFY THE TAXPAYER OF THE AMOUNT OF THE TAXPAYER'S FILM
3 PRODUCTION TAX CREDIT APPROVED BY THE DEPARTMENT.
4 SECTION 1704-C. CARRYOVER, CARRYBACK, REFUND AND ASSIGNMENT OF
5 CREDIT.
6 (A) GENERAL RULE.--IF THE TAXPAYER CANNOT USE THE ENTIRE
7 AMOUNT OF THE FILM PRODUCTION TAX CREDIT FOR THE TAXABLE YEAR IN
8 WHICH THE FILM PRODUCTION TAX CREDIT IS FIRST APPROVED, THEN THE
9 EXCESS MAY BE CARRIED OVER TO SUCCEEDING TAXABLE YEARS AND USED
10 AS A CREDIT AGAINST THE QUALIFIED TAX LIABILITY OF THE TAXPAYER
11 FOR THOSE TAXABLE YEARS. EACH TIME THAT THE FILM PRODUCTION TAX
12 CREDIT IS CARRIED OVER TO A SUCCEEDING TAXABLE YEAR, IT SHALL BE
13 REDUCED BY THE AMOUNT THAT WAS USED AS A CREDIT DURING THE
14 IMMEDIATELY PRECEDING TAXABLE YEAR. THE FILM PRODUCTION TAX
15 CREDIT PROVIDED BY THIS ARTICLE MAY BE CARRIED OVER AND APPLIED
16 TO SUCCEEDING TAXABLE YEARS FOR NO MORE THAN THREE TAXABLE YEARS
17 FOLLOWING THE FIRST TAXABLE YEAR FOR WHICH THE TAXPAYER WAS
18 ENTITLED TO CLAIM THE CREDIT.
19 (B) APPLICATION.--A FILM PRODUCTION TAX CREDIT APPROVED BY
20 THE DEPARTMENT OF REVENUE FOR QUALIFIED FILM PRODUCTION EXPENSES
21 IN A TAXABLE YEAR FIRST SHALL BE APPLIED AGAINST THE TAXPAYER'S
22 QUALIFIED TAX LIABILITY FOR THE CURRENT TAXABLE YEAR AS OF THE
23 DATE ON WHICH THE CREDIT WAS APPROVED BEFORE THE FILM PRODUCTION
24 TAX CREDIT CAN BE APPLIED AGAINST ANY TAX LIABILITY UNDER
25 SUBSECTION (A).
26 (C) NO CARRYBACK.--A TAXPAYER IS NOT ENTITLED TO CARRY BACK
27 OR OBTAIN A REFUND OF AN UNUSED FILM PRODUCTION TAX CREDIT.
28 (D) SALE OR ASSIGNMENT.--
29 (1) A TAXPAYER, UPON APPLICATION TO AND APPROVAL BY THE
30 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT, MAY SELL OR
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1 ASSIGN, IN WHOLE OR IN PART, A FILM PRODUCTION TAX CREDIT
2 GRANTED TO THE TAXPAYER UNDER THIS ARTICLE.
3 (2) THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
4 AND THE DEPARTMENT SHALL JOINTLY PROMULGATE REGULATIONS FOR
5 THE APPROVAL OF APPLICATIONS UNDER THIS SUBSECTION.
6 (3) BEFORE AN APPLICATION IS APPROVED, THE DEPARTMENT
7 MUST MAKE A FINDING THAT THE APPLICANT HAS FILED REQUIRED
8 STATE TAX REPORTS FOR THE TAXABLE YEAR FOR WHICH THE
9 QUALIFIED EXPENSES WERE APPROVED AND PAID ANY BALANCE OF
10 STATE TAX DUE, AS DETERMINED AT SETTLEMENT, ASSESSMENT OR
11 DETERMINATION BY THE DEPARTMENT.
12 (4) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE
13 DEPARTMENT SHALL SETTLE, ASSESS OR DETERMINE THE TAX OF AN
14 APPLICANT UNDER THIS SUBSECTION WITHIN 90 DAYS OF THE FILING
15 OF ALL REQUIRED FINAL RETURNS OR REPORTS IN ACCORDANCE WITH
16 SECTION 806.1(A)(5) OF THE ACT OF APRIL 9, 1929 (P.L.343,
17 NO.176), KNOWN AS THE FISCAL CODE.
18 (E) PURCHASERS AND ASSIGNEES.--THE PURCHASER OR ASSIGNEE OF
19 A PORTION OF A FILM PRODUCTION TAX CREDIT UNDER SUBSECTION (D)
20 SHALL IMMEDIATELY CLAIM THE CREDIT IN THE TAXABLE YEAR IN WHICH
21 THE PURCHASE OR ASSIGNMENT IS MADE. THE AMOUNT OF THE FILM
22 PRODUCTION CREDIT THAT A PURCHASER OR ASSIGNEE MAY USE AGAINST
23 ANY ONE QUALIFIED TAX LIABILITY MAY NOT EXCEED 50% OF SUCH
24 QUALIFIED TAX LIABILITY FOR THE TAXABLE YEAR. THE PURCHASER OR
25 ASSIGNEE MAY NOT CARRY OVER, CARRY BACK, OBTAIN A REFUND OF OR
26 ASSIGN THE FILM PRODUCTION TAX CREDIT. THE PURCHASER OR ASSIGNEE
27 SHALL NOTIFY THE DEPARTMENT OF REVENUE OF THE SELLER OR ASSIGNOR
28 OF THE FILM PRODUCTION TAX CREDIT IN COMPLIANCE WITH PROCEDURES
29 SPECIFIED BY THE DEPARTMENT OF REVENUE.
30 SECTION 1705-C. DETERMINATION OF QUALIFIED FILM PRODUCTION
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1 EXPENSES.
2 IN PRESCRIBING STANDARDS FOR DETERMINING WHICH PRODUCTION
3 EXPENSES ARE CONSIDERED QUALIFIED FILM PRODUCTION EXPENSES FOR
4 PURPOSES OF COMPUTING THE CREDIT PROVIDED BY THIS ARTICLE, THE
5 DEPARTMENT SHALL CONSIDER:
6 (1) THE LOCATION WHERE THE SERVICES ARE PERFORMED.
7 (2) THE RESIDENCE OR BUSINESS LOCATION OF THE PERSON OR
8 PERSONS PERFORMING THE SERVICE.
9 (3) THE LOCATION WHERE QUALIFIED FILM PRODUCTION
10 SUPPLIES ARE CONSUMED.
11 (4) OTHER FACTORS ESTABLISHED IN REGULATION BY THE
12 DEPARTMENT WHICH ARE NECESSARY FOR DETERMINATION.
13 SECTION 1706-C. TIME LIMITATIONS.
14 A TAXPAYER IS NOT ENTITLED TO A FILM PRODUCTION TAX CREDIT
15 FOR QUALIFIED FILM PRODUCTION EXPENSES INCURRED IN TAXABLE YEARS
16 ENDING AFTER DECEMBER 31, 2012.
17 SECTION 1707-C. LIMITATION ON CREDITS.
18 (A) GENERAL RULE.--THE TOTAL AMOUNT OF CREDITS APPROVED BY
19 THE DEPARTMENT SHALL NOT EXCEED $10,000,000 IN ANY FISCAL YEAR.
20 (B) EXCEPTION.--IF THE TOTAL AMOUNT OF FILM PRODUCTION TAX
21 CREDITS APPLIED FOR BY ALL TAXPAYERS EXCEEDS THE AMOUNT
22 ALLOCATED FOR THOSE CREDITS, THEN THE FILM PRODUCTION TAX CREDIT
23 TO BE RECEIVED BY EACH APPLICANT SHALL BE THE PRODUCT OF THE
24 ALLOCATED AMOUNT MULTIPLIED BY THE QUOTIENT OF THE FILM
25 PRODUCTION TAX CREDIT APPLIED FOR BY THE APPLICANT DIVIDED BY
26 THE TOTAL OF ALL FILM PRODUCTION CREDITS APPLIED FOR BY ALL
27 APPLICANTS, THE ALGEBRAIC EQUIVALENT OF WHICH IS:
28 TAXPAYER'S FILM PRODUCTION TAX CREDIT = AMOUNT ALLOCATED
29 FOR THOSE CREDITS X (FILM PRODUCTION TAX CREDIT APPLIED
30 FOR BY THE APPLICANT/TOTAL OF ALL FILM PRODUCTION TAX
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1 CREDITS APPLIED FOR BY ALL APPLICANTS).
2 SECTION 1708-C. PASS-THROUGH ENTITY.
3 (A) GENERAL RULE.--IF A PASS-THROUGH ENTITY HAS ANY UNUSED
4 TAX CREDIT UNDER SECTION 1704-C, IT MAY ELECT IN WRITING,
5 ACCORDING TO PROCEDURES ESTABLISHED BY THE DEPARTMENT, TO
6 TRANSFER ALL OR A PORTION OF THE CREDIT TO SHAREHOLDERS, MEMBERS
7 OR PARTNERS IN PROPORTION TO THE SHARE OF ITS DISTRIBUTIVE
8 INCOME TO WHICH THE SHAREHOLDER, MEMBER OR PARTNER IS ENTITLED.
9 (B) LIMITATION.--THE CREDIT PROVIDED UNDER SUBSECTION (A) IS
10 IN ADDITION TO ANY FILM PRODUCTION TAX CREDIT TO WHICH A
11 SHAREHOLDER, MEMBER OR PARTNER OF A PASS-THROUGH ENTITY IS
12 OTHERWISE ENTITLED UNDER THIS ARTICLE. HOWEVER, A PASS-THROUGH
13 ENTITY AND A SHAREHOLDER, MEMBER OR PARTNER OF A PASS-THROUGH
14 ENTITY MAY NOT CLAIM A CREDIT UNDER THIS ARTICLE FOR THE SAME
15 QUALIFIED FILM PRODUCTION EXPENSE.
16 (C) APPLICATION.--A SHAREHOLDER, MEMBER OR PARTNER OF A
17 PASS-THROUGH ENTITY TO WHOM A CREDIT IS TRANSFERRED UNDER
18 SUBSECTION (A) SHALL IMMEDIATELY CLAIM THE CREDIT IN THE TAXABLE
19 YEAR IN WHICH THE TRANSFER IS MADE. A CREDIT TRANSFERRED TO A
20 NATURAL PERSON MAY BE APPLIED ONLY AGAINST THE INCOME REFERRED
21 TO UNDER SECTION 303(A)(2). THE SHAREHOLDER, MEMBER OR PARTNER
22 MAY NOT CARRY BACK, OBTAIN A REFUND OF OR ASSIGN THE CREDIT.
23 SECTION 1709-C. REPORT TO GENERAL ASSEMBLY.
24 THE SECRETARY SHALL SUBMIT AN ANNUAL REPORT TO THE GENERAL
25 ASSEMBLY INDICATING THE EFFECTIVENESS OF THE FILM PRODUCTION TAX
26 CREDIT PROVIDED BY THIS ARTICLE NO LATER THAN APRIL 1 FOLLOWING
27 THE YEAR IN WHICH THE CREDITS WERE APPROVED. THE REPORT SHALL
28 INCLUDE THE NAMES OF ALL TAXPAYERS UTILIZING THE CREDIT AS OF
29 THE DATE OF THE REPORT AND THE AMOUNT OF CREDITS APPROVED AND
30 UTILIZED BY EACH TAXPAYER. NOTWITHSTANDING ANY LAW PROVIDING FOR
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1 THE CONFIDENTIALITY OF TAX RECORDS, THE INFORMATION CONTAINED IN
2 THE REPORT SHALL BE PUBLIC INFORMATION. THE REPORT MAY ALSO
3 INCLUDE ANY RECOMMENDATIONS FOR CHANGES IN THE CALCULATION OR
4 ADMINISTRATION OF THE CREDIT.
5 SECTION 1710-C. TERMINATION.
6 THE DEPARTMENT SHALL NOT APPROVE A FILM PRODUCTION TAX CREDIT
7 UNDER THIS ARTICLE FOR TAXABLE YEARS ENDING AFTER DECEMBER 31,
8 2012.
9 SECTION 1711-C. REGULATIONS.
10 THE DEPARTMENT SHALL PROMULGATE REGULATIONS NECESSARY FOR THE
11 IMPLEMENTATION AND ADMINISTRATION OF THIS ARTICLE.
12 SECTION 2. THE ADDITION OF ARTICLE XVII-C OF THE ACT SHALL
13 APPLY TO:
14 (1) QUALIFIED FILM PRODUCTION EXPENSES INCURRED AFTER
15 JUNE 30, 2004; AND
16 (2) TAXABLE YEARS COMMENCING AFTER DECEMBER 31, 2003.
17 SECTION 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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