Source: https://www.richmondsunlight.com/bill/2020/hb1318/fulltext/
Timestamp: 2020-05-26 05:42:08
Document Index: 425520262

Matched Legal Cases: ['§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58', '§ 58']

HB1318EH1
HB1318H1
HOUSE BILL NO. 1318 AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by the House Committee on Finance) (Patron Prior to Substitute--Delegate Aird) House Amendments in [ ] – February 10, 2020 A BILL to amend and reenact §§ 58.1-439.12:03 and 58.1-609.6 of the Code of Virginia, relating to motion picture production tax credit; media-related exemptions.
1. That §§ 58.1-439.12:03 and 58.1-609.6 of the Code of Virginia are amended and reenacted as follows:
A. For taxable years beginning on and after January 1, 2011, but prior to January 1, 2022 2027, any motion picture production company with qualifying expenses of at least $250,000 with respect to a motion picture production filmed in Virginia shall be allowed a refundable credit against the taxes imposed by § 58.1-320 or 58.1-400 in an amount equal to 15 percent of the production company's qualifying expenses or 20 percent of such expenses if the production is filmed in an economically distressed area of the Commonwealth. The Virginia Economic Development Partnership Authority shall designate which areas of the Commonwealth are deemed to be economically distressed areas. The credit shall be computed based on all of the taxpayer's qualifying expenses incurred with respect to the production, not just the qualifying expenses incurred during the taxable year. The refundable tax credits allowed under this section are for one tax year only. Where a motion picture production continues for more than one year, a separate application for each tax year the production continues must be made. The grant of a refundable tax credit for a motion picture film production does not create a presumption that the production will receive a refundable tax credit for subsequent tax years. Effective on January 1, 2013, for purposes of eligibility for refundable tax credits, a motion picture film production shall include digital interactive media production.
D. 1. The issuance of refundable tax credits under this section shall be in accordance with procedures, qualifying criteria, and deadlines established by the Department and the Virginia Film Office Virginia Tourism Authority. The qualifying criteria established by the Virginia Film Office Virginia Tourism Authority shall take into account whether the production involves physical production within the Commonwealth of Virginia, the number of residents of Virginia that will be employed in the production and the level of compensation they will be paid, the extent to which the production will contribute to the support and expansion of existing production companies in Virginia, the extent to which the production will impact existing local businesses and the local economy, the extent to which the production will involve existing and new companies located in Virginia, and other relevant considerations. The taxpayer shall apply for a credit by submitting such forms as prescribed by the Virginia Film Office Virginia Tourism Authority, prior to the start of production in Virginia.
2. Any taxpayer seeking credits under this section must enter into a memorandum of understanding with the Virginia Film Office Virginia Tourism Authority that at a minimum provides the requirements that the taxpayer must meet in order to receive the credits, including but not limited to the estimated amount of money to be spent in Virginia, the timeline for completing production in Virginia, and the maximum amount of credits allocated to the taxpayer.
3. Once the taxpayer has satisfied all of the requirements in the memorandum of understanding to the satisfaction of the Virginia Film Office Virginia Tourism Authority and completed production in Virginia, the taxpayer may claim the applicable amount of credits up to the amount that has been allocated by the Virginia Film Office on a the Virginia Tourism Authority shall certify the final tax credit amount to the taxpayer and to the Tax Commissioner. In addition, such certificate shall specify the fiscal year in which such tax credit may be refunded by the Department of Taxation. The tax return filed for the taxable year in which the Virginia production activities are completed shall contain information specifying the amount of tax credit and shall specify the fiscal year in which such tax credit may be refunded. The return must state the name of the production, provide a description of the production, and include a detailed accounting of the qualifying expenses with respect to which a credit is claimed.
E. A taxpayer allowed a credit under this section must maintain and make available for inspection any information or records required by the Tax Commissioner. The taxpayer has the burden of proving eligibility for a credit and the amount of the credit. The Tax Commissioner shall consult with the Virginia Film Office Virginia Tourism Authority in order to determine the amount of qualifying expenses.
G. [ 1. ] The total amount of credits allocated to all taxpayers under this section shall not exceed $2.5 million in the 2010-2012 biennium, $5 million in the 2012-2014 biennium, and $6.5 million in fiscal year 2015 and each fiscal year thereafter.
[ 2. Any such tax credit unallocated at the end of any fiscal year shall not expire and shall be available for allocation by the Virginia Tourism Authority in future fiscal years. ]
H. The Department of Taxation, in consultation with the Virginia Film Office Virginia Tourism Authority, must publish by November 1 of each year for the 12-month period ending the preceding December 31 the following information:
4. Catalogs, letters, brochures, reports, and similar printed materials, except administrative supplies, the envelopes, containers and labels used for packaging and mailing same, and paper furnished to a printer for fabrication into such printed materials, when stored for 12 months or less in the Commonwealth and distributed for use without the Commonwealth. As used in this subdivision, "administrative supplies" includes, but is not limited to, letterhead, envelopes, and other stationery; and invoices, billing forms, payroll forms, price lists, time cards, computer cards, and similar supplies. Notwithstanding the provisions of subdivision 5 or the definition of "advertising" contained in § 58.1-602, (i) any advertising business located outside the Commonwealth which purchases printing from a printer within the Commonwealth shall not be deemed the user or consumer of the printed materials when such purchases would have been exempt under this subdivision, and (ii) from July 1, 1995, through June 30, 2002, and beginning July 1, 2002, and ending July 1, 2022, any advertising business which purchases printing from a printer within the Commonwealth shall not be deemed the user or consumer of the printed materials when such purchases would have been exempt under subdivision 3 or this subdivision, provided that the advertising agency shall certify to the Tax Commissioner, upon request, that such printed material was distributed outside the Commonwealth and such certification shall be retained as a part of the transaction record and shall be subject to further review by the Tax Commissioner.
6. Beginning July 1, 1995, and ending July 1, 2022 2027:
a. (i) The lease, rental, license, sale, other transfer, or use of any audio or video tape, film or other audiovisual work where the transferee or user acquires or has acquired the work for the purpose of licensing, distributing, broadcasting, commercially exhibiting or reproducing the work or using or incorporating the work into another such work; (ii) the provision of production services or fabrication in connection with the production of any portion of such audiovisual work, including, but not limited to, scriptwriting, photography, sound, musical composition, special effects, animation, adaptation, dubbing, mixing, editing, cutting and provision of production facilities or equipment; or (iii) the transfer or use of tangible personal property, including, but not limited to, scripts, musical scores, storyboards, artwork, film, tapes and other media, incident to the performance of such services or fabrication; however, audiovisual works and incidental tangible personal property described in clauses (i) and (iii) shall be subject to tax as otherwise provided in this chapter to the extent of the value of their tangible components prior to their use in the production of any audiovisual work and prior to their enhancement by any production service; and
7. Beginning July 1, 1998, and ending July 1, 2022, textbooks and other educational materials withdrawn from inventory at book-publishing distribution facilities for free distribution to professors and other individuals who have an educational focus.
[ 2. That the provisions set forth in subdivision G 2 of § 58.1-439.12:03 of the Code of Virginia, as amended by this act, shall be effective for unallocated tax credits beginning in fiscal year 2011. ]
HOUSE BILL NO. 1318 AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by the House Committee on Finance on February 5, 2020) (Patron Prior to Substitute--Delegate Aird) A BILL to amend and reenact §§ 58.1-439.12:03 and 58.1-609.6 of the Code of Virginia, relating to motion picture production tax credit; media-related exemptions.
G. 1. The total amount of credits allocated to all taxpayers under this section shall not exceed $2.5 million in the 2010-2012 biennium, $5 million in the 2012-2014 biennium, and $6.5 million in fiscal year 2015 and each fiscal year thereafter.
2. Any such tax credit unallocated at the end of any fiscal year shall not expire and shall be available for allocation by the Virginia Tourism Authority in future fiscal years.
2. That the provisions set forth in subdivision G 2 of § 58.1-439.12:03 of the Code of Virginia, as amended by this act, shall be effective for unallocated tax credits beginning in fiscal year 2011.
HOUSE BILL NO. 1318 Offered January 8, 2020 Prefiled January 8, 2020 A BILL to amend and reenact § 58.1-439.12:03 of the Code of Virginia, relating to motion picture production tax credit.
1. That § 58.1-439.12:03 of the Code of Virginia is amended and reenacted as follows:
For a plain English description of this bill, comments, voting, tagging, etc., return to the main page for HB1318.