An Act To Provide Incentives for Maine Film Production
Maine Legislature, Session 122, LD 1607
Committee: Taxation
Sponsors: PINGREE, CROSBY, JODREY, MARRACHE, PERCY, RECTOR, BRENNAN, EDMONDS, RA YE

Legislative Document 
No. 1607 
H.P.1134 
House of Representatives, April 28, 2005 
An Act To Provide Incentives for Maine Film Production 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative PINGREE of North Haven. 
Cosponsored by Senator SA V AGE of Knox and 
/YI~Ih.~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: CROSBY of Topsham, JODREY of Bethel, MARRACHE of Waterville, 
PERCY of Phippsburg, RECTOR of Thomaston, Senators: BRENNAN of Cumberland, 
President EDMONDS of Cumberland, RA YE of Washington. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec.t. 5 MRSA §t3090-L is enacted to read: 
§13090-L. 
Media production certification 
1. 
Generalb'. 
A media production company that intends to 
undertake a 
media production in this State may apply to the 
department 
to 
have 
the 
production, 
or 
a 
portion 
of 
the 
production, certified under subsection 3 for purposes of media 
production reimbursement pursuant to Title 36, chapter gIg-A. 
2. 
Definitions. 
As 
used in this 
section. 
unless 
the 
context 
otherwise 
indicates. 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Media production" 
means 
a 
feature 
film. 
television 
series. 
television 
show. 
video. 
filmed 
or 
videotaped 
commercial or photographic or 
new-media project made 
in 
whole or in part in Maine and intended for national or 
international 
theatrical 
or 
television 
viewing 
or 
for 
publication 
in 
national 
or 
international 
publications. 
including catalogs. or for national or international sales. 
"Media production" does not include: 
(1) 
A news. current events or public programming show 
or a program that includes weather or market reports; 
(2) 
A talk show; 
(3) 
A 
production 
related 
to 
a 
game. 
quiz, 
questionnaire or contest: 
(4) 
A sports event or activity; 
(5) 
A gala presentation or awards show; 
(6) 
A finished production that solicits funds: or 
(7) 
A 
production 
produced 
by 
a 
media 
production 
company if records. 
as required by 18 United States 
Code, Section 2257. are to be maintained by that media 
production 
company 
with 
respect 
to 
any 
performer 
portrayed in that single media or multimedia program. 
B. 
"Media production company" means a person engaged in the 
business of producing a media production. 
C. 
"Person" has the Same meaning as in Title 36. section 
Ill, subsection 3. 
Page l-LR1365(1) 
3. 
Requirements 
for 
media 
production 
certificate. 
Applications for a media production certificate must be made on a 
form prescribed and furnished by the department. 
The applicant 
must provide: 
A. 
The names of and contact information for the principals 
involved in the media production: 
a. 
A certificate of insurance for the production: 
c. 
Financial information that demonstrates that the media 
production is economically sound and that at least $250,000 
will be expended in Maine on the media production during a 
period of 12 consecutive months: 
D. 
Data 
demonstrating 
that 
the 
media 
production 
will 
benefit the people of the State by increasing opportunities 
for employment and will strengthen the economy of the State: 
E. 
Evidence that the media production company is not owned 
by, affiliated with or controlled by, in whole or in part, a 
person that is in default on a loan made by the State or a 
loan guaranteed by the State: and 
F. 
Any other information required by the department. 
To 
qualify 
for 
a 
media 
production 
certificate, 
the 
media 
production company must demonstrate to the satisfaction of the 
commissioner that the media production company has met, or will 
meet, the expectations and requirements under paragraphs a, c, D 
and E. 
If the department determines that the applicant does not 
qualify for a media production certificate, it shall inform the 
applicant of that determination in writing within 4 
weeks of 
rece~v~ng 
the 
application. 
As 
soon 
as 
practicable, 
the 
department shall issue a media production certificate for a media 
~roduction that qualifies. 
The department shall include with the 
certificate 
information 
regarding 
qualification 
for 
a 
tax 
reimbursement certificate pursuant to subsection 4 and procedures 
for claiming reimbursement under Title 36, chapter gIg-A. 
4. 
Tax 
reimbursement certificate. 
Within 
weeks 
of 
completion of a certified media production, the media production 
company shall confirm its compliance with the requirements of 
subsection 
with respect to the certified media production. 
Upon determining compliance by the media production company, the 
department 
shall 
issue 
to 
the 
company 
a 
tax 
reimbursement 
certificate. 
The 
tax 
reimbursement certificate entitles 
the 
media production company to claim the reimbursement provided by 
Title 36, chapter gIg-A. 
5. 
Department 
to 
provide 
information 
to 
State 
Tax 
Assessor. 
The department shall provide to the State Tax Assessor 
copies of tax reimbursement certificates issued in accordance 
with subsection 4, together with any other information reasonably 
reguired by the State Tax Assessor for the administration of 
media production reimbursement under Title 36, chapter 919-A. 
6. 
Ru1emaking. 
The 
department 
shall 
develop 
rules 
as 
necessary to administer this section in cooperation with the 
State Tax Assessor. 
Rules adopted pursuant to this section are 
routine technical rules as defined in chapter 375, subchapter 2-A. 
Sec. 2. 36 MRSA c. 919-A is enacted to read: 
CHAPTER 919-A 
MEDIA PRODUCTION REIMBURSEMENT 
§6901. 
Definitions 
As 
used in this 
chapter, 
unless 
the 
context 
otherwise 
indicates, the following terms have the following meanings. 
1. 
Certified 
production 
wages. 
"Certified 
production 
wages" means wages that are paid by a media production company 
that 
has 
been 
issued 
a 
tax 
reimbursement 
certificate 
in 
accordance with Title 5, section 13090-L and that are subject to 
withholding 
pursuant 
to 
chapter 
827. 
"Certified 
production 
wages" does not include any wages in excess of $1.000,000 paid to 
a single individual for personal services rendered in connection 
with a particular certified media production. 
2. 
Coomissioner. 
"Commissioner" means the Commissioner of 
Administrative and Financial Services. 
3. 
Department. 
"Department" 
means 
the 
Department 
of 
Economic and Community Development. 
4. 
Media production. 
"Media production" 
has 
the 
same 
meaning as in Title 5, section 13090 L, subsection 2, paragraph A. 
5. 
Media production company. 
"Media production company" 
has the same meaning as in Title 5, section 13090-L, subsection 
2, paragraph B. 
6. 
Project period. 
"Project period" means the period of 
time, 
not 
to 
exceed 
consecutive 
months, 
that 
a 
media 
production company is engaged in the business of producing a 
media production or productions. 
§6902. 
Reimbursement allowed: procedure: audits 
1. 
Generally. 
A media production company is allowed a 
reimbursement of 
lQQ~ of Maine withholding taxes that have been 
paid pursuant to chapter 
that are related to certified 
production wages, except that for Maine withholding related to 
employees who are Maine residents, the reimbursement rate is 2QQ~. 
2. 
Procedure for reimbursement. 
On or before the 15th day 
of the month immediately following receipt of a tax reimbursement 
certificate pursuant to Title 5, section l3Q9Q-L, subsection 4, a 
media production company shal..LJ.eport to the State Tax Assessor 
and to the department that portion of certified production wages 
deducted and withheld by it during the project period, together 
with 
any 
additional 
information the 
assessor 
may 
reasonably 
x~ire. 
The 
assessor shall report to 
the 
commissioner the 
reimbursement amount to which each media production company is 
entitled. 
The commissioner shall deposit the reported amounts on 
or 
before 
June 
30th 
of 
each 
year 
in 
a 
media 
production 
reimbursement account established, maintained and administered by 
the commissioner, 
and shall pay the reported amounts to each 
certified media production company on or before July 31st of each 
~ 
3. 
Audit process. 
This chapter may not be construed to 
limit the authority of the State Tax Assessor to conduct an audit 
of any qualified business. 
When the assessor determines that a 
distribution larger than that authorized by this chapter has been 
received by any person, the assessor may enforce repayment of the 
overpayment by assessment pursuant to the provisions of chapter 7 
or may apply the overpayment against subsequent reimbursements 
made pursuant to this chapter. 
If the assessor determines that 
an overpayment is the result of fraud on the part of a media 
production company, the assessor may disqualify that company from 
receiving any future distributions pursuant to this chapter. 
Sec. 3. Application. 
That section of this Act that enacts the 
Maine Revised Statutes, Title 36, chapter 9l9-A applies to income 
taxes withheld on or after January 1, 2006. 
SUMMARY 
This bill establishes a tax benefit for media production 
companies making productions in whole or in part in Maine. 
Under 
the bill, a media production company that meets certain criteria 
is allowed a reimbursement of taxes withheld from wages related 
to the Maine production.