An Act To Expand Tax Incentives for Visual Media Productions
Maine Legislature, Session 124, LD 1449
Committee Amendment CA_A_H554 (House)
Amends: 36 MRSA §5219-E

COMMITTEE AMENDMENT" Pr " to H.P. 1005, L.D. 1449, Bill, "An Act To 
Expand Tax Incentives for Visual Media Productions" 
Amend the bill in section I in § 13090-L in subsection I in the last line (page I, line 9 
in L.D.) by striking out the following: "52 I 9-DD" and inserting the following: '5219-EE' 
Amend the bill in section I in § 13090-L in subsection 2 by inserting after paragraph 
D the following: 
'E. "Maine State Film Office" means the Maine State Film Office in the department's 
Office of Tourism.' 
Amend the bill in section I in § 13090-L in subsection 3-A by striking out all of the 
last paragraph (page 4, lines 5 to 15 in L.D.) and inserting the following: 
'To qualify for a visual media production certificate, a visual media production company 
must demonstrate to the satisfaction of the commissioner that the visual media production 
company has met the requirements of this subsection. If the department determines that 
the applicant does not qualify for a visual media production certificate, it must inform the 
applicant of that determination in writing within 4 weeks after receiving the application. 
As soon as practicable, the department shall issue a visual media production certificate 
for a visual media production that qualifies. 
The department shall include with the 
certificate information regarding qualification for a tax credit cel1ificate pursuant to 
subsection 4 and procedures for claiming the credit under Title 36, section 52 I 9-EE. The 
department may not issue visual media production certificates that total more than 
$3,000,000 during any fiscal year. If certificates issued during a fiscal year are less than 
$3,000,000, the department may add the excess amount to the succeeding year's limit.' 
Amend the bill in section I in § 13090-L in subsection 4 in the 3rd line from the end 
(page 4, line 23 in L.D.) by striking out the following: "5219-DD" and inserting the 
following: '52 I 9-EE' 
Amend the bill in section I in § 13090-L in subsection 4 by striking out all of the last 
underlined sentence (page 4, lines 23 to 25 in L.D.) and insel1ing the following: 'The tax 
credit certificate must indicate whether the visual media production company is eligible 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT" 4 " 
to H.P. 1005, L.D. 1449 
for a Level 1 credit under Title 36, section 5219-EE, subsection 1 or a Level 2 credit 
under Title 36, section 5219-EE, subsection 2.' 
Amend the bill in section 1 in § 13090-L in subsection 5 in the last line (page 4, line 
in L.D.) by striking out the folIowing: "5219-DD" and inserting the folIowing: 
'5219-EE' 
Amend the biII in section 1 in § 13090-L by inserting after subsection 6 the folIowing: 
'7. Report. The Maine State Film Office shaII submit a report by January 15th 
annualIy to the joint standing committee of the Legislature having jurisdiction over 
taxation matters regarding the implementation of the visual media production credit under 
Title 36, section 5219-EE and any low-interest loan program for visual media production 
companies established by the Finance Authority of Maine. The report must include at 
least a description of any rule-making activity related to implementation of the credit and 
any loan programs, outreach efforts to visual media production companies and 
information regarding the number of applications for the visual media production credit 
and any low-interest loan program, the number of credits or loans granted, the revenue 
loss associated with the credit and the amount of visual media production expenses 
generated in the State as a result of the credit.' 
Amend the bill in section 2 in paragraph KK in the 3rd line (page 4, line 39 in L.D.) 
by striking out the following: "5219-DD" and inserting the following: '5219-EE' 
Amend the bill by striking out all of section 4 and inserting the following: 
'Sec. 4. 36 MRSA §5219-EE is enacted to read: 
§5219-EE. Certified visual media production credit 
A visual media production company that has received a tax credit certificate under 
Title 5, section 13090-L, subsection A is allowed a credit against the taxes imposed by 
this Part as provided in this section. 
1. Levell credit. A visual media production company with visual media production 
expenses of more than $50,000 but less than $500,000 is allowed a credit equal to 7% of 
visual media production expenses for the visual media production or 15% of the visual 
media production expenses if the Maine State Film Office finds that the production will 
significantly advance the development of visual media production in the State. 
2. Level 2 credit. A visual media production company with visual media production 
expenses of $500,000 or more is eligible for a credit equal to 20% of visual media 
production expenses for the visual media production. 
A visual media production 
company with visual media production expenses of $500,000 or more is eligible for an 
additional 5% credit if at least 2 of the following conditions are met: 
A. The visual media production company hires 15% or more of its cast and crew in 
the State; 
B. The visual media production company shoots or produces at least 25% of the 
project time in a military redevelopment zone, as defined under Title 30-A, section 
5250-1, subsection II, Aroostook County, Franklin County, Oxford County, 
COMMITTEE AMENDMENT 
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COMMIITEE AMENDMENT "A "to H.P. 1005, L.D. 1449 
Piscataquis County, Somerset County or Washington County. Project time includes 
days of preproduction, production and postproduction; and 
C. 
The visual media production company participates in an internship program 
approved by the Maine State Film Office. 
3. Refundable. The credit provided by this section is refundable. 
4. Definitions. Terms defined under Title 5, section 13090-L apply to this section. 
5. Audit. The State Tax Assessor may audit a visual media production company. If 
the assessor determines that a visual medial production company has received a credit 
larger that that to which it is entitled, the visual media production company must repay 
the excess amount to the State. For enforcement purposes, an excess credit must be 
treated in the same way as an underpayment of tax under this Part.' 
Amend the bill in section 6 in the 3rd line (page 5, line 36 in L.D.) by striking out the 
following: "$750,000" and inserting the following: '$500,000' 
Amend the bill by inserting after section 6 the following: 
'Sec. 7. 
Appropriations and allocations. The following appropriations and 
allocations are made. 
FINANCE AUTHORITY OF MAINE 
Visual Media Low-interest Loan Program N076 
Initiative: Provides funds for the initial and ongoing costs associated with establishing 
and administering the low-interest loan program for visual media production companies. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2009-10 
$30,000 
$30,000 
2010-11 
$15,000 
$15,000 
This amendment changes the line between the Level 1 credit and the Level 2 credit 
from $750,000 to $500,000, changes the conditions for increases in the amount of credit 
and changes the annual limit on credit certificates from $5,000,000 to $3,000,000. The 
amendment also clarifies the audit authority of the State Tax Assessor and requires an 
annual report by the Department of Economic and Community Development, Office of 
Tourism, Maine State Film Office to the joint standing committee of the Legislature 
having jurisdiction over taxation matters regarding implementation and administration of 
the credit. 
The amendment also adds an appropriations and allocations section to the bill. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/31/09 :JW'ac. 
Net Cost (Savings) 
General Fund 
LD 1449 
LR 623(02) 
An Act To Expand Tax Incentives for Visual Media Productions 
Fiscal Note for Bill as Amended by Committee Amendment "A" 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2009-10 
2010-11 
$742,500 
$3,577,500 
Projections 
2011-12 
$2,865,000 
Appropriations/Allocations 
General Fund 
$30,000 
$15,000 
$15,000 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
($712,500) 
($37,500) 
($3,562,500) 
($187,500) 
($2,850,000) 
($150,000) 
Projections 
2012-13 
$2,865,000 
$15,000 
($2,850,000) 
($150,000) 
This bill replaces the existing media income tax credit and reimbursement for certain production wages with a 
refundable income tax credit that is a percentage of the direct visual media production expenditures in the State. The 
expanded tax credit will result in a loss of tax revenue to the General Fund of $712,500 in FY 2009-10 and $3,562,500 
in FY 20 I 0-11. There will also be a loss of revenue to the Local Government Fund of $37,500 in FY 2009-10 and 
$187,500 in FY 2010-11. Additional costs to Maine Revenue Services associated with the new tax credit can be 
absorbed within existing budgeted resources. 
This bill includes General Fund appropriations of $30,000 in fiscal year 2009-1 0 and $15,000 per year beginning in 
fiscal year 20 I 0-11 to the Finance Authority of Maine for the upfront and ongoing administrative expenses of 
establishing and administering a low-interest loan program for visual media production companies. 
Additional costs to the Depaliment of Economic and Community Development associated with providing the required 
ceJiification, approving the internship program, rulemaking and for the Maine Film Office to submit the required 
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report can be absorbed within existing budgeted resources.") 
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LR0623(02) - Fiscal Note - Page 1 of 1