An Act To Expand Tax Incentives for Visual Media Productions
Maine Legislature, Session 124, LD 1449
Committee Amendment CA_B_H598 (House)
Amends: 5 MRSA §13090-L, 10 MRSA §1100-T, 36 MRSA §191, 36 MRSA §5219-Y, 36 MRSA §6901

COMMITTEE AMENDMENT ,I?J " to H.P. 1005, L.D. 1449, Bill, "An Act To 
Expand Tax Incentives for Visual Media Productions" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRSA §13090-L, as enacted by PL 2005, c. 519, Pt. GO, § 1, IS 
amended to read: 
§13090-L. Visual media production certification 
1. Generally. A visual media production company that intends to undertake a visual 
media production in this State may apply to the depal1ment to have the production, or a 
p0l1ion of the production, certified under subsection 3 for purposes of the visual media 
production reimbursement pursuant to Title 36, chapter 919-A and the credit under Title 
36, section 5219-Y. 
2. Definitions. As used in this section, unless the context othenvise indicates, the 
following terms have the follo'Ning meanings. 
A. "Media production" means a single medium or multimedia foature film, television 
show or series, video, commercial, photographic project, interactive computer or 
video game or other program intended for a national audience and fiKed on film, 
video tape, computer disk, laser disc or other delivery medium that can be vie'Ned or 
reproduced and that is exhibited in theaters or by individual television stations or 
groups of stations, television networks or cable television stations or via other means 
or licensed for home viewing or use. 
"Media production" does not include: 
(1) A nevI'S, current events or public programming sho ... 1' or a program that 
includes '""eather or marlret-Fef3effir, 
(2) A talk show; 
(3) A sports event or activih': 
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(4) A gala presentation or av,'ards shm",; 
(5) A finished oroduction that solicits funds: or 
(6) 
i", production produced by a media production company if records, as 
required by 1 g United States Code, Section 2257, are to be maintained by that 
media production company '''''ith respect' to any oerformer oortraved in that 
produqtion. 
B. 
"Media production comoanv" means a Berson eneaeed in the business of 
producing a media production. 
C. 
"Media production expense" means an expense directly incurred during the 
creation of a media production. This term includes wages and salaries of individuals 
employed in the production on which taxes have been paid or accrued; the cost of 
construction, operations, editing and related services, still and motion photography, 
sound recording and synchronization, lighting, wardrobe and accessories; and the 
rental of facilities and equipment, including location fees. The term does not include 
expenses incurred in marketing and advertising a media production or in printing or 
othenNise disseminating a media production. 
D. "Person" has the same meaning as in Title 36, section 111, subsection 3. 
2-A. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Digital media project" means visual and audio content on an electronic, digital 
medilllTI and created, referred to and distributed electronically. 
"Digital media 
project" includes publicly accessible websites, computer multimedia, video and 
computer games and digital video discs. 
B. "Maine State Film Office" means the Maine State Film Office established in the 
Office of Tourism pursuant to section 13090-1. 
C. "Person" has the same meaning as in Title 36, section 111, subsection 3. 
D. "Visual media production" means a single-medium or multimedia feature film, 
television show' or series, video, digital media project or photographic project 
intended for a local, regional, national or international audience and fixed on film, 
videotape, computer disk, laser disc or other delivery medium that can be viewed or 
reproduced and that is exhibited in theaters' or by individual television stations or 
groups of stations, television networks or cable television stations or via other means 
or licensed for home viewing or use. "Visual 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 sports event or activity; 
(4) A gala presentation or awards show; 
(5) A finished production that solicits funds; or 
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(6) A production for which records are required to be maintained by 18 United 
States Code, Section 2257. 
E. "Visual media production company" means a person engaged in the business of 
producing a visual media production. 
F. "Visual media production expense" means an expense directly incurred in this 
State for preproduction, production or postproduction of a visual media production 
certified under this section. "Visual media production expense" includes wages and 
salaries of individuals employed in the production on which taxes have been paid or 
accrued if those wages do not exceed $50,000 per individual and payments to. a 
temporary employee-leasing company, as defined in Title 36, section 690 I, 
subsection 3-A, and other contractual payments for the services of individuals 
working in the State if those payments do not exceed $50,000 per individual 
providing services in the production. "Visual media production expense" includes the 
cost of construction; operations; editing and related services; music, photography and 
film processing, including transferring film to tape or a digital format; sound 
recording, mixing and synchronization; lighting, makeup, wardrobe and accessories; 
transportation; food and lodging for cast and crew; insurance and bonding; and the 
rental of facilities and equipment, includirrg location fees. "Visual media production 
expense" does not include expenses incurred in marketing or adveltising a visual 
media production or in printing or disseminating a visual media production. 
3. Requirements for visual media production certificate. Applications for a 
visual media production celtificate must be made on a form prescribed and furnished by 
the depmtment. The applicant must: 
A. Provide the names of the principals involved in the visual media production and 
contact information for them; 
B. Provide a celtificate of insurance for the visual media production; 
C. Provide financial information that demonstrates that the visual media production 
is economically sound fully financed and that at least $250,000 $75,000 of visual 
media production expense will be incurred .in Maine during a period of 12 
consecutive months for the visual media production certified in accordance with this 
subsection; 
D. 
Provide data demonstrating that the visual media production will benefit the 
people of the State by increasing opportunities for employment and will strengthen 
the economy of the State; 
E. Agree to include, in aIt the celtified visual media productions production, an on-
screen credit for the State of Maine. The exact wording and size of that credit must 
be determined in rules adopted by the Maine State Film Office and the depaltment. 
The Maine State Film Office or the depaltment may, at its discretion, exempt visual 
media productions from this requirement. Rules adopted pursuant to this paragraph 
are routine technical niles as defined in chapter 375, subchapter 2-A; 
F. Provide evidence that the visual 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; aOO-
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G. Provide any other information required by the departmenh; and 
H. Provide a projected schedule for preproduction, production and postproduction of 
the visual media production that shows that the production will begin within 60 days 
after certification pursuant to this subsection. 
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, or will meet, the expectations and requirements under paragraphs g, C, 
D, E, F and G requirements of this subsection. If the department determines that the 
applicant does not qualify for a visual media production celiificate, it must inform the 
applicant of that determination in writing within 4 weeks of receiving the application. As 
soon as practicable, the depaliment 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 reimbursement and credit certificate 
pursuant to the tax credit repO\i under subsection 4 and procedures for claiming 
reimbursement under Title 36, chapter 919-A and the credit under Title 36, section 
5219-Y. 
4. Certified visual media production report. wttItHt No later than 4 weeks sf after 
completion of a celiified visual media production, the visual media production company 
shall confirm report, in a format specified by the Maine State Film Office or the 
depaJiment, its compliance with the requirements of subsection 3 with respect to the 
certified visual media production to the Maine State Film Office and the State Tax 
Assessor. 
Upon determining compliance by the media production company, the 
department shall issue to the company a tm .. reimbursement and credit certificate. The taJ" 
reimbursement m1d credit certificate entitle the media production company to claim the 
reimbursement provided by Title 36, chapter 919 A and the credit under Title 36, section 
5219 Y. 
5. Department to provide information to State Tax Assessor. The department 
shall provide to the State Tax Assessor copies of tax reimbursement and credit certificates 
the visual media production certificate issued in accordance 'Nith pursuant to subsection 
4- :2., together with any other information reasonably required by the State Tax Assessor 
for the administration of visual media production reimbursement under Title 36, chapter 
919-A and the credit under Title 36, section S219-Y. 
6. Rulemaldng. The depaJiment 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. 
7. Report. The Maine State Film Office shall submit a repO\i by January 15th 
annually to the joint standing committee of the Legislature having jurisdiction over 
taxation matters regarding the certification and repO\iing process pursuant to this section 
and the visual media production tax credit and reimbursement activities pursuant to Title 
36, section 52 I 9-Y and Title 36, chapter 919-A. The repO\i must include a description of 
any rule-making activity related to the implementation of the credit and reimbursement 
activities, outreach effO\is to visual media production companies, the number of 
applications for the visual media production credit and tax reimbursement, the number of 
credits and reimbursements granted, the revenue loss associated with the credit and 
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COMMITTEE AMENDMENT"f3" to I-LP. 1005, L.D. 1449 
reimbursement and the amount of visual media production expenses generated in the 
State as a result of the credit and reimbursement. 
Sec. 2. 10 MRSA §1100-T, sub-§2,~, as amended by PL 1999, c. 504, §10, is 
f1ll1her amended to read: 
B. The Maine business must be a manufacturer; must provide a product or service 
that is sold or rendered, oris projected to be sold or rendered, predominantly outside 
of the State; must be engaged in the development or application of advanced 
technologies; must be certified as a visual media production company under Title 5, 
section 13090-L; or must bring capital into the State, as determined by the authority. 
Sec. 3. 10 MRSA §1100-T, sub-§2-A, 'i[B, as amended by PL 1997, c. 774,.§1, 
is further amended to read: 
B. As llsed in this subsection, unless the context otherwise indicates, an "eligible 
business" means a business located in the State that: 
(1) Is a manufacturer; 
(2) Is engaged in the development or application of advanced technologies; 
(3) Provides a service that is sold or rendered, or is projected to be sold or 
rendered, predominantly outside of the State; ef 
(4) Brings capital into the State, as determined by the authority-:-; or 
(5) Is celiified as a visual media production company under Title 5, section 
13090-L. 
Sec. 4. 36 MRSA §191, sub-§2, ~M, as reallocated by PL 2009, c. 361, § 15, is 
amended to read: 
MM. The disclosure to an authorized representative of the Department of Economic 
and Community Development of information required for the administration of the 
visual media production credit under section 5219-Y, the employment tax increment 
financing program under chapter 917, the visual media production reimbursement 
program under chapter 919-A or the Pine Tree Development Zone program under 
Title 30-A, chapter 206, subchapter 4. 
Sec. 5. 36 MRSA §5219-Y, as enacted by PL 2005, c. 519, Pt. GG, §2, is repealed 
and the following enacted in its place: 
§5219-Y. Certified visual media production credit 
1. Credit allowed. A visual media production company, as defined in Title 5, 
section 13090-L, subsection 2-A, paragraph E, is allowed a credit against the taxes 
imposed by this Part in an amount equal to 5% of the visual media production expenses, 
as defined in Title 5, section 13090-L, subsection 2-A, paragraph F, if the visual media 
company has visual media prodllction expenses of$75,000 or more. For purposes of this 
section, "visual media production expenses" does not include wages, salaries, 
commissions or any other form of compensation or remuneration paid to employees for 
personal services. 
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2. Limitation. The credit allowed by this section may not reduce the tax otherwise 
due under this Part below zero and may be used only for the taxable year in which the 
certified visual media production, as defined in section 6901, subsection 1, is completed. 
Taxpayers claiming a credit 1I11der section 5219-Ware not eligible for this credit. 
Sec. 6. 36 MRSA §6901, as enacted by PL 2005, c. 519, Pt. GG, §3, is amended 
to read: 
§6901. Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1. Certified visual media production. "Cel1ified visual media production" means a 
visual media production that has been cel1ified by the Department of Economic and 
Community Development for eligibility as eligible for reimbursement under this chapter 
in accordance with Title 5, section 13090-L. 
2. Certified production wages. "Cel1ified production wages" means wages that are 
paid during the prctlect period by a visual media production company that has been issued 
a tax reimbursement certificate in accordance with Title 5, section 13090 L for work on a 
celtified visual media production and that are subject to withholding pursuant to chapter 
827. "Certified production wages" includes payments to a temporary employee-leasing 
company and payments for the services of performing al1ists working in the State. 
"Certified production wages" does not include any wages in excess of $1,000,000 
$50,000 paid to a single individual for personal services rendered in connection with a 
paJ1icular certified visual media production. 
3. Commissioner. "Commissioner" means the Commissioner of Administrative and 
Financial. Services. 
3-A. 
Temporary employee-leasing company. 
"Temporary employee-leasing 
company" means a business that contracts with a visual media production company to 
supply workers to perform services for a certified visual media production or a private 
employment agency that contracts with a visual media production company to supply 
workers to perform services for a certified visual media production on a temporary help 
basis. 
4. 
Visual media production. 
"Medta Visual media production" has the same 
meaning as in Title 5, section 13090-L, subsection ;!. 2-A, paragraph A D. 
5. Visual media pl'oduction company. "Medta Visual media production company" 
has the same meaning as in Title 5, section 13090-L, subsection ;!. 2-A, paragraph B .E. 
6. Projeet period. "Project period" means the period of time, not to exceed 12 
consecutive months, that a media production company is engaged in the business of 
producing a media production or productions: 
7. Resident of Maine. "Resident of Maine" means a person who: 
A. Filed as a resident individual under PaJ1 8 on that person's most recently filed 
Maine income tax return; 
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B. If no income taK return was required, .. ",ho could Could have filed as a resident 
individual under Pali 8 if a return had been required in a case where no income tax 
return was required; or 
C. Was claimed, or could have been claimed, as a dependent on the Maine income 
tax return of an individual who filed as a resident individual under Pali 8 on the filer's 
most recently filed Maine income tax return. 
Sec. 7. 36MRSA §6902, as amended by PL 2009, c. 361, §35, is fllliher amended 
to read: 
§6902. ReimbUl'semellt allowed; procedUl'e; audits 
1. Gellel"ally. A visual media production company celiified pursuant to Title 5, 
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section 13090-L is allowed a reimbursement equal to 12% of celiified production wages 
paid to employees who are residents of Maine and 10% of celiified production wages 
paid to other employees. 
2. Procedure fOl" reimbUl"Semellt. Within 6 weeks following reeetpt submission of 
a taK reimbursement and credit certificate the celiified visual media production repOli 
pursuant to Title 5, section 13090-L, subsection 4, a visual media production company 
shall repOli to the State Tax Assessor that pOliion of certified production wages paid 
during the project period for the celiified visual media production, together with any 
additional information the assessor may reasonably require. The assessor shall celiify to 
the State Controller the amounts to be transferred to the visual media production 
reimbursement account established, maintained and administered by the State Controller 
from General Fund undedicated revenue within the withholding tax categOly. 
The 
assessor shall pay those amounts to each visual media production company within 90 
days of the receipt by the assessor of the visual media production company's repOli. 
3. Audit process. This chapter may not be construed to limit the authority of the 
State Tax Assessor to conduct an audit of any visual media production company certified 
pursuant to Title 5, section 13090-L. 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 visual media production company, the assessor may disqualify that 
company from receiving any future distributions pursuant to this chapter. 
Sec. 8. Maine Revised Statutes headnote amended; revision clause. In the 
Maine Revised Statutes, Title 36, chapter 919-A, in the chapter headnote, the words 
"media production reimbursement" are amended to read "visual media production 
reimbursement" and the Revisor of Statutes shall implement this revision when updating, 
publishing or republishing the statutes.' 
SUMMARY 
This amendment replaces the bill. It makes changes to the State's incentives with the 
intent of providing more effective strategies for growing the Maine visual media 
production industlY by assisting established Maine producers and attracting visual media 
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productions to the State. The amendment modifies the existing income tax credit by 
changing the calculation of the credit to 5% of the expenses incurred for a single cel1ified 
visual media production with expenses of $75,000 or more. It changes the reimbursement 
for certain production wages by limiting it to wages that do not exceed $50,000 per 
individual, by including leased employees and by applying the reimbursement to a single 
certified visual media production rather than several projects over a specified period of 
time. The credits are subject to audit by the State Tax Assessor. Eligible productions 
must be certified by the Department of Economic and Community Development. The 
Department of Economic and Community Development, Office of Tourism, Maine State 
Film Office must report annually to the joint standing committee of the Legislature 
having jurisdiction over taxation matters on the implementation of the credit and 
reimbursement program. The amendment clarifies that visual media productions under 
the Maine Revised Statutes, Title 5, section 13090-L are eligible for the Maine Seed 
Capital Tax Credit Program under Title 10, chapter 110, subchapter 9. 
):\SCAL NOTE REQUIRED 
(See Attached) 
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Fiscal Detail and Notes 
Approved: 01126/10 Mac. 
LD 1449 
LR 623(05) 
An Act To Expand Tax Incentives for Visual Media Productions 
Fiscal Note for Bill as Amended by Committee Amendment '8 " 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
No significant net fiscal impact 
The combined changes in this bill will result in no significant net effect on tax revenue or expenditures. Additional 
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costs to the Department of Economic and Community Development and the Finance Authority of Maine associated 
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with implementing the celiification and repOIiing requirements of this legislation can be absorbed within existing 
budgeted resources. 
LR0623(05) - Fiscal Note - Page 1 of 1