An Act To Provide Incentives To Foster Economic Growth and Build Infrastructure in the State
Maine Legislature, Session 125, LD 0384
Committee Amendment CA_A_H895 (House)
Amends: 5 MRSA §13090-L, 5 MRSA §13090-M, 5 MRSA §13090-N, 10 MRSA §1100-T, 36 MRSA §191, 36 MRSA §5219-Y

COMMITTEE AMENDMENT "ft" to H.P. 310, L.D. 384, Bill, "An Act To 
Provide Incentives To Foster Economic Growth and Build Infrastructure in the State" 
Amend the bill by striking out all ofthe emergency preamble (page 1, lines 1 to 14 in 
L.D.) and inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, this legislation fosters economic growth in the State by providing 
incentives to motion picture, musical and digital media production companies; and 
Whereas, motion picture and musical production is especially amenable to 
incentives because it is highly mobile, environmentally safe, capital and labor intensive 
and effective in promoting tourism; and 
Whereas, it is important that these incentives be made available quickly to 
encourage motion picture and musical production companies to come to Maine as soon as 
possible, thus benefiting the economy and people of Maine; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,' 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inserting the following: 
'Sec. 1. 5 MRSA §13090-L, as amended by PL 2011, c. 285, § 1, is repealed. 
Sec. 2. 5 MRSA §13090-M, sub-§I, ~~ and E, as enacted by PL 2011, c. 372, 
§ 1, are amended to read: 
B. "Digital media project" has the Saffle meaning as in section 13090 L, subsection 
A, paragraph A means visual and audio content on an electronic, digital medium 
and created, referred to and distributed electronically. "Digital media project" 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to H.P. 310, L.D. 384 
includes publicly accessible websites, computer multimedia, video and computer 
games and digital video discs. 
E. 
"Visual media production" has the same measisg as is seetios 13G9G L, 
sl;lbseetios 2 A, paragraph D. 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 
(6) A production for which records are required to be maintained by 18 United 
States Code, Section 2257. 
Sec. 3. 5 MRSA §13090-M, sub-§4, ~, as enacted by PL 2011, c. 372, §1, is 
amended to read: 
E. A signed agreement with the department provides that the project or production 
will not be the basis for a elaim for as iseome tax eredit tlftder Title 36, seetios 
5219 Y or reimblifSemest rebate under Title 36, eflapter 919 A section 13090-N. 
Sec. 4. 5 MRSA §13090-N is enacted to read: 
§13090-N. Motion Picture, Musical and Digital Media Incentive Program 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Applicant" means a motion picture production company, a musical, theatrical or 
sound production company or a digital interactive media production company that 
has applied for a rebate under this section. 
B. "Below-the-Iine personnel" means nonstarring cast members and the technical 
production and postproduction staff of an applicant. 
C. "Digital interactive media production" means interactive software that is produced 
in this State, in whole or in part, for distribution in commercial markets, including 
Internet distribution or wireless distribution. "Digital interactive media production" 
includes animation, so-called 3D applications, video game cinematics, virtual 
production, visual effects and motion capture within feature film, television, 
commercials and games. "Digital interactive media production" does not include any 
website or content that is produced primarily for private, industrial, corporate or 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 310, L.D. 384 
institutional purposes or any content that contains any material or performance 
featuring excessive or gratuitous violence or sexual content, as determined by the 
office. 
D. "Digital interactive media production company" means a company engaged in the 
business of producing digital interactive media productions. 
E. "Fund" means the Motion Picture, Musical and Digital Media Incentive Program 
Fund established in subsection 3. 
F. 
"Motion picture production" means a nationally or internationally distributed 
feature-length film, video, digital video disc, television program or series or 
commercial made in this State, in whole or in part, for theatrical or digital video disc 
release, for television viewing or as a television pilot. "Motion picture production" 
does not include the production of television coverage of news and athletic events or 
the production of a film, video, digital video disc, television program or series or 
commercial that contains any material or performance featuring excessive or 
gratuitous violence or sexual content, as determined by the office. 
G. "Motion picture production company" means a company engaged in the business 
of producing motion picture productions. 
H. 
"Musical, theatrical or sound production" means the producing, rehearsing, 
marketing, recording, performing or filming of a live musical, theatrical or sound 
production, or a series of productions, in this State, in whole or in part. "Musical, 
theatrical or sound production" does not include the production of a musical, 
theatrical or sound production that contains any material or performance featuring 
excessive or gratuitous violence or sexual content, as determined by the office. 
1. 
"Musical, theatrical or sound production company" means a company that is 
engaged in the business of producing musical, theatrical or sound productions. 
J. 
"Office" means the Department of Economic and Community Development, 
Office of Tourism. 
K. 
"Program" means the Motion Picture, Musical and Digital Media Incentive 
Program established in subsection 2. 
L. "Qualifying production expenditures" means all preproduction, production and 
postproduction expenditures in this State directly relating to a state-certified 
production, including but not limited to wages for below-the-line personnel: set 
construction and operation; costs associated with photography and sound 
synchronization, lighting and related services and materials; . wardrobes, makeup, 
accessories and related services; costs of food and lodging; leasing of vehicles and 
travel costs; editing and related services; rental of facilities and equipment; digital or 
tape editing, film processing and transfer of film to tape or digital format; sound 
mixing; and special and visual effects. "Qualifying production expenditures" does 
not include any expenses that are not related to the state-certified production or any 
expenditures related to the distribution, marketing or promotion of the state-certified 
production. 
COMMITTEE AMENDMENT 
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COMMIITEE AMENDMENT "A" to H.P. 310, L.D. 384 
M. 
"State-certified production" means a motion picture production, musical, 
theatrical or sound production or digital interactive media production that has been 
approved by the office to receive a rebate under this section. 
2. Program established. The Motion Picture, Musical and Digital Media Incentive 
Program is established in and administered by the office to promote tourism, increase 
opportunities for employment and foster economic growth in this State by encouraging 
the motion picture, musical, theatrical, sound and digital interactive media industry to use 
the State as a production location. 
3. Fund established; revenue sources. The Motion Picture, Musical and Digital 
Media Incentive Program Fund is established in the office as a nonlapsing dedicated 
account. The fund receives money appropriated by the Legislature for the purposes of this 
section and any other gift, grant or revenue from any other source to be used by the office 
to provide rebates for state-certified productions as provided for in this section. 
4. Qualifications. In order to be eligible to receive a rebate under this section, a 
motion picture production company must spend at least $75,000 in qualifying production 
expenditures, and a musical, theatrical or sound production company or digital interactive 
media production company must spend at least $15,000 in qualifying production 
expenditures. In addition, the company must: 
A. Employ below-the-line personnel, at least 50% of whom are residents of this 
State, and, beginning September 1, 2013, employ below-the-Iine personnel, at least 
65% of whom are residents of this State; 
B. Contract with a travel company located in this State; 
C. Contract with a payroll processing company licensed by this State pursuant to 
Title 10, chapter 222 and located in this State; 
D. Use a financial institution located and authorized to do business in this State; 
E. Contract with a casting company located in this State; and 
F. Agree to display in its production a single card credit or state logo, as prescribed 
by the office. stating that the production was filmed. produced or created in this State 
with the cooperation of the office. 
5. Application for initial and final state certification; eligibility for rebate. The 
following provisions apply to the application process for state certification of a motion 
picture production, musical, theatrical or sound production or digital interactive media 
production. 
A. An applicant shall submit to the office an application for initial state certification 
prior to commencement of the production and pay an application fee of $200. The 
application must include, when applicable, the following information: the script, 
including a synopsis; a general description of the performance, which may include 
the book, score and plans for recording or filming the production; a list of the 
principal creative elements, including the cast, producer, director, musicians, headline 
performers and conductor; estimated start and completion dates; a preliminary 
budget, including estimated qualifying production expenditures; and any other 
information determined by the office as relevant to its consideration of the production 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A " 
to H.P. 310, L.D. 384 
for state certification. 
If the information is incomplete, the office may request 
additional information prior to further action by the office. 
B. The office shall notify the applicant within 4 weeks after receipt of the completed 
application and fee under paragraph A of its decision to approve or deny the 
production for initial state certification. 
C. No later than 8 weeks following completion of the production, the applicant shall 
submit to the office a record of all final qualifying production expenditures and 
information required to demonstrate compliance with the requirements of this section 
for final state certification of the production. Once the applicant has demonstrated to 
the satisfaction of the office that the applicant has fulfilled all of the requirements for 
a rebate, the office shall process the rebate for payment to the applicant and notify the 
Department of Administrative and Financial Services, Maine Revenue Services that 
the applicant has received the rebate. 
D. The office shall withhold 0.5% of any rebate provided to an applicant under this 
section for expenses of the office related to the administration of this section. 
6. Rebate amount; ineligibility. A state-certified production is eligible for a rebate 
of 25% of all qualifying production expenditures, subject to the following limitations: 
A. From May 1, 2012 to June 30, 2013, the total amount of rebates authorized under 
this section may not exceed $25,000,000 in the aggregate; and 
B. For fiscal year 2013-14 and any subsequent fiscal year, the total amount of rebates 
authorized under this section may not exceed $50,000,000 in the aggregate. 
A company that receives a rebate under this section is not eligible to claim any other state 
economic development incentive, tax reimbursement or exemption during the same year, 
except for exemptions claimed under Title 36, Part 3. 
Any equipment claimed as a 
qualifying production expenditure under this program may not be claimed under any 
other exemption or reimbursement program under Title 36 during the same fiscal year. 
7. Effect of bankruptcy; default on loan. Any company owned, affiliated or 
controlled, in whole or in part, by any company or person that is in default on a loan 
made by the State or a loan guaranteed by the State, or any company or person who has 
ever declared bankruptcy under which an obligation of the company or person to payor 
repay public funds or money was discharged as a part of such bankruptcy, is not eligible 
for a rebate under this section. 
8. 
Rules. 
The office may adopt rules necessary for the administration of the 
program, including establishing methods to determine whether an applicant qualifies for a 
rebate and the amount of the qualifying production expenditures subject to rebate. Rules 
adopted pursuant to this subsection are routine technical rules as defined in chapter 375, 
subchapter 2-A. 
9. Review and report. Beginning January 15, 2013, and every 2 years thereafter, 
the office shall review all aspects of the program, including the level of participation, the 
amount rebated from the fund and the amount retained by the office, and submit a report 
including the results of the review to the joint standing committee of the Legislature 
having jurisdiction over labor, commerce, research and economic development matters. 
The report must include any recommendations of the office for improvements or changes 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT 'A" to H.P. 310, L.D. 384 
to the program. The committee may report out a bill to implement the recommendations 
in the report. 
10. 
Transfer from General Fund undedicated revenue to Motion Picture, 
Musical and Digital Media Incentive Program Fund. Notwithstanding any other 
provision of law, the State Controller shall transfer $25,000,000 by January 1, 2013 and 
$50,000,000 by January 1st of each subsequent fiscal year from General Fund 
undedicated revenue to the Motion Picture, Musical and Digital Media Incentive Program 
Fund, Other Special Revenue Funds account within the Department of Economic and 
Community Development to be used to provide rebates for state-certified productions. 
Sec. 5. 10 MRSA §1100-T, sub-§2, ~, as amended by PL 2009, c. 470, §2, is 
further amended to read: 
B. The Maine business must be a manufacturer; must provide a product or service 
that is sold or rendered, or is projected to be sold or rendered, predominantly outside 
of the State; must be engaged in the development or application of advanced 
technologies; RUist ee eertifies as a '1iS'l:lal Riesia flresuetiea eeFBflaay \:lBser Title 5, 
seetiea 13090 L; or must bring capital into the State, as determined by the authority. 
Sec. 6. 10 MRSA §1100-T, sub-§2-A,~, as amended by PL 2009, c. 470, §3, 
is further amended to read: 
B. As used 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; or 
(4) Brings capital into the State, as determined by the authority-;--er.:. 
(5) Is eertified as a '1isHal Riedia flreduetiea eeRiflany Hader Title 5, seetiea 
13090 L. 
Sec. 7. 10 MRSA §1100-T, sub-§2-C, ~, as enacted by PL 2011, c. 454, §6, is 
amended to read: 
B. 
As used in this subsection, unless the context otherwise indicates, "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; or 
(4) Brings capital into the State, as determined by the authority-;--er.:. 
(5) Is eertified as a '/isHal Riedia flreooetiea eeFBflaay \:lBder Title 5, seetiea 
13090 L. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 310, L.D. 384 
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Sec. 8. 36 MRSA §191, sub-§2, ~M, as amended by PL 2009, c. 652, Pt. A, 
§51, is further 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 produetioA eredit uAder seetioA 5219 Y Motion Picture, Musical and 
Digital Media Incentive Program under Title 5, section 13090-N, the employment tax 
increment financing program under chapter 917, tHe vistial media produetion 
reimbtirsement program tinder eHapter 919 A or the Pine Tree Development Zone 
program under Title 30-A, chapter 206, subchapter 4; 
Sec. 9. 36 MRSA §5219-Y, as amended by PL 2011, c. 240, §37, is repealed. 
Sec. 10. 36 MRSA c. 919-A, as amended, is repealed. 
Sec. 11. Application. A visual media production company may claim a visual 
media production credit and reimbursement under the Maine Revised Statutes, former 
Title 36, section 5219-Y and former Title 36, chapter 919-A after the effective date of 
this Act if the Department of Economic and Community Development issued a visual 
media production certificate to the visual media production company prior to the effective 
date of this Act. 
Sec. 12. Appropriations and allocations. The following appropriations and 
allocations are made. 
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF 
Motion Picture, Musical and Digital Media Incentive Program Fund N132 
Initiative: Allocates funds for rebates to eligible motion picture production companies. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
2011-12 
$0 
$0 
2012-13 
$25,000,000 
$25,000,000 
SUMMARY 
This amendment replaces the bill. It creates the Motion Picture, Musical and Digital 
Media Incentive Program, which allows for a rebate based on qualifying production 
expenditures for a motion picture production company that spends at least $75,000 in 
qualifying production expenditures or a musical, theatrical or sound production company 
or digital interactive media production company that spends at least $15,000 in qualifying 
production expenditures. In addition, in order to qualify for the rebate, the company 
must: 
1. Employ below-the-line personnel, at least 50% of whom are residents of this State, 
and, beginning September 1, 2013, employ below-the-line personnel, at least 65% of 
whom are residents of this State; 
2. Contract with a travel company located in this State; 
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COMMITTEE AMENDMENT ,A" to H.P. 310, L.D. 384 
3. Contract with a payroll processing company licensed by this State pursuant to the 
Maine Revised Statutes, Title 10, chapter 222 and located in this State; 
4. Use a financial institution located and authorized to do business in this State; 
5. Contract with a casting company located in this State; and 
6. Agree to display in its production a single card credit or state logo, as prescribed 
by the Department of Economic and Community Development, Office of Tourism, 
stating that the production was filmed, produced or created in this State with the 
cooperation of the office. 
The amendment establishes application requirements for initial and final state 
certification and standards for eligibility for the rebate. It allows for a rebate of 25% of 
all qualifying production expenditures, subject to the following limitations: from May 1, 
2012 to June 30, 2013, the total amount of rebates authorized may not exceed 
$25,000,000 in the aggregate and the total amount of rebates authorized in any 
subsequent fiscal year may not exceed $50,000,000 in the aggregate. 
It provides that a company that receives a rebate under the program may not claim 
any other state economic development incentive, tax reimbursement or exemption in the 
same fiscal year. 
The amendment also repeals the certified visual media production credit and visual 
media production reimbursement. It requires that, beginning January 15, 2013, and every 
years thereafter, the office shall review all aspects of the program, including the level of 
participation, the amount rebated from the Motion Picture, Musical and Digital Media 
Incentive Program Fund and the amount retained by the office, and submit a report to the 
joint standing committee of the Legislature having jurisdiction over labor, commerce, 
research and economic 
development matters. The report must include any 
recommendations of the office for improvements or changes to the program. 
The 
amendment authorizes the committee to report out a bill to implement the 
recommendations in the report. 
The amendment requires the State Controller to transfer $25,000,000 by January 1, 
2013 and $50,000,000 annually thereafter from General Fund undedicated revenue to be 
used to provide rebates under the program. 
The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/02112 ;tvac. 
LD384 
LR 1137(02) 
An Act To Provide Incentives To Foster Economic Growth and Build Infrastructure in the State 
Fiscal Note for Bill as Amended by Committee Amendment "A" (H ~ '695) 
Committee: Labor, Commerce, Research and Economic Development 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY2011-12 
$0 
$0 
$0 
$0 
FY2012-13 
$24,895,500 
$25,000,000 
($24,895,500) 
$25,005,500 
Projections 
FY 2013-14 
$49,895,500 
$50,000,000 
($49,895,500) 
$50,005,500 
Projections 
FY 2014-15 
$49,895,500 
$50,000,000 
($49,895,500) 
$50,005,500 
This bill establishes the Motion Picture, Musical and Digital Media Incentive Program Fund to be administered by the 
Office of Tourism within the Department of Economic and Community Development and provides Other Special 
Revenue Funds allocations of $25,000,000 in fiscal year 2012-13 and $50,000,000 annually beginning in fiscal year 
2013-14 to provide rebates to eligible motion picture companies. This fiscal note reflects the maximum amount of 
rebates that may be authorized in each fiscal year. The actual cost of the rebates to be issued in each fiscal year will 
depend on actual experience. 
This bill also requires the State Controller to transfer $25,000,000 by January 1,2013 and $50,000,000 by January 1st 
of each subsequent fiscal year from General Fund undedicated revenue to the Motion Picture, Musical and Digital 
Media Incentive Program Fund for the rebates. 
The repeal of the visual media production tax credit increases General Fund revenue by $104,500 annually beginning 
fiscal year 2012-13. Revenue sharing will also increase by $5,500 annually beginning in fiscal year 2012-13. 
Additional costs to the Office of Tourism associated with administering the program can be absorbed within existing 
budgeted resources. 
LRl137(02) - Fiscal Note - Page 1 of 1