An Act To Provide Incentives To Foster Economic Growth and Build Infrastructure in the State
Maine Legislature, Session 125, LD 0384
Committee: Labor, Commerce, Research and Economic Development
Sponsors: PICCHIOTTI, WHITTEMORE, HARVELL, KNIGHT, MITCHELL, MORISSETTE, SANDERSON, MARTIN, TRAHAN
Amends: 5 MRSA §13090-M

Legislative Document 
No. 384 
H.P. 310 
House of Representatives, February 8, 2011 
An Act To Provide Incentives To Foster Economic Growth and 
Build Infrastructure in the State 
(EMERGENCY) 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative PICCHIOTTI of Fairfield. 
Cosponsored by Senator WHITTEMORE of Somerset and 
Representatives: HARVELL of Farmington, KNIGHT of Livermore Falls, MITCHELL of the 
Penobscot Nation, MORISSETTE of Winslow, SANDERSON of Chelsea, Senators: MARTIN 
of Kennebec, TRAHAN of Lincoln. 
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 film companies; and 
Whereas, film 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 film 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, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §13090-M is enacted to read: 
§13090-M.  Tourism and Industry Film Production Cash Rebate Program 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Below-the-line personnel" means nonstarring cast members and the technical 
production and postproduction staff of a film company. 
B.  "Fund" means the Film Production Cash Rebate Program Fund established in 
subsection 3. 
C.  "Office" means the Department of Economic and Community Development, 
Office of Tourism. 
D.  "Program" means the Tourism and Industry Film Production Cash Rebate 
Program established in subsection 2. 
E.  "Qualifying film company" means a film company that meets the criteria specified 
in subsection 4. 
2.  Program established.  The Tourism and Industry Film Production Cash Rebate 
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 film industry to use the State as a production location. 
3.  Fund established; revenue sources.  The Film Production Cash Rebate Program 
Fund is established in the office as a nonlapsing dedicated account.  The fund receives 
money deposited by the Treasurer of State and any other gift, grant or revenue from any 
other source to be used by the office to provide cash rebates to qualifying film companies 
under the schedule established in subsection 5. 
4.  Qualifications.  In order to be eligible to participate in the program, a film 
company must spend at least $50,000 for direct production costs in this State, including 
employment of residents of this State, as specified in paragraph A, and at least $250,000 
in investment in infrastructure in this State.  Additionally, the film production must: 
A.  Employ below-the-line personnel, at least 50% of whom are residents of this 
State; 
B.  Have a production office located in this State; 
C.  Own or operate at least one film stage in this State; 
D.  Contract with a travel company located in this State; 
E.  Contract with a payroll processing company licensed by this State pursuant to 
Title 10, chapter 222 and located in this State; 
F.  Use a financial institution located and authorized to do business in this State; and 
G.  Perform at least 80% of the filming, by time, in this State, including second unit, 
stunt and aerial filming. 
5.  Rebate amount.  A qualifying film company is entitled to a rebate of 
expenditures according to the following schedule: 
A.  Except as provided in paragraph B, for production expenditures, 45% of those 
costs; 
B.  For production expenditures made in rural communities, 47% of those costs; 
C.  For expenditures for below-the-line personnel who are not residents of this State, 
32% of those costs; 
D.  For expenditures for below-the-line personnel who are residents of this State, 
51% of those costs, including any costs related to job training for those personnel; 
E.  For any infrastructure expenditures in this State, 27% of those costs; and 
F.  For travel expenditures, 30% of those costs. 
6.  Application; fees.  A film company that chooses to participate in the program 
shall pay an application fee of $200 to the office.  The office shall accept or deny the 
participation of the company within 2 weeks of receipt of the application and fee.  The 
office shall withhold 0.5% of any rebate provided to a qualifying film company pursuant 
to subsection 5 for expenses related to the administration of this section. 
7.  Rules.  The office shall adopt rules necessary for the administration of the 
program, including establishing methods to determine whether a film company qualifies 
for a rebate and the amount of the expenditures subject to rebate.  Rules adopted pursuant 
to this subsection are routine technical rules as defined in chapter 375, subchapter 2-A. 
8.  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 
to the joint standing committee of the Legislature having jurisdiction over economic 
development matters.  The report must include any recommendations of the office for 
improvements or changes to the program. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill establishes the Tourism and Industry Film Production Cash Rebate Program 
in the Department of Economic and Community Development, Office of Tourism.  The 
purpose of the program is to attract film production companies to Maine by providing 
cash rebates for certain expenses of the film production company.  In order to qualify, the 
company must spend at least $50,000 for direct production costs in Maine and at least 
$250,000 in investment in infrastructure in this State and have ties to Maine, such as 
using a Maine bank and payroll processor.  The amount of the available rebate ranges 
from 27% of the expenses related to infrastructure to 51% of the costs of training and 
employment of Maine residents.