An Act To Promote Tourism and Foster Economic Development
Maine Legislature, Session 127, LD 1164
Committee: Labor, Commerce, Research and Economic Development
Sponsors: HAMANN, VALENTINO, MALABY, MARTIN, MONAGHAN, PETERSON, STANLEY, DUTREMBLE, HILL, PATRICK
Amends: 5 MRSA §13090-L, 36 MRSA §5219-N

Legislative Document 
No. 1164 
H.P. 798 
House of Representatives, March 31, 2015 
An Act To Promote Tourism and Foster Economic Development 
Reference to the Committee on Labor, Commerce, Research and Economic Development 
suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative HAMANN of South Portland. 
Cosponsored by Senator VALENTINO of York and 
Representatives: MALABY of Hancock, MARTIN of Eagle Lake, MONAGHAN of Cape 
Elizabeth, PETERSON of Rumford, STANLEY of Medway, Senators: DUTREMBLE of 
York, HILL of York, PATRICK of Oxford. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §13090-L, as amended by PL 2011, c. 285, §1, is further 
amended to read: 
§13090-L.  Visual media production and major 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 department to have the production, or a 
portion of the production, certified under subsection 3 3-B for purposes of the visual 
media production reimbursement pursuant to Title 36, chapter 919-A and the credit under 
Title 36, section 5219-Y.  A major visual media production company that intends to 
undertake a major visual media production in this State may apply to the department to 
have the production, or a portion of the production, certified under subsection 3-B for the 
purpose of the major visual media production credit under Title 36, section 5219-NN. 
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 
medium 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-I. 
B-1.  "Major visual media production" means a visual media production with an 
overall budget, as defined in rules adopted by the department, that is greater than 
$1,000,000. 
B-2.  "Major visual media production company" means a person engaged in the 
business of producing a major visual media production. 
B-3.  "Major visual media production expense" means an expense directly incurred in 
this State for preproduction, production or postproduction of a major visual media 
production certified under this section.  "Major visual media production expense" 
includes major visual media production wages, payments to a temporary employee-
leasing company, as defined in Title 36, section 6901, subsection 3-A, and other 
contractual payments for the services of individuals working in the State.  "Major 
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, including location fees. "Major visual media production expense" does 
not include expenses incurred in marketing or advertising a major visual media 
production or in printing or disseminating a major visual media production. 
B-4.  "Major visual media production wages" means wages and salaries paid to 
below-the-line personnel on which taxes have been paid or accrued.  For purposes of 
this paragraph, “below-the-line personnel” means nonstarring cast members and the 
technical preproduction, production and postproduction staff of the major visual 
media production, including, but not limited to, staff for hair, makeup, wardrobe, 
accessories, lighting, rigging, electric, camera operations, photography, composing 
and editing, but not including the director, starring cast, writers and producers of the 
major visual media production. 
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, including the Internet, 
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. 
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 6901, 
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, including location fees.  "Visual media production 
expense" does not include expenses incurred in marketing or advertising 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 certificate must be made on a form prescribed and furnished by 
the department.  The applicant must: 
A.  Provide the names of the principals involved in the visual media production and 
contact information for them; 
B.  Provide a certificate of insurance for the visual media production; 
C.  Provide financial information that demonstrates that the visual media production 
is fully financed and that at least $75,000 of visual media production expense will be 
incurred for the visual media production certified in accordance with this subsection 
3-B; 
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 the certified visual media 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 department.  The Maine State 
Film Office or the department may, at its discretion, exempt visual media productions 
from this requirement.  Rules adopted pursuant to this paragraph are routine technical 
rules 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;  
G.  Provide any other information required by the department; 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. 3-B; and 
I.  Provide any other information required to demonstrate to the satisfaction of the 
commissioner that the visual media production company has met, or will meet, the 
requirements of 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 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 of 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 the tax credit report under subsection 4 and 
procedures for claiming reimbursement under Title 36, chapter 919-A and the credit 
under Title 36, section 5219-Y. 
3-A.  Requirements for major visual media production certificate.  An 
application for a major visual media production certificate must be made on a form 
prescribed and furnished by the department.  An applicant shall: 
A.  Provide payment for a nonrefundable application fee equal to 0.2% of the 
estimated amount of the tax credit for which the major visual media production 
company is requesting certification, which may not be less than $200 or more than 
$5,000; 
B.  Provide the names of the principals involved in the major visual media production 
and contact information for them; 
C.  Provide a certificate of insurance for the major visual media production; 
D.  Provide financial information that demonstrates that the major visual media 
production is fully financed and has an overall budget of at least $1,000,000 if 
applying for the 25% credit under Title 36, section 5219-NN, subsection 1; 
E.  Provide projections of the number of positions required for the major visual media 
production, the number of residents of the State to be employed and the economic 
impact on the State; 
F.  Provide evidence that the major 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; 
G.  Provide a projected schedule for preproduction, production and postproduction of 
the major visual media production that shows that the production will begin within 60 
days after certification pursuant to subsection 3-B; 
H.  Demonstrate, by certifying in writing, that the major visual media production 
would not occur within the State absent the availability of the tax credit for which the 
major visual media production company is requesting certification; 
I.  Include, in the certified major visual media production, an on-screen credit for the 
J.  Provide any other information required to demonstrate to the satisfaction of the 
commissioner that the major visual media production company has met, or will meet, 
the requirements of this subsection. 
3-B.  Issuance of certificate.  The department shall issue a visual media production 
certificate for a visual media production that qualifies under subsection 3 or a major 
visual media production certificate for a major visual media production that qualifies 
under subsection 3-A within 4 weeks of receipt of the application or deny the application 
in writing.  The department may deny a certificate for any reason.  The department may 
not approve a certificate that qualifies the visual media production or major visual media 
production for a tax credit under Title 36, section 5219-Y or 5219-NN, respectively, in 
excess of the funds appropriated for those purposes.  The department shall include with 
the certificate information regarding the tax credit report under subsection 4 and 
procedures for claiming reimbursement under Title 36, chapter 919-A and the credits 
under Title 36, sections 5219-Y and 5219-NN. 
4.  Certified report.  No later than 4 weeks after completion of a certified visual 
media production or major visual media production, the visual media production 
company or major visual media production company shall report, in a format specified by 
the Maine State Film Office or the department, its compliance with the requirements of 
subsection 3 with respect to the certified visual media production or 3-A to the Maine 
State Film Office. 
5.  Department to provide information to State Tax Assessor.  The department 
shall provide to the State Tax Assessor copies of the visual media production certificate 
or major visual media production certificate issued pursuant to subsection 3 3-B, 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 credits under Title 36, section sections 5219-Y and 5219-NN. 
6.  Rulemaking.  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. 
7.  Report.  The Maine State Film Office shall submit a report by January 15th 
annually to the joint standing committee of the Legislature having jurisdiction over 
taxation matters regarding the certification and reporting process pursuant to this section 
and.  The report must include information on the visual media production tax credit and 
reimbursement activities pursuant to under Title 36, section 5219-Y and Title 36, chapter 
919-A and the major visual media production tax credit under Title 36, section 5219-NN. 
The report must include a description of any rule-making activity related to the 
implementation of the credit credits and reimbursement activities, outreach efforts to 
visual media production companies and major visual media production companies, the 
number of applications for the visual media production credit and tax reimbursement, the 
number of applications for the major visual media production credit, the number of 
credits and reimbursements granted, the revenue loss associated with the credit credits 
and reimbursement and the amount of visual media production expenses and major visual 
media production expenses generated in the State as a result of the credit credits and 
reimbursement. 
Sec. 2.  36 MRSA §5219-NN is enacted to read: 
§5219-NN.  Certified major visual media production credit 
1.  Credit allowed.  A major visual media production company, as defined in Title 5, 
section 13090-L, subsection 2-A, paragraph B-2, is allowed a credit against the taxes 
imposed by this Part in an amount equal to a percentage of major visual media production 
expenses, as defined in Title 5, section 13090-L, subsection 2-A, paragraph B-3, up to 
25% of major visual media production expenses. 
2.  Limitation.  Taxpayers claiming a credit under section 5219-W or 5219-Y are not 
eligible for the credit under this section.  The credit allowed by this section may be used 
only for the taxable year in which the major visual media production, as defined in Title 
5, section 13090-L, subsection 2-A, paragraph B-1, is completed. 
3.  Refundable.  The credit allowed under this section is fully refundable. 
Sec. 3.  Application.  This Act applies to tax years beginning on or after January 1, 
2015. 
SUMMARY 
This bill provides a fully refundable income tax credit for expenses and wages 
directly incurred in Maine by a major visual media production company, including for 
content that is produced for the Internet, in an amount of up to 25% of production 
expenses if the overall budget is greater than $1,000,000, not including wages for starring 
cast or the director, writer or producers.  The credit must be claimed in the taxable year in 
which the major visual media production is completed. 
A major visual media production company must submit a nonrefundable application 
fee, which is 0.2% of the estimated tax credit, but may be no less than $200 and no more 
than $5,000.  The Department of Economic and Community Development may deny a 
certificate for a visual media production or a major visual media production for any 
reason.  The department is required to deny a certificate if it would qualify the production 
for tax credits in excess of the funds appropriated for that purpose.