An Act To Provide Incentives To Foster Economic Growth and Build Infrastructure in the State by Encouraging Visual Media Production
Maine Legislature, Session 127, LD 1004
Committee Amendment CA_A_H326 (House)
Amends: 5 MRSA §13090-L, 5 MRSA §13090-M, 36 MRSA §191, 36 MRSA §199-C, 36 MRSA §5219-Y, 36 MRSA §5219-N, 36 MRSA §6901, 36 MRSA §6902

COMMITTEE AMENDMENT" 11" to H.P. 699, L.D. 1004, Bill, "An Act To 
Provide Incentives To Foster Economic Growth and Build Infrastructure in the State by 
Encouraging Visual Media Production" 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'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 :J. 3-B for purposes the purpose of the 
visual media production reimbursement pursuant to Title 36, chapter 919-A and the oredit 
under Title 36, seotion 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 13090-1. 
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COMMITTEE AMENDMENT ./~" to H.P, 699, L.D, 1004 
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 maior 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 Ill, 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 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A .. toH.P. 699, L.D. 1004 
(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 work perfonned in this State 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 accmed if those wages do not exceed $50,000 
$250,000 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 $250,000 per individual providing services in the production. "Visual media 
production expense" includes the cost of constmction; operations; editing and related 
services; music, photography and film processing, including transferring film to tape 
or a digital fonnat; 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. 
l\pplioations An 
application for a visual media production certificate must be made on a fonn prescribed 
and furnished by the department. The applicant must shall: 
A. Provide the names of the principals involved in the visual media production and 
contact infonnation for them; 
. 
B. Provide a certificate of insurance for the visual media production; 
C. Provide financial infonnation 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 tfti.s 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 detennined in 
mles 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 
mles 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; 
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COMMITTEE AMENDMENT "A "to H.P. 699, L.D. 1004 
G. Provide any other information required by the department; arul 
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 subsection7 3-B; 
1. 
Provide any 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; and 
J. Agree to pay an administrative fee of 0.2% of the amount of the visual media 
production reimbursement allowed pursuant to Title 36, chapter 919-A, but at least 
$200 and no more than $5,000, and as determined by the State Tax Assessor pursuant 
to Title 36, section 6902, subsection 2-A. The administrative fee must be paid after 
the visual media production company files the report required by subsection 4 and 
before the visual media production company receives the visual media production 
reimbursement. 
To qualify for a visual media production certiticate, a visual media production company 
must demonstrate to the satisfaction of the commissioner that the visual media produotion 
oompany has met, or vAll meet, the requirements of this s'ltbsection. If the department 
determines that the applicant does not qualify for a visual media produotion oertificate, it 
must inform the applicant of that determination in writing within 4 'vVeeks of receiving the 
application. As soon as practicable, the. department shall issue a visual media production 
certificate for a visual media produotion that qualifies. The department shall include with 
the certificate information regarding the ta]' credit report under s'ltbsection 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 productian certificate must be made on a form 
prescribed and furnished by the department. The 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 that is greater than $1,000,000 
if applying for the 25% credit under Title 36, section 52l9-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; 
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COMMITTEE AMENDMENT "A "to H.P. 699, L.D. 1004 
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 l?ostl?roduction 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; 
1. Include, in the certified major visual media production, an on-screen credit for the 
J. 
Provide any 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 a major visual media production for a tax credit 
under Title 36, section 5219-NN 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 procedurys for claiming reimbursement under Title 36, 
chapter 919-A and the credit under Title 36, section 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 'lAth respeot to the oertified visual media produotion or 3-A to the Maine 
State Film Office. 
5. Department to provide informatiQn 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 under Title 36, section 5219 Y 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 ta]( oredit and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" ~"to H.P. 699, L.D. 1004 
reimbursement activities pursuant to Title 36, section 5219 Y and under 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 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 eredtt credits and 
reimbursement reimbursements and the amount of visual media production expenses and 
major visual media production expenses generated in the State as a result of the efedi-t 
credits and reimbursement reimbursements. 
Sec. 2. 5 MRSA §13090-M, sub-§4, ~E, 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 claim for an income tax credit under Title 36, section 
5219 Y or reimbursement under Title 36, chapter 919-A. 
Sec. 3. 36 MRSA §191, sub-§2, ~MM, 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 
major visual media production credit under section 5219 Y 5219-NN, 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. 4. 36 MRSA §199-C, sub-§5 is enacted to read: 
5. Review of media tax expenditures. By December 1, 2021, the committee shall 
review the income tax credit under section 5219-NN and reimbursement under chapter 
919-A for major visual media productions and visual media productions to determine 
whether the credit and reimbursement should be retained, repealed or modified. The 
committee shall consider information provided by the bureau under section 199-B and by 
the Department of Economic and Community Development, Office of Tourism, Maine 
State Film Office under Title 5, section 13090-L, subsection 7. 
Sec. 5. 36 MRSA §5219-Y, as amended by PL 2011, c. 240, §37, is repealed. 
Sec. 6. 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-Ware not eligible 
for the credit under this section. The credit allowed by this section may be used only for 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to H.P. 699, L.D. 1004 
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. 7. 36 MRSA §6901, sub-§2, as amended by PL 2013, c. 546, §16, is further 
amended to read: 
2. Certified production wages. "Certified production wages" means wages subject 
to withholding under section 5250, subsection 1 that are paid by a visual media 
production company for work on a certified visual media production, an amount paid to a 
temporary employee-leasing company for personal services rendered in this State by a 
leased employee in connection with a certified visual media production, an amount paid 
for the services of a performing artist working in the State in connection with a certified 
visual media production and other contractual payments for the services of individuals 
working in the State in connection with a certified visual media production. "Certified 
production wages" includes only the first $50,000 $25Q,000 paid to or with respect to a 
particular individual for personal services rendered in connection with a particular 
certified visual media production. 
Sec. 8. 36 MRSA §6901, sub-§§8 and 9 are enacted to read: 
8. Below-the-line personnel. "Below-the-Iine personnel" means nonstarring cast 
members and the technical production and postproduction staff of a visual media 
production company. 
9. Extra. "Extra" means a nonstarring cast member who appears in a nonspeaking 
or nonsinging capacity, usually in the background, ofa visual media production. 
Sec. 9. 36 MRS A §6902, sub-§1, as amended by PL 2011, c. 240, §46, is 
repealed and the following enacted in its place: 
1. Reimbursement of certified production wages. A visual media production 
company is allowed a reimbursement equal to 25% of certified production wages paid to 
or with respect to below-the-line personnel who are residents of Maine and 15% of 
certified production wages paid to or with respect to below-the-line personnel who are 
not residents of Maine. To qualify for the reimbursement pursuant to this subsection: 
A. At least 50% of the below-the-line personnel, not including extras, employed by 
the visual media production company must be residents of Maine unless the visual 
media production company certifies that a sufficient number of qualified residents of 
Maine are not available to meet this requirement; and 
B. The visual media production expenses, as defined in Title 5, section 13090-L, 
subsection 2-A, paragraph F, must exceed 50% of the total production expenses, or at 
least 50% of the total principal photography days must occur in the State. 
Sec. 10. 36 MRS A §6902, sub-§1-A is enacted to read: 
I-A. Reimbursement of nonwage visual media production expenses. A visual 
media production company is allowed a reimbursement equal to 25% of its nonwage 
visual media production expenses incurred with respect to a certified visual media 
production if the visual media production company has visual media production expenses 
of $30,000 or more with respect to that certified visual media production. For purposes of 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT "A "to H.P. 699, L.D. 1004 
this section, "nonwage visual media production expenses" means visual media production 
expenses as defined in Title 5, section 13090-L, subsection 2-A, paragraph F, except that 
"nonwage visual media production expenses" does not include certified production wages 
or any amount that would be included in certified production wages but for the $250,000 
limit provided by section 6901, subsection 2. 
A. At least 50% of the below-the-line personnel, not including extras, employed by 
the visual media production company must be residents of Maine unless the visual 
media production company certifies that a sufficient number of qualified residents of 
Maine are not available to meet this requirement; and 
B. The visual media production expenses, as defined in Title 5, section 13090-L, 
subsection 2-A, paragraph F, must exceed 50% of the total production expenses, or at 
least 50% of the total principal photography days must occur in the State. 
Sec. 11. 36 MRSA §6902, sub-§2, as amended by PL 2009, c. 470, §7, is further 
amended to read: 
. 
2. Procedure for reimbursement. Within 6 weeks following submission of the 
certified visual media production report pursuant to Title 5, section 13090-L, subsection 
4, a visual media production company shall report to the State Tax Assessor that portion 
of certified production wages and its nonwage visual media production expenses paid for 
the certified visual media production, together with any additional information the 
assessor may reasonably require. The as,sessor shall certify 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 category. 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 fet3eFt administrative fee, as 
determined pursuant to subsection 2-A. 
Sec. 12. 36 MRSA §6902, sub-§2-A is enacted to read: 
2-A. 
Determination of administrative fee. 
The assessor shall determine the 
amount of the administrative fee under Title 5, section 13090-L, subsection 3, paragraph J 
to be paid by the visual media production company. The administrative fee is 0.2% of the 
reimbursement amount granted under this section, except that it must be at least $200 and 
no more than $5,000. The assessor shall inform the visual media production company of 
the amount of the administrative fee and the requirement that the administrative fee be 
paid prior to payment of the reimbursement. 
Sec. 13. 36 MRSA §6902, sub-§4 is enacted to read: 
4. Limitation. A taxpayer claiming a credit under section 5219-W is not eligible for 
reimbursement pursuant to this section. 
Sec. 14. Application. That section of this Act that enacts the Maine Revised 
Statutes, Title 36, section 5219-NN applies to tax years beginning on or after January 1, 
2015. 
Sec. 15. Appropriations and allocations. The following appropriations and 
allocations are made. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A " 
to H.P. 699, L.D. 1004 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides funding for computer programming costs. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2015-16 
$11,000 
$11,000 
2016-17 
$0 
$0 
This amendment removes the emergency preamble and emergency clause from the 
bill and adds provisions establishing a refundable income tax credit for a major visual 
media production, which is defined as a visual media production with an overall budget 
that is greater than $1,000,000. The credit applies to tax years beginning on or after 
January 1, 2015. 
The amendment also requires the joint standing committee of the 
Legislature with jurisdiction over taxation matters to review by December 1, 2021 the 
reimbursements and tax credits for visual media production companies and make a 
recommendation to the Legislature with regard to retention, repeal or modification of the 
provisions. The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/31/15 
jtpac. 
LD 1004 
LR 894(02) 
An Act To Provide Incentives To Foster Economic Growth and Build Infrastructure in the State by 
Encouraging Visual Media Production 
Fiscal Note for Bill as Amended by Committee Amendment 'fi'(I1-3;).10 ) 
. 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015-16 
FY 2016-17 
Projections 
FY 2017-18 
Projections 
FY 2018-19 
Net Cos~ (Savings) 
General Fund 
$546,325 
$2,142,725 
$3,473,200 
$3,473,200 
Appropriations! Allocations 
General Fund 
Revenue 
$11,000 
$0 
$0 
$0 
General Fund 
Other Special Revenue Funds 
($535,325) 
($28,175) 
($2,142,725) 
($112,775) 
($3,473,200) 
($182,800) 
($3,4 73,200) 
($182,800) 
Fiscal Detail and Notes 
This legislation makes changes to the visual media production reimbursement and would result in a reduction in 
General Fund revenue of $535,325 in fiscal year 2015-16 and $2,142,725 in fiscal year 2016-17 and a reduction in 
Local Government Fund revenue of $2 8, 175 in fiscal year 2015-16 and $112,77 5 in fiscal year 2016-17. The bill 
includes a one-time General Fund appropriation to the Department of Administrative and Financial Services of 
$11,000 in fiscal year 2015-16 for computer programming charges. 
LR0894(02) - Fiscal Note· Page 1 of 1