An Act to Promote Economic Growth Through Increased Film Incentives
Maine Legislature, Session 131, LD 1075
Committee: Taxation
Sponsors: DAUGHTRY, GERE, ROEDER, INGWERSEN
Amends: 5 MRSA §13090-L, 36 MRSA §5219-Y, 36 MRSA §6901, 36 MRSA §6902

Legislative Document
No. 1075
S.P. 444
In Senate, March 9, 2023
An Act to Promote Economic Growth Through Increased Film 
Incentives
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator DAUGHTRY of Cumberland.
Cosponsored by Representative GERE of Kennebunkport, Representative ROEDER of Bangor 
and
Senator: INGWERSEN of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §13090-L, sub-§2-A, ¶C-1 is enacted to read:
C-1.  "Principal photography" means a period in which a visual media production is 
filmed, shot or recorded.  "Principal photography" does not include preproduction or 
postproduction periods.
Sec. 2.  5 MRSA §13090-L, sub-§2-A, ¶F, as enacted by PL 2009, c. 470, §1, is 
amended to read:
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, not 
including airfare, unless booked through a travel agent in the State, or lodging; catering 
and food and lodging for cast members, staff and crew; local insurance and bonding; 
and the rental of facilities and equipment, including location fees; and fees collected 
by a temporary employee-leasing company as defined in Title 36, section 6901, 
subsection 3-A.  "Visual media production expense" does not include certified 
production wages, as defined in Title 36, section 6901, subsection 2, or expenses 
incurred in marketing or advertising a visual media production or in printing or 
disseminating a visual media production.
Sec. 3.  5 MRSA §13090-L, sub-§3, as amended by PL 2009, c. 470, §1, is further 
amended to read:
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 $25,000 of visual media production expense 
will be incurred for the visual media production certified in accordance with this 
subsection;
D.  Provide data reasonably 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 the first day of principal 
photography will begin within 60 days a reasonable time after certification pursuant to 
this subsection.; and
I.  Agree to withhold, in accordance with Title 36, chapter 827, 6% of all payments 
made to an out-of-state entity known as a loan-out corporation or personal service 
corporation created to hire out the services of one individual, including an actor or 
artist, to a 3rd party.
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.
Sec. 4.  5 MRSA §13090-L, sub-§4, as amended by PL 2011, c. 285, §1, is further 
amended to read:
4.  Certified visual media production report reports.  No later than 4 8 weeks after 
completion of principal photography for a certified visual media production, the 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 to the Maine State Film Office.  No later than 8 
weeks after completion of the postproduction period for a certified visual media production, 
a visual media production company seeking credit for visual media production expenses 
incurred in the postproduction period shall report to the Maine State Film Office, 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.
Sec. 5.  36 MRSA §5219-Y, as amended by PL 2011, c. 240, §37, is further amended 
to read:
§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% 25% of its nonwage visual media production expenses, as 
defined in Title 5, section 13090-L, subsection 2-A, paragraph F, incurred with respect to 
a certified visual media production as defined in section 6901, subsection 1, if the visual 
media production company has visual media production expenses of $75,000 $25,000 or 
more with respect to that certified visual media production.  For purposes of 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 as defined 
in section 6901, subsection 2 or any amount that would be included in certified production 
wages but for the $50,000 limit provided by section 6901, subsection 2.
A visual media production company is allowed 2 of the following additional credits against 
the taxes imposed by this Part if it demonstrates in the certified visual media production 
report required under Title 5, section 13090-L, subsection 4 that it has satisfied the 
requirements for the additional credit:
A.  A 3% credit if a portion of the filming occurred in Aroostook County, Franklin 
County, Kennebec County, Oxford County, Penobscot County, Piscataquis County, 
Somerset County or Washington County;
B.  A 2% credit if the screenplay or story is set in the State; or
C.  A 2% credit if the lead cast member, writer or director is a resident of the State.
A visual media production company may not receive additional credits in excess of 5% of 
the visual media production expenses for a certified visual media production and the 
cumulative credit allowed under this section may not exceed 30% of the visual media 
production expenses incurred with respect to a certified visual media production.
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 under section 5219-W are not eligible for this credit.
A visual media production company may not receive cumulative credits under this section 
and section 6902 for visual media production expenses incurred and certified production 
wages paid with respect to a certified visual media production in excess of $500,000 for 
taxable years beginning prior to January 1, 2024, $750,000 for taxable years beginning on 
or after January 1, 2024 but prior to January 1, 2027 and $1,000,000 for taxable years 
beginning on or after January 1, 2027.
3.  Transferability.  A tax credit allowed by this section that is not claimed by the 
visual media production company may be transferred once per taxable year in whole or in 
part to any number of taxpayers, business entities or financial institutions in the State as 
provided in this subsection. The transferred credit is applicable in the year the visual media 
production company was eligible to claim the credit.
A visual media production company that transfers a credit pursuant to this subsection shall 
notify the State Tax Assessor of the transfer of the tax credit no later than 30 days after the 
transfer. The notification must include:
A.  The certification number of the visual media production certified under Title 5, 
section 13090-L, subsection 3;
B.  The tax credit balance before and after the transfer;
C.  The tax identification number of all recipients of the tax credit;
D.  The amount of credit transferred to each recipient; and
E.  Any other information required by the State Tax Assessor.
A recipient of a credit under this subsection may claim the tax credit only at the time of the 
transfer. The State Tax Assessor shall administer the transfer of credits pursuant to this 
subsection.
Sec. 6.  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 through a payroll 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 $75,000 paid to or with respect 
to a particular individual for personal services rendered in connection with a particular 
certified visual media production.  "Certified production wages" includes wages paid 
through an entity known as a loan-out corporation or personal service corporation created 
to hire out the services of one individual, including an actor or artist, to a 3rd party.
Sec. 7.  36 MRSA §6902, sub-§1, as amended by PL 2011, c. 240, §46, is further 
amended to read:
1.  Generally.  A visual media production company is allowed a reimbursement in the 
form of a tax credit equal to 12% of certified production wages paid to or with respect to 
an individual who is a resident of Maine and 10% of certified production wages paid to or 
with respect to an individual who is not a resident of Maine.:
A.  Twenty-five percent of certified production wages paid to or with respect to above-
the-line personnel who are residents of Maine;
B.  Twenty-five percent of certified production wages paid to or with respect to below-
the-line personnel who are residents of Maine; and
C.  Twenty percent of certified production wages paid to or with respect to below-the-
line personnel who are not residents of Maine, except that this credit is reduced to 15% 
of wages paid within the taxable year beginning January 1, 2024, 10% of wages paid 
within the taxable year beginning January 1, 2025 and 5% of wages paid within the 
taxable year beginning January 1, 2026.  This credit is not available for wages paid 
within or after the taxable year beginning January 1, 2027.
For the purposes of this subsection, "above-the-line personnel" means producers, directors, 
writers and cast members and "below-the-line personnel" means individuals who are not 
above-the-line personnel, including production and postproduction staff and background 
performers.
The credit allowed by this section is nontransferable and may not be carried forward.  The 
credit is refundable in an amount equal to 95% of the amount of the credit otherwise 
available for the taxable year in which the certified visual media production is completed.  
Taxpayers claiming a credit under section 5219-W are not eligible for this credit.
A visual media production company may not receive cumulative credits under this section 
and section 5219-Y for certified production wages paid and visual media production 
expenses incurred with respect to a certified visual media production in excess of $500,000 
for taxable years beginning prior to January 1, 2024, $750,000 for taxable years beginning 
on or after January 1, 2024 but prior to January 1, 2027 and $1,000,000 for taxable years 
beginning on or after January 1, 2027.
Sec. 8.  36 MRSA §6902, sub-§4 is enacted to read:
4.  Transferability.  A tax credit allowed by this section that is not claimed by the 
visual media production company may be transferred once per taxable year in whole or in 
part to any number of taxpayers, business entities or financial institutions in the State as 
provided in this subsection. The transferred credit is applicable in the year the visual media 
production company was eligible to claim the credit.
A visual media production company that transfers a credit pursuant to this subsection shall 
notify the State Tax Assessor of the transfer of the tax credit no later than 30 days after the 
transfer. The notification must include:
A.  The certification number of the visual media production certified under Title 5, 
section 13090-L, subsection 3;
B.  The tax credit balance before and after the transfer;
C.  The tax identification number of all recipients of the tax credit;
D.  The amount of credit transferred to each recipient; and
E.  Any other information required by the State Tax Assessor.
A recipient of a credit under this subsection may claim the tax credit only at the time of the 
transfer. The State Tax Assessor shall administer the transfer of credits pursuant to this 
subsection.
Sec. 9.  Application.  This Act applies to visual media productions certified by the 
Department of Economic and Community Development on or after the effective date of 
this Act.
SUMMARY
This bill makes multiple changes to the tax credits available to visual media production 
companies operating in the State.  The bill makes the available tax credits refundable and 
transferable, increases the credits for certain expenses incurred in Maine and for hiring 
residents of Maine and offers additional credits for visual media productions that are 
located in certain Maine counties, are set in Maine or have a lead cast member, writer or 
director who is a Maine resident.  The bill also reduces the total expenditures needed to 
qualify for the credits, extends the time period for visual media production companies to 
certify with the Department of Economic and Community Development and sets a 
$500,000 limit on the total value of the tax credits that increases to $1,000,000 after January 
1, 2027.  The bill makes other changes necessary for these provisions.