An Act to Promote Film Production in Maine
Maine Legislature, Session 132, LD 1957
Committee: Taxation
Sponsors: COPELAND, INGWERSEN, FECTEAU, DAUGHTRY
Amends: 5 MRSA §13090-L, 36 MRSA §191, 36 MRSA §5219-Y, 36 MRSA §6901, 36 MRSA §6902

Legislative Document
No. 1957
H.P. 1309
House of Representatives, May 7, 2025
An Act to Promote Film Production in Maine
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative COPELAND of Saco.
Cosponsored by Senator INGWERSEN of York and
Representatives: Speaker FECTEAU of Biddeford, GERE of Kennebunkport, ROEDER of 
Bangor, SALISBURY of Westbrook, Senators: BAILEY of York, President DAUGHTRY of 
Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §13090-L, sub-§1, as amended by PL 2009, c. 470, §1, is further 
amended to read:
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 for purposes of the visual media 
production reimbursement pursuant to Title 36, chapter 919‑A and the credit under Title 
36, section 5219‑Y.
Sec. 2.  5 MRSA §13090-L, sub-§2-A, ¶A-1 is enacted to read:
A-1.  "Loan-out company" means a company set up as a separate legal entity, usually 
for an actor, recording artist or other individual, for the purposes of using the company's 
corporate legal protection.
Sec. 3.  5 MRSA §13090-L, sub-§2-A, ¶B-1 is enacted to read:
B-1.  "On-screen credit" means a statement displayed at the end of the credits, when 
applicable, of a visual media production certified under this section claiming "FILMED 
ON LOCATION IN MAINE," or other comparable form of acknowledgment, along 
with a state logo submitted and approved by the Maine State Film Office.
Sec. 4.  5 MRSA §13090-L, sub-§2-A, ¶C-1 is enacted to read:
C-1.  "Principal photography" means a period of time in which a visual media 
production is filmed, shot or recorded.  "Principal photography" does not include 
preproduction or postproduction periods.
Sec. 5.  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 $75,000 per individual and payments to a 
temporary employee-leasing company, as defined in Title 36, section 6901, subsection 
3‑A, or loan-out company and other contractual payments for the services of 
individuals working in the State if those payments do not exceed $50,000 $75,000 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 this State; catering, food and lodging for cast members, staff and crew; local 
insurance and bonding; and the rental of facilities and equipment, including location 
fees; local payroll company 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. 6.  5 MRSA §13090-L, sub-§3, ¶D, as amended by PL 2009, c. 470, §1, is 
further amended to read:
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;
Sec. 7.  5 MRSA §13090-L, sub-§3, ¶F, as amended by PL 2009, c. 470, §1, is 
further amended to read:
F.  Provide evidence Certify 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;
Sec. 8.  5 MRSA §13090-L, sub-§3, ¶G, as amended by PL 2009, c. 470, §1, is 
further amended to read:
G.  Provide any other information required by the department; and
Sec. 9.  5 MRSA §13090-L, sub-§3, ¶H, as enacted by PL 2009, c. 470, §1, is 
amended to read:
H.  Provide a projected schedule for preproduction, production and postproduction of 
the visual media production that shows that the production first day of principal 
photography will begin within 60 90 days after certification pursuant to this 
subsection.; and
Sec. 10.  5 MRSA §13090-L, sub-§3, ¶I is enacted to read:
I.  Agree to withhold, either internally or via a payroll company, a percentage of 
payments made to a loan-out company or personal service corporation created to hire 
out the services of one individual, including an actor or artist, to a 3rd party or 
independent contractor that performs personal services in this State, at the highest rate 
imposed by Title 36, chapter 827.
Sec. 11.  5 MRSA §13090-L, sub-§3, as amended by PL 2009, c. 470, §1, is further 
amended by amending the first blocked paragraph to read:
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. 12.  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.  No later than 4 8 weeks after 
completion of the postproduction period 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.
Sec. 13.  5 MRSA §13090-L, sub-§5, as amended by PL 2009, c. 470, §1, is further 
amended to read:
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 issued 
pursuant to subsection 3, 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.
Sec. 14.  5 MRSA §13090-L, sub-§7, as enacted by PL 2009, c. 470, §1, is amended 
to read:
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 visual 
media production tax credit and reimbursement activities pursuant to Title 36, section 
5219‑Y and Title 36, chapter 919‑A. 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, the number of applications for the 
visual media production credit and tax reimbursement, the number of credits and 
reimbursements granted, the revenue loss associated with the credit and reimbursement and 
the amount of visual media production expenses generated in the State as a result of the 
credit and reimbursement.
Sec. 15.  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 
visual media production credit under section 5219‑Y, 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. 16.  36 MRSA §5219-Y, as amended by PL 2011, c. 240, §37, is repealed.
Sec. 17.  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 or 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. For purposes of this section, "certified production 
wages" also includes payments made to a loan-out company or personal service corporation 
created to hire out the services of one individual, including an actor or artist, to a 3rd-party 
or independent contractor that performs personal services in this State, for which the 
required withholding has been made and remitted.
Sec. 18.  36 MRSA §6901, sub-§3-B is enacted to read:
3-B.  Loan-out company.  "Loan-out company" has the same meaning as in Title 5, 
section 13090-L, subsection 2-A, paragraph A-1.
Sec. 19.  36 MRSA §6901, sub-§3-C is enacted to read:
3-C.  Principal photography.  "Principal photography" has the same meaning as in 
Title 5, section 13090-L, subsection 2-A, paragraph C-1.
Sec. 20.  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 the following 
reimbursement 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. if the visual media production 
company has visual media production expenses of $75,000 or more with respect to that 
certified visual media production:
A.  A reimbursement equal to 25% of certified production wages paid to or with respect 
to an individual who is a resident of Maine;
B.  A reimbursement equal to 20% of certified production wages paid to or with respect 
to an individual who is not a resident of Maine;
C.  A reimbursement equal to 25% of nonwage visual media production expenses 
incurred with respect to a certified visual media production; and
D.  A 3% additional reimbursement if at least 60% of principal photography occurred 
in Aroostook County, Franklin County, Kennebec County, Oxford County, Penobscot 
County, Piscataquis County, Somerset County or Washington County.
Sec. 21.  36 MRSA §6902, sub-§4 is enacted to read:
4.  Limitations.  The following are limitations on reimbursement.
A.  A visual media production company may not receive reimbursement under this 
section for certified production wages paid and visual media production expenses 
incurred with respect to a certified visual media production for more than $500,000 for 
taxable years beginning in 2025 and 2026, $750,000 for taxable years beginning in 
2027 and $1,000,000 for taxable years beginning on or after January 1, 2028.
B.  With respect to a local, in-state visual media production company that produces 5 
or more certified visual media productions a year, each of which total no more than 10 
minutes in length, including, but not limited to, commercials, industrial shorts, 
documentary shorts and animated shorts, that company may not receive the sum total 
of reimbursement under this section in excess of $25,000 for that calendar year.
C.  The total amount of reimbursement paid under this section may not exceed 
$1,000,000 in the first taxable year, $1,500,000 for the next 3 taxable years and 
$2,000,000 thereafter. 
D.  For a visual media production with a budget of $500,000 or greater, the visual 
media production company must provide a 3rd-party audit by a certified public 
accountant certifying expenses as specified by the Maine State Film Office. For 
purposes of this paragraph, "certified public accountant" means a person who has 
passed the Uniform Certified Public Accountant Examination or other examination 
approved by the Board of Accountancy within the Department of Professional and 
Financial Regulation or its designee, is licensed to practice accountancy by the Board 
of Accountancy or its designee and is in good standing with the Board of Accountancy 
or its designee.
Sec. 22.  Application. This Act applies to tax years beginning on or after January 1, 
2025.
SUMMARY
This bill repeals the law governing the certified visual media production tax credit. It 
increases reimbursements under the laws governing the visual media production 
reimbursement and places limits on those reimbursements. It changes the definition of 
"visual media production expense" and requires an applicant for a visual media production 
certificate to agree to withhold a percentage of payments made to an entity created to hire 
out the services of one individual.