An Act to Promote
Maine Legislature, Session 132, LD 1957
Committee Amendment CA_A_H900 (House)
Amends: 5 MRSA §13090-L, 36 MRSA §191, 36 MRSA §6901, 36 MRSA §6902

COMMITTEE AMENDMENT "/-f " to H.P. 1309, L.D. 1957, "An Act to Promote
Fikn Production in Maine"
Amend the bill by striking out all of section 5 and inserting the following:
'See. 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 amounts paid directly
by a visual media production company, including 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 per individual and^ payments to a temporary employee-leasing
company, as defined in Title 36, section 6901, subsection 3-A, payments to a loan-out
company, payments to a personal service corporation and other contractual payments
for the services of individuals workmg in the State if those payments do not exceed
$50,000 $75.000 per individual providing services in the production and the visual
media production comuany withheld and remitted fhe applicable Maine income tax. as
required pursuant to Title 36, chapter 827. "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 includina airfare unless booked through a travel aeent in this State;
catering, food and lodging for cast members, staff and crew: local insurance and
bonding; afitd the rental of facilities and equipment, including location fees; local
oavroll company fees; and fees collected by a temporary employee-leasine company
as defined in Title 36. section 6901. subsection 3-A. "Visual media production
expense" does not include expenses mcurred in marketmg or advertising a visual media
production or m printing or disseminating a visual media production.'
Amend the bill by striking out aU of section 10 and inserting the following:
COMMITTEE AMENDMENT
^(J^ COMMnTEE AMENDMENT "^ " to H.P. 1309, L.D. 1957
'See. 10. 5 MRSA §13090-L, sub-§3, ? is enacted to read:
I. Agree to withhold. either intemallv or via a oavroll company^ a oercentafie. of
payments made to a loan-out comnanY or_persQnal service corDoration created to hire
out the services of one or more individuals, includmg an actor or artist, to a 3rd party
or independent contractor that perfonns persQnaLsendces in this State, as reauired by
Title 36. chapter 827.'
Amend the bill by striking out all of sections 14 and 15 and inserting the foUowing:
'See. 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 1 5th annually
to the j oint 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 offhe
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 admmistration of the
visual media production credit under former section 5219-Y for tax years beeinnme
prior to January 1 . 2026 only, the employment tax increment financmg program under
chapter 917, the visual media production reimbursement program under chapter 919-A
or the Pine Tree Development Zone program under Title 3 0-A, chapter 206, subchapter
4;'
Amend the bill by inserting after section 16 the following:
'See. 17. 36 MRSA§5255-D is enacted to read:
S5255-D. Withholding on visual media production payments
To the extent not otherwise subject to withlioldine under this chapter, a visual media
production company claiming a visual media production reimbursement under chapter
919-A shall deduct and withhold a tax at the highest mareinal rate under section 5111
applicable to the tax year on payments made for personal services performed in this State
in relation to a certified visual media productioiL
1^ Payments subject to withholdiue. Payments by a visual media production
comuanv to a loan-out company or personal service corporation created to hire out the
services of one or more mdivi duals, mcluding an actor or artist. to a 3rd party or
indeoendent contractor that performs personal services in this State and other contractual
Dayments for the services of individuals working in the State are subject to withlioldine
under this section,
COMMITTEE AMENDMENT
^J^ COMMrTTEE AMENDMENT "^ " to H.P. 1309, L.D. 1957
2. Amounts withheld. In the case of payments made by a visual media production
company to a loan-out company or personal service corporation. the amount required to be
withheld pursuant to this section is considered to have been withheld_Qnthewages_Daidto
the employees of that loan-out company or Dersonal_serYice corDoration_and musLbe
allocated to those employees based on payments made to those employees for services
provided in this State. In the case of services provided in this State by a nonemployee
owner of a pass-throueh entity or an entity disregarded as separate from its owner for
federal income tax purposes under the laws of the UnitecLStates. the amount withheldmust
be attributed to the nonemployee owner.
As used in this section, "certified visual media production" has the same meanme as in
section 6901. subsection 1: "loan-out company" has the same meaning as in section 690L
subsection 3-B; and "visual media production company" has the same meaning as in Title
5. section 13090-L. subsection 2-A. uaraerauh E.'
Amend the bill by striking out all of sections 19 to 22 and inserting the following:
'See. 19. 36 MRSA §6901, sub-§3-C is enacted to read:
3-C, Nonwaee visual media production expenses. "Nonwaee visual media
production expenses means visual media production expenses, as defined in Title 5,
section 13090-L. subsection 2-A. paraeraoh F. but does not include certified production
wages or any amount that would be included m certified production wages but for the
$75.000 limit provided in subsection 2.
Sec. 20. 36 MRSA §6901, sub-§3-D is enacted to read:
3-D. Principal photography. "Principal photography has the same meaning as in
Title 5. section 13090-L. subsection 2-A. paraeraoh C-l.
Sec. 21. 36 MRSA §6902, sub-§l, as amended by PL 2011, c. 240, §46, is further
amended to read:
1. Generally. A visual media production company is allowed a fhe followine
reimbursement equal to 12% of certified production wages paid to or with respect to an
individual who is a rosidont ofMaino and 10% of oortifiod production wugos paid to or
with respect to an individual who is not a resident ofMaiue. if the visual media production
company has visuaLm^ of $75,000 or more with respect to a
certified visual media oroduction:
A, A reimbursement eaual to 25% of certified production wages paid to or with respect
3 to an individual who is a resident of Maine or a reimbursement equal to 28% of those
wages ifaUeast 60% of the orincioal Dhotoeranhv for the certified visual media
5 production occurred m Aroostook County. Franklin County. Kennebec County. Oxford
County, Penobscot Couflty, Piscataquis C^ County or Washington
County:
B. A reimbursement eaual to 20% of certified production wages paid to or with respect
9 to an individual who is not a resident of Maine or a reimbursement equal to 23% of
those wages if at least 60% of the principal photoerauhv for the certified visual media
production occurred in Aroostook County. Franklin County. Kennebec County. Oxford
County, Penobscot County. Piscataauis County. Somerset County or Washington
County; and
COMMITTEE AMENDMENT
^P COMMnTEE AMENDMENT '<^ " to H.P. 1309, L.D. 1957
/ I
C. A reimbursement eaual to 25% of nonwaee visual media uroduction exoenses
incurred with respect to the certifiedvisual media production_or a reimbursement equal
to 28% of those expenses if at least 60% of the ormcipal tihotoerarihy for the certified
visual media production occurred in Aroostook County. Franklin County. Kennebec
County, Oxford County. PenobscotCoimfrv.Piscatagms County. SomerseLCQunty or
Washington County.
Sec. 22. 36 MRSA §6902, sub-§4 is enacted to read:
4. Limitations. The followmg are limitations on reimbursement under this section.
A. With respect to a certified visual media production. a visual media production
company may not receive reimbursement under this section for certified production
wages paid and visual media oroduction expenses incurred in an amount exceedingi
d) For a certified visual media production completed on or after January 1. 2026
but prior to January 1. 2028. $500.000:
(2) For a certified visual media nroduction completed on or after January 1. 2028
but prior to January 1. 2029. $750.000: and
f3) For a certified visual media production comuleted on or after January 1.2029.
$1.000.000.
B, With rescect to a local, m-state visual media nroduction comuany that oroduces 5
or more certified visual media uroductions in a calendar year. each of which totals no
more than 10 minutes in length, including, but not limited to. commercials, industrial
shorts, documentary shorts and animated shorts, that visual media uroduction company
may not receive the sum total of reimbursement under this section in excess of $25.000
for all oroductions in that calendar year.
C. The total amount^ reimbursements oaid by the State Tax Assessor to visual media
production comuanies under this section may not exceed $1.000.000 in any calendar
year.
D. For a visual media production with a budget of $500,000 or greater, the visual
media oroduction company shall orovide a 3rd-uartv audit by a certified public
accountant certifvine expenses as specified by the Maine State Film Office. For
muwses of this uaraRraph. "certified public accountant" means a person who has
passed the Uniform Certified Public Accountant Examination or other examination
approved bv the Board of Accountancy within the Department of Professional and
Financial Regulationor itsdesjgnee, is licensed to practice accountancy by the Board
of Accountancy or its desipnee and is in good standing with the Board of Accountancy
or its desienee.
Sec. 23. Application. Unless otherwise indicated, this Act applies to certified visual
media productions completed on or after January 1, 2026, except that the section of this
Act that repeals the Maine Revised Statutes, Title 36, section 5219-Y applies to tax years
beginning on or after January 1, 2026. As used in this section, "certified visual media
production" has the same meaning as in Title 36, section 6901, subsection 1.
Sec. 24. Appropriations and allocations. The following appropriations and
allocations are made.
ADMINISTRATIVE AND FmANCIAL SERVICES, DEPARTMENT OF
COMMITTEE AMENDMENT
<^ COMMTTTEE AMENDMENT "/~^ " to H.P. 1309, L.D. 1957
Revenue Services, Bureau of 0002
Initiative: Provides one-time funding to update Maine Revenue Services systems to
implement repeal of the certified visual media production tax credit and to increase and
enhance fhe certified visual media production wage reimbursement program.
GENERAL FUND 2025-26 2026-27
All Other $0 $18,550
GENERAL FUND TOTAL $0 $18,550
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment, which is the minority report of the committee, makes the following
changes to the bill,
1. It amends the definition of "visual media production expense" for purposes of the
visual media production certification program, carrying forward from the bill the $75,000
cap on payments for individual services provided for a visual media production under that
definition. The amendment also makes other clarifying changes to the laws governing the
visual media production certification program, including the addition of income
withholding provisions for 3rd-party or independent contractor payments for personal
services made in conjunction with a visual media production.
2. It clarifies provisions regarding the disclosure of confidential tax records to the
Department of Economic and Community Development for purposes of the visual media
production credit, which is repealed m the bill.
3. It amends the income tax laws to clarify withholding for certain payments made by
a visual media production company claiming a visual media production reimbursement for
a certified visual media production.
4. It enacts a definition under the visual media production reimbursement law for.
"nonwage visual media production expenses," previously included in the visual media
production credit, which is repealed in the bill.
5. It amends the limitations in the bill for the visual media production reimbursement
to cap the total amount of reimbursements paid by the State Tax Assessor in any calendar
year to $1,000,000 and makes other clarifying changes to those limitations.
6. It clarifies the application of the provisions of the bill as they apply to certified
visual media productions for which a visual media production company may claim or be
eligible for the visual media production reimbursement or visual media production credit.
FISCAL NOTE REQmRED
(See attached)
COMMITTEE AMENDMENT
Revised: 03/11/26 f-KL
LD 1957 LR 2390(02)
An Act to Promote Film Production in Maine
Fiscal Note for Bill as Amended by Committee Amendment'
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Net Cost (Savings)
General Fund
Appropriations/AIlocations
General Fund
$0
$0
$303,550
$18,550
$760,000
$0
$760,C
$0
Revenue
General Fund
Other Special Revenue Funds
$0
$0
($285,000)
($15,000)
($760,000)
($40,000)
($760,000)
($40,000)
Fiscal Detail and Notes
The fiscal note assumes the bill as amended would reduce General Fund revenue by $285,000 in fiscal year 2026-27
and $760,000 per year in fiscal years 2027-28 and 2028-29 as a result of repealing the certified visual media
production tax credit and increasing and enhancing the certified visual media production wage reimbursement
program. The bill as amended would also result in a revenue decrease to the Local Government Fund of $15,000 in
fiscal year 2026-27 and $40,000 per year for fiscal years 2027-28 and 2028-29, The fiscal note also includes a one-
time General Fund appropriation of $18,550 in fiscal year 2026-27 for Maine Revenue Services system changes to
implement these changes.
LR2390(02) - Fiscal Note - Page 1 of 1