V.I. Code tit. 29, § 747e (2019)
2019 US Virgin Islands Code|Title 29 - Public Planning and Development|Chapter 12 - Economic Development and Incentives|Subchapter III - Sustainable Tourism Through Arts-Based Revenue Stream Production for the Music Industry|§ 747e. Tax benefits

 (a) The tax liabilities for income meeting the requirements of section 747d(c)(2)(A) may be reduced or rebated pursuant to the Internal Revenue Code of 1986, as amended and as applicable to the Virgin Islands 26 U.S.C. section 934(b)(l) (b) The beneficiaries of the tax benefits under section 747d(c)(2)(B) have the burden of demonstrating to the Internal Revenue Service and the Virgin Islands arising from works recorded in the Virgin Islands. (c) Each applicant granted a Certificate, under this subchapter is exempt from payment of the following taxes to the extent that same is utilized in the business and activity for which a certificate has been granted: (1) 90% Gross receipt taxes (2) 90% Corporate income taxes (3) 90% Personal income taxes as specified in subsection (d) of this section. (d) Each applicant granted a Certificate under this subchapter shall have its income tax liability for income derived from the business for which the Certificate is granted, and income from investment described in this section reduced on a current basis, as provided in this section. A tax-exempt music recording corporation receiving a certificate is entitled to: (1) For C-class corporations: reduction of the amount of each payment of estimated income tax by 90% for a period of ten years, at which time the beneficiary shall apply for renewal, if the applicant desires to continue receiving benefits after the initial period. (2) For all other classification of corporations: the reduction of the amount of each payment of estimated income tax by 80% for a period of ten years, at which time the beneficiary must apply for renewal, if the applicant desires to continue receiving benefits. (3) An additional 10% of income tax reduction is granted to entities receiving the tax incentive benefit certificate for music recording that accomplishes one of the following: (A) Employment of a minimum of three local musicians during the recording process, with a minimum of ten billable hours or $1000, if flat fee, paid to each local musician; (B) Recording of a music video in the Virgin Islands, with at least 20% of the screen time, including footage filmed in the Virgin Islands, and includes “Filmed in the U.S. Virgin Islands” or “Partially Filmed in the U.S. Virgin Islands” in the chryonor [sic] credits of the music video whenever possible; and (C) Arrange for the visiting recording artists to conduct at least one live performance in the Virgin Islands during their stay for the recording process. Such a live performance must take place at a public, licensed music venue in the Virgin Islands and must be no less than ninety minutes in length. (4) Deleted. (e) The reduction of income tax liability on a current basis of, or the reduction of income taxes otherwise payable by, applicants entitled to such reduction is applicable with respect to all of the computations, assessments, and collection of such income taxes, as provided by the 1954 Internal Revenue Code, as amended, and with respect to the payment of estimated income taxes as provided by sections 6105, 6153, 6154 and 6201 of the 1954 Internal Revenue Code, as amended. (f) The applicant has the obligation to report to the Internal Revenue Service the relevant amount of “VI Source Income” to be applied to the tax benefits provided in this subchapter. (1) Additional Tax Incentives. (A) “Sound Recording Investor Tax Rebate” means a 15% refundable tax credit based on total in-territory expenditures for the production of sound recordings. (B) “Infrastructure Investor Tax Rebate” means a 15% refundable tax credit on sound recording infrastructure development. (C) “Digital Interactive Media Tax Credits” provides a sellable tax credit up to 15% of the base investment in digital media production done in the Virgin Islands, including salary of Virgin Islands labor. (D) “Live Performance Tax Credit” provide a 15 percent Virgin Islands tax credit for eligible live productions, including theater, opera, ballet, jazz, comedy revues and variety entertainment on base investment and construction costs with an additional 10% tax credit on payroll for Virgin Islands residents. (2) Hotel Tax Waiver. (A) A hotel tax waiver will apply only to production companies which do not establish business entities in the Virgin Islands and will be applied as follows: (B) Minimum Production Expenditure of $225,000 and hotel stay over 30 days equals 2% waiver on the total room tax. (C) Minimum Production Expenditure of $500,000 and hotel stay over 30 days equals 4% waiver on the total room tax. (D) Minimum Production Expenditure of $750,000 and hotel stay over 30 days equals 6% waiver on the total room tax. (E) Minimum Production Expenditure of $1,000,000 and hotel stay over 30 days equals 7.5% waiver on the total room tax. (F) Minimum Production Expenditure of $1,500,000 or greater and hotel stay over 30 days equals full 10% tax waiver on the total room tax.