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House Bill 1388


House Bill 1388

ARCHIVE (2007)

Latest Information

 

DIGEST OF HB1388 (Updated April 17, 2007 2:18 pm - DI 84)


Film industry production incentives. Provides a refundable tax credit to taxpayers that make qualified media production expenditure in Indiana. Provides that the tax credit may not be awarded for a taxable year ending after December 31, 2011. Provides that the tax credit may be granted only if qualified production expenditures are at least $100,000 in the case of a film or television production or at least $50,000 in the case of other qualified media productions. Provides that in the case of a taxpayer that claims the tax credit for qualified production expenditures of less than $6,000,000, the amount of the credit equals 15% of the taxpayer's qualified production expenditures. Provides that in the case of a taxpayer that claims the tax credit for qualified production expenditures of at least $6,000,000: (1) the amount of the credit equals the taxpayer's qualified production expenditures multiplied by a percentage (not more than 15%) determined by the Indiana economic development corporation (IEDC); and (2) the taxpayer must, before incurring or making the qualified production expenditures, apply to the IEDC for approval of the tax credit. Provides that the IEDC may not approve more than $5,000,000 in media production tax credits in a taxable year for taxpayers with qualified production expenditures of at least $6,000,000. Provides that a taxpayer that is a corporation or a nonresident person and that claims the tax credit (or any successor in interest of the corporation or nonresident person) must file an Indiana income tax return for at least the first five years that the taxpayer has income from the qualified media production for which the tax credit was granted. Provides that, notwithstanding the income apportionment statutes, the portion of the income from the qualified media production that for purposes of income taxation is considered to be derived from sources within Indiana is equal to: (1) the amount of qualified production expenditures for which the tax credit was granted for the qualified media production; divided by (2) the total production expenditures for the qualified media production. Provides that a taxpayer may not receive the tax credit unless the taxpayer consents that: (1) the taxpayer (and any successor in interest of the taxpayer) will be subject to the jurisdiction of Indiana courts; and (2) any civil action related to the tax credit and in which the taxpayer (or any successor in interest of the taxpayer) is a party will be heard in an Indiana court. Prohibits taxpayers from selling or otherwise transfer the tax credit. Expands the sales tax exemption for property acquired for use in a motion picture production to property acquired for use in qualified media productions. Provides that a qualified applicant may not claim a tax credit and a sales tax exemption for the purchase of the same tangible personal property.
Current Status:
 Vetoed
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