Bill Text: OR HB2167 | 2011 | Regular Session | Engrossed
Bill Title: Relating to film production; prescribing an effective date.
Sponsorship: Unknown
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2167 Detail]
Download: Oregon-2011-HB2167-Engrossed.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 639
A-Engrossed
House Bill 2167
Ordered by the House April 8
Including House Amendments dated April 8
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of Governor John A. Kitzhaber for Oregon
Film and Video Office)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
{ - Increases maximum reimbursement from Oregon Production
Investment Fund for film or television production for certain
films. Applies to films starting principal photography on or
after January 1, 2011. - }
Limits total reimbursements to local filmmakers for fiscal
year. { - Increases - } { + Changes amount of + } maximum
total tax credits for certified film production development
contributions to Oregon Production Investment Fund { + to
___ + } .
{ + Specifies certain duties of Oregon Film and Video Office.
Creates procedure by which Legislative Assembly annually may
appropriate amount of moneys for deposit in Oregon Production
Investment Fund that matches annual amount of tax credits to be
certified for contributors to fund. In years where appropriation
is made, allows contributor to request refund of contribution and
disallows claiming of tax credit. + }
Extends sunset on film production labor rebate certificates.
Extends sunset on tax credits for certified film production
development contributions to Oregon Production Investment Fund.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to film production; creating new provisions; amending
ORS 284.367, 284.368 and 315.514 and section 77, chapter 736,
Oregon Laws 2003, and section 1a, chapter 559, Oregon Laws
2005; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 284.367 is amended to read:
284.367. (1) The Oregon Production Investment Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Oregon Production Investment
Fund shall be credited to the fund. { + The Oregon Film and
Video Office shall, in consultation with the Oregon Business
Development Department, administer moneys in the fund. + }
(2) Moneys in the Oregon Production Investment Fund shall
consist of:
(a) Amounts donated to the fund;
(b) Amounts appropriated or otherwise transferred to the fund
by the Legislative Assembly;
(c) Other amounts deposited in the fund from any source; and
(d) Interest earned by the fund.
(3) Ninety-five percent of moneys in the fund are continuously
appropriated to the Oregon Business Development Department for
the purposes of making:
(a) Reimbursements to filmmakers under ORS 284.368;
(b) Payments to a tax credit marketer for marketing services
provided by the marketer as described in ORS 284.369; and
(c) Refunds described in ORS 315.514 (6).
(4) Five percent of moneys in the fund are continuously
appropriated to the department for the purpose of making
reimbursements to local filmmakers under ORS 284.368 (3). { +
Total reimbursements to local filmmakers may not exceed $500,000
in a fiscal year. + }
(5) Expenditures from the fund are not subject to ORS 291.232
to 291.260.
{ + (6) The Oregon Film and Video Office, in consultation
with the department, may adopt rules regarding administration of
moneys in the fund under this section. + }
SECTION 2. ORS 284.368 is amended to read:
284.368. (1) As used in this section:
(a) 'Actual Oregon expenses' means the costs paid in Oregon for
principal photography, production or postproduction in Oregon of
a film, including but not limited to the purchase or rental cost
of equipment, food, lodging, real property and permits and
payments made for salaries, wages and benefits for work in
Oregon.
(b) 'Film' means a television movie or one or more episodes of
a single television series, or a movie produced for release to
theaters, video or the Internet. 'Film' does not include the
production of a commercial or one or more segments of a newscast
or sporting event.
(c) 'Filmmaker' means a person who owns a television or film
production company.
(d) 'Local filmmaker' means a person who owns a television or
film production company that has its principal place of business
in this state.
(e) 'Resident of this state' has the meaning given that term in
ORS 316.027.
(2)(a) The Oregon Business Development Department may reimburse
a filmmaker for a portion of the actual Oregon expenses incurred
by the filmmaker. { + The Oregon Film and Video Office shall
determine eligibility for reimbursement under this
subsection. + }
(b) Maximum reimbursement for a single film shall be the total
of:
(A) 10 percent of payments made for employee salaries, wages
and benefits for work done in Oregon; and
(B) 20 percent of all other actual Oregon expenses.
(c) To qualify for reimbursement under this subsection, total
actual Oregon expenses for the film must equal or exceed
$750,000.
(3)(a) The department may reimburse a local filmmaker for all
or a portion of the actual Oregon expenses incurred by the local
filmmaker. { + The office shall determine eligibility for
reimbursement under this subsection. + }
(b) To qualify for reimbursement under this subsection:
(A) Total actual Oregon expenses paid for the film must be at
least $75,000 and less than $750,000;
(B) The local filmmaker must have spent 80 percent of the
film's payroll on employees who are residents of this state; and
(C) The local filmmaker must have employed or contracted with a
public accountant certified under ORS 673.040 for the provision
of payroll services.
(4) Reimbursement under this section shall be made from moneys
credited to or deposited in the Oregon Production Investment Fund
during the biennium in which the actual Oregon expenses were paid
or any prior biennium. A reimbursement may not be made to the
extent funds are not available in the fund to make the
reimbursement.
(5) { - (a) - } Total actual Oregon expenses supporting a
claim for reimbursement under this section must be verified by
the Oregon Film and Video Office. The filmmaker must submit to
the office proof of the actual Oregon expenses. The proof must
include any documentation that may be required by the office in
its discretion to verify the actual Oregon expenses.
{ - (b) - } { + (6) + } The office may charge the filmmaker
for costs reasonably incurred { + to determine eligibility for
reimbursement under subsections (2) and (3) of this section
and + } to verify the actual Oregon expenses, including but not
limited to the cost for a review or audit of the supporting
documentation by an accountant or auditor. The office may require
the department to deduct the costs incurred by the office
{ - in performing its review or audit - } from any reimbursement
made to the filmmaker under this section.
{ - (c) The office may adopt rules that establish a procedure
for the submission and verification of actual Oregon
expenses. - }
{ + (7) The office, in consultation with the department, may
adopt rules to implement the provisions of this section. + }
SECTION 3. ORS 315.514 is amended to read:
315.514. (1) A credit against the taxes that are otherwise due
under ORS chapter 316 or, if the taxpayer is a corporation, under
ORS chapter 317 or 318, is allowed to a taxpayer for certified
film production development contributions made by the taxpayer
during the tax year to the Oregon Production Investment Fund
established under ORS 284.367.
(2)(a) The amount of the tax credit shall equal the amount
certified for credit by the Oregon Film and Video Office, except
that a contribution must equal at least 90 percent of the tax
credit.
(b) The Oregon Film and Video Office shall adopt rules for
determining the amount of tax credit to be certified by the
office. The rules shall be adopted in order to achieve the
following goals:
(A) Subject to paragraph (a) of this subsection, generate
contributions for which tax credits of { - $7.5 - }
{ + $___ + } million are certified for each fiscal year;
(B) Maximize income and excise tax revenues that are retained
by the State of Oregon for state operations; and
(C) Provide the necessary financial incentives for taxpayers to
make contributions, taking into consideration the impact of
granting a credit upon a taxpayer's federal income tax liability.
(3) A taxpayer seeking a tax credit under this section shall
apply for tax credit certification to the Oregon Film and Video
Office on a form supplied by the office. The taxpayer shall
include payment of the contribution at the time of application.
(4) Contributions made under this section shall be deposited in
the Oregon Production Investment Fund.
(5)(a) Upon receipt of a contribution, the Oregon Film and
Video Office shall { + , except as provided in section 4 of this
2011 Act, + } issue to the taxpayer written certification of the
amount certified for tax credit under this section to the extent
the amount certified for tax credit, when added to all amounts
previously certified for tax credit under this section, does not
exceed { - $7.5 - } { + $___ + } million for the fiscal year
in which certification is made.
(b) The Oregon Film and Video Office is not liable, and a
refund of a contributed amount need not be made, if a taxpayer
who has received tax credit certification is unable to use all or
a portion of the tax credit to offset the tax liability of the
taxpayer.
(6) To the extent the Oregon Film and Video Office does not
certify contributed amounts as eligible for a tax credit under
this section, the taxpayer may request a refund of the amount the
taxpayer contributed, and the office shall refund that amount.
(7)(a) Except as provided in paragraph (b) of this subsection,
a tax credit claimed under this section may not exceed the tax
liability of the taxpayer and may not be carried over to another
tax year.
(b) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
the next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise, any credit not used
in that second succeeding tax year may be carried forward and
used in the third succeeding tax year but may not be carried
forward for any tax year thereafter.
(c) A taxpayer is not eligible for a tax credit under this
section if the first tax year for which the credit would
otherwise be allowed begins on or after January 1, { - 2012 - }
{ + 2018 + }.
(8) If a tax credit is claimed under this section by a
nonresident or part-year resident taxpayer, the amount shall be
allowed without proration under ORS 316.117.
(9) A taxpayer who has received a tax credit certificate under
this section may sell the certificate to another taxpayer. The
sale is effective only if a notice of tax credit certificate sale
is filed with the Department of Revenue. The notice shall be
filed on a form prescribed by the department on or before the
date on which the income or corporate excise tax return of the
buyer for the first year for which the credit could be claimed is
filed or due, whichever is earlier. The notice form shall include
the following information:
(a) The name and taxpayer identification number of the seller;
(b) The name and taxpayer identification number of the buyer;
(c) The amount of the tax credit certificate that is being sold
to the buyer;
(d) The amount of the tax credit certificate that is being
retained by the seller; and
(e) Any other information required by the department.
(10) If requested by the Department of Revenue, the Oregon Film
and Video Office shall supply a list of taxpayers that have
obtained tax credit certification under this section, and for
each listed taxpayer disclose:
(a) The amount of contribution made by the taxpayer; and
(b) The amount certified for tax credit under this section.
(11) If the amount of contribution for which a tax credit
certification is made is allowed as a deduction for federal tax
purposes, the amount of the contribution shall be added to
federal taxable income for Oregon tax purposes.
SECTION 4. { + (1) In lieu of the issuance of certifications
for tax credit under ORS 315.514 by the Oregon Film and Video
Office, the Legislative Assembly may, no less than 30 days prior
to the end of each fiscal year, appropriate to the Oregon
Business Development Department for deposit into the Oregon
Production Investment Fund an amount equal to the total amount,
less the discount rate provided under ORS 315.514 (2)(a), that
would otherwise be certified for tax credits during the current
fiscal year, based on the amount of contributions and
accompanying applications for credit received by the office
during the fiscal year.
(2) If the Legislative Assembly makes the election allowed in
subsection (1) of this section:
(a) Any contributions to the Oregon Production Investment Fund
made during the current fiscal year and for which an application
for a credit under ORS 315.514 is pending shall, at the request
of the taxpayer, be refunded by the Oregon Film and Video Office;
and
(b) A credit under ORS 315.514 may not be claimed for any
contribution made during the current fiscal year. + }
SECTION 5. Section 1a, chapter 559, Oregon Laws 2005, is
amended to read:
{ + Sec. 1a. + } The Oregon Film and Video Office may not
issue a qualifying film production labor rebate certificate under
section 1 { - of this 2005 Act - } { + , chapter 559, Oregon
Laws 2005, + } on or after January 1, { - 2012 - } { +
2018 + }.
SECTION 6. Section 77, chapter 736, Oregon Laws 2003, as
amended by section 1, chapter 913, Oregon Laws 2009, is amended
to read:
{ + Sec. 77. + } ORS 315.514 applies to tax years beginning
on or after January 1, 2005, and before January 1, { - 2012 - }
{ + 2018 + }, and to tax credit certifications issued by the
Oregon Film and Video Office on or after July 1, 2005.
SECTION 7. { + (1) The amendments to ORS 284.367 by section 1
of this 2011 Act apply to fiscal years beginning on or after July
1, 2011.
(2) The amendments to ORS 284.368 by section 2 of this 2011 Act
apply to films starting principal photography on or after January
1, 2011.
(3) The amendments to ORS 315.514 by section 3 of this 2011 Act
apply to tax credit certifications issued by the Oregon Film and
Video Office on or after the effective date of this 2011 Act.
(4) Section 4 of this 2011 Act applies to applications for
certification under ORS 315.514 received on or after the
effective date of this 2011 Act. + }
SECTION 8. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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