Bill Text: OR HB2267 | 2013 | Regular Session | Engrossed
Bill Title: Relating to film production; prescribing an effective date.
Spectrum: Unknown
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2267 Detail]
Download: Oregon-2013-HB2267-Engrossed.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 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 384
A-Engrossed
House Bill 2267
Ordered by the House March 19
Including House Amendments dated March 19
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of Governor John A. Kitzhaber, M.D., 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.
Provides that moneys appropriated to Oregon Production
Investment Fund for purpose of making reimbursements to local
filmmakers may, if unexpended or unallocated at close of previous
fiscal year, be used by Oregon Business Development Department
for purpose of making reimbursements to filmmakers other than
local filmmakers. { + Provides for reimbursements to local media
production services companies from fund, with same requirements
as for local filmmakers. Limits amount of allowed reimbursements
to local media production services companies. + } Increases
minimum amount of total actual Oregon expenses required for
filmmaker other than local filmmaker to qualify for
reimbursement. Increases amount of reimbursement available to
local filmmaker. Increases amount of maximum total tax credits
for certified film production development contributions for
fiscal year.
Applies to fiscal years beginning on or after July 1, 2013.
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 prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 284.367, as amended by section 15, chapter 730,
Oregon Laws 2011, 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.
(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 (5).
(4) Five percent of moneys in the fund are continuously
appropriated to the department for the purpose of making
reimbursements to local filmmakers { + or local media production
services companies + } under ORS 284.368 (3). { + Total annual
reimbursements to local media production services companies may
not exceed five percent of the moneys deposited annually in the
fund. On July 1 of each fiscal year, any moneys that remain
unexpended or unallocated from the previous fiscal year may be
used by the department for the purpose of making reimbursements
to filmmakers under ORS 284.368 (2). + }
(5) Expenditures from the fund are not subject to ORS 291.232
to 291.260.
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, { + or for media production services, + } 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) 'Local media production services company' means a
media production services company that has its principal place of
business in this state.
(f) 'Media production services' includes postproduction
services and interactive video game development. 'Media
production services' does not include the production of a
commercial or one or more segments of a newscast or sporting
event.
(g) 'Media production services company' means a person who is
engaged in media production services. + }
{ - (e) - } { + (h) + } '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.
(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 - } { + $1 million + }.
(3)(a) The department may reimburse a local filmmaker { + or
local media production services company + } for all or a portion
of the actual Oregon expenses { + , up to $1 million, + }
incurred by the local filmmaker { + or local media production
services company + }.
(b) To qualify for reimbursement under this subsection:
(A) Total actual Oregon expenses paid for the film { + or
media production services + } must be at least $75,000 { - and
less than $750,000 - } ;
(B) The local filmmaker { + or local media production services
company + } must have spent 80 percent of the film's payroll on
employees who are residents of this state; and
(C) The local filmmaker { + or local media production services
company + } 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 { + or local media
production services company + } 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) The office may charge the filmmaker { + or local media
production services company + } for costs reasonably incurred 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
{ + or local media production services company + } under this
section.
(c) The office may adopt rules that establish a procedure for
the submission and verification of actual Oregon expenses.
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 Department of Revenue shall, in cooperation with the
Oregon Film and Video Office, conduct an auction of tax credits
under this section. The department may conduct the auction in the
manner that it determines is best suited to maximize the return
to the state on the sale of tax credit certifications and shall
announce a reserve bid prior to conducting the auction. The
reserve amount shall be at least 95 percent of the total amount
of the tax credit. Moneys necessary to reimburse the department
for the actual costs incurred by the department in administering
an auction, not to exceed 0.25 percent of auction proceeds, are
continuously appropriated to the department. The department shall
deposit net receipts from the auction required under this section
in the Oregon Production Investment Fund.
(b) The Oregon Film and Video Office shall adopt rules in order
to achieve the following goals:
(A) Subject to paragraph (a) of this subsection, generate
contributions for which tax credits of { - $6 - } { + $12 + }
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) Contributions made under this section shall be deposited in
the Oregon Production Investment Fund.
(4)(a) Upon receipt of a contribution, the Oregon Film and
Video Office shall, except as provided in ORS 315.516, 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 { - $6 - }
{ + $12 + } million for the fiscal year in which certification
is made.
(b) The Oregon Film and Video Office and the department are 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.
(5) 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.
(6)(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, 2018.
(7) 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.
(8) 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. { + The amendments to ORS 284.367, 284.368 and
315.514 by sections 1 to 3 of this 2013 Act apply to fiscal years
beginning on or after July 1, 2013. + }
SECTION 5. { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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