72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
SA to SB 313
LC 1548/SB 313-4
SENATE AMENDMENTS TO
SENATE BILL 313
By COMMITTEE ON REVENUE
May 9
On page 1 of the printed bill, line 2, after the first
semicolon delete the rest of the line and insert 'appropriating
money;'.
Delete lines 5 through 30 and delete pages 2 and 3 and insert:
' { + SECTION 1. + } { + Section 2 of this 2003 Act is added
to and made a part of ORS chapter 315. + }
' { + SECTION 2. + } { + (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 section 5 of this 2003 Act.
' (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 $1 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 issue to the taxpayer written certification of
the amount certified for tax credit under this section to the
extent the amount certified, when added to all amounts previously
certified under this section, does not exceed $1 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.
' (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, the amounts
certified and the percentage of each certified credit for which a
contribution was made.
' (11) If the amount claimed as a tax credit under this section
is allowed as a deduction for federal tax purposes, the amount of
the credit shall be added to federal taxable income for Oregon
tax purposes. + }
' { + SECTION 3. + } { + Section 2 of this 2003 Act applies
to tax years beginning on or after January 1, 2004, and to tax
credit certifications issued by the Oregon Film and Video Office
on or after July 1, 2004. + }
' { + SECTION 4. + } { + Sections 5 to 7 of this 2003 Act
are added to and made a part of ORS 284.300 to 284.375. + }
' { + SECTION 5. + } { + (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) All moneys in the fund are continuously appropriated to
the Economic and Community Development Department for the
purposes of making:
' (a) Reimbursements authorized under section 6 of this 2003
Act;
' (b) Payments to a tax credit marketer for marketing services
provided by the marketer as described in section 7 of this 2003
Act; and
' (c) Refunds described in section 2 (6) of this 2003 Act.
' (4) Expenditures from the fund are not subject to ORS 291.232
to 291.260. + }
' { + SECTION 6. + } { + (1) As used in this section:
' (a) 'Actual expenses' means the costs of principal
photography and postproduction paid in Oregon for production 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.
' (2)(a) The Economic and Community Development Department may
reimburse a bona fide television or film production company for a
portion of the actual expenses paid in Oregon by the television
or film production company to produce a film.
' (b) Maximum reimbursement for a single film, other than a
television series, shall be 10 percent of actual expenses paid or
$250,000, whichever is less. Maximum reimbursement for one or
more episodes of a television series shall be 10 percent of
actual expenses paid or $30,000 per episode produced in Oregon,
whichever is less.
' (c) In order to qualify for reimbursement under this section,
total actual expenses paid during the film must equal or exceed
$1 million.
' (d) Reimbursement under this section shall be made from
moneys credited to or deposited in the Oregon Production
Investment Fund for the biennium in which the actual 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.
' (3)(a) Total actual expenses supporting a claim for
reimbursement under this section must be verified by the Oregon
Film and Video Office. The production company must submit to the
office proof of the actual expenses paid in Oregon to produce the
film. The proof must include any documentation that may be
required by the office in its discretion to verify the actual
expenses.
' (b) The office may charge the production company for costs
reasonably incurred to verify the actual 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
production company under this section.
' (c) The office may adopt rules that establish a procedure for
the submission and verification of actual expenses. + }
' { + SECTION 7. + } { + The Oregon Film and Video Office
may hire a marketer to market the tax credits described in
section 2 of this 2003 Act to taxpayers. + }
' { + SECTION 8. + } { + Reimbursement may be made under
section 6 of this 2003 Act only for actual expenses paid by a
television or film production company on or after the effective
date of this 2003 Act. + }
' { + SECTION 9. + } { + This 2003 Act takes effect on the
91st day after the date on which the regular session of the
Seventy-second Legislative Assembly adjourns sine die. + } ' .
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