75th OREGON LEGISLATIVE ASSEMBLY--2009 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 2254
Senate Bill 621
Sponsored by Senator JOHNSON; Senators BONAMICI, DEVLIN, METSGER,
MONROE, Representatives DEMBROW, HARKER, READ (at the request
of Governor Theodore R. Kulongoski)
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 as
introduced.
Modifies maximum reimbursement from Oregon Production
Investment Fund for film or television production. Increases
maximum 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 Oregon Production Investment Fund; amending ORS
284.368 and 315.514; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 284.368 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.
(2)(a) The Economic and Community Development Department may
reimburse a bona fide television or film production company for a
portion of the actual { + Oregon + } expenses { - paid in
Oregon by - } { + of + } the television or film production
company { - to produce a film - } .
(b) Maximum reimbursement for a single film { - or television
series - } 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
{ - paid in Oregon - } .
(c) In order to qualify for reimbursement under this section,
total actual { + Oregon + } expenses { - paid - } for the
film must equal or exceed $750,000.
(d) 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.
(3)(a) Total actual { + Oregon + } 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 { + Oregon + } 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 { + Oregon + } expenses.
(b) The office may charge the production 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 production company under this
section.
(c) The office may adopt rules that establish a procedure for
the submission and verification of actual { + Oregon + }
expenses.
SECTION 2. 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 { - $5 - } { +
$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 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 { - $5 - } { + $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.
(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 3. { + This 2009 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
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