SB 23: "An Act relating to transferable film production tax credits; and providing for an effective date by amending the effective dates of secs. 3 and 4, ch. 63, SLA 2008."
00 SENATE BILL NO. 23 01 "An Act relating to transferable film production tax credits; and providing for an 02 effective date by amending the effective dates of secs. 3 and 4, ch. 63, SLA 2008." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.98.030(f) is amended to read: 05 (f) The amount [NUMBER] of tax credits provided [IN THE AGGREGATE] 06 under this section may not exceed 07 (1) $100,000,000 before July 1, 2018; and 08 (2) $200,000,000 in the aggregate. 09 * Sec. 2. AS 44.33.233(a) is amended to read: 10 (a) A film production is eligible for a tax credit under AS 43.98.030, if the 11 (1) producer has $100,000 or more in qualified expenditures in a 12 consecutive 36-month [24-MONTH] period under AS 44.33.236; 13 (2) film office determines that the production is not contrary to the best 14 interests of the state; and
01 (3) production is approved by the film office. 02 * Sec. 3. AS 44.33.234 is amended by adding a new subsection to read: 03 (c) Information submitted in an application under (a) of this section is 04 confidential and is not subject to inspection or copying under AS 40.25.110 - 05 40.25.125. 06 * Sec. 4. AS 44.33.236(a) is amended to read: 07 (a) Expenditures made by a production company in connection with a film 08 production approved by the film office that shall be considered qualified expenditures 09 must be directly related to the production and be incurred in the state. Only 10 expenditures that are ordinary, reasonable, and not in excess of fair market value and 11 that are for real or tangible property, fees, services, or state or municipal taxes shall be 12 considered. Expenditures may include 13 (1) costs of set construction and operation; 14 (2) costs of wardrobes, make-up, accessories, and related services; 15 (3) costs associated with photography and sound synchronization; 16 (4) costs of lighting and related services and materials; 17 (5) costs of editing and related services; 18 (6) rental of facilities and equipment; 19 (7) leasing of vehicles; 20 (8) costs of food and lodging; 21 (9) costs of digital or tape editing, film processing, transfer of film to 22 tape or digital format, transfer of digital media to film or tape, sound mixing, and 23 special and visual effects; 24 (10) the total aggregate payroll for services performed in Alaska, 25 including all salaries, wages, compensation, and related benefits provided to 26 producers, directors, writers, actors, and other personnel that are directly attributable 27 to services performed in Alaska; 28 (11) the costs of the use of an Alaska business for processing qualified 29 payroll and related expenditures; 30 (12) costs of music, if performed, composed, or recorded by an Alaska 31 musician, or released or published by an Alaska business;
01 (13) costs of intrastate travel, if provided by an Alaska business; 02 (14) costs relating to the design, construction, improvement, or repair 03 of a film, video, television, or digital production or postproduction facility or related 04 property, infrastructure, or equipment, except commercial exhibition facilities, as 05 determined by the film office; 06 (15) costs of state or municipal taxes levied in Alaska on the lease or 07 rental of passenger or recreational vehicles or the rental of rooms or other lodging; or 08 (16) other similar production expenditures as determined by the film 09 office in cooperation with the Department of Revenue. 10 * Sec. 5. The uncodified law of the state of Alaska enacted in sec. 5(a), ch. 63, SLA 2008, is 11 amended to read: 12 (a) Subject to AS 43.98.030(f), enacted by sec. 1, ch. 63, SLA 2008 [OF THIS 13 ACT], secs. 3 and 7, ch. 63, SLA 2008, [OF THIS ACT] do not prevent the film 14 office from determining a film production's qualified expenditures, awarding a tax 15 credit, or reviewing a tax credit under the provisions repealed by secs. 3 and 4, ch. 63, 16 SLA 2008, [OF THIS ACT] to a film production that has received a notice of 17 qualification under AS 44.33.234(b), enacted by sec. 2, ch. 63, SLA 2008 [OF THIS 18 ACT], before July 1, 2023 [JULY 1, 2013]. 19 * Sec. 6. The uncodified law of the state of Alaska enacted in sec. 6, ch. 63, SLA 2008, is 20 amended to read: 21 Sec. 6. NOTIFICATION. When the amount [NUMBER] of tax credits 22 provided under AS 43.98.030(f), enacted by sec. 1, ch. 63, SLA 2008 [OF THIS 23 ACT], in the aggregate and the estimated amount of tax credits that could be claimed 24 based on notices of qualification issued by the film office under AS 44.33.234(b), 25 together equal $200,000,000 [$100,000,000], the commissioner shall notify the 26 presiding officers of each house of the legislature and the revisor of statutes in writing. 27 * Sec. 7. Section 7, ch. 63, SLA 2008, is amended to read: 28 Sec. 7. Section 3, ch. 63, SLA 2008, [OF THIS ACT] takes effect on the 29 earlier of the following: 30 (1) July 1, 2023 [2013]; or 31 (2) the date of the commissioner of revenue's notification to the
01 presiding officers of each house of the legislature and to the revisor of statutes under 02 sec. 6, ch. 63, SLA 2008 [OF THIS ACT]. 03 * Sec. 8. Section 8, ch. 63, SLA 2008, is amended to read: 04 Sec. 8. Section 4 of this Act takes effect on the earlier of the following: 05 (1) July 1, 2024 [2014]; or 06 (2) one year after the date of the commissioner of revenue's 07 notification to the legislature and to the revisor of statutes under sec. 6, ch. 63, SLA 08 2008 [OF THIS ACT].