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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].