HCS CSSB 23(FIN): "An Act relating to transferable film production tax credits and film production tax credit certificates; relating to the taxes against which a film production tax credit may be applied; transferring the film office to the Department of Revenue and relating to that office; establishing the Alaska Film Incentive Review Commission; establishing a film production promotion program; relating to the amount of credit that may be awarded for compensation to producers, directors, writers, and actors who are not residents; providing for a fee to be paid at the time an application for eligibility for the film production tax credit is filed; providing a one-time credit for the first episodic scripted television production in the state; requiring the legislative audit division to audit the Alaska film production incentive program; providing for an effective date by repealing the effective dates of secs. 3 and 4, ch. 63, SLA 2008; and providing for an effective date."
00 HOUSE CS FOR CS FOR SENATE BILL NO. 23(FIN) 01 "An Act relating to transferable film production tax credits and film production tax 02 credit certificates; relating to the taxes against which a film production tax credit may 03 be applied; transferring the film office to the Department of Revenue and relating to 04 that office; establishing the Alaska Film Incentive Review Commission; establishing a 05 film production promotion program; relating to the amount of credit that may be 06 awarded for compensation to producers, directors, writers, and actors who are not 07 residents; providing for a fee to be paid at the time an application for eligibility for the 08 film production tax credit is filed; providing a one-time credit for the first episodic 09 scripted television production in the state; requiring the legislative audit division to 10 audit the Alaska film production incentive program; providing for an effective date by 11 repealing the effective dates of secs. 3 and 4, ch. 63, SLA 2008; and providing for an 12 effective date." 13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
01 * Section 1. AS 24.20.271 is amended to read: 02 Sec. 24.20.271. Powers and duties. The legislative audit division shall 03 (1) conduct a performance post-audit of boards and commissions 04 designated in AS 44.66.010 and of those programs and activities of agencies subject to 05 termination as determined in the manner set out in AS 44.66.020 and 44.66.030, and 06 make the audit, together with a written report, available to the legislature not later than 07 the first day of the regular session of the legislature convening in each year set out 08 with reference to boards, commissions, or agency programs whose activities are 09 subject to termination as prescribed in AS 44.66; the division shall notify the 10 legislature that the audit and report are available; 11 (2) audit at least once every three years the books and accounts of all 12 custodians of public funds and all disbursing officers of the state; 13 (3) at the direction of the Legislative Budget and Audit Committee, 14 conduct performance post-audits on any agency of state government; 15 (4) cooperate with state agencies by offering advice and assistance as 16 requested in establishing or improving the accounting systems used by state agencies; 17 (5) require the assistance and cooperation of all state officials and 18 other state employees in the inspection, examination, and audit of state agency books 19 and accounts; 20 (6) have access at all times to the books, accounts, reports, or other 21 records, whether confidential or not, of every state agency; 22 (7) ascertain, as necessary for audit verification, the amount of agency 23 funds on deposit in any bank as shown on the books of the bank; no bank may be held 24 liable for making information required under this paragraph available to the legislative 25 audit division; 26 (8) complete studies and prepare reports, memoranda, or other 27 materials as directed by the Legislative Budget and Audit Committee; 28 (9) have direct access to any information related to the management of 29 the University of Alaska and have the same right of access as exists with respect to 30 every other state agency; 31 (10) conduct an audit every two years of information found in the
01 annual reports required under AS 42.05.211 and AS 42.06.220 regarding compliance 02 by the Regulatory Commission of Alaska with the requirements of AS 42.05.175(a) - 03 (e) and of the timeline extensions made by the commission under AS 42.05.175(f), 04 and of other performance measures adopted by the commission; 05 (11) conduct audits of the Alaska film production incentive 06 program (AS 44.25.100 - 44.25.190) and make the audits available to the 07 legislature on the first day of the regular session of the legislature in 2015, 2017, 08 and 2021. 09 * Sec. 2. AS 43.75.130(f) is amended to read: 10 (f) For purposes of this section, tax revenue collected under AS 43.75.015 11 from a person entitled to a credit under AS 43.75.035, [OR] 43.75.036, or 12 AS 43.98.030 shall be calculated as if the person's tax were collected without applying 13 the credit; tax revenue collected does not include the amount of a tax credit recaptured 14 under AS 43.75.035(g) or 43.75.036(g). 15 * Sec. 3. AS 43.77.060(e) is amended to read: 16 (e) For purposes of this section, tax revenue collected under AS 43.77.010 17 from a person entitled to a credit under AS 43.77.035, [OR] 43.77.045, or 18 AS 43.98.030 shall be calculated as if the person's tax had been collected without 19 applying the credits. 20 * Sec. 4. AS 43.98.030(a) is amended to read: 21 (a) The [IN COOPERATION WITH THE FILM OFFICE IN THE 22 DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC 23 DEVELOPMENT, THE] department shall provide a transferable film production tax 24 credit certificate to a producer, as defined in AS 44.25.190 [AS 44.33.239], for 25 qualified production expenditures under AS 44.25.100 - 44.25.190. The department 26 shall publish the name and contact information for each person provided a 27 transferable tax credit certificate under this subsection [AS 44.33.231 - 28 44.33.239]. 29 * Sec. 5. AS 43.98.030(b) is amended to read: 30 (b) A tax credit certificate provided under (a) of this section may be sold, 31 assigned, exchanged, conveyed, or otherwise transferred in whole or in part.
01 * Sec. 6. AS 43.98.030(c) is amended to read: 02 (c) A taxpayer acquiring a transferable tax credit certificate may use the 03 credit or a portion of the credit to offset taxes imposed under AS 21.09.210, 04 AS 21.66.110, AS 43.20, AS 43.55, AS 43.56, AS 43.65, AS 43.75, and AS 43.77. 05 Except as provided in (e) of this section, any [AS 43.20 (ALASKA NET INCOME 06 TAX ACT). ANY] portion of the credit not used may be used at a later period or 07 transferred under (b) of this section. 08 * Sec. 7. AS 43.98.030(e) is amended to read: 09 (e) A transferable film production tax credit certificate provided under (a) 10 of this section, whether sold, assigned, exchanged, conveyed, or otherwise transferred, 11 in whole or in part, must be used within six [THREE] years after being provided by 12 the department. 13 * Sec. 8. AS 43.98.030(f) is amended to read: 14 (f) The total amount [NUMBER] of tax credits provided in the aggregate 15 under this section may not exceed 16 (1) $100,000,000 for productions qualified under AS 44.25.120 17 before July 1, 2013; and 18 (2) $200,000,000 for productions qualified under AS 44.25.120 19 after June 30, 2013, and before July 1, 2023. 20 * Sec. 9. AS 43.98.030 is amended by adding new subsections to read: 21 (g) A person acquiring two or more film production tax credit certificates 22 provided under (a) of this section may combine the unused amounts of the credits for 23 sale, assignment, exchange, conveyance, or other transfer. At the request of a person 24 holding a film production tax credit, the department shall replace a certificate that 25 represents the full amount of tax credit available with multiple certificates that each 26 represent a portion of the total tax credit available for the purpose of sale, assignment, 27 exchange, conveyance, or other transfer under this subsection, or, on request, shall 28 provide one tax credit certificate that represents the combined value of multiple tax 29 credit certificates. A tax credit certificate provided by the department under this 30 subsection must state the expiration date and the amount of each credit that is included 31 in the certificate. Combining or splitting unused amounts of credits under this
01 subsection does not change or extend the time period in which each credit that is 02 included in the combination or split must be used. 03 (h) Subject to appropriation, the department may purchase a transferable film 04 production tax credit certificate for 75 percent of the amount of each credit that is 05 included in the certificate. 06 * Sec. 10. AS 44.25 is amended by adding new sections to read: 07 Article 3. Film Office. 08 Sec. 44.25.100. Film office. The film office is created in the Department of 09 Revenue. The film office shall administer the Alaska film production incentive 10 program. 11 Sec. 44.25.105. Duties. (a) The film office shall make available to the 12 legislature, within 30 days after the start of each regular session, a report of the 13 activities conducted by the film office under AS 44.25.100 - 44.25.190. The report 14 must include 15 (1) the number of applications received under AS 44.25.120; 16 (2) the number of applications approved by the film office; 17 (3) the number of, and amount of, tax credits disbursed under 18 AS 44.25.110; 19 (4) the total amount of expenditures that were paid by productions 20 qualifying for the film production tax credit that were not qualified expenditures; 21 (5) the total amount of qualified expenditures that were paid by 22 productions qualifying for the film production tax credit to Alaska businesses; 23 (6) the total amount of qualified expenditures that were paid by 24 productions qualifying for the film production tax credit to Alaska residents as wages; 25 (7) the total amount of qualified expenditures that were paid by 26 productions qualifying for the film production tax credit for wages paid to individuals 27 who were not residents; 28 (8) the total number of residents employed by productions qualifying 29 for the film production tax credit; 30 (9) the total number of individuals employed by productions qualifying 31 for the film production tax credit who were not residents;
01 (10) the number of productions qualifying for the film production tax 02 credit that used a third party to sell, assign, exchange, convey, or otherwise transfer, in 03 whole or in part, a tax credit certificate received by the production; in this paragraph, 04 "third party" means a person other than the producer or an employee of the producer 05 of the production qualifying for the film production tax credit; and 06 (11) the number of purchases of transferable film production tax credit 07 certificates purchased under AS 43.98.030(h) and the total amount of film production 08 tax credits shown on the certificates purchased by the Department of Revenue. 09 (b) The film office shall design a logo that represents the film office and must 10 be included in a film qualifying for a film production tax credit under AS 44.25.100 - 11 44.25.190. 12 (c) The film office shall provide an on-site liaison to a film production that is 13 subject to the maximum application fee under AS 44.25.120(d). The liaison shall assist 14 the producer in meeting the requirements of AS 44.25.100 - 44.25.190 and ensure that 15 the production is in the best interests of the state as described in the application filed 16 under AS 44.25.120 and approved under AS 44.25.150. 17 Sec. 44.25.110. Alaska film production incentive program. Subject to 18 appropriations for the purpose, the film office shall administer the Alaska film 19 production incentive program to provide a tax credit under AS 43.98.030 for certain 20 film production expenditures incurred in the state. 21 Sec. 44.25.115. Eligibility. (a) A film production is eligible for a tax credit 22 under AS 43.98.030, if the 23 (1) producer has $75,000 or more in qualified expenditures in a 24 consecutive 36-month period under AS 44.25.130; 25 (2) Alaska Film Incentive Review Commission determines that the 26 production is not contrary to the best interests of the state; and 27 (3) production is approved by the film office. 28 (b) In determining under (a) of this section whether a production is not 29 contrary to the best interests of the state, the Alaska Film Incentive Review 30 Commission shall consider the effect of the production on 31 (1) both the immediate and long-term prospects for the film industry in
01 the state; 02 (2) both the immediate and long-term prospects for the employment of 03 Alaska residents; 04 (3) both the immediate and long-term prospects for the economy of the 05 state; 06 (4) the public perception of state policy on the utilization and 07 development of the natural resources of the state; and 08 (5) the immediate and long-term prospects for the fiscal health of the 09 state. 10 Sec. 44.25.120. Qualification for film production tax credit. (a) A film 11 producer may apply for the film production tax credit under AS 43.98.030 by 12 submitting an application to the film office on a form provided by the film office. The 13 application must include 14 (1) a script or synopsis of the production; 15 (2) the names of the producer, director, and proposed cast; 16 (3) estimated start, completion, and filming dates; and 17 (4) other information the film office may require to determine the 18 producer's qualification for a credit and the estimated amount of the credit. 19 (b) If the Alaska Film Incentive Review Commission approves an application 20 submitted under (a) of this section, the film office shall issue a notice of qualification 21 to the producer. The notice of qualification must include a determination by the film 22 office of the estimated film production tax credit for which the production qualifies. 23 (c) Information submitted in an application under (a) of this section is 24 confidential and is not subject to inspection or copying under AS 40.25.110 - 25 40.25.125. 26 (d) At the time an application is submitted under (a) of this section, a film 27 producer shall submit an application fee equal to 0.2 percent of the estimated total 28 qualified expenditures to be incurred in the state, except that the application fee may 29 not be less than $200 or more than $5,000. The application fee is not subject to refund. 30 Sec. 44.25.125. Award of film production tax credit. (a) Subject to 31 AS 43.98.030(f) and to (i) of this section, the film office shall determine the amount of
01 the tax credit under AS 43.98.030 available to a producer who has obtained a notice of 02 qualification under AS 44.25.120(b), based on the qualified expenditures of the 03 production under AS 44.25.130. After the film office determines the amount of the tax 04 credit, the tax credit shall be submitted to the Alaska Film Incentive Review 05 Commission for approval. 06 (b) Except as provided in (k) of this section, the base amount of a tax credit 07 awarded under this section is equal to 30 percent of the qualified expenditures of a 08 production. 09 (c) In determining the amount of the tax credit and subject to approval by the 10 Alaska Film Incentive Review Commission, the applicable percentage provided by (b) 11 of this section shall be increased by the film office based on the following criteria: 12 (1) an additional 20 percent of qualified expenditures that are wages 13 paid to Alaska residents; 14 (2) an additional six percent of qualified expenditures made in a rural 15 area; and 16 (3) an additional two percent of qualified expenditures made in the 17 state between October 1 and March 30. 18 (d) After completion of the production, the producer shall provide the film 19 office with a production cost report detailing the qualified expenditures of the 20 production, with verification by an independent certified public accountant, licensed in 21 the state and approved by the film office, that the costs claimed in the report are 22 qualified expenditures under AS 44.25.130 and that there is no outstanding balance for 23 a qualified expenditure that is due to a person in the state. The independent certified 24 public accountant providing verification under this subsection may not engage in the 25 sale, assignment, exchange, conveyance, or other transfer of a tax credit certificate that 26 includes a credit based on the qualified expenditures that are verified by that 27 independent certified public accountant. If the independent certified public accountant 28 providing verification under this subsection subsequently engages in the sale, 29 assignment, exchange, conveyance, or other transfer of a credit for which a qualified 30 expenditure was verified by that independent certified public accountant, the film 31 office may require the producer providing the production cost report to have the
01 qualified expenditures verified by an independent certified public accountant licensed 02 in the state that is not engaged in the sale, assignment, exchange, conveyance, or other 03 transfer related to a credit for the qualified expenditures. 04 (e) Subject to (g) of this section, the film office, in cooperation with the 05 Department of Revenue, shall determine the amount of the tax credit based on the 06 information provided by the producer under (d) of this section and, after approval by 07 the Alaska Film Incentive Review Commission, shall award a tax credit in cooperation 08 with the Department of Revenue under AS 43.98.030 if the producer has satisfied all 09 requirements under AS 44.25.100 - 44.25.190. 10 (f) The award of a tax credit under this section is conditioned on the 11 producer's and the production's full compliance with all applicable state laws and 12 regulations. At the request of the film office, a producer shall provide any information 13 necessary for the film office to determine the producer's and production's compliance 14 with this subsection. 15 (g) In determining the amount of a tax credit awarded under this section, the 16 film office shall reduce the amount of the tax credit by any amount the film office 17 considers necessary to allow the state, or a political subdivision of the state, to recover 18 the cost of any damages caused by any act or omission of the producer or production. 19 (h) The film office may withhold the award of a tax credit under this section if 20 the office determines that there are filed, but unresolved, legal actions in the state 21 involving the producer or production. 22 (i) To qualify for the tax credit under AS 43.98.030, a producer shall include, 23 (1) in the end credits of each qualified film, the film office logo 24 designed under AS 44.25.105(b) and the words, "Filmed in Alaska with the Support of 25 the State of Alaska"; or 26 (2) on each DVD or other media produced for distribution, a short 27 Alaska promotional video or advertisement approved by the Alaska Film Incentive 28 Review Commission. 29 (j) The Department of Revenue may not provide a tax credit certificate under 30 AS 43.98.030 to a producer that fails to meet the requirements in (i) of this section. 31 (k) In place of the 30 percent credit applicable to qualified expenditures under
01 (a) of this section, the tax credit for expenditures for services performed in the state, 02 including all salaries, wages, compensation, and related benefits, by producers, 03 directors, writers, and principal actors that fail to meet the eligibility requirements for 04 a permanent fund dividend in AS 43.23.005(a)(2) - (7), and all entities representing 05 producers, directors, writers, and principal actors that fail to meet the eligibility 06 requirements for a permanent fund dividend in AS 43.23.005(a)(2) - (7), is five 07 percent. The amount of the five percent credit may be increased by adding an amount 08 equal to 50 percent of the qualified expenditures paid to residents of the state under 09 AS 44.25.130(a)(10) and 50 percent of the qualified expenditures paid under 10 AS 44.25.130(a)(11) - (13) and (15). In this subsection, "principal actors" means the 11 five highest compensated actors or entities representing the five highest compensated 12 actors in the production. 13 Sec. 44.25.130. Determination of qualified expenditures. (a) Expenditures 14 made by a production company licensed to do business in the state in connection with 15 a film production approved by the film office that shall be considered qualified 16 expenditures must be directly related to the production and be incurred in the state. 17 Only expenditures that are ordinary, reasonable, and not in excess of fair market value 18 and that are for real or tangible property, fees, services, or state or municipal taxes 19 shall be considered. Expenditures may include 20 (1) costs of set construction and operation; 21 (2) costs of wardrobes, make-up, accessories, and related services; 22 (3) costs associated with photography and sound synchronization; 23 (4) costs of lighting and related services and materials; 24 (5) costs of editing and related services; 25 (6) rental of facilities and equipment; 26 (7) leasing of vehicles; 27 (8) costs of food and lodging; 28 (9) costs of digital or tape editing, film processing, transfer of film to 29 tape or digital format, transfer of digital media to film or tape, sound mixing, and 30 special and visual effects; 31 (10) the total aggregate expenditures for services performed in the
01 state, including all salaries, wages, compensation, and related benefits provided to 02 producers, directors, writers, actors, and other personnel that are directly attributable 03 to services performed in the state; 04 (11) the costs of the use of an Alaska business for processing qualified 05 payroll and related expenditures; 06 (12) costs of music, if performed, composed, or recorded by an Alaska 07 musician, or released or published by an Alaska business; 08 (13) costs of intrastate travel, if provided by an Alaska business; 09 (14) costs relating to the design, construction, improvement, or repair 10 of a film, video, television, or digital production or postproduction facility or related 11 property, infrastructure, or equipment, except commercial exhibition facilities, as 12 determined by the film office; 13 (15) costs of state or municipal taxes levied in Alaska on the lease or 14 rental of passenger or recreational vehicles or the rental of rooms or other lodging; or 15 (16) other similar production expenditures as determined by the film 16 office in cooperation with the Department of Revenue. 17 (b) Production costs that may not be considered qualified expenditures include 18 (1) costs related to the acquisition, determination, transfer, or use of a 19 film production tax credit under AS 43.98.030; 20 (2) postproduction expenditures for marketing and distribution; 21 (3) production financing, depreciation, and amortization costs, and 22 other costs that are not cash or cash equivalent expenditures directly attributable to 23 production costs incurred in the state; 24 (4) amounts that are later reimbursed or reasonably anticipated to be 25 reimbursed, resulting in a reduction in production costs; 26 (5) amounts that are reasonably anticipated to be recovered through 27 subsequent sale or other realization of value by disposal of an asset that has been 28 claimed as a qualified expenditure; 29 (6) amounts that are paid to a person or entity as a result of 30 participation in profits from the exploitation of the production; 31 (7) costs incurred in the purchase of real or tangible property for which
01 a qualified expenditure has, at any time, been claimed. 02 Sec. 44.25.135. Recovery of film production tax credit. (a) The film office 03 may review, audit, and bring legal proceedings to recover any amount of a tax credit 04 awarded under AS 44.25.125 from a producer or production to which a credit was 05 awarded if the film office determines that the film producer or production is liable for 06 damages to the state, or any political subdivision of the state. 07 (b) Legal proceedings may not be brought under (a) of this section more than 08 six years after the date the tax credit was awarded under AS 44.25.125. 09 Sec. 44.25.140. Regulations. The film office may adopt procedures and 10 regulations to carry out its functions under AS 44.25.100 - 44.25.190. 11 Sec. 44.25.145. Alaska Film Incentive Review Commission. (a) The Alaska 12 Film Incentive Review Commission is created in the Department of Revenue. 13 (b) The membership of the commission consists of the 14 (1) commissioner of commerce, community, and economic 15 development; 16 (2) commissioner of natural resources; 17 (3) commissioner of revenue; 18 (4) commissioner of labor and workforce development. 19 (c) A majority of the commission constitutes a quorum. Approval of an 20 application for qualification under AS 44.25.120 and 44.25.150 and the award of film 21 production tax credits under AS 44.25.120 and 44.25.150 require an affirmative vote 22 by three members of the commission. 23 (d) The commission shall employ an executive director and additional staff to 24 support the work of the commission, oversee the film office, and carry out the duties 25 of the film office under AS 44.25.100 - 44.25.190. The commission shall provide 26 general direction to the executive director and staff for the operation of the film office. 27 (e) The commission may consult with individuals knowledgeable about film 28 production and accounting as necessary to perform the duties of the commission. 29 Sec. 44.25.150. Review of qualifications and award of film production tax 30 credits. (a) The executive director shall review each application submitted to the film 31 office under AS 44.25.120 and each production cost report submitted to the film office
01 under AS 44.25.125. 02 (b) After finding that an application submitted under AS 44.25.120 is 03 complete, the executive director shall review the application and submit the 04 application for approval to the commission along with a recommendation to approve 05 or reject the application. After reviewing the application, the recommendation of the 06 executive director, and additional information an applicant may provide or the 07 commission may request, the commission shall make a decision as to whether the 08 production proposed in the application and the estimated amount of the film 09 production tax credit is in the best interest of the state. The commission may not 10 approve an application for a film production that the commission finds is contrary to 11 the natural resource development policy of the state. The commission shall issue a 12 decision either approving or rejecting the application and qualification of the 13 applicant. A decision of the commission on the qualification of an applicant is in the 14 discretion of the commission and is not subject to appeal except on the issue of 15 whether the decision of the commission is arbitrary or capricious. If appealed, the 16 appeal is subject to AS 44.62 (Administrative Procedure Act). 17 (c) After reviewing the production cost report submitted by a producer under 18 AS 44.25.125, the executive director shall review and verify the information included 19 on the production cost report. The executive director shall determine the amount of the 20 credit for which the producer may qualify and make a recommendation to the 21 commission as to the amount of the credit to be awarded. The commission may 22 approve the credit amount recommended by the executive director, adjust the amount 23 of the credit, deny all or part of the credit, or return the production cost report to the 24 executive director for additional review. The denial of a film production tax credit 25 under this section is subject to appeal under AS 44.62 (Administrative Procedure Act). 26 Sec. 44.25.190. Definitions. In AS 44.25.100 - 44.25.190, 27 (1) "Alaska business" means 28 (A) a person who holds a current Alaska business license; 29 (B) a person who provides goods or services under the name as 30 appearing on the person's current Alaska business license; 31 (C) a person who has maintained a place of business within the
01 state staffed by the person or an employee of the person for a period of six 02 months immediately preceding the date the goods or services were provided; 03 (D) a person who is 04 (i) incorporated or qualified to do business under the 05 laws of the state; 06 (ii) a sole proprietorship, and the proprietor is a resident 07 of the state; 08 (iii) a limited liability company organized under 09 AS 10.50, and all members are residents of the state; or 10 (iv) a partnership under former AS 32.05, AS 32.06, or 11 AS 32.11, and all partners are residents of the state; and 12 (E) if the business is a joint venture, a joint venture composed 13 entirely of ventures that qualify under (A) - (D) of this paragraph; 14 (2) "film" includes television, commercials, and videos; 15 (3) "film office" means the film office created under AS 44.25.100; 16 (4) "producer" means a person who arranges financing for or 17 supervises the production of a film, video, commercial, or television production or 18 pilot; 19 (5) "rural area" means a community in the state with a population of 20 1,500 or less or a community with a population of 10,000 or less that is not connected 21 by road or rail to Anchorage or Fairbanks. 22 * Sec. 11. AS 44.33.231 is repealed and reenacted to read: 23 Sec. 44.33.231. Film production promotion program. (a) The film 24 production promotion program is established in the Department of Commerce, 25 Community, and Economic Development. 26 (b) The purpose of the film production promotion program is to 27 (1) work with organizations in the private sector for the expansion and 28 development of film production industries in the state; 29 (2) promote Alaska as an appropriate location for film production; 30 (3) provide production assistance through connecting film directors, 31 makers, and producers with Alaska location scouts and contractors, including
01 contractors providing assistance with permit applications; and 02 (4) certify Alaska film production internship training programs and 03 promote the employment of program interns by eligible productions. 04 (c) On request, the Department of Commerce, Community, and Economic 05 Development, through the film production promotion program, shall assist the 06 Department of Revenue in the administration of the Alaska film production incentive 07 program (AS 44.25.110). 08 * Sec. 12. AS 44.33.232, 44.33.233, 44.33.234, 44.33.235, 44.33.236, 44.33.237, 44.33.238, 09 and 44.33.239 are repealed. 10 * Sec. 13. AS 43.98.030; AS 44.25.100, 44.25.105, 44.25.110, 44.25.115, 44.25.120, 11 44.25.125, 44.25.130, 44.25.140, 44.25.145, 44.25.150, 44.25.190; and AS 44.33.231(c) are 12 repealed. 13 * Sec. 14. AS 44.25.135 is repealed. 14 * Sec. 15. AS 24.20.271(11) is repealed. 15 * Sec. 16. Sections 3, 4, 5, and 6, ch. 63, SLA 2008, are repealed. 16 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 INCENTIVE CREDIT FOR FIRST EPISODIC SCRIPTED TELEVISION 19 PRODUCTION IN THE STATE. (a) Subject to appropriation, the first episodic scripted 20 television production produced after the effective date of this section is entitled to an 21 additional film production tax credit of six percent of the total qualified expenditures incurred 22 in the state. The production is eligible for the film production tax credit in this section after 16 23 episodes have been completed and are ready for television broadcast. 24 (b) The credit in this section shall be administered in the same manner as the film 25 production tax credit under AS 44.25.100 - 44.25.190. 26 (c) In this section, "episodic scripted television production" means a production for 27 television broadcast that is based on a script written before production; "episodic scripted 28 television production" does not include what is commonly referred to as reality television, for 29 which actors in the production do not perform using previously scripted dialogue or actions. 30 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:
01 TRANSITION. (a) The employee or employees in the film office in the Department of 02 Commerce, Community, and Economic Development shall be transferred to the Department 03 of Revenue on the effective date of this section and shall be the staff authorized for the Alaska 04 Film Incentive Review Commission established by AS 44.25.145, enacted by sec. 10 of this 05 Act. The Alaska Film Incentive Review Commission shall designate an executive director as 06 soon as practicable after the effective date of this section. 07 (b) Subject to AS 43.98.030(f), as amended by sec. 8 of this Act, secs. 13 and 14 of 08 this Act do not prohibit the film office from determining a film production's qualified 09 expenditures, awarding a tax credit, or reviewing a tax credit under the provisions repealed by 10 secs. 13 and 14 of this Act that has received a notice of qualification under AS 44.25.120(b), 11 enacted by sec. 10 of this Act, before July 1, 2023. 12 (c) A film production tax credit may be used to offset taxes imposed under the 13 provisions identified in AS 43.98.030(c), as amended by sec. 6 of this Act, or sold or 14 exchanged for a transferable tax credit certificate under AS 43.98.030(a), as amended by sec. 15 4 of this Act, within three years after being provided by the Department of Revenue, 16 notwithstanding the repeal of AS 43.98.030 in sec. 13 of this Act. 17 (d) A film production tax credit that is being withheld under AS 44.25.125(h), enacted 18 by sec. 10 of this Act, may continue to be withheld by the film office, notwithstanding the 19 repeal of AS 44.25.125 in sec. 13 of this Act. 20 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 NOTIFICATION. When the amount of tax credits provided under AS 43.98.030(f), as 23 amended by sec. 8 of this Act, in the aggregate and the estimated amount of tax credits that 24 could be claimed based on notices of qualification issued by the film office under 25 AS 44.25.120(b), enacted by sec. 10 of this Act, together equal $100,000,000 before July 1, 26 2013, or $200,000,000 after June 30, 2013, and before July 1, 2023, the commissioner of 27 revenue shall notify the presiding officers of each house of the legislature and the revisor of 28 statutes in writing. 29 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 NONSEVERABILITY. Notwithstanding AS 01.10.030, the provisions of this Act are
01 not severable. 02 * Sec. 21. Sections 7 and 8, ch. 63, SLA 2008, are repealed. 03 * Sec. 22. Section 13 of this Act takes effect on the earlier of the following: 04 (1) July 1, 2023; or 05 (2) the date the commissioner of revenue notifies the presiding officers of each 06 house of the legislature and the revisor of statutes in writing of the $200,000,000 amount after 07 June 30, 2013, and before July 1, 2023, under sec. 19 of this Act. 08 * Sec. 23. Section 14 of this Act takes effect on the earlier of the following: 09 (1) July 1, 2029; or 10 (2) six years after the date the commissioner of revenue notifies the presiding 11 officers of each house of the legislature and the revisor of statutes in writing of the 12 $200,000,000 amount after June 30, 2013, and before July 1, 2023, under sec. 19 of this Act. 13 * Sec. 24. Section 15 of this Act takes effect January 1, 2022. 14 * Sec. 25. Except as provided in secs. 22 - 24 of this Act, this Act takes effect July 1, 2013.