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 -
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
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 -
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
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
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 -
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
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
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
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
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
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
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
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
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.