Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 167 First Substitute (2021GS)

Sponsor

Sen. Winterton, R.

Final action

Became Law w/o Governor Signature 3/24/2021

Outcome

Became Law w/o Governor Signature

Summary

What it does

• This bill:
• changes the maximum amount that the Governor's Office of Economic Development may award in refundable motion picture tax credit certificates during a year.

Every vote on this bill

Bill text

UTAH FILM ECONOMIC INCENTIVES
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Ronald M. Winterton
House Sponsor: 
Michael L. Kohler
LONG TITLE
General Description:
This bill modifies provisions related to motion picture incentives.
Highlighted Provisions:
This bill:
▸ changes the maximum amount that the Governor's Office of Economic
Development may award in refundable motion picture tax credit certificates during
a year.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63N-8-103
, as last amended by Laws of Utah 2019, First Special Session, Chapter 3
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63N-8-103
 is amended to read:
63N-8-103.
Motion Picture Incentive Account created -- Cash rebate incentives --
Refundable tax credit incentives.
(1) (a) There is created within the General Fund a restricted account known as the
Motion Picture Incentive Account, which the office shall use to provide cash rebate incentives
for state-approved productions by a motion picture company.
(b) All interest generated from investment of money in the restricted account shall be
deposited in the restricted account.
(c) The restricted account shall consist of an annual appropriation by the Legislature.
(d) The office shall:
(i) with the advice of the board, administer the restricted account; and
(ii) make payments from the restricted account as required under this section.
(e) The cost of administering the restricted account shall be paid from money in the
restricted account.
(2) (a) A motion picture company or digital media company seeking disbursement of
an incentive allowed under an agreement with the office shall follow the procedures and
requirements of this Subsection (2).
(b) The motion picture company or digital media company shall provide the office with
an incentive request form, provided by the office, identifying and documenting the dollars left
in the state and new state revenues generated by the motion picture company or digital media
company for state-approved production, including any related tax returns by the motion picture
company, payroll company, digital media company, or loan-out corporation under Subsection
(2)(d).
(c) For a motion picture company, an independent certified public accountant shall:
(i) review the incentive request form submitted by the motion picture company; and
(ii) provide a report on the accuracy and validity of the incentive request form,
including the amount of dollars left in the state, in accordance with the agreed upon procedures
established by the office by rule.
(d) The motion picture company, digital media company, payroll company, or loan-out
corporation shall provide the office with a document that expressly directs and authorizes the
State Tax Commission to disclose the entity's tax returns and other information concerning the
entity that would otherwise be subject to confidentiality under Section 
59-1-403
 or Section
6103, Internal Revenue Code, to the office.
(e) The office shall submit the document described in Subsection (2)(d) to the State
Tax Commission.
(f) Upon receipt of the document described in Subsection (2)(d), the State Tax
Commission shall provide the office with the information requested by the office that the
motion picture company, digital media company, payroll company, or loan-out corporation
directed or authorized the State Tax Commission to provide to the office in the document
described in Subsection (2)(d).
(g) Subject to Subsection (3), for a motion picture company the office shall:
(i) review the incentive request form from the motion picture company described in
Subsection (2)(b) and verify that the incentive request form was reviewed by an independent
certified public accountant as described in Subsection (2)(c); and
(ii) based upon the independent certified public accountant's report under Subsection
(2)(c), determine the amount of the incentive that the motion picture company is entitled to
under the motion picture company's agreement with the office.
(h) Subject to Subsection (3), for a digital media company, the office shall:
(i) ensure the digital media project results in new state revenues; and
(ii) based upon review of new state revenues, determine the amount of the incentive
that a digital media company is entitled to under the digital media company's agreement with
the office.
(i) Subject to Subsection (3), if the incentive is in the form of a cash rebate, the office
shall pay the incentive from the restricted account to the motion picture company,
notwithstanding Subsections 
51-5-3
(23)(b) and 
63J-1-105
(6).
(j) If the incentive is in the form of a refundable tax credit under Section 
59-7-614.5
 or
59-10-1108
, the office shall:
(i) issue a tax credit certificate to the motion picture company or digital media
company; and
(ii) provide a duplicate copy of the tax credit certificate to the State Tax Commission.
(k) A motion picture company or digital media company may not claim a motion
picture tax credit under Section 
59-7-614.5
 or 
59-10-1108
 unless the motion picture company
or digital media company has received a tax credit certificate for the claim issued by the office
under Subsection (2)(j)(i).
(l) A motion picture company or digital media company may claim a motion picture
tax credit on the motion picture company's or the digital media company's tax return for the
amount listed on the tax credit certificate issued by the office.
(m) A motion picture company or digital media company that claims a tax credit under
Subsection (2)(l) shall retain the tax credit certificate and all supporting documentation in
accordance with Subsection 
63N-8-104
(6).
(3) (a) Subject to [
Subsection (3)(b)
] 
Subsections (3)(b) and (c)
, the office may issue
$6,793,700 in tax credit certificates under this part in [
a
] 
each
 fiscal year.
(b) For the fiscal year ending June 30, 2022, the office may issue $8,393,700 in tax
credit certificates under this part.
[
(b)
] 
(c)
 If the office does not issue tax credit certificates in a fiscal year totaling the
amount authorized under [
Subsection (3)(a)
] 
Subsections (3)(a) and (b)
, the office may carry
over that amount for issuance in subsequent fiscal years.