SCS/SBs 961 & 733 - This act modifies provisions relating to tax credits for the production of certain entertainment.SHOW MO ACT
This act creates the "Show MO Act".
This act reauthorizes a tax credit for certain expenses related to the production of qualified motion media production projects in this state, as defined in the act. Tax credits for such expenses under previous law expired on November 28, 2013.
For all tax years beginning on or after January 1, 2022, this act authorizes a tax credit equal to 20% of qualifying expenses, as defined in the act, associated with the production of a qualified motion media production project. An additional 5% may be awarded for each of the following conditions if they are met: 1) at least 50% of the qualified film production project is filmed in Missouri; 2) at least 15% of the project takes place in a rural or blighted area; 3) at least three departments of the production hire a Missouri resident ready to advance to the next level in a specialized craft position or learn a new skillset; 4) the Department of Economic Development determines that the script for such project positively markets a city or region of the state, the entire state, or a tourist attraction located in the state, and the production provides certain advertising materials, as described in the act. The total dollar amount of tax credits awarded to a qualified film production project may be increased by ten percent if such project is located in a county of the second, third, or fourth class.
This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.750)
This provision is identical to SCS/SB 732 (2022) and is substantially similar to SB 721 (2022), SB 960 (2022), SB 1091 (2022), HCS/HB 2106 (2022), HB 2473 (2022), HB 2558 (2022), HB 2870 (2022), SB 367 (2021), SB 366 (2020), HB 923 (2019), HB 1661 (2018), and HB 788 (2017), and to a provision contained in SS/SCS/SB 354 (2021) and SS/SCS/HB 948 (2021).
ENTERTAINMENT INDUSTRY JOBS ACT
This act establishes the "Entertainment Industry Jobs Act".
For all tax years beginning on or after January 1, 2023, this act authorizes a taxpayer to claim a tax credit for rehearsal expenses and tour expenses, as such terms are defined in the act, for live entertainment tours and associated rehearsals conducted within the state. The tax credit shall be equal to 30% of such expenses, provided that no taxpayer shall receive a tax credit in excess of $1 million if such taxpayer's expenses are less than $4 million; and further provided that no taxpayer shall receive a tax credit in excess of $2 million if such taxpayer's expenses are more than $4 million but less than $8 million; and further provided that no taxpayer shall receive a tax credit in excess of $3 million if such taxpayer's expenses are at least $8 million.
Tax credits issued under this act shall not be refundable, but may be carried forward to the taxpayer's five subsequent tax years. Unredeemed tax credits shall expire after the fifth tax year following the initial date of issuance, regardless of whether unredeemed tax credits are transferred or sold pursuant to the act.
Tax credits may be transferred or sold, provided that the tax credit is transferred or sold to another Missouri taxpayer. A taxpayer shall submit information to the Department of Economic Development and the Department of Revenue relating to the identity of a transferee and the amount of tax credits being transferred or sold, as described in the act. A transferee shall not subsequently transfer or sell any tax credit acquired from a transferor, and tax credits shall not be transferred or sold for less than 60% of the value of such tax credits.
The aggregate amount of tax credits that may be authorized under the act in a given fiscal year shall not exceed $8 million. If applications for tax credits exceed such amount, the Department of Economic Development may, at its discretion, authorize additional tax credits not to exceed $2 million, provided that the maximum amount of tax credits that may be authorized during the subsequent fiscal year shall be reduced by such amount.
This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly.
This provision shall become effective July 1, 2023. (Section 135.753)
JOSH NORBERG