PRINTER'S NO. 1983
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1519
Session of
2017
INTRODUCED BY ELLIS, JUNE 12, 2017
REFERRED TO COMMITTEE ON COMMERCE, JUNE 12, 2017
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in entertainment production tax credit, further
providing for definitions, establishing the Multimedia Tax
Credit Fund, providing for State-certified production
companies and making an inconsistent repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1702-D of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
by adding definitions to read:
Section 1702-D. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Pennsylvania screenplay." As evidenced by documents,
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including certificate of authorship, a WGA registration
certificate, the records of the United States Copyright Office
or a reasonable legal opinion issued to the office, one of the
following:
(1) A screenplay created by a Pennsylvania resident.
(2) A screenplay purchased, optioned, licensed or
otherwise acquired from a Pennsylvania publisher.
"Qualified Pennsylvania production company." A motion
picture production company, organized under the laws of this
Commonwealth or otherwise domiciled and authorized to do
business in this Commonwealth, having its principal place of
business in this Commonwealth, which files Pennsylvania income
tax returns and meets the following requirements:
(1) Has the power and authority to make creative
decisions with respect to a motion picture being produced by
a State-certified production company, including final cut
authority.
(2) One of the following:
(i) the company is at least 50% owned by a
Pennsylvania resident or residents who are natural
persons who have been domiciled in and maintained a
permanent place of abode in this Commonwealth for no less
than 12 consecutive months prior to beginning of
preproduction; or
(ii) the company has directly employed a minimum of
three full-time Pennsylvania residents for a minimum of
12 months prior to beginning of preproduction.
Section 2. Article XVII-D of the act is amended by adding a
subarticle to read:
SUBARTICLE E
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MISCELLANEOUS PROVISIONS
Section 1771-D. Multimedia Tax Credit Fund.
(a) Establishment.--There is established in the department
the Multimedia Tax Credit Fund. All money allocated for the
purposes of a tax credit under this article shall be deposited
in the fund.
(b) Usage.--The funds shall be used in accordance with the
following:
(1) Eighty percent of the money in the fund shall be
used for the film production tax credit under Subarticle B.
(2) Ten percent of the money in the fund shall be used
for the concert rehearsal and tour tax credit under
Subarticle C.
(3) Ten percent of the money in the fund shall be used
for the video game production tax credit under Subarticle D.
(c) Unused funds.--If the available money for one or two of
the tax credits under this article are not fully used, the
remaining money may be used for the remaining tax credits.
Section 1772-D. State-certified production companies.
(a) Additional tax credit.--For State-certified productions
with expenditures occurring on or after July 1, 2017, a State-
certified production company which demonstrates that it owned or
optioned to own a Pennsylvania screenplay, which has been held
by a qualified Pennsylvania production company for a minimum of
12 months prior to production, may be eligible for an additional
10% tax credit.
(b) Approved companies.--The department shall post on its
publicly accessible Internet website a listing of approved
Pennsylvania publishers and qualified Pennsylvania production
companies.
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Section 3. Any provision of Article XVII-D of the act of
March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971, is repealed to the extent that it is inconsistent with
this act.
Section 4. This act shall take effect take effect
immediately.
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