PRINTER'S NO. 1149
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
906
Session of
2021
INTRODUCED BY ROBINSON, BARTOLOTTA, YUDICHAK, LANGERHOLC,
STEFANO, VOGEL AND BREWSTER, OCTOBER 18, 2021
REFERRED TO FINANCE, OCTOBER 18, 2021
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, for credit for qualified film
production expenses, for carryover, carryback and assignment
of credit, for limitations, for reissuance of film production
tax credits and for pass-through entity.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "multifilm" in section 1711-D
of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971, added June 30, 2021 (P.L.124, No.25), is
amended and the section is amended by adding a definition to
read:
Section 1711-D. Definitions.
The following words and phrases when used in this subarticle
shall have the meanings given to them in this section unless the
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context clearly indicates otherwise:
* * *
["Multifilm." A series of separate and distinct films
produced by the same taxpayer over a period of no less than one
year and no more than four years from the time of application.]
"Multifilm production." A series of separate and distinct
films that are produced by the same taxpayer, or directly or
indirectly produced by the same taxpayers who have no less than
80% common ownership, over a period of no more than four years
from the time of application.
* * *
Section 2. Section 1712-D(b)(7.1) of the act, added June 30,
2021 (P.L.124, No.25), is amended to read:
Section 1712-D. Credit for qualified film production
expenses.
* * *
(b) Review and approval.--The department shall establish
application periods not to exceed 90 days each. All applications
received during the application period shall be reviewed and
evaluated by the department based on the following criteria:
* * *
(7.1) If a multifilm production application is
submitted, the department shall consider the ability of the
taxpayer to produce multiple films within this Commonwealth
during the proposed period of production and the potential
economic impact, including tourism impact, of the multiple
films to this Commonwealth. The taxpayer may supplement the
multifilm production application with additional films during
the period of production. The department may annually extend
the multifilm production application's period of production
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before the expiration of the period of production. The
taxpayer may not include a film in the multifilm production
application that was the subject of an application submitted
under this subsection before January 1, 2021.
* * *
Section 3. Section 1714-D(e)(1) of the act is amended and
the subsection is amended by adding a paragraph to read:
Section 1714-D. Carryover, carryback and assignment of credit.
* * *
(e) Sale or assignment.--The following shall apply:
(1) [A] Except as provided under paragraph (5), a
taxpayer, upon application to and approval by the department,
may sell or assign, in whole or in part, a tax credit granted
to the taxpayer under this subarticle.
* * *
(5) A taxpayer may not sell or assign, in whole or in
part, a tax credit granted to the taxpayer under this
subarticle for a multifilm production.
* * *
Section 4. Section 1716-D(a) introductory paragraph of the
act is amended and the section is amended by adding a subsection
to read:
Section 1716-D. Limitations.
(a) Cap.--Except for tax credits reissued under section
1716.1-D or credits issued for multifilm productions, in no case
shall the aggregate amount of tax credits awarded in any fiscal
year under this subarticle exceed $70,000,000. The department
may, in its discretion, award in one fiscal year up to:
* * *
(e) Multifilm productions.--T he cap on the aggregate amount
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o f tax credits awarded in any fiscal year under subsection (a)
shall not apply to the award of tax credits to taxpayers for
multifilm productions.
Section 5. Sections 1716.1-D(a)(4) of the act, added June
30, 2021 (P.L.124, No.25), is amended to read:
Section 1716.1-D. Reissuance of film production tax credits.
(a) Reissuance.--In any fiscal year, the department may
reissue a tax credit which meets all of the following:
* * *
(4) If an individual film that was issued a tax credit
as part of a multifilm production application is canceled,
the department may reissue that tax credit only after
allowing the taxpayer or the taxpayer's affiliate 90 days to
submit an application for an alternative individual film,
produced by the taxpayer or the taxpayer's affiliate for that
tax credit. The department may approve or reject the
application.
* * *
Section 6. Section 1718-D(c) of the act is amended and the
section is amended by adding a subsection to read:
Section 1718-D. Pass-through entity.
* * *
(c) Application.--[A] Except as provided under subsection
(d), a shareholder, member or partner of a pass-through entity
to whom a credit is transferred under subsection (a) shall
immediately claim the credit in the taxable year in which the
transfer is made. The shareholder, member or partner may not
carry forward, carry back, obtain a refund of or sell or assign
the credit.
(d) Multifilm productions.--A shareholder, member or partner
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of a pass-through entity to whom a credit for a multifilm
production is transferred under subsection (a) may carry forward
the credit for no more than three taxable years following the
first taxable year for which the taxpayer was entitled to claim
the credit for the multifilm production.
Section 7. This act shall take effect in 60 days.
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