MISSISSIPPI LEGISLATURE
2007 Regular Session
To: Tourism; Ways and Means
By: Representative Peranich, Guice
AN ACT TO AMEND SECTION 57-89-3, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF THE TERMS "BASE INVESTMENT" AND "RESIDENT" OR "RESIDENT OF MISSISSIPPI" FOR PURPOSES OF THE MISSISSIPPI MOTION PICTURE INCENTIVE ACT; TO AMEND SECTION 57-89-5, MISSISSIPPI CODE OF 1972, WHICH PROVIDES A TAX CREDIT FOR MOTION PICTURE PRODUCTION COMPANIES THAT PRODUCE MOTION PICTURES IN THIS STATE, TO PROVIDE FOR THE REPEAL OF SUCH SECTION; TO AMEND SECTION 57-89-7, MISSISSIPPI CODE OF 1972, TO REVISE THE BASE INVESTMENT REBATE AUTHORIZED FOR MOTION PICTURE PRODUCTION COMPANIES THAT PRODUCE MOTION PICTURES IN THIS STATE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 57-89-3, Mississippi Code of 1972, is amended as follows:
57-89-3. As used in this chapter, the following terms shall have the meanings ascribed in this section unless the context clearly indicates otherwise:
(a) "Base investment" means the actual investment made and expended in Mississippi by a motion picture production company in connection with the production of a state-certified production in the state. The term "base investment" shall * * * include payroll; however, for the purpose of determining the rebate authorized under Section 57-89-7(1)(a), the term "base investment" shall not include payroll paid for persons who are not residents.
(b) "Motion picture" means a nationally distributed feature-length film, video, television series or commercial made in Mississippi, in whole or in part, for theatrical or television viewing or as a television pilot. The term "motion picture" shall not include the production of television coverage of news and athletic events, or a film, video, television series or commercial that contains any material or performance defined in Section 97-29-103.
(c) "Motion picture production company" means a company engaged in the business of producing nationally distributed motion pictures, videos, television series or commercials intended for a theatrical release or for television viewing. The term "motion picture production company" shall not mean or include any company owned, affiliated, or controlled, in whole or in part, by any company or person which is in default on a loan made by the state or a loan guaranteed by the state, or any company or person who has ever declared bankruptcy under which an obligation of the company or person to pay or repay public funds or monies was discharged as a part of such bankruptcy.
(d) "Payroll" means salary, wages or other compensation including related benefits.
(e) "Resident" or "resident of Mississippi" means a natural person, and for the purpose of determining eligibility for the tax credit provided by Section 57-89-5 or the rebate provided by Section 57-89-7, any person domiciled in the State of Mississippi and any other person who maintains a permanent place of abode within the state and spends in the aggregate more than six (6) months of each year within the state.
(f) "State" means the State of Mississippi.
(g) "State-certified production" means a motion picture approved by the Mississippi Development Authority produced by a motion picture production company in the state. An application for approval as a state-certified production must be submitted to the Mississippi Development Authority before completion of the project.
SECTION 2. Section 57-89-5, Mississippi Code of 1972, is amended as follows:
57-89-5. (1) A motion picture production company shall be entitled to a tax credit for the employment of residents of Mississippi in connection with production of a state-certified production in the state. The credit shall be equal to ten percent (10%) of the total aggregate payroll for residents employed in connection with such state-certified production during the taxable year.
(2) The credit may be applied to the tax liability applicable to the motion picture production company imposed by Chapter 7 of Title 27, Mississippi Code of 1972. The credit shall be limited to the tax liability created by the activity for which the credit is granted.
(3) If the motion picture production company is an entity not subject to the tax imposed by Chapter 7 of Title 27, Mississippi Code of 1972, the tax credit shall flow through to its partners or members as follows:
(a) Corporate partners or members shall claim their share of the credit on their corporation income tax return.
(b) Individual partners or members shall claim their share of the credit on their individual income tax returns.
(c) Partners or members that are estates or trusts shall claim their share of the credit on their fiduciary income tax returns.
(4) Any unused credit may be carried forward no more than ten (10) years from the date the credit was earned. The credit authorized in this section is not refundable.
(5) A motion picture production company desiring a tax credit under this section must submit an application to the State Tax Commission. The application must include a detailed accounting of the total aggregate payroll for residents employed in connection with such state-certified production during the taxable year and any other information required by the State Tax Commission.
(6) The State Tax Commission shall have all powers necessary to implement and administer the provisions of this section, and the commission shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.
(7) This section shall stand repealed from and after the effective date of House Bill No. 1190, 2007 Regular Session.
SECTION 3. Section 57-89-7, Mississippi Code of 1972, is amended as follows:
57-89-7. (1) (a) A motion picture production company shall be entitled to a rebate of a portion of the base investment made by the motion picture production company. The amount of the rebate shall be equal to * * *:
(i) Twenty percent (20%) of the base investment made by the motion picture production company if the base investment is less than One Million Dollars ($1,000,000.00),
(ii) Twenty-five percent (25%) of the base investment made by the motion picture production company if the base investment is at least One Million Dollars ($1,000,000.00), but not more than Five Million Dollars ($5,000,000.00), and
(iii) Thirty percent (30%) of the base investment made by the motion picture production company if the base investment is greater than Five Million Dollars ($5,000,000.00).
(b) In addition to the rebate authorized under paragraph (a) of this subsection, a motion picture production company may receive a rebate equal to ten percent (10%) of the portion of the base investment for payroll paid for any employee of the producer who is not a resident and whose wages are subject to the Mississippi Income Tax Withholding Law and are less than One Million Dollars ($1,000,000.00).
(c) The total amount of rebates authorized for a motion picture project shall not exceed Five Million Dollars ($5,000,000.00) in the aggregate. However, a motion picture production company that has received the maximum rebate authorized under this section for the production of a motion picture that is a television series shall not be limited to the making of only one (1) application for the rebates authorized under this section, but may receive rebates upon one or more additional applications subject to the maximum limitation for each application.
(2) A motion picture production company desiring a rebate under this section must submit an application to the State Tax Commission before completion of the project. The application must include a detailed accounting of the base investment made by the motion picture production company and any other information required by the State Tax Commission. Rebates made by the State Tax Commission under this section shall be made from current income tax collections. The State Tax Commission shall not approve any application for a rebate under subsection (1)(b) of this section after July 1, 2012.
(3) The State Tax Commission shall have all powers necessary to implement and administer the provisions of this section, and the State Tax Commission shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.
SECTION 4. This act shall take effect and be in force from and after its passage.