Senate Bill 2487

AN ACT TO AMEND SECTION 57-89-7, MISSISSIPPI CODE OF 1972, TO INCREASE TO $5,000,000.00 THE AMOUNT OF PAYROLL THAT MAY BE APPLIED TO THE MISSISSIPPI MOTION PICTURE INCENTIVE ACT REBATE; TO AUTHORIZE A MOTION PICTURE PRODUCTION COMPANY TO RECEIVE A REBATE EQUAL TO 5% OF THE AMOUNT THE MOTION PICTURE PRODUCTION COMPANY SPENDS ON THE RENTAL OR PURCHASE OF EQUIPMENT UTILIZED IN THE PRODUCTION OF A MOTION PICTURE IN THIS STATE FROM A VENDOR LOCATED IN THIS STATE; TO INCREASE THE TOTAL AMOUNT OF REBATES THAT A MOTION PICTURE PRODUCTION COMPANY MAY RECEIVE UNDER THE MISSISSIPPI MOTION PICTURE INCENTIVE ACT TO $10,000,000.00; TO INCREASE THE TOTAL AMOUNT OF REBATES AUTHORIZED IN ANY FISCAL YEAR UNDER THE MISSISSIPPI MOTION PICTURE INCENTIVE ACT TO $40,000,000.00; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 57-89-7, Mississippi Code of 1972, is amended as follows:

57-89-7. (1) (a) A motion picture production company that expends at least Fifty Thousand Dollars ($50,000.00) in base investment or payroll, or both, in the state shall be entitled to a rebate of a portion of the base investment made by the motion picture production company. Subject to the provisions of this section, the amount of the rebate shall be equal to twenty-five percent (25%) of the base investment made by the motion picture production company.

(b) In addition to the rebates authorized under paragraphs (a), (c) and (d) of this subsection, a motion picture production company may receive a rebate equal to twenty-five percent (25%) of payroll paid for any employee who is not a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968. However, if the payroll paid for an employee exceeds Five Million Dollars ($5,000,000.00), then the rebate is authorized only for the first Five Million Dollars ($5,000,000.00) of such payroll.

(c) In addition to the rebates authorized under paragraphs (a), (b) and (d) of this subsection, a motion picture production company may receive a rebate equal to thirty percent (30%) of payroll paid for any employee who is a resident and whose wages are subject to the Mississippi Income Tax Withholding Law of 1968. However, if the payroll paid for an employee exceeds Five Million Dollars ($5,000,000.00), then the rebate is authorized only for the first Five Million Dollars ($5,000,000.00) of such payroll.

(d) In addition to the rebates authorized in paragraphs (a), (b) and (c) of this subsection, a motion picture production company may receive a rebate equal to five percent (5%) of the amount the motion picture production company spends on the rental or purchase of equipment utilized in the production of a motion picture in this state from a vendor located in this state.

(e) If a motion picture has physical production activities and/or post-production activities both inside and outside the state, then the motion picture production company shall be required to provide an itemized accounting for each employee regarding such activities inside and outside the state for the purposes of proration of eligible payroll based on the percentage of activities performed in the state.

(f) The total amount of rebates authorized for a motion picture project shall not exceed Ten Million Dollars ($10,000,000.00) in the aggregate.

(g) The total amount of rebates authorized in any fiscal year shall not exceed Forty Million Dollars ($40,000,000.00) in the aggregate.

(2) A motion picture production company desiring a rebate under this section must submit a rebate request to the Department of Revenue upon completion of the project. The request must include a detailed accounting of the base investment made by the motion picture production company and any other information required by the Department of Revenue. Rebates made by the Department of Revenue under this section shall be made from current income tax collections. The Department of Revenue shall not approve any application for a rebate under subsection (1)(b) of this section after July 1, 2014.

(3) The Department of Revenue shall have all powers necessary to implement and administer the provisions of this section, and the Department of Revenue shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.

SECTION 2. This act shall take effect and be in force from and after July 1, 2012.