| 1 | Representative Precourt offered the following: |
| 2 |
|
| 3 | Amendment (with directory and title amendments) |
| 4 | Remove lines 607-832 and insert: |
| 5 | (1) DEFINITIONS.-As used in this section, the term: |
| 6 | (b) "Digital media project" means a production of |
| 7 | interactive entertainment that is produced for distribution in |
| 8 | commercial or educational markets. The term includes a video |
| 9 | game or production intended for Internet or wireless |
| 10 | distribution. The term does not include a production that |
| 11 | contains deemed by the Office of Film and Entertainment to |
| 12 | contain obscene content as defined in s. 847.001(10) or portrays |
| 13 | America, Americans, Florida, or Floridians in a negative light. |
| 14 | (h) "Qualified expenditures" means production expenditures |
| 15 | incurred in this state by a qualified production for: |
| 16 | 1. Goods purchased or leased from, or services, including, |
| 17 | but not limited to, insurance costs and bonding, payroll |
| 18 | services, and legal fees, which are provided by, a vendor or |
| 19 | supplier in this state that is registered with the Department of |
| 20 | State or the Department of Revenue, has a physical location in |
| 21 | this state, and employs one or more legal residents of this |
| 22 | state. This does not include re-billed goods or services |
| 23 | provided by an in-state company from out-of-state vendors or |
| 24 | suppliers. When services are provided by the vendor or supplier |
| 25 | include personal services or labor, only personal services or |
| 26 | labor provided by residents of this state, evidenced by the |
| 27 | required documentation of residency in this state, qualify. |
| 28 | 2. Payments to legal residents of this state in the form |
| 29 | of salary, wages, or other compensation up to a maximum of |
| 30 | $400,000 per resident unless otherwise specified in subsection |
| 31 | (4). A completed declaration of residency in this state must |
| 32 | accompany the documentation submitted to the office for |
| 33 | reimbursement. |
| 34 |
|
| 35 | For a qualified production involving an event, such as an awards |
| 36 | show, the term does not include expenditures solely associated |
| 37 | with the event itself and not directly required by the |
| 38 | production. The term does not include expenditures incurred |
| 39 | before certification, with the exception of those incurred for a |
| 40 | commercial, a music video, or the pickup of additional episodes |
| 41 | of a high-impact television series within a single season. Under |
| 42 | no circumstances may the qualified production include in the |
| 43 | calculation for qualified expenditures the original purchase |
| 44 | price for equipment or other tangible property that is later |
| 45 | sold or transferred by the qualified production for |
| 46 | consideration. In such cases, the qualified expenditure is the |
| 47 | net of the original purchase price minus the consideration |
| 48 | received upon sale or transfer. |
| 49 | (i) "Qualified production" means a production in this |
| 50 | state meeting the requirements of this section. The term does |
| 51 | not include a production: |
| 52 | 1. In which, for the first 2 years of the incentive |
| 53 | program, less than 50 percent, and thereafter, less than 60 |
| 54 | percent, of the positions that make up its production cast and |
| 55 | below-the-line production crew, or, in the case of digital media |
| 56 | projects, less than 75 percent of such positions, are filled by |
| 57 | legal residents of this state, whose residency is demonstrated |
| 58 | by a valid Florida driver's license or other state-issued |
| 59 | identification confirming residency, or students enrolled full- |
| 60 | time in a film-and-entertainment-related course of study at an |
| 61 | institution of higher education in this state; or |
| 62 | 2. That contains is deemed by the Office of Film and |
| 63 | Entertainment to contain obscene content as defined in s. |
| 64 | 847.001(10) or portrays America, Americans, Florida, or |
| 65 | Floridians in a negative light. |
| 66 | (k) "Qualified digital media production facility" means a |
| 67 | building or series of buildings and their improvements in which |
| 68 | data processing, visualization, and sound synchronization |
| 69 | technologies are regularly applied for the production of |
| 70 | qualified digital media projects. |
| 71 | (l) "Qualified production facility" means a building or |
| 72 | complex of buildings and their improvements and associated |
| 73 | backlot facilities in which regular filming activity for film or |
| 74 | television has occurred for a period of no less than one year |
| 75 | and which contain at least one sound stage of at least 7,800 |
| 76 | square feet. |
| 77 | (m) "Regional population ratio" means the ratio of the |
| 78 | population of a region to the population of this state. The |
| 79 | regional population ratio applicable to a given fiscal year is |
| 80 | the regional population ratio calculated by the Office of Film |
| 81 | and Entertainment using the latest official estimates of |
| 82 | population certified under s. 186.901, available on the first |
| 83 | day of that fiscal year. |
| 84 | (n) "Regional tax credit ratio" means a ratio the |
| 85 | numerator of which is of the sum of tax credits awarded to |
| 86 | productions in a region to date plus the tax credits certified, |
| 87 | but not yet awarded, to productions currently in that region and |
| 88 | the denominator of which is the sum of all tax credits awarded |
| 89 | in the state to date plus all tax credits certified, but not yet |
| 90 | awarded, to productions currently in the state. The regional tax |
| 91 | credit ratio applicable to a given year is the regional tax |
| 92 | credit ratio calculated by the Office of Film and Entertainment |
| 93 | using credit award and certification information available on |
| 94 | the first day of that fiscal year. |
| 95 | (o) "Underutilized region" for a given state fiscal year |
| 96 | means a region with a regional tax credit ratio applicable to |
| 97 | that fiscal year that is lower than its regional population |
| 98 | ratio applicable to that fiscal year. The following regions are |
| 99 | established for purposes of making this determination: |
| 100 | 1. North Region, consisting of Alachua, Baker, Bay, |
| 101 | Bradford, Calhoun, Clay, Columbia, Dixie, Duval, Escambia, |
| 102 | Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Holmes, Jackson, |
| 103 | Jefferson, Lafayette, Leon, Levy, Liberty, Madison, Nassau, |
| 104 | Okaloosa, Putnam, Santa Rosa, St. Johns, Suwannee, Taylor, |
| 105 | Union, Wakulla, Walton, and Washington counties. |
| 106 | 2. Central East Region, consisting of Brevard, Flagler, |
| 107 | Indian River, Lake, Okeechobee, Orange, Osceola, Seminole, St. |
| 108 | Lucie, and Volusia counties. |
| 109 | 3. Central West Region, consisting of Citrus, Hernando, |
| 110 | Hillsborough, Manatee, Marion, Polk, Pasco, Pinellas, Sarasota, |
| 111 | and Sumter counties. |
| 112 | 4. Southwest Region, consisting of Charlotte, Collier, |
| 113 | DeSoto, Glades, Hardee, Hendry, Highlands, and Lee counties. |
| 114 | 5. Southeast Region, consisting of Broward, Martin, Miami- |
| 115 | Dade, Monroe, and Palm Beach counties. |
| 116 | (3) APPLICATION PROCEDURE; APPROVAL PROCESS.- |
| 117 | (c) Application process.-The Office of Film and |
| 118 | Entertainment shall establish a process by which an application |
| 119 | is accepted and reviewed and by which tax credit eligibility and |
| 120 | award amount are determined. The Office of Film and |
| 121 | Entertainment may request assistance from a duly appointed local |
| 122 | film commission in determining compliance with this section. A |
| 123 | high-impact television series may submit an application for no |
| 124 | more than two successive seasons, notwithstanding the fact that |
| 125 | the successive season has not been ordered. The successive |
| 126 | season qualified expenditure amounts shall be based on the |
| 127 | current season's estimated qualified expenditures. |
| 128 | (e) Grounds for denial.-The Office of Film and |
| 129 | Entertainment shall deny an application if it determines that |
| 130 | the application is not complete or the production or application |
| 131 | does not meet the requirements of this section. Within 90 days |
| 132 | after submitting a program application, except with respect to |
| 133 | applications in the independent and emerging media queue, a |
| 134 | production must provide proof of project financing to the Office |
| 135 | of Film and Entertainment, otherwise the project is deemed |
| 136 | denied and withdrawn. A project that has been withdrawn may |
| 137 | submit a new application upon providing the Office of Film and |
| 138 | Entertainment proof of financing. |
| 139 | (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES; |
| 140 | ELECTION AND DISTRIBUTION; CARRYFORWARD; CONSOLIDATED RETURNS; |
| 141 | PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND |
| 142 | ACQUISITIONS.- |
| 143 | (b) Tax credit eligibility.- |
| 144 | 1. General production queue.-Ninety-four percent of tax |
| 145 | credits authorized pursuant to subsection (6) in any state |
| 146 | fiscal year must be dedicated to the general production queue. |
| 147 | The general production queue consists of all qualified |
| 148 | productions other than those eligible for the commercial and |
| 149 | music video queue or the independent and emerging media |
| 150 | production queue. A qualified production that demonstrates a |
| 151 | minimum of $625,000 in qualified expenditures is eligible for |
| 152 | tax credits equal to 20 percent of its actual qualified |
| 153 | expenditures, up to a maximum of $8 million. A qualified |
| 154 | production that incurs qualified expenditures during multiple |
| 155 | state fiscal years may combine those expenditures to satisfy the |
| 156 | $625,000 minimum threshold. |
| 157 | a. An off-season certified production that is a feature |
| 158 | film, independent film, or television series or pilot is |
| 159 | eligible for an additional 5-percent tax credit on actual |
| 160 | qualified expenditures. An off-season certified production that |
| 161 | does not complete 75 percent of principal photography due to a |
| 162 | disruption caused by a hurricane or tropical storm may not be |
| 163 | disqualified from eligibility for the additional 5-percent |
| 164 | credit as a result of the disruption. |
| 165 | b. If more than 25 percent of the sum of total tax credits |
| 166 | awarded to productions after July 1, 2010, and total tax credits |
| 167 | certified, but not yet awarded, to productions currently in this |
| 168 | state has been awarded for television series, then no television |
| 169 | series or pilot shall be eligible for tax credits under this |
| 170 | subparagraph. |
| 171 | c. The calculations required by this sub-subparagraph |
| 172 | shall use only credits available to be certified and awarded on |
| 173 | or after July 1, 2011. |
| 174 | (I) If less than 25 percent of the sum of the total tax |
| 175 | credits awarded to productions and the total tax credits |
| 176 | certified, but not yet awarded, to productions currently in this |
| 177 | state has been to high-impact television series, any A qualified |
| 178 | high-impact television series shall be allowed first position in |
| 179 | this queue for tax credit awards not yet certified. |
| 180 | (II) If less than 20 percent of the sum of the total tax |
| 181 | credits awarded to productions and the total tax credits |
| 182 | certified, but not yet awarded, to productions currently in this |
| 183 | state has been to digital media projects, any digital media |
| 184 | project shall be allowed first position in this queue for tax |
| 185 | credit awards not yet certified. |
| 186 | (III) For the purposes of determining position between a |
| 187 | high-impact television series allowed first position and a |
| 188 | digital media project allowed first position under this sub- |
| 189 | subparagraph, tax credits shall be awarded on a first-come, |
| 190 | first-served basis. |
| 191 | d. A qualified production that incurs at least 85 percent |
| 192 | of its qualified expenditures within a region designated as an |
| 193 | underutilized region at the time that the production is |
| 194 | certified is eligible for an additional 5 percent tax credit. |
| 195 | e. Any qualified production that employs students enrolled |
| 196 | full-time in a film and entertainment-related or digital media- |
| 197 | related course of study at an institution of higher education in |
| 198 | this state is eligible for an additional 15 percent tax credit |
| 199 | on qualified expenditures that are wages, salaries, or other |
| 200 | compensation paid to such students. |
| 201 | f. A qualified production for which 50 percent or more of |
| 202 | its principal photography occurs at a qualified production |
| 203 | facility or a digital media project for which 50 percent or more |
| 204 | of its qualified expenditures are related to a qualified digital |
| 205 | media production facility shall be eligible for an additional 5 |
| 206 | percent tax credit on actual qualified expenditures for |
| 207 | production activity at that facility. |
| 208 | g. No qualified production shall be eligible for tax |
| 209 | credits provided under this paragraph totaling more than 30 |
| 210 | percent of its actual qualified expenses. |
| 211 | 2. Commercial and music video queue.-Three percent of tax |
| 212 | credits authorized pursuant to subsection (6) in any state |
| 213 | fiscal year must be dedicated to the commercial and music video |
| 214 | queue. A qualified production company that produces national or |
| 215 | regional commercials or music videos may be eligible for a tax |
| 216 | credit award if it demonstrates a minimum of $100,000 in |
| 217 | qualified expenditures per national or regional commercial or |
| 218 | music video and exceeds a combined threshold of $500,000 after |
| 219 | combining actual qualified expenditures from qualified |
| 220 | commercials and music videos during a single state fiscal year. |
| 221 | After a qualified production company that produces commercials, |
| 222 | music videos, or both reaches the threshold of $500,000, it is |
| 223 | eligible to apply for certification for a tax credit award. The |
| 224 | maximum credit award shall be equal to 20 percent of its actual |
| 225 | qualified expenditures up to a maximum of $500,000. If there is |
| 226 | a surplus at the end of a fiscal year after the Office of Film |
| 227 | and Entertainment certifies and determines the tax credits for |
| 228 | all qualified commercial and video projects, such surplus tax |
| 229 | credits shall be carried forward to the following fiscal year |
| 230 | and be available to any eligible qualified productions under the |
| 231 | general production queue. |
| 232 | 3. Independent and emerging media production queue.-Three |
| 233 | percent of tax credits authorized pursuant to subsection (6) in |
| 234 | any state fiscal year must be dedicated to the independent and |
| 235 | emerging media production queue. This queue is intended to |
| 236 | encourage Florida independent film and emerging media |
| 237 | production. Any qualified production, excluding commercials, |
| 238 | infomercials, or music videos, that demonstrates at least |
| 239 | $100,000, but not more than $625,000, in total qualified |
| 240 | expenditures is eligible for tax credits equal to 20 percent of |
| 241 | its actual qualified expenditures. If a surplus exists at the |
| 242 | end of a fiscal year after the Office of Film and Entertainment |
| 243 | certifies and determines the tax credits for all qualified |
| 244 | independent and emerging media production projects, such surplus |
| 245 | tax credits shall be carried forward to the following fiscal |
| 246 | year and be available to any eligible qualified productions |
| 247 | under the general production queue. |
| 248 | 4. Family-friendly productions.-A certified theatrical or |
| 249 | direct-to-video motion picture production or video game |
| 250 | determined by the Commissioner of Film and Entertainment, with |
| 251 | the advice of the Florida Film and Entertainment Advisory |
| 252 | Council, to be family-friendly, based on the review of the |
| 253 | script and the review of the final release version, is eligible |
| 254 | for an additional tax credit equal to 5 percent of its actual |
| 255 | qualified expenditures. Family-friendly productions are those |
| 256 | that have cross-generational appeal; would be considered |
| 257 | suitable for viewing by children age 5 or older; are appropriate |
| 258 | in theme, content, and language for a broad family audience; |
| 259 | embody a responsible resolution of issues; and do not exhibit or |
| 260 | imply any act of smoking, sex, nudity, or vulgar or profane |
| 261 | language. |
| 262 | (7) ANNUAL ALLOCATION OF TAX CREDITS.- |
| 263 | (a) The aggregate amount of the tax credits that may be |
| 264 | certified pursuant to paragraph (3)(d) may not exceed: |
| 265 | 1. For fiscal year 2010-2011, $53.5 million. |
| 266 | 2. For fiscal year 2011-2012, $74.5 million. |
| 267 | 3. For fiscal years 2012-2013, 2013-2014, and 2014-2015, |
| 268 | $50 $38 million per fiscal year. |
| 269 | (10) ANNUAL REPORT.-Each October 1, the Office of Film and |
| 270 | Entertainment shall provide an annual report for the previous |
| 271 | fiscal year to the Governor, the President of the Senate, and |
| 272 | the Speaker of the House of Representatives which outlines the |
| 273 | return on investment and economic benefits to the state. The |
| 274 | report shall also include an estimate of the full-time |
| 275 | equivalent positions created by each production that received |
| 276 | tax credits under s. 288.1254 and information relating to the |
| 277 | distribution of productions receiving credits by geographic |
| 278 | region and type of production. |
| 279 |
|
| 280 |
|
| 281 |
|
| 282 | ----------------------------------------------------- |
| 283 | D I R E C T O R Y A M E N D M E N T |
| 284 | Remove lines 600-604 and insert: |
| 285 | Section 16. Paragraphs (b), (h), and (i) of subsection (1), |
| 286 | paragraphs (c) and (e) of subsection (3), paragraph (b) of |
| 287 | subsection (4), paragraph (a) of subsection (7), and subsection |
| 288 | (10) of section 288.1254, Florida Statutes, are amended, and |
| 289 | paragraphs (k), (l), (m), (n), and (o) are added to subsection |
| 290 | (1) of that section, to read: |
| 291 |
|
| 292 |
|
| 293 | ----------------------------------------------------- |
| 294 | T I T L E A M E N D M E N T |
| 295 | Remove lines 33-37 and insert: |
| 296 | F.S.; revising and providing definitions; revising criteria for |
| 297 | awarding tax credits and increasing the amount of credits to be |
| 298 | awarded under the entertainment industry financial incentive |
| 299 | program; revising the application procedure and approval |
| 300 | process; revising requirements relating to the annual report of |
| 301 | the Office of Film and Entertainment; |