Citations Affected: IC 6-3.1-34.
Synopsis: Film and music facility tax credit. Provides an adjusted
gross income tax credit against expenditures for the construction of
certain motion picture or audio production facilities. Requires the
Indiana economic development corporation's approval of the
expenditures. Provides that the credit is equal to: (1) 10% of a
taxpayer's approved qualified expenditures for the construction of a
motion picture or audio production facility if the cost of the facility
does not exceed $1,000,000; and (2) 25% of the approved qualified
expenditures for the construction of a motion picture or audio
production facility if the cost of the facility exceeds $1,000,000.
Effective: January 1, 2012.
January 20, 2011, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
a motion picture or audio production facility and obtains the
certification required under section 11 of this chapter.
(b) The amount of a credit allowed under this chapter is determined as follows:
(1) If the taxpayer's qualified expenditures do not exceed one million dollars ($1,000,000), the amount of the credit is equal to ten percent (10%) of the taxpayer's qualified expenditures.
(2) If the taxpayer's qualified expenditures exceed one million dollars ($1,000,000), the amount of the credit is equal to twenty-five percent (25%) of the taxpayer's qualified expenditures.
Sec. 11. A taxpayer qualifies for a credit under section 10 of this chapter if the corporation certifies that all the following conditions are met:
(1) The motion picture or audio production facility is:
(A) located in Indiana; and
(B) owned by the taxpayer.
(2) The property is principally used and occupied by the taxpayer as the taxpayer's film or music production facility.
(3) The qualified expenditures for the construction of the motion picture or audio production facility exceed:
(A) one hundred thousand dollars ($100,000) for the construction of an audio production facility; or
(B) three hundred fifty thousand dollars ($350,000) for the construction of a motion picture production facility.
Sec. 12. To obtain a credit under this chapter, a taxpayer must claim the credit on the taxpayer's annual state tax return or returns in the manner prescribed by the department of state revenue. The taxpayer shall submit to the department of state revenue the certification by the corporation required under section 11 of this chapter and all information that the department of state revenue determines is necessary for the calculation of the credit provided by this chapter.
Sec. 13. (a) If the credit provided by this chapter exceeds a taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried over to succeeding taxable years and used as a credit against the tax otherwise due and payable by the taxpayer under IC 6-3 during those taxable years. Each time the credit is carried over to a succeeding taxable year, the credit is to be reduced by the amount used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to
succeeding taxable years for five (5) taxable years following the
unused credit year.
(b) A credit earned by a taxpayer in a particular taxable year shall be applied against the taxpayer's tax liability for that taxable year before any credit carryover is applied against that liability under subsection (a).
(c) A taxpayer is not entitled to any carryback or refund of any unused credit.
Sec. 14. If a pass through entity is entitled to a tax credit under this chapter but does not have state tax liability against which the tax credit may be applied, a shareholder, partner, or member of the pass through entity is entitled to a tax credit equal to:
(1) the tax credit determined for the pass through entity for the taxable year; multiplied by
(2) the percentage of the pass through entity's distributive income to which the shareholder, partner, or member is entitled.
Sec. 15. A taxpayer may not sell, assign, convey, or otherwise transfer a tax credit provided under this chapter.