Posted 20 December, 2008 in OH News
Ohio has introduced a bill which will provide for a nonrefundable income tax credit equal to 25% of the investor’s base investment. The investor’s base investment is defined as the amount of money invested multiplied by the percentage that anticipated eligible production expenditures are of the total production budget that is expended. There is a statewide cap of $100 million per year and a per project cap of $25M. The minimum spend requirement is $300,000. The credit is transferable and any portion of the credit not used may be carried forward for10 years. Eligible production expenditures means expenditures made in or after 2009 for goods or services consumed in this state and include resident and nonresident cast and crew wages and fringe benefits. A certified public accountant must examine the production company’s expenditures and issue a report certifying the eligible productions costs. This incentive will sunset on December 31, 2013.
Posted 20 December, 2008 in FL News
Florida has introduced a bill which will change its incentive from a rebate to a nonrefundable tax credit effective July 1, 2009. In total, $75 million will be available beginning on July 1, 2009 and ending June 30, 2012. $25 million is allocated to each fiscal year the incentive is in place. The production company must make an irrevocable election to apply the credit against income taxes, sales/use taxes or a stated combination of the two taxes. This election is binding on any transferee. Any unused credit may be carried forward for five years. A production company electing to apply the credit against income taxes is permitted a one-time transfer of the unused credits to no more than four transferees. A production company electing to apply the credit against sales/use taxes is permitted a one time transfer of unused credits to one transferee. The tax credit may not be exchanged for less than 75% of the credit’s value. The purchaser of any transferred tax credit must pay 5% of the total amount paid for the tax credit to the Grants and Donations Trust Fund. Tax credits purchased in good faith are not subject to forfeiture unless the transferee submitted fraudulent information in the purchase. Other than these proposed changes, the Florida incentive remains the same.
