Current Status Bill Number:
3698Type of Legislation: General Bill GBIntroducing Body: HouseIntroduced Date: 19970320Primary Sponsor: LimehouseAll Sponsors: Limehouse, Altman, Trotter, Knotts, Whipper, Moody-Lawrence, F. Smith, Breeland, R. Smith, Lee, Allison, Jordan, Hinson, Neilson, Mason, Gourdine, Tripp, Kennedy, McCraw, Keegan, M. Hines, Dantzler, Scott, Phillips, Inabinett, Harrell, Seithel, Whatley, J. Hines, Stuart, Woodrum, Byrd, Vaughn, Mullen, Lloyd, Barfield, Jennings, Harvin, Sandifer, Mack, Townsend, J. Smith, Battle, McKay, Beck, Fleming, Bauer, Limbaugh, Maddox, Witherspoon, H. Brown, McMahand, Edge, Lanford, Rodgers and MillerDrafted Document Number: kgh\15008htc.97Residing Body: HouseCurrent Committee: Ways and Means Committee 30 HWMSubject: Income tax credit, film enterprise, portion of cash investment in; Movies, Taxation
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ House 19970320 Introduced, read first time, 30 HWM referred to CommitteeView additional legislative information at the LPITS web site.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3500 SO AS TO ALLOW A NONREFUNDABLE CREDIT AGAINST A TAXPAYER'S STATE INCOME TAX LIABILITY FOR A PORTION OF THE TAXPAYER'S CASH INVESTMENT IN A QUALIFIED SOUTH CAROLINA FILM ENTERPRISE, TO PROVIDE DEFINITIONS, AND TO PROVIDE AN ADDITIONAL STATE CORPORATE INCOME TAX CREDIT FOR AMOUNTS INVESTED IN THE CONSTRUCTION OF A MOTION PICTURE PRODUCTION FACILITY IN THIS STATE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3500. (A) There is allowed as a nonrefundable credit against any tax imposed pursuant to this chapter an amount equal to fifty percent, but not more than fifteen thousand dollars, of a taxpayer's cash investment in a qualified South Carolina film enterprise. A taxpayer may claim no more than one credit in connection with the production of a single motion picture regardless of the number of qualified South Carolina film enterprises involved in the production of a single motion picture. This credit is allowed over more than one taxable year but a taxpayer's total credit in all years, toward any single motion picture, may not exceed fifteen thousand dollars. Any unused credit may be carried forward to five succeeding taxable years. Regardless of the actual time of the investment, the credit is allowed for a taxable year beginning in the calendar year the project is registered as a qualified South Carolina film enterprise pursuant to subsection (B). These credits must be allocated to taxpayers by the enterprise registered pursuant to subsection (B).
(B) As used in this section, a 'qualified South Carolina film enterprise' is an enterprise participating in one or more of the activities for producing a motion picture as defined in Section 12-36-2120(43), and it includes an enterprise bearing any of the production costs associated with a motion picture including:
(1) the cost of a story, treatment, scenario, screenplay, or any one or combination of these, to be used for a motion picture including acquisition of rights and development costs;
(2) salaries of talent, management, and labor, including payments to personal services corporations with respect to the services of qualified performing artists, as determined under Section 62b(1)(A) of the Internal Revenue Code of 1986;
(3) costs of set construction and operations, wardrobe, accessories, and related services;
(4) costs of sound synchronization, lighting, and related services;
(5) costs of editing and related services;
(6) rental of facilities and equipment; and
(7) other costs of developing, producing, and distributing the motion picture.
To be qualified, an enterprise must register with the South Carolina Film Office by submitting its record of allocation of credit and documentation satisfactory to the South Carolina Film Office that at least fifty percent of the total expended by the enterprise, but not less than one hundred thousand dollars, has been expended directly on the film enterprise in this State.
(C) In addition to the credit provided in subsection (A), a nonrefundable credit is allowed against any taxes imposed pursuant to this chapter in an amount equal to fifty percent of a taxpayer's investment in the construction and equipping of a motion picture production facility in this State in which the taxpayer has an ownership interest. Any unused credit may be carried forward to five succeeding taxable years. For purposes of this subsection, a motion picture production facility is a site containing structures built or renovated which contain the equipment necessary for any or all stages of production of a finished motion picture as defined in Section 12-36-2120(43)."
SECTION 2. This act takes effect upon approval by the Governor and, with respect to investments made in qualified South Carolina film enterprises, applies to such investments occurring after 1996.