LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7105 NOTE PREPARED: Jan 2, 2020
BILL NUMBER: HB 1234 BILL AMENDED:
SUBJECT: Film and Media Production Rebate.
FIRST AUTHOR: Rep. Karickhoff BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill authorizes the Indiana Destination Development Corporation (IDDC) to
approve and issue a film and media production expenditure rebate (rebate) to a qualified applicant that
proposes to make qualified production expenditures totaling: (1) in the case of certain productions, at least
$500,000; and (2) in the case of animation or music productions, at least $100,000; in Indiana. It requires
the IDDC to enter into an agreement with a qualified applicant for the rebate, and specifies the terms that
must be in the agreement. The bill establishes the criteria for approving a rebate and the procedures for
claiming a rebate. The bill provides that the IDDC may not issue a rebate to a qualified applicant after
December 31, 2027. It also provides that the total amount of rebates issued by the IDDC may not exceed $5
M in a state fiscal year.
The bill requires the IDDC to employ a Film Commissioner to supervise the rebate program. It provides
duties for the Film Commissioner.
Effective Date: July 1, 2020.
Explanation of State Expenditures: Indiana Destination Development Corporation (IDDC): The IDDC
will develop an authorization process to implement the film and media production rebate program for
qualified media production expenses made after January 1, 2021. The bill does require applicants to pay an
application fee. The fee may offset the administrative costs but not the rebate expenditures.
Film Rebate Program: The fiscal impact of the rebate may begin in FY 2022. The IDDC may not issue a
rebate to a qualified applicant after December 31, 2027. The bill limits the amount of rebates to $5 M per
fiscal year. [There are no appropriations in the bill.]
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The claims of the expired media production tax credit suggest that the expenditures may be approximately
$200,000. However, the proposed rebate may experience greater utilization and result in larger expenditures
because it is not a credit against a state tax liability. Utilization of this rebate also may be greater than the
expired credit because of the greater award percentage and increase in production spending by internet
streaming services. The total rebate awarded to an applicant depends on how the qualified media
expenditures are spent.
Film Commissioner: Under this bill, the IDDC shall employ a Film Commissioner. The Film Commissioner
would supervise, direct, coordinate, and administer the film and media production expenditure rebate
program. According to recent data from the State Personnel Department, estimated costs for this level of
personnel may be approximately $221,000 including fringe benefits.
The Film Commissioner may also employ or contract for accountants, consultants, and other professional
personnel to assist with reviews and audits of qualified media productions. The Film Commissioner may also
coordinate internship opportunities for students from approved post-secondary institutions. The total cost
of these positions would depend on the number of positions hired or contracted which is at the discretion of
the Film Commissioner.
Explanation of State Revenues: The applicant must pay fees to the IDDC when they submit an application.
If the IDDC and the applicant enter into an agreement, then the applicant must pay a final administrative fee.
The fees are determined by the IDDC.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Indiana Destination Development Corporation.
Local Agencies Affected:
Information Sources: LSA income tax database; LSA Indiana Tax Credit Study, Media Production
Expenditure Credit, Sept, 2012; Film Indiana; Bloomberg Technology; State Personnel Database.
Fiscal Analyst: Seth Payton, 317-233-3546.
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