The proposed bill seeks to amend the Media Act Film Tax Credits by eliminating the cap on aggregate credits claimed and extending the eligibility for these credits through the end of 2033. It introduces a higher tax credit for hiring veterans and enrolled tribal members, while also revising the definitions of eligible productions to include nonscripted television programs and documentaries, thereby removing the previous exclusion of nonscripted programs. The bill outlines a new application process for state certification, requiring production companies to submit applications and fees to the Department of Commerce, and mandates that productions include a qualified Montana promotion. It also establishes penalties for non-compliance with certification requirements, emphasizing the goal of fostering local economic growth through the film and media industry.

Furthermore, the bill modifies the tax credit structure, allowing for a 20% credit on production expenditures, with additional credits for compensation related to Montana residents, veterans, and students. It specifies that unused credits can be carried forward for five years and cannot be refunded if there is no tax liability. The bill clarifies the application process for tax credits, capping total claims at $12 million per year and processing them on a first-come, first-served basis. It mandates the Department of Commerce to report on the economic impact of the tax credits biennially, including job creation metrics, and includes provisions for the repeal of certain sections of previous legislation, with the new law taking effect upon passage and retroactively applicable to income tax years starting January 1, 2023.

Statutes affected:
Introduced: 15-31-1003, 15-31-1004, 15-31-1005, 15-31-1007, 15-31-1009, 15-31-1010, 15-31-1011