As Introduced
135th General Assembly
Regular Session S. B. No. 283
2023-2024
Senator Schuring
A BILL
To amend sections 122.85, 5726.98, 5747.98, and 1
5751.98 and to repeal sections 122.852, 5726.59, 2
5747.67, and 5751.55 of the Revised Code to 3
modify the film and theater production tax 4
credit and to repeal the film and theater 5
capital improvement tax credit. 6
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 122.85, 5726.98, 5747.98, and 7
5751.98 of the Revised Code be amended to read as follows: 8
Sec. 122.85. (A) As used in this section and in sections 9
5726.55, 5733.59, 5747.66, and 5751.54 of the Revised Code: 10
(1) "Tax credit-eligible production" means a motion 11
picture or broadway theatrical production certified by the 12
director of development under division (B) of this section as 13
qualifying the production company for a tax credit under section 14
5726.55, 5733.59, 5747.66, or 5751.54 of the Revised Code. 15
(2) "Certificate owner" means a production company to 16
which a tax credit certificate is issued. 17
(3) "Production company" means an individual, corporation, 18
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As Introduced
partnership, limited liability company, or other form of 19
business association that is registered with the secretary of 20
state and that is producing a motion picture or broadway 21
theatrical production. 22
(4) "Eligible expenditures" means expenditures made after 23
June 30, 2009, for goods or services purchased and consumed in 24
this state by a production company directly for the production 25
of a tax credit-eligible production, for postproduction 26
activities, or for advertising and promotion of the production. 27
"Eligible expenditures" do not include qualified 28
expenditures for which a production company receives a tax 29
credit under section 122.852 of the Revised Code. 30
"Eligible expenditures" include expenditures for cast and 31
crew wages, accommodations, costs of set construction and 32
operations, editing and related services, photography, sound 33
synchronization, lighting, wardrobe, makeup and accessories, 34
film processing, transfer, sound mixing, special and visual 35
effects, music, location fees, and the purchase or rental of 36
facilities and equipment. 37
(5) "Motion picture" means entertainment content created 38
in whole or in part within this state for distribution or 39
exhibition to the general public, including, but not limited to, 40
feature-length films; documentaries; long-form, specials, 41
miniseries, series, and interstitial television programming; 42
interactive web sites; sound recordings; videos; music videos; 43
interactive television; interactive games; video games; 44
commercials; any format of digital media; and any trailer, 45
pilot, video teaser, or demo created primarily to stimulate the 46
sale, marketing, promotion, or exploitation of future investment 47
in either a product or a motion picture by any means and media 48
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As Introduced
in any digital media format, film, or videotape, provided the 49
motion picture qualifies as a motion picture. "Motion picture" 50
does not include any television program created primarily as 51
news, weather, or financial market reports, a production 52
featuring current events or sporting events, an awards show or 53
other gala event, a production whose sole purpose is 54
fundraising, a long-form production that primarily markets a 55
product or service or in-house corporate advertising or other 56
similar productions, a production for purposes of political 57
advocacy, or any production for which records are required to be 58
maintained under 18 U.S.C. 2257 with respect to sexually 59
explicit content. 60
(6) "Broadway theatrical production" means a prebroadway 61
production, long run production, or tour launch that is 62
directed, managed, and performed by a professional cast and crew 63
and that is directly associated with New York city's broadway 64
theater district. 65
(7) "Prebroadway production" means a live stage production 66
that is scheduled for presentation in New York city's broadway 67
theater district after the original or adaptive version is 68
performed in a qualified production facility. 69
(8) "Long run production" means a live stage production 70
that is scheduled to be performed at a qualified production 71
facility for more than five weeks, with an average of at least 72
six performances per week. 73
(9) "Tour launch" means a live stage production for which 74
the activities comprising the technical period are conducted at 75
a qualified production facility before a tour of the original or 76
adaptive version of the production begins. 77
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As Introduced
(10) "Qualified production facility" means a facility 78
located in this state that is used in the development or 79
presentation to the public of theater productions. 80
(B) For the purpose of encouraging and developing strong 81
film and theater industries in this state, the director of 82
development may certify a motion picture or broadway theatrical 83
production produced by a production company as a tax credit- 84
eligible production. In the case of a television series, the 85
director may certify the production of each episode of the 86
series as a separate tax credit-eligible production. A 87
production company shall apply for certification of a motion 88
picture or broadway theatrical production as a tax credit- 89
eligible production on a form and in the manner prescribed by 90
the director. Each application shall include the following 91
information: 92
(1) The name and telephone number of the production 93
company; 94
(2) The name and telephone number of the company's contact 95
person; 96
(3) A list of the first preproduction date through the 97
last production and postproduction dates in Ohio and, in the 98
case of a broadway theatrical production, a list of each 99
scheduled performance in a qualified production facility; 100
(4) The Ohio production office or qualified production 101
facility address and telephone number; 102
(5) The total production budget; 103
(6) The total budgeted eligible expenditures and the 104
percentage that amount is of the total production budget of the 105
motion picture or broadway theatrical production; 106
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(7) In the case of a motion picture, the total percentage 107
of the production being shot in Ohio; 108
(8) The level of employment of cast and crew who reside in 109
Ohio; 110
(9) A synopsis of the script; 111
(10) In the case of a motion picture, the shooting script; 112
(11) A creative elements list that includes the names of 113
the principal cast and crew and the producer and director; 114
(12) Documentation of financial ability to undertake and 115
complete the motion picture or broadway theatrical production, 116
including documentation that shows that the company has secured 117
funding equal to at least fifty per cent of the total production 118
budget; 119
(13) Estimated value of the tax credit based upon total 120
budgeted eligible expenditures; 121
(14) Estimated amount of state and local taxes to be 122
generated in this state from the production; 123
(15) Estimated economic impact of the production in this 124
state; 125
(16) Any other information considered necessary by the 126
director. 127
Within ninety days after certification of a motion picture 128
or broadway theatrical production as a tax credit-eligible 129
production, and any time thereafter upon the request of the 130
director, the production company shall present to the director 131
sufficient evidence of reviewable progress. If the production 132
company fails to present sufficient evidence, the director may 133
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As Introduced
rescind the certification. If the production of a motion picture 134
or broadway theatrical production does not begin within ninety 135
days after the date it is certified as a tax credit-eligible 136
production, the director shall rescind the certification unless 137
the director finds that the production company shows good cause 138
for the delay, meaning that the production was delayed due to 139
unforeseeable circumstances beyond the production company's 140
control or due to action or inaction by a government agency. 141
Upon rescission, the director shall notify the applicant that 142
the certification has been rescinded. Nothing in this section 143
prohibits an applicant whose tax credit-eligible production 144
certification has been rescinded from submitting a subsequent 145
application for certification. 146
(C)(1) A production company whose motion picture or 147
broadway theatrical production has been certified as a tax 148
credit-eligible production may apply to the director of 149
development on or after July 1, 2009, for a refundable credit 150
against the tax imposed by section 5726.02, 5733.06, 5747.02, or 151
5751.02 of the Revised Code. The director in consultation with 152
the tax commissioner shall prescribe the form and manner of the 153
application and the information or documentation required to be 154
submitted with the application. 155
The credit is determined as follows: 156
(a) If the total budgeted eligible expenditures stated in 157
the application submitted under division (B) of this section or 158
the actual eligible expenditures as finally determined under 159
division (D) of this section, whichever is least, is less than 160
or equal to three hundred thousand dollars, no credit is 161
allowed; 162
(b) If the total budgeted eligible expenditures stated in 163
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the application submitted under division (B) of this section or 164
the actual eligible expenditures as finally determined under 165
division (D) of this section, whichever is least, is greater 166
than three hundred thousand dollars, the credit equals thirty 167
per cent of the least of such budgeted or actual eligible 168
expenditure amounts. 169
(2) Except as provided in division (C)(4) of this section, 170
if the director of development approves a production company's 171
application for a credit, the director shall issue a tax credit 172
certificate to the company. The director in consultation with 173
the tax commissioner shall prescribe the form and manner of 174
issuing certificates. The director shall assign a unique 175
identifying number to each tax credit certificate and shall 176
record the certificate in a register devised and maintained by 177
the director for that purpose. The certificate shall state the 178
amount of the eligible expenditures on which the credit is based 179
and the amount of the credit. Upon the issuance of a 180
certificate, the director shall certify to the tax commissioner 181
the name of the production company to which the certificate was 182
issued, the amount of eligible expenditures shown on the 183
certificate, the amount of the credit, and any other information 184
required by the rules adopted to administer this section. 185
(3) The amount of eligible expenditures for which a tax 186
credit may be claimed is subject to inspection and examination 187
by the tax commissioner or employees of the commissioner under 188
section 5703.19 of the Revised Code and any other applicable 189
law. Once the eligible expenditures are finally determined under 190
section 5703.19 of the Revised Code and division (D) of this 191
section, the credit amount is not subject to adjustment unless 192
the director determines an error was committed in the 193
computation of the credit amount. 194
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(4) No tax credit certificate may be issued before the 195
completion of the tax credit-eligible production. The amount of 196
tax credit allowed per fiscal year shall not exceed the sum of 197
(a) fifty one hundred million dollars, (b) the difference 198
between the maximum credit amount for that fiscal year under 199
section 122.852 of the Revised Code and the amount the director 200
of development elects to allow under this section pursuant to 201
division (D)(1) of section 122.852 of the Revised Code, and (c) 202
the difference between the maximum amount of credits that could 203
have been awarded in the previous fiscal year under this section 204
and the amount actually awarded. Out of that sum, five million 205
dollars shall be reserved for broadway theatrical productions, 206
and the balance may be allowed for any tax credit-eligible 207
production. For any fiscal year in which less than five million 208
dollars of tax credits are allowed for broadway theatrical 209
productions, the amount of the five million dollars not allowed 210
and added to the maximum annual amount for the following fiscal 211
year shall be reserved for broadway theatrical productions in 212
the following fiscal year. 213
(5) The Except as otherwise provided in this division, the 214
director shall review and approve applications for tax credits 215
in two rounds each fiscal year on a first-come, first-served, 216
basis. The first round of credits shall be awarded not later 217
than the last day of July of the fiscal year, and the second 218
round of credits shall be awarded not later than the last day of 219
the ensuing January. The amount of credits awarded in the first 220
round of applications each fiscal year shall not exceed o