HB 360 -- TAX CREDIT FOR QUALIFIED FILM PRODUCTION PROJECTS

SPONSOR:  Robb

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 8 to 0.

For tax years beginning after January 1, 2008, this bill lowers
the minimum budget expenditure from $300,000 to $50,000 for a
qualified film production project less than 30 minutes in length
or $100,000 for a project longer than 30 minutes.  The bill
removes the individual credit cap of $1 million and increases the
overall cap for the credit from $1.5 million to $10.5 million.
The credit will be equal to 50% of the qualifying expenses for
the project not including wages for highly compensated
individuals.

The tax credit may be taken against individual and corporate
income tax, insurance premium tax, and financial institutions tax
liability.  The tax credit is not refundable, but can be carried
forward and claimed for up to five taxable years.

The provisions of the bill will expire six years from the
effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Up to
$42,046 in FY 2008, Up to $9,072,618 in FY 2009, and Up to
$9,074,794 in FY 2010.  No impact on Other State Funds in FY
2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters say that the bill is needed for economic
development in Missouri's film production industry.  Film
production includes commercials, shorts, HGTV, Food Network,
music videos, and movies.  There is a tremendous opportunity for
jobs and increased personal income in the state other than
manufacturing businesses.  The cap on the credit is increased to
$10.5 million and corrects a technical problem with the current
credit.  Missouri is turning great projects away because there is
not enough tax credits and is competing with other states that
offer better incentives.  Missouri is centrally located with four
seasons and a variety of landscapes.  Local unions and residents
provide much of the temporary labor and services.  Film
production provides a positive impact on communities with
increased sales tax revenue and spending in the area.

Testifying for the bill were Representative Robb; Jerry Jones,
Missouri Film Commission; Gary Hansen; Missouri Restaurant
Association; Brian Treece, Missouri-Kansas-Nebraska Conference of
Teamsters; Columbia Chamber of Commerce; Taxpayers Research
Institute of Missouri; Associated Industries of Missouri; Lorah
Steiner, Columbia Business Bureau; Missouri Citizens for the
Arts; Greater Kansas City Chamber of Commerce; John Pelzer; and
Cindy Sheltmire, Film Industry Commission.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:18 am