HB2514 HFIN FBM 3-20
HOUSE COMMITTEE ON FINANCE
FLOOR BOOK MEMO
House Bill 2514 (
Lowering the total amount of tax credits
available under the Film Industry Investment Act.
Mr. Speaker (Mr. Thompson) and Armstead
[By Request of the Executive]
Date:March 19, 2013
Fiscal Note: Yes
Code: § 11-13X-5 (amend)
Purpose: The bill would reduce the total amount of tax credits under the
Film Industry Investment Act from $10 million to $5 million annually. The bill
makes other non-substantive technical corrections.
The tax credit was created in 2007 for taxes incurred based on the
production of qualified film projects in the state of West Virginia. It allows a
non-refundable tax credit that could be applied against (in this order)
business franchise, corporate net income tax, or personal income tax liability.
The reimbursable tax credit is calculated on the amount of production
and post-production expenditures made in the state that are directly
attributable to the production of a qualified project. A taxpayer meeting the
criteria may take a 27% credit on the taxes specified. If the taxpayer hires 10
or more resident workers, an additional 4% may be taken.
The criteria to taking the credit include: 1) recognize the State of West
Virginia in the credits, 2) pay all obligations incurred in the state, and 3) that
the taxpayer verifies with the Film Office that all the criteria have been met.
The Film Office will certify to the State Tax Division that the project is a
qualified project and that the taxpayer has met all criteria.
The credit may be carried forward two years, and may not be carried
back unless the taxpayer incurred qualified expenditures for the project in that
tax year. Any excess tax credit may be transferred or sold, with the approval
of the Film Office and the Tax Commissioner.
It is the responsibility of the Film Office to keep a total on the amount
of credits approved for qualified projects. This bill would reduce the maximum
amount of credit the Film Office may approve from $10 million to $5 million
Committee Action: The committee reported a committee substitute that
changes the amount of credit from 27% of qualified expenditures to 21%.
Effective Date: Regular