This section modifies existing section 43.365.020. Here is the modified chapter for context.
The department must adopt criteria for the approved motion picture competitiveness program with the sole purpose of revitalizing the state's economic, cultural, and educational standing in the national and international market of motion picture production. Rules adopted by the department shall allow the program, within the established criteria, to provide funding assistance only when it captures economic opportunities for Washington's communities and businesses and shall only be provided under a contractual arrangement with a private entity. In establishing the criteria, the department shall consider:
The additional income and tax revenue to be retained in the state for general purposes;
The creation and retention of family-wage jobs which provide health insurance and payments into a retirement plan;
The impact of motion picture projects to maximize in-state labor and the use of in-state film production and film postproduction companies;
The impact upon the local economies and the state economy as a whole, including multiplier effects;
The intangible impact on the state and local communities that comes with motion picture projects;
The regional, national, and international competitiveness of the motion picture filming industry;
The revitalization of the state as a premier venue for motion picture production and national television commercial campaigns;
Partnerships with the private sector to bolster film production in the state and serve as an educational and cultural purpose for its citizens;
The vitality of the state's motion picture industry as a necessary and critical factor in promoting the state as a premier tourist and cultural destination;
Giving preference to additional seasons of television series that have previously qualified;
Other factors the department may deem appropriate for the implementation of this chapter.
The board of directors created under RCW 43.365.030 shall create and administer an account for carrying out the purposes of subsection (3) of this section.
Money received by the approved motion picture competitiveness program shall be used only for:
Health insurance and payments into a retirement plan, and other costs associated with film production;
Staff and related expenses to maintain the program's proper administration and operation**;**
Supporting the growth and development of the Washington state film industry in rural communities; and
Supporting educational opportunities for students in the arts.
Except as provided otherwise in subsection (7) of this section, maximum funding assistance from the approved motion picture competitiveness program is limited to an amount up to thirty percent of the total actual investment in the state of at least:
Five hundred thousand dollars for a single motion picture produced in Washington state; or
One hundred fifty thousand dollars for a television commercial associated with a national or regional advertisement campaign produced in Washington state.
Except as provided otherwise in subsection (7) of this section, maximum funding assistance from the approved motion picture competitiveness program is limited to an amount up to thirty-five percent of the total actual investment of at least three hundred thousand dollars per episode produced in Washington state. A minimum of six episodes of a series must be produced to qualify under this subsection. A maximum of up to thirty percent of the total actual investment from the approved motion picture competitiveness program may be awarded to an episodic series of less than six episodes.
With respect to costs associated with nonstate labor for motion pictures and episodic services, funding assistance from the approved motion picture competitiveness program is limited to an amount up to fifteen percent of the total actual investment used for costs associated with nonstate labor. To qualify under this subsection, the production must have a labor force of at least eighty-five percent of Washington residents. The board may establish additional criteria to maximize the use of in-state labor.
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The approved motion picture competitiveness program may allocate an annual aggregate of no more than ten percent of the qualifying contributions by the program under RCW 82.04.4489 to provide funding support for filmmakers who are Washington residents, new forms of production, and emerging technologies. The approved motion picture competitiveness program must allocate an annual aggregate of at least $6.25 million of the qualifying contributions to fund projects in rural communities. For purposes of this subsection, "rural communities" has the same meaning as "rural county" in RCW 82.14.370.
Up to thirty percent of the actual investment for a motion picture with an actual investment lower than that of motion pictures under subsection (4)(a) of this section; or
Up to thirty percent of the actual investment of an interactive motion picture intended for multiplatform exhibition and distribution.
Subsections (4) and (5) of this section do not apply to this subsection.
Funding assistance approval must be determined by the approved motion picture competitiveness program within a maximum of thirty calendar days from when the application is received, if the application is submitted after August 15, 2006.
This section modifies existing section 82.04.4489. Here is the modified chapter for context.
Subject to the limitations in this section, a credit is allowed against the tax imposed under this chapter for contributions made by a person to a Washington motion picture competitiveness program.
The person must make the contribution before claiming a credit authorized under this section. Credits earned under this section may be claimed against taxes due for the calendar year in which the contribution is made. The amount of credit claimed for a reporting period may not exceed the tax otherwise due under this chapter for that reporting period. No person may claim more than seven hundred fifty thousand dollars of credit in any calendar year, including credit carried over from a previous calendar year. No refunds may be granted for any unused credits.
The maximum credit that may be earned for each calendar year under this section for a person is limited to the lesser of seven hundred fifty thousand dollars or an amount equal to one hundred percent of the contributions made by the person to a program during the calendar year.
Except as provided under subsection (5) of this section, a tax credit claimed under this section may not be carried over to another year.
Any amount of tax credit otherwise allowable under this section not claimed by the person in any calendar year may be carried over and claimed against the person's tax liability for the next succeeding calendar year. Any credit remaining unused in the next succeeding calendar year may be carried forward and claimed against the person's tax liability for the second succeeding calendar year; and any credit not used in that second succeeding calendar year may be carried over and claimed against the person's tax liability for the third succeeding calendar year, but may not be carried over for any calendar year thereafter.
Credits are available on a first-in-time basis. The department must disallow any credits, or portion thereof, that would cause the total amount of credits claimed under this section during any calendar year to exceed $25,000,000. If this limitation is reached, the department must notify all Washington motion picture competitiveness programs that the annual statewide limit has been met. In addition, the department must provide written notice to any person who has claimed tax credits in excess of the limitation in this subsection. The notice must indicate the amount of tax due and provide that the tax be paid within thirty days from the date of the notice. The department may not assess penalties and interest as provided in chapter 82.32 RCW on the amount due in the initial notice if the amount due is paid by the due date specified in the notice, or any extension thereof.
To claim a credit under this section, a person must electronically file with the department all returns, forms, and any other information required by the department, in an electronic format as provided or approved by the department. Any return, form, or information required to be filed in an electronic format under this section is not filed until received by the department in an electronic format. As used in this subsection, "returns" has the same meaning as "return" in RCW 82.32.050.
No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section.
A Washington motion picture competitiveness program must provide to the department, upon request, such information needed to verify eligibility for credit under this section, including information regarding contributions received by the program.
The department may not allow any credit under this section before July 1, 2006.
For the purposes of this section, "Washington motion picture competitiveness program" or "program" means an organization established pursuant to chapter 43.365 RCW.
Persons claiming a credit against the tax imposed under this chapter for contributions made to a Washington motion picture competitiveness program and not otherwise receiving funding assistance under RCW 43.365.020 are exempt from the annual reporting requirements in RCW 82.32.534 and 43.365.040.
No credit may be earned for contributions made on or after July 1, 2027.