LAWS OF ALASKA

2015

Source

Chapter No.

CSSB 39(L&C) am H

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AN ACT

Repealing the film production tax credit; providing for an effective date by repealing the effective dates of secs. 31 - 33, ch. 51, SLA 2012; and providing for an effective date.

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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

THE ACT FOLLOWS ON PAGE 1

Enrolled SB 39

AN ACT

1Repealing the film production tax credit; providing for an effective date by repealing the

2effective dates of secs. 31 - 33, ch. 51, SLA 2012; and providing for an effective date.

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* Section 1. AS 43.75.130(f) is amended to read:

 

 

 

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(f) For purposes of this section, tax revenue collected under AS 43.75.015

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from a person

entitled

to a credit under AS 43.75.035

or [,]

43.75.036

[, OR

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AS 43.98.030]

shall be

calculated as if the person's tax

were

collected

without

8applying the credit; tax revenue collected does not include the amount of a tax credit

9recaptured under AS 43.75.035(g) or 43.75.036(g).

10* Sec. 2. AS 43.75.130(f), as amended by sec. 14, ch. 61, SLA 2014, is amended to read:

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(f) For purposes of this section, tax revenue collected under AS 43.75.015

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from a person entitled to a credit under AS 43.75.035 [OR AS 43.98.030] shall be

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calculated as if the person's tax were collected without applying the credit; tax revenue

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Enrolled SB 39

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collected does not include the amount of a tax credit recaptured under

2AS 43.75.035(g).

3* Sec. 3. AS 43.77.060(e) is amended to read:

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(e) For purposes of this section, tax revenue collected under AS 43.77.010

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from a person entitled to a credit under AS 43.77.035 or [,] 43.77.045 [, OR

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AS 43.98.030] shall be calculated as if the person's tax had been collected without

7applying the credits.

8* Sec. 4. AS 43.77.060(e), as amended by sec. 17, ch. 61, SLA 2014, is amended to read:

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(e) For purposes of this section, tax revenue collected under AS 43.77.010

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from a person entitled to a credit under AS 43.77.045 [OR AS 43.98.030] shall be

11calculated as if the person's tax had been collected without applying the credits.

12* Sec. 5. AS 44.25.135 is amended to read:

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Sec. 44.25.135. Recovery of film production tax credit. (a) The Department

14of Revenue [FILM OFFICE] may review, audit, and bring legal proceedings to

15recover any amount of a tax credit awarded under former AS 44.25.125 and former

16AS 44.33.235 [AS 44.25.125] from a producer or production that received the credit

17if the Department of Revenue [TO WHICH A CREDIT WAS AWARDED IF THE

18FILM OFFICE] determines that the film producer or production is liable for damages

19to the state [,] or any political subdivision of the state.

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(b) Legal proceedings may not be brought under (a) of this section more than

21six years after the date the tax credit was awarded under former AS 44.25.125 and

22former AS 44.33.235 [AS 44.25.125].

23* Sec. 6. Section 28(b), ch. 61, SLA 2014, is amended to read:

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(b) For purposes of AS 43.75.130, tax revenue collected under AS 43.75.015

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from a person

entitled

to a credit under AS 43.75.035 or [,] 43.75.036 [, OR

26

AS 43.98.030]

shall be

calculated as if the person's tax were collected without

27applying the credit; tax revenue collected does not include the amount of a tax credit

28recaptured under AS 43.75.035(g) or 43.75.036(g). For purposes of AS 43.77.060, tax

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revenue

collected under AS 43.77.010 from a person entitled to a credit under

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AS 43.77.035 or [,] 43.77.045 [, OR AS 43.98.030] shall be calculated as if the

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person's tax had been collected without applying the credits.

 

Enrolled SB 39

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1 * Sec. 7. AS 24.20.271(12); AS 43.98.030; AS 44.25.100, 44.25.105, 44.25.110, 44.25.115, 2 44.25.120, 44.25.125, 44.25.130, 44.25.140, 44.25.145, 44.25.150, 44.25.190; and

3AS 44.33.231(c) are repealed.

4* Sec. 8. AS 44.25.135 is repealed July 1, 2021.

5* Sec. 9. Sections 31 - 33, 35, 36(b), 36(c), 36(d), 37, and 38, ch. 51, SLA 2012, and secs.

615, 18, 24, 25, 28(c), and 30, ch. 61, SLA 2014, are repealed.

7* Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to

8read:

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TRANSITION. (a) Subject to AS 43.98.030(f), as that subsection read on June 30,

102015, limiting the number of tax credits provided in the aggregate under AS 43.98.030, as that

11section read on June 30, 2015, the repeals in

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(1)

sec. 30, ch. 51, SLA 2012, do not prohibit the Department of Revenue

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from determining a film production's qualified expenditures, awarding a tax credit, or

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reviewing a tax

credit for a production that received a notice of qualification under

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AS 44.33.235 before July 1, 2013, under the provisions repealed by sec. 30, ch. 51, SLA

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2012;

 

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(2)

sec. 7 of this Act do not prohibit the Department of Revenue from

18determining a film production's qualified expenditures, awarding a tax credit, or reviewing a

19tax credit for a production that received a notice of qualification under AS 44.25.125 before

20July 1, 2015, under the provisions repealed by sec. 7 of this Act.

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(b) To qualify for a film production tax credit under (a) of this section, a film

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producer shall, before January 1, 2019, provide to the Department of Revenue a complete

23production cost report detailing the qualified expenditures of the production, with verification

24by an independent certified public accountant licensed in the state and approved by the

25Department of Revenue, that the costs claimed in the report are qualified expenditures under

26former AS 44.25.130 or former AS 44.33.236, as applicable, and that there is no outstanding

27balance for a qualified expenditure that is due to a person in the state. The Department of

28 Revenue may not authorize a film production tax credit if the cost report is filed after

29December 31, 2018.

30(c) A film production tax credit may be used to offset taxes imposed under the

31provisions identified in AS 43.98.030(c), or sold or exchanged for a transferable tax credit

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Enrolled SB 39

1certificate under AS 43.98.030(a), within six years after being provided by the Department of

2Revenue, notwithstanding the repeal of AS 43.98.030 in sec. 7 of this Act.

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(d) A film production tax credit that is being withheld under AS 44.25.125(h) may

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continue to be withheld by the Department of Revenue, notwithstanding the repeal of

5AS 44.25.125 in sec. 7 of this Act.

6* Sec. 11.