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2014-28514 Reso RESOLUTION NO. 201428514 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, URGING THE GOVERNOR AND LEGISLATURE OF THE STATE OF FLORIDA TO ENHANCE THE FLORIDA FILM & ENTERTAINMENT INDUSTRY FINANCIAL INCENTIVE PROGRAM WITH ADDITIONAL TAX CREDITS. WHEREAS, the Florida film and entertainment industries have long been coveted around the world and the City of Miami Beach has been fortunate to host, cultivate, and support this industry for the past six decades, going back to Frank Sinatra, Jackie Gleason, and Miami Vice; and WHEREAS, the unmitigated success of the Florida Film & Entertainment Industry Financial Incentive Program, passed in 2010, has led to Miami Beach having a second consecutive record year in 2013 in terms of film permits issued (1123)and dollars spent on permitted productions (just under $128 Million), as well as accounting for over 14,600 room nights in Miami Beach alone, including television projects such as "Burn Notice," "Magic City," and many reality and telenovela productions; and WHEREAS, these projects, and those before them, have showcased Miami Beach to the world and continue to do so in perpetuity, enhancing Miami Beach's brand worldwide and serving as a diversifier and engine of tourism, the City's primary economy; and WHEREAS, the current tax credits within the Florida Film & Entertainment Industry Financial Incentive Program haven been exhausted and/or are committed to productions here and throughout the State of Florida, however many more film and television productions desire to produce here, but are in need of continued and reliable incentive funding to offset locating or relocating in competing states and locations, including Georgia and Louisiana, as well as New York and Puerto Rico. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Commission hereby urge the Governor and the Legislature of the State of Florida to add additional and sufficient tax credits to the Florida Film & Entertainment Industry Financial Incentive Program so that the State of Florida and the City of Miami Beach may retain and enhance their positions as key entertainment industry production centers. PASSED and ADOPTED this 5 day of March 2014. ATTEST: PHILIP LE F MAYOR RAF EL E. GRANA r • NCO RF DATED', r APPROVED AS TO F:\INFO\$ALL\GrahamMemos\Filmincentive Sup Resojyffon 2014.doc //iJ J� : FORM & LANGUAGE '` 1f '• s<= &FOR CUTION r i ity_ tt' ney ate COMMISSION ITEM SUMMARY Condensed Title: A Resolution Urging The Governor And Legislature Of The State Of Florida To Enhance The Florida Film & Entertainment Industry Financial Incentive Program With Additional Tax Credits. Key Intended Outcome Supported: Maximize Miami Beach as a destination brand. Supporting-Data (Surveys, Environmental Scan, etc.): N/A Item Summary/Recommendation: On July 1, 2010,-the State of Florida's first major Film and Entertainment Industry Tax Credit was implemented, ushering in a whirlwind of new film and television productions to the state, principally in the Southeast region. Miami Beach alone has seen a 172% increase in production dollars spent annually from before tha incentive to recent years, when we hosted productions like "Burn Notice.," "Magic City," "Pain and Gain," "Iron Man 3," and several locally produced telenovellas from Miami- based Telemundo and Venevision. Film permits in Miami Beach have reached new records in annual permits issued (1,123), dollars spent ($127.7 Million) and room nights (nearly 29,000) in Miami Beach in the past two years. The $296M of allocated tax credits has brought in $1.5 Billion in new Florida production spending, including $930 Million in wages for over 190,000 Florida production jobs. A recent study.prepared by the Motion Picture Association of America (MPPA) in conjunction with Visit Florida for the.Florida Department of Economic Opportunity (DEO) showed 19.5% of all visitors and 22.7% of leisure visitors to Florida stated viewing a movie or television series filmed in Florida was wither "extremely important" or "very important" in their decision to travel to Florida and, further, the incentive provides a return on investment of no less than $5.6 and potentially up to $20.50 for every $1 of incentive tax credit issued. The allocated credits have now fully been used or allocated and no further credits were added in the 2013 Legislative session, putting our future in entertainment production in serious jeopardy. The City's Tourism, Culture, and Economic Development Department's Film Office, serving in leadership of Film Florida, the statewide entertainment industry trade association, has worked since the end of last year's session to educate the Legislature on the need for enhanced and -reliable funding to compete with states like Georgia, Louisiana and New York. Last week, Representative Manny Diaz of Hialeah filed H6983, proposing strong and reliable long term funding for the program. A Senate companion bill, sponsored by Senator Nance Detert is forthcoming. Advisory Board Recommendation: N/A Financial Information: Source of Amount Account Approved Funds: 1 2 3 4 OBPI Total Financial Impact Summary: N/A City Clerk's Office Legislative Tracking: Max Sklar Sign-O /boarynent p.ii rector Assistant Cit anager City Manager AGENDA ITEM C 7� MIA�11°�►I EAC H s DATE_ .� �� MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Me bers of th City Commission FROM: Jimmy L. Morales, City Manager DATE: March 5, 2014 SUBJECT: A RESOLUTION OF THE MAYO AND CITY COMMISSION OF THE CITY OF MIAMI REACH, FLORIDA, URGING THE GOVERNOR AND LEGISLATURE OF THE. STATE OF FLORIDA TO ENHANCE THE FLORIDA FILM & ENTERTAINMENT INDUSTRY FINANCIAL INCENTIVE PROGRAM WITH ADDITIONAL TAX CREDITS. BACKGROUND On July 1, 2010, the. State of Florida's first major Film and Entertainment Industry Tax Credit was implemented, ushering in a whirlwind of new film and television productions to the state, principally in the Southeast region. Miami Beach alone has seen a 172% increase in production dollars spent annually from before the incentive to recent years, when we hosted productions like "Burn Notice," "Magic City," "Pain and Gain," "Iron Man 3," and several locally produced telenovellas from Miami-based Telemundo and Venevision. Film permits in Miami Beach have reached new records in annual permits issued (1,123), dollars spent ($127.7 Million) and room nights (nearly.29;000) in Miami Beach in the past two years. The $296M of allocated tax credits has brought in $1. 5 Billion in new Florida production spending, including $930 Million in wages for over 190,000 Florida production jobs. A recent study prepared 'by the Motion Picture Association of America (MPPA) in conjunction with Visit Florida for the Florida Department of Economic Opportunity (DEO) showed 19.5% of all visitors and 22.7% of leisure visitors to Florida stated viewing a movie or television series filmed in Florida was wither "extremely important" or,"very important" in their decision to travel to Florida and, further, the incentive provides a return on investment of no less than $5.6 and potentially up to $20.50 for every $1 of incentive tax credit issued. The allocated credits have now fully been used or allocated and no further credits were added in the 2013 Legislative session, putting our future in entertainment production in serious jeopardy. The City's Tourism, Culture,.and Economic Development Department's Film Office, serving in leadership of Film Florida, the statewide entertainment industry trade association, has worked since the end of last year's session to educate the Legislature on the need for enhanced and reliable funding to compete with states like Georgia, Louisiana and New York. Last week, Representative Manny Diaz of Hialeah filed HB983, proposing strong and reliable long term funding for the program. A Senate companion bill, sponsored by Senator Nance Detert is forthcoming. RECCOMENDATION The administration recommends approval of the resolution. Attach ents: House Bill 983 JLM/K /MAS/GW F:\INFO\$ALL\Max\TCD\Commission Memos\Film Incentive Support 3-5-14 Commission Memo.doc F L O R I D A H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 1 A bill to be entitled 2 An act relating to the entertainment industry 3 financial incentive program; amending s . 288 . 1254, 4 F. S . ; - revising definitions; revising the purpose of 5 the program; revising the application requirements and 6 approval procedure for certain tax credit.s; .requiring 7 certified productions to notify the Office of Film and 8 Entertainment of changes to certain production 9 circumstances; requiring the office to deem certain 10 tax credit awards denied and applications withdrawn; , 11 authorizing the office to approve adjusted tax credit 12 awards..under certain circumstances; providing that a 13 certified production is not entitled to a .tax credit 14 award unless the certified production' s actual 15 qualified expenditures have been verified by the 16 office and approved by the Department of Economic 17 Opportunity; specifying the period in which a 18 certified production must submit qualifying 19 expenditure data to the office; revising the criteria 20 for determining priority for tax credit awards; 21 revising tax credit eligibility criteria; providing a 22 tax credit for certain qualified productions that 23 complete.-certain promotional activities; authorizing 24 credit allocations for specified fiscal years; 25 revising program repeal provisions; providing an 26 effective date. Page 1 of 32 CODING: Words s#F+skee are deletions; words underlined are additions. hb0983-00 F L O R I D A' H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 27 28 Be It Enacted. by the Legislature of the State of Florida: 29 30 Section 1 . Subsections (1) , (2) , and (3) , paragraphs (a) 31 and (b) of subsection (4) , paragraphs (a) and (c). . of sub.soction 32 (7) , and subsection (11) of section 288 . 1254, Florida Statutes, 33 are amended. to read: 34 288 . 1254 Entertainment industry financial incentive 35 program.- 36 (1) DEFINITIONS.—As used in this section, the term: 37 (a) "Certified production" means a qualified production 38 that has tax credits allocated to it by the department based on 39 the production' s estimated qualified expenditures, up to the 40 production' s .maximum certified amount of tax credits, by the 41 department . The term does not include a production if its first 42 day of principal photography or project start date in this state 43 occurs before the production is certified by the department,— 44 unless th_ei Ia is V ti t, e tL-1±-e v Spans F e 1 e 4.1 G 1 1 f 1 e- , year-, 45 46 , 47 ., ,1.s nt= f4!seal 48 . 49 (b) "Digital media project" means a production of 50 interactive entertainment that is produced for distribution in 51 commercial. or. educational markets . The term includes a video 52 game or. production intended for Internet or wireless Page 2 of 32 CODING: Words s#Fisken.are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R E S. E. N T. A T I V E S HB 983 2014 53 distribution, . an interactive website, digital animation, and 54 visual effects, including, but not limited to, three-dimensional 55 movie productions and movie conversions . The term does not 56 include a production that contains content that is obscene as 57 defined in s . 847 . 001 . 58 (c) "High-impact digital media project" means a digital 59 media project that has qualified expenditures greater than $4 . 5 60 million. 61 (d). . ..".'High-impact television series" means a production 62 created to run multiple production seasons and having an 63 estimated order of at least seven episodes per season. and 64 qualified expenditures of at least $625, 000 per episode. The 65 term also includes a multiple-episode television production that 66 meets the following requirements : 67 1 . The production has qualified expenditures greater than 68 $4 . 5 million. 69 2 . The production has at least 45 principal photography 70 days in this state. 71 3 . At least 90 percent of the cast and crew employed by 72 the production are -residents of this state. 73 4 . At least 90 percent of the entire production is 74 produced in this state. 75 (e) "Off-season certified production" means a feature 76 film, independent film, or television series or pilot that 77 completes at least 98 total production days or at. least fliffts 75 78 percent er me of its principal photography days from June 1 Page 3 of 32 CODING: Words StFiGken are deletions; words underlined are additions. hb0983-00 F L O R I D. ,A H O- U S E O F R E P R E S E N T A T I V E S H B 983 2014 - 79 through November 30 . 80 (f) "Principal photography" means the filming of. major or 81 significant components of the qualified production which involve 82 lead actors . 83 (g) "Production" means a theatrical, e-r- direct-.to-video, 84 or direct-to-Internet motion picture; a made-for-television 85 motion picture; visual effects or digital animation sequences 86 produced in conjunction with a motion picture; a commercial; a 87' music video; an industrial or educational film; an infomercial; 88 a documentary film; a television pilot program; a presentation 89 for a television pilot program; a television series, including, 90 but not limited to, a drama, a reality show,. a .comedy, a soap 91 opera, a telenovela, a game show, an awards show, or a 92 miniseries production; or a digital media project by the 93 entertainment industry. One season of a television series is 94 considered one production. The term does not include a weather 95 or market program.; a sporting event or a sporting event 96 broadcast; a. gala; a production that solicits funds; a home 97 shopping program; apolitical program; a political documentary; 98 political advertising; a gambling-related project'- or production; 99 a concert production; a local, regional, or Internet 100 distributed-only news show or current-events show; a sports news 101 or sports recap show; a pornographic production; or any 102 production deemed obscene under chapter 847 . A production may be 103 produced on or by film, tape, or otherwise by means of a motion 104 picture camera; electronic camera or device; tape device; Page 4 of 32 CODING: Words StFiG4en are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB 983 2014 105 computer; any combination of the foregoing; or any other means, 106 method, or 'device. 107 (h) "Production expenditures" means the costs of tangible 108 and intangible property used for, and services performed 109 primarily and customarily in, production, including 110 preproduction and postproduction, but excluding costs for 111 development, marketing, and distribution. The. term includes, but 112 is not limited to: 113 1 . Wages., salaries, or other compensation paid to legal 114 residents of this state, including amounts paid through payroll 115 service companies, for technical and production crews,, 116 directors, producers, and performers . 117 2 . Net expenditures for sound stages, backlots, production 118 editing, digital effects, sound recordings, sets, and set 119 construction. 120 3 . Net expenditures for rental equipment, including, but 121 not limited .to, cameras and grip or electrical equipment . 122 4 . Up to $300, 000 of the costs of newly purchased computer 123 software and hardware unique to the project, including servers, 124 data processing, and visualization technologies, which are 125 located in and used exclusively in the state for the production 126 of digital media. 127 S . Expenditures for meals, travel, and accommodations . For 128 purposes of this paragraph, the term "net expenditures" means 129 the actual amo.unt ' of money a qualified production spent for 130 equipment or other tangible personal property, 'after subtracting Page 5 of 32 CODING: Words&ieken are deletions; words underlined are additions. h b0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 131 any consideration received for reselling or transferring the 132 item after the qualified production, ends, if applicable. 133 (i) "Qualified expenditures" means production expenditures 134 incurred in. this state by a qualified production for: 135 1 . Goods purchased or leased from, or .services, including, 136 but not limited to, insurance costs and bonding, payroll 137 services, and legal fees, which are provided by, a vendor or' 138 supplier in this state that is registered with the Department of 139 State or the Department of Revenue, has a physical location in 140 this state, and employs one or more legal residents of this 141 state. This does not include rebilled goods or services provided 142 by an in-state company from out-of-state vendors or suppliers . 143 When services provided by the vendor or supplier include. 144 personal services or labor, only personal services or labor 145 provided by residents of this state, evidenced by the required 146 documentation of residency in this state, qualify. 147 2 . Payments to legal residents of this state in the form 148 of salary, wages, or other compensation up to a maximum 'of 149 $400, 000 per -,resident unless otherwise specified in subsection 150 (4) . A completed declaration of residency in this state must 151 accompany the documentation submitted to the office for 152 reimbursement . 153 154 For a qualified production involving an event, .such as an awards 155 show, the term does not include expenditures solely associated 156 with the event. itself and not directly required by the Page 6 of 32 CODING: Words Gtkken are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R. E S E N T A T I V E S HB 983 2014 157 production. The term does not include expenditures incurred 158 before certification, with the exception of those incurred for a 159 commercial, a music video, or the pickup of additional episodes 160 of a high-impact television series within a single season. Under 161 no circumstances may the qualified production include in the 162 calculation for qualified expenditures the original purchase 163 price for equipment or other tangible property that is later 164 sold or transferred by the qualified production for 165 consideration. In such cases, the qualified expenditure is the 166 net of the .original purchase price minus the consideration 167 received upon sale or transfer. 168 (j ) "Qualified production" means a production in this 169 state meeting the requirements of this section. The term does 170 not include. a .production: 171 1 . In which, feL--the fir-sic ; yeaic-s ef mil^ ineen4 .' .. 172 pe r m, less }Ian 50 perreent, and thereafter, less than 70 -&G 173 percent,— of the positions that make up its production cast and 174 below-the-line production crew, or, in the case of digital media 175 projects, less than 80 44 percent of such positions, are filled 176 by legal residents of this state, whose residency- is :. 177 demonstrated b.y a valid Florida driver elLciveLcL-& license or other 178 state-issued 'identification confirming residency, or students 179 enrolled full-time in a film-and-entertainment-related course of 180 study at an institution of higher education in this state; or 181 2 . That . contains. obscene content as defined in s . 182 847 . 001 (10) . Page 7 of 32 CODING: Words s#i6kee are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R E S' E N T A T I V E S H B 983 2014 183 (k) ."Qualified production company" means a corporation, 184 limited liability company, partnership; or .other legal entity 185 engaged in one or more productions in this state. 186 (1) "Qualified digital media production facility" means a 187 building or- series of buildings and their improvements in which 188 data processing, visualization, and sound synchronization 189 technologies are regularly applied for the production of 190 qualified digital media projects or the digital animation 191 components of qualified productions . 192 (m) "Qualified production facility" means a .building or 193 complex of buildings and their improvements and associated 194 backlot facilities. in which regular filming activity for film or 195 television has occurred for a period of no less than 1 year and 196 which contain at least one sound stage of at least .7,-800 square 197 feet. 198 11 (� r� r-��-i e" E e-�r�s the v.-�tl � J �Te 199 peril t o o f r to the i ...t o f this The L..J VL.!U1U V 1 V11 V 1 U 1 l.y l '� state. e 200 given fisea year- 201 ,+-e by the 9 f f i ee o f F � J V L.l 1 L.J V L.J l..l 1 lA V 1 V 1 1 L C.l l,.1 V l..i U l 1.l..l � ��1FT 202 and En:6er� �i nF. en . e- the latest e f f i - l e t t s f and 1 L.l L 1 1 l..L.1 1.GL 1 1 11 Rent 1.1 1 L l.T ACT 203 pepu l ,lt i en eeictifire i deiF . 1 86. 90 y b the f } 204 day ef that fi sea,! ,Te 205 Te-,`,— ;gigiena.1 tai caree i t }i e" e r-atle the 206 t o o f ,i- le ti, is the f i- e r e ,a te 207 p:Eed et i en^ in a iaeg±en to e to plus the tax e y e t e t f .l 208 , Lc.egien and Page 8 of 32 CODING: Words StF'GkeFi are deletions; words underlined are additions. h b0983-00 F L O R I D A.- H. O U S E O F R E P R E S E N T A T I V E S H B 983 2014 209 210 in he sta e to ate plus all tax ,.red; is 211 awarded—, . �e EeEi et en eiarrent c ; n the state. The iceg en , t- cs g 212 err,-a; t r-a t i e a p plieabT y^ 6 t f F f La o g l e PRT t a i E 213 erect �- Eat ea eu -,te`-., by the G f f ` e e Film Enteic l-nffiE_tr v1v 214 d s ing eEedit-awaEd and eeEtlfleatiQ�e 215 #heft,t EA',Llief that f i se:i yeaL. 216 (n)4 -} "Underused county nnele-Tut i 1 i-zcdreg- l for a given 217 state fiscal year means a county in this state other than Miami- 218 Dade, Broward, and Orange Counties .-eg±en With a- reg; en a l t 219 er d t icati o aY, i ; b,mote that f1seal year that is , e, „r than 220 i#s r -i- r- �pepulatier r t; ..--ra pp l i e ra b e t e that f; s„-s, r -r- Tr— 221 The fellewing regiens aEe—est b i he fer prLcpuse^ e f m ,,Eig 222 his `iete,Em; n t1en 223 , 224 BL U„t f e1A, ru i he ,n, r, , ', Ge, , mb ; ,, Dixie, n ,, / S mbla, 225 Fr ,� n , , n, z Gadsden, �-; , ..hr st/ LT, , L T 226 r /. r r 'r n „d; n r r r 227 G ka 1 e e S,5A' ffi, , St . 4ehns, Suwannee, TayleLn, 228 . 229 2 . Gen4�i�a1 -East Reg ' e f Br r,a Fla , e 2304; n; t,..r Lake, nkeeehehee Gr ,n ,. ..,..., Sefflinele, St. 231 T , ;-1,r a nd Welus; Ge nt; -- . 232 3 . rentr l West Regien, eensisting e f ; t / Her-nande 233 H l sbeL-e g h, Manatee,, M r n, n e17E/ n n / Pinellas, 234 anr, Sumter Geuntie-s-.- Page 9 of 32 CODING: Words StF'G4ee are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB 983 2014 236 DeSete I en U"afdee He nd,,•., Highlands, -„nd Lee reu""'tles. 237 5 .Se utheast D ' ef Brew ,a/ nn t; ,n/ Miaffii - 238 Dade, Me -ee and Palffi Be ti, rep t 239 (o)+ef-� , : ".Interactive website" means a website or group of 240 websites that includes interactive and downloadable content/— and 241 creates 25 new Florida full-time equivalent po.sitions. operating 242 from a principal place of business located within Florida. An 243 interactive website or group of websites must provide 244 documentation that those jobs were created to the Office of Film 245 and Entertainment before piaieic the award of tax credits . Each 246 subsequent program application must provide proof that 25 247 Florida full-time equivalent positions are maintained. 248 (2) CREATION AND' PURPOSE OF PROGRAM.—The entertainment 249 industry financial incentive program is created within the 250 Office of Film and- Entertainment . The purpose of this program is 251 to encourage the use of this state as a site for entertainment 252 production and film ing, fer- the digital production of films,— and 253 to develop and sustain the workforce and infrastructure for 254 film, digital media,. and entertainment production. 255 (3) APPLICATION PROCEDURE; APPROVAL PROCESS.- 256 (a) Program application.—A qualified production- company 257 producing a qualified production in this state may submit a 258 program application to. the Office of Film and Entertainment for 259 the purpose of determining qualification for .an award of tax 260 credits authorized by this section no earlier than 150 4-&G days Page 10 of 32 CODING: Words Stkken are deletions; words underlined are additions. hb0983-00 F L O R I D A: H O U S E O F R E P R E S E N T A T I V E S HB 983 2014 261 before the first day of principal photography or project start 262 date in this state. The applicant shall provide the Office of 263 Film and Entertainment with information required to determine 264 whether ' the. production is a qualified production and to_ 265 . determine the qualified expenditures and other information 266 necessary for the office to determine eligibility for the tax 267 credit . 268 (b) Required documentation.—The Office of Film and 269 Entertainment shall develop an application form for qualifying 270 an applicant as a qualified production. The form must include, 271 but need not be limited to, production-related information 272 concerning employment of residents in this state, a detailed 273 budget of planned qualified expenditures, a budget of planned 274 nonqualified expenditures to be incurred in this state, proof of 275 financing for. the .production, and the applicant ' s signed 276 affirmation that the information on the form has been verified 277 and is correct . The Office of Film and Entertainment and local 278 film commissions shall distribute the form. 279 (c) Application process .—The Office of Film and 280 Entertainment shall establish a process by which an application 281 is accepted and reviewed and by which tax credit eligibility and 282 award amount are determined. The Office of Film and 283 Entertainment may request assistance from a duly appointed local 284 film commission in determining compliance with this. section. A 285 certified high-impact television series may submit an initial 286 application- for no -more than two successive seasons, Page 11 of 32 . CODING: Words s#Fisken are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 287 notwithstanding the fact that the successive seasons have not 288 been ordered. . The .successive season ' s qualified expenditure 289 amounts shall be based on the current season' s estimated 290 qualified expenditures . Upon the completion of production of 291 each season, a high-impact television series may submit an 292 application.. for no more than one additional season. 293 1 . If, during a fiscal year, the total amount of credits 294 applied for exceeds the amount of credits available for 295 certification in that fiscal year, applications will be assigned 296 queue numbers on a first-come, first-served basis, determined by 297 the date and time the applications were received by the Office 298 of Film and Entertainment, and shall be placed on a wait. list . 299 On July l of. each year, all applications remaining on the wait 300 list shall be void, except for applications submitted in the 301 previous fiscal year by high-impact television series and high- 302 impact digital media projects, which shall be carried forward 303 into the new fiscal year. The Office of Film and Entertainment 304 and the department may, at their discretion, close the 305 application process for a current fiscal year' s tax credit 306 allocation when the cumulative amount of credits applied for, 307 but not certified,, exceeds 125 percent of the total amount of 308 credits authorized in the current fiscal year. 309 2 . Notwithstanding any provision to the contrary, . the 310 Office of Film and Entertainment shall accept, on a rolling 311 basis, applications from qualified production companies for 312 high-impact television series created to run for multiple Page 12 of 32 CODING: Words.stk.ken are deletions;.words underlined are additions. h b0983-00 F L O R I D A . H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 313 seasons and high-impact digital media projects created to be 314 produced for multiple generations . The Office. of Film and 315 Entertainment shall accept an application for any season or 316 generation . and, simultaneously, for one successive season of a 317 high-impact television series created to run multiple seasons or 318 one successive generation of a high-impact digital media project 319 created to be produced for multiple generations . .Thereafter, the 320 Office of Film and Entertainment shall accept an application for 321 each additional season or generation up to l year in advance of 322 the first day of principal photography or the project .start date 323 in this state regardless of whether the additional season or 324 generation has been ordered. The qualified expenditure amounts 325 for a successive season or generation shall .be .based on the 326 estimated qualified expenditures of the current season or 327 generation. 328 (d) .Certification.—The Office of Film and Entertainment 329 shall review the application within 15 'business days after 330 receipt. Upon its determination that the application contains 331 all the information. required by this subsection and meets the 332 criteria set out in -this section, the Office of Film and 333 Entertainment shall qualify the applicant and recommend to the 334 department that the applicant be certified for the maximum tax 335 credit award amount: Within 5 business days after receipt of the 336 recommendation, the department shall reject the recommendation 337 or certify the maximum recommended tax credit award, if any, to 338 the applicant and to the executive director of the Department of Page 13 of 32 CODING: Words s#kken are deletions; words underlined are additions. hb0983-00 F L O R I D A` H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 339 Revenue. 340 1 . If tax credits are no longer available for 341 certification ' in any fiscal year during which the Office of Film 342 and Entertainment receives an application that meets the 343 requirements of this section for a season of a high-impact 344 television series created to run multiple seasons or a 345 generation :of a high-impact digital media project created to be 346 produced for multiple generations, simultaneous with a 347 successive season or generation, the Office of Film and 348 Entertainment .shall recommend the project and the department 349 shall certify '.the project using tax credits from the next fiscal 350 year in which tax credits are allocated and available to be 351 certified. For each additional season of a high-impact 352 television series created to run multiple seasons or each 353 additional generation of a high-impact digital media project 354 created to be produced for multiple generations, the Office of 355 Film -and-Entertainment shall recommend the project and the 356 department :_shall certify the project using tax credits from the 357 fiscal year in which the first day of principal. hotography or 358 the project start date in this state occurs; however, if tax 359 credits are not available in such fiscal year, the department 360 shall certify the project using tax credits from the next fiscal 361 year in which tax credits are allocated and available to be 362 certified. The department shall certify such productions 363 regardless of whether the first day of principal photography or 364 the project start date in this state occurs before the fiscal Page 14 of 32 CODING: Words&tfmGkeFi are deletions; words underlined are additions. h b0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 365 year from which the tax credits are allocated. 366 2 . Once a production has received a letter of 367 certification and signified that the project will '-be produced in 368 Florida, the production must provide information to be posted on 369 the department' s website that includes, but is not limited to, 370 the type of' production, the project start date of the 371 production, and the county or counties in which the .project 372 plans to base its production. The production must also provide 373 an email ..ad.dr,ess to -be posted on the department ' s website for 374 the purpose of receiving resumes and business information from 375 prospective cast, crew, vendors, contractors, and other 376 interested persons . . 377 (ej Grounds for denial.–The Office of Film and 378 Entertainment shall deny an application if it- determines that 379 the application is not complete or the production. or .application 380 does not meet the requirements of this section. Wi:hin 99 d 381 Tf:�cr .a pEeEjr _.. ,appl ; eati e eme p4- w4:th icespeet tp 382 apple-ti-e r s ±R the ire rEi e n t—and ��-rF EJ±g R9eeli a. Ef id e de, 383 e6u ; ; e ffi„;t prreviEie prnnf of pr ej e: f; naneei ff te ' the G Tle y i 384 f F- , r� ^�� ;; fly-r-rrirr-�rzT�r�zzti '.,I�L$I��$theia6�l ;re the p=�=t is .l eeffieEi 385 .l^r; ^e' ,nom ; thdi-,wn. A project that has been denied witheIrrawn 386 may submit a new application upon providing the Office, of Film 387 and Entertainment proof that the project meets the requirements 388 of this section of f inaneinEj 389 (f) Change in circumstances of certified production.- 390 1 . A certified production must notify the Office of. Film Page 15 of 32 CODING: Words are deletions; words underlined are additions. hb0983-00 F L O R I D A . . H' O. U S E O F R E P R E S E N T A T I V E S HB 983 2014 391 and Entertainment within 5 days after any break -in production, 392 loss of financing, change in production schedule, or..any other 393 change in circumstances affecting the timely completion of the 394 certified production'. 395 2 . The Office of Film and Entertainment may deem the 396 certification for tax credits for any certified production that 397 is required to notify the office under subparagraph 1 . for any 398 reason except loss of financing denied and may consider the 399 certified production' s original application withdrawn., subject 400 to adjustments for partial production completion as provided in 401 subparagraph 4 . 402 3 . The Office of Film and Entertainment must deem the 403 certification for tax credits for any certified production that 404 is required to notify the office under subparagraph 1 . for loss 405 of financing denied and must consider the certified production' s 406 original application withdrawn, subject to adjustments for 407 partial production completion as provided in subparagraph 4 . A 408 certified production that loses financing may submit proof of 409 replacement financing within 10 days after the denial of a tax 410 credit certification under this subparagraph. The Office of Film 411 and Entertainment may verify the replacement financing, and 412 reinstate the original certification for tax credits . 413 4 . -A :certified production that has a certification for tax 414 credits denied pursuant to subparagraph 2 . or subparagraph 3 . 415 may submit any actual qualified expenditures incurred before any 416 such denial .to the .Office of Film and Entertainment for Page 16 of 32 CODING: Words Stkken are deletions; words underlined are'additions. h b0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB 983 2014 417 verification as provided under paragraph (g) . If the Office of 418 Film and Entertainment determines that the production meets the 419 minimum requirements of this section, the office may verify the 420 actual qualified expenditures and approve an adjusted tax credit 421 award. 422 (g)+} ' Verification of actual qualified expenditures .—A 423 certified production is not entitled to a final tax credit award 424 under this section unless the certified production's actual 425 qualified expenditures are verified by the Office of Film and 426 Entertainment and approved by the department . 427 1 . The Office of Film and Entertainment shall develop a 428 process to verify the actual qualified expenditures of a 429 certified production. The process must require: 430 a. A certified production to submit, within 180 days in 431 ti_m__e-ly fRan; -T- after production ends in this state and. after 432 making all of its qualified expenditures in this state, data 433 substantiating each qualified expenditure, including 434 documentation on the net expenditure on equipment, and other 435 tangible personal property by the qualified production, to an 436 independent certified public accountant licensed in this state; 437 b. ' ' Such .accountant to conduct a compliance audit, at the 438 certified production' s expense, to substantiate each qualified 439 expenditure and submit the results as a report, along with the 440 required substantiating data, to the Office of Film and 441 Entertainment; and 442 c. The Office of Film and Entertainment to review the Page 17 of 32 CODING: Words OF'oken are deletions;words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 443 accountant ' s submittal. and report to the department the final 444 verified amount of actual qualified expenditur.es 'made. by the 445 certified production. 446 2 . The .department shall determine and approve the final 447 tax credit award amount to each certified applicant based on the 448 final verified amount of actual qualified expenditures and shall 449 notify the executive director of the Department of Revenue in 450 writing that the certified production has met the requirements 451 of the incentive program and of the final amount of the tax 452 credit award. The final tax credit award amount may. not exceed 453 the maximum tax. credit award amount certified under paragraph 454 (d) . 455 (h)+e+ Promoting Florida.—The Office of Film and 456 Entertainment shall ensure that, as a condition of receiving a 457 tax credit under this section, marketing materials promoting 458 this state :as a tourist destination or film and entertainment 459 production destination are included, when appropriate, at no 460 cost to the state, which must, at a minimum, include placement 461 of a "Filmed in Florida" or "Produced in Florida" logo in the 462 end credits . - The placement of a "Filmed in Florida" or "Produced 463 in Florida" logo on all packaging material and hard media is 464 also required, unless such placement is prohibited by licensing 465 or other. co_ntractual obligations . The size and placement of such 466 logo shall be commensurate to other logos used. . If no logos are 467 used, the statement "Filmed in Florida using Florida' s 468 Entertainment Industry Financial Incentive, " or a similar Page 18 of 32 CODING: Words StF'Gkee are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R E .S E N T A T I V E S H B 983 2014 469 statement approved by the Office of Film and Entertainment, 470 shall be used. The' -Office of Film and Entertainment shall 471 provide a logo and supply it for the purposes specified in this 472 paragraph. A 30-second "Visit Florida" promotional video must 473 also be included on all optical disc formats of a film, unless 474 such placement is prohibited by licensing or other contractual 475 obligations . The 30-second promotional video shall be approved 476 and provided by the Florida Tourism Industry Marketing 477 Corporation in consultation with the Commissioner of Film and 478 Entertainment 479 (4) TAX CREDIT ELIGIBILITY; TAX CREDIT AWARDS; QUEUES; 480 ELECTION AND DISTRIBUTION; CARRYFORWARD;. CONSOLIDATED RETURNS; 481 PARTNERSHIP AND NONCORPORATE DISTRIBUTIONS; MERGERS AND 482 ACQUISITIONS .- 483 (a) Priority for tax credit award.—The overall priority of 484 a qualified production for tax credit awards shall ffids*=- be 485 determined as . follows : 486 1 . . Fitst priority shall be given to high-impact television 487 series created to run for multiple seasons and 'hi h-impact 488 digital media projects created to be produced for. multip.le 489 generations as applied under subparagraph (3) (c) 2 . 490 2 . Second priority shall be given to all other high-impact 491 television series and high-impact digital media projects that 492 were assigned queue numbers under subparagraph -(3) (c) l . in the 493 previous fiscal year. 494 3 . Third priority shall be given to all other productions Page 19 of 32 CODING: Words&4en are deletions; words underlined are additions. h b0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB 983 2014 495 for which tax credits were applied under this section on a 496 first-come, first-served basis within apprcpri ,ate—que'de , 497 498 Each qualified production must be placed into the appropriate 499 queue and. i:s subject to .the requirements of that queue and this 500 section. 501 (b) Tax credit eligibility.- 502 l . a. General production queue.—Ninety-four percent of tax 503 credits authorized pursuant to subsection (6) in any state 504 fiscal year must be dedicated to the general production .queue. 505 The general production queue consists of all qualified 506 productions other than those eligible for the commercial and 507 music video queue or the independent and emerging media 508 production queue. A qualified production that meets the 509 following criteria eleffte s4 ra}es a fftinifftufft of $-625-, 00—in 510 Ef'da1ifie ^_ p e a te is eligible for tax credits equal to 20 511 percent of its actual qualified expenditures, up to a maximum of 512 $8 million, if it : 513 (I) Demonstrates a minimum of $625, 000 in qualified 514 expenditures 515 (II) Complies with the hiring requirements in subparagraph 516 (1) (j ) 1 . 517 (III) Submits the documentation and proof of financing 518 required under paragraph (3) (b) . 519 (IV) Satisfies all the other requirements of this section. 520 Page 20 of 32 CODING: Words are deletions; words underlined are additions. h b0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S HB 983 2014 521 A qualified production that incurs qualified expenditures during 522 multiple state fiscal years may combine those expenditures to 523 satisfy. the $:6251000 minimum threshold. 524 than 45 pEiY'eeT ATth-e s .rrrr-o- tetal tati-cr�..�..a�i t.�S 525 initially„ eert; f; e "+n -��_i'�r,a,„d -�fter Tpr; l 1 291 7 }et +1 t"Yil V V 1 L , �,, 526 r,re ; is 4:niti al _ly eeiFtified after ;;pEll 1, 29120, b,,t netyet- 527 awaEded, 528 Apr4:1 if 2012f ]gut yep- eert; f; ed has 19„er r, Edell feE ; n 529 i m��c t t-�1 �7 i ;i �� se rTe ,i then n n ate;g,-i mr a et l .r� ,�e ± s 530 Is --- -- fer t___ credits under this . u_.,paLcagicaph. Taii 1 V t.{1 V U high-4:Fftpaet leviT s'l i re_.7 after 532 pic 1 2912, m y e be w relee if the award will. ,, � he / / iii' t.�r �-iii.. 533 p rfientage threshold in this sUA-1 Sld,paic gr-gyp to be e<Eeeed ee�—. 534 535 e e r t i f i ed be f e ice A p Lc i 1 2012, fflric hi(glct televi S_i-6�� 536 e-�— 537 b. The . , first priority in 538 the queue for .. credit awards not yet certified shall be given 539 to high-impact television series and high-impact digital media 540 projects . For the purposes of determining priority between a 541 high-impact television series and a high-impact digital media 542 project, th.e first -position must go to the first application 543 received. Thereafter, priority shall be determined by 544 alternating between a high-impact television series ..and a high- 545 impact digital media project on a first-come, first-served 546 basis . However, if the Office of Film and Entertainment receives Page 21 of 32 CODING: Words s#FiGken are deletions; words underlined are additions. h b0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 547 an application for a high-impact television series or high- 548 impact digital media project that would be certified but for the 549 alternating priority, the office may certify the project as 550 being in the priority position if an application that would 551 normally be the priority position is not received within 5 552 business days . 553 C. A qualified production in the general production queue 554 may receive a maximum of one of the additional tax credits 555 provided under this sub-subparagraph. However, a qualified 556 production in the general production queue may. not receive a tax 557 credit under this sub-subparagraph that, when combined with all 558 tax credits, received by the production under this section, would 559 equal more than 30 'percent of its actual qualified expenses . 560 (I) An off-season certified production'.that is a feature 561 film, independent film, or television series or pilot is. 562 eligible for an additional 5 percent tax credit on actual 563 qualified. expenditures . An off-season certified production that 564 does not complete 75 percent of principal photography or 98 of 565 total production days, whichever is less, due to a disruption 566 caused by a hurricane or tropical storm may not be disqualified 567 from eligibility for the additional 5 percent credit as a result 568 of the disruption. 569 (II) A qualified production for which at least 5.0 -64 570 percent of its principal photography days occur within a county 571 rr n designated as an underused county �-e-ruti 1i;ed Lcegi at 572 the time that the production is certified is eligible. for an Page 22 of 32 CODING: Words stFiGkO F are deletions; words underlined are additions. hb0983-00 F L O R I D A. 'H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 573 additional 10-percent 5 peine tax credit on actual qualified 574 expenditures . 575 (III) A qualified production that employs students 576 enrolled full-.time in a film and entertainment-related or 577 digital media-related course of study at an institution of 578 higher education in this state is eligible for an additional 15- 579 percent 15 pe tax credit on qualified expenditures that are 580 wages, salarie-s, or other compensation paid to such students . 581 The additional 15-percent 15 pe-reenl=- tax credit is also 582 applicable to persons hired within 12 months after graduating 583 from a film and entertainment-related or digital media-related 584 course of' study at an institution of higher education in this 585 state. The additional 15-percent 15 pereent tax credit applies 586 to qualified expenditures that are wages, salaries, or other 587 compensation -.paid -.to such recent graduates for 1 year after the 588 date of hiring. 589 (IV)-f--. A qualified production for which 50 percent or more 590 of its principal photography occurs at a qualified production 591 facility, or a qualified digital media project or the digital 592 animation component of' a qualified production for which 50 593 percent or more of the project ' s or component ' s qualified 594 expenditures are related to a qualified digital media production 595 facility,.. s eligible for an additional 5-percent 9 pe_r��} tax 596 credit on actual qualified expenditures for production activity 597 at that facility. 598 d. A qualified production is eligible for an additional Page 23 of 32 CODING: Words Stkken are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 599 10-percent tax credit on actual qualified -expenditures if the 600 production earns a -total of at least five points by successfully 601 completing two or more of the promotional activities under this 602 sub-subparagraph. A qualified production that receives. an 603 additional tax credit under this sub-subparagraph must reapply 604 for the . additional tax credit for each successive season. A 605 qualified production may receive: 606 (I) Two points for creating a "behind-the-scenes" video 607 focused on properties used in the making of the project that are 608 located in ..this state and open to the public. The video must 609 include commentary explaining why the locations were chosen and 610 a discussion about the positive elements of producing' a project 611 in this state. The video must be at least 5 minutes in length, 612 must be .included in all optical disk formats and downloads, and 613 must be provided to the Office of Film and Entertainment for 614 promotional purposes . A qualified production must provide proof 615 of inclusion .i.n all optical disk formats and downloads before 616 receiving credit for two points under this sub-sub-subparagraph. 617 (II) Two points for creating a promotional video of at 618 least 30 seconds in length that references VISIT Florida or that 619 discusses places to visit in this state and reasons therefor. 620 The three top-billed actors involved with the project must 621 participate in the promotional video and must have' spe.aking 622 roles . 623 (ILL) : Two points for conducting at least 7 days of first- 624 unit photography in an underused county. Page 24 of 32 CODING: Words Gtk.ken are deletions; words underlined are additions. h b0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 625 (IV) - :One. point for conducting one or more consumer-based 626 contests in conjunction with the Office of -Film and 627 Entertainment on .visitflorida. com or filminflorida. com that 628 offer prizes, ,such -as a set tour or a role as an extra. 629 (V) Three points for the placement of the Film in Florida 630 logo in the production' s opening titles . 631 (VI) One point for including the VISIT Florida logo in at 632 least one, scene of the production. 633 (VII) One point for providing a minimum of ten pieces of 634 promotional merchandise autographed by top-billed - actors to be 635 used in contests or giveaways . 636 (VIII) Three points for holding the world premiere 637 screening of the production in the county in this state in which 638 it was produced. At least two above-the-line actors and one 639 above-the line project executive must attend the premiere and 640 participate in a press conference with the Governor, local 641 officials, or a state legislator. 642 e. A digital media project that is a qualified production 643 is eligible for. an additional 10-percent tax credit on actual 644 qualified expenditures if the project earns a total of at least 645 five points by successfully completing two or more of the 646 promotional activities under this sub-subparagraph. A digital 647 media project that is a qualified production may receive: 648 (I) ' Two points for creating a "behind-the-scenes" video 649 focused on the making of the digital media project in this state 650 that includes commentary discussing the positive elements of Page 25 of 32 CODING: Words StF'GEeF are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 651 producing a digital media project in this state. The video must 652 be accessible through the production company' s website and must 653 be provided to Enterprise Florida, Inc. , for promotional 654 purposes . 655 (II) Two points for creating a promotional video of- at 656 least 30 seconds in. length that references the benefits of 657 producing-a a. digital media project in this state. At least three 658 members of the project team must participate as spokespersons in 659 the promotional video. 660 (III) One point for conducting one or more consumer-based 661 contests- in conjunction with the Office of Film and 662 Entertainment on visitflorida. com or filminflorid'a. com that 663 offer opportunities to visit one or more of the sites in this 664 state where digital media projects are created. 665 (IV) Three points for the placement of a department logo 666 within the digital media project or in a digital advertisement 667 promoting the digital media project . 668 (V) One point for the placement of the VISIT Florida logo 669 within the digital media project or in a digital advertisement 670 promoting the digital media project. 671 (VI) One. point for providing a minimum of ten pieces of 672 promotional' merchandise to be used in contests or giveaways . 673 (VII) Three points for hosting a preview :event for the 674 digital media project in the area in this state _where. the 675 project was produced. At least two senior project managers must 676 attend the preview event and participate in a press conference Page 26 of 32 CODING: Words Stkken are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R E S. E- , W T A T I V E S H B 983 2014 677 with the Governor, local officials, or a state legislator. 678 f. A certified theatrical or direct-to-video motion 679 picture production or video game determined by the Commissioner 680 of Film and Entertainment, with the advice of the Florida Film 681 and Entertainment .Advisory Council, to be family-friendly, based 682 on review of the script and review of the final. release version, 683 is eligible for an additional tax credit equal to 5 percent of 684 its actual qualified expenditures . A production may be 685 considered family-friendly if it has cross-generational appeal; 686 would be considered suitable for viewing by children age 5 or 687 older; is appropriate in theme, content, and language for a 688 broad family audience; portrays a responsible resolution of 689 issues; and- do-es not exhibit or imply an act of smoking, sex, 690 nudity, or vulgar or profane language. 691 g. A qualified prndue: inn ; net e1l(�; l9l e fer 4 a.x eicedits 692 Lid e el Zi7Tdc�-4�hT, paL-a'r a p 1i Fft aTet�1 n 30 peL-eent o f 693 i:lcs aetual -qual4fied expenses . 694 2 . Commercial and music video queue.—Three percent of tax 695 credits authorized pursuant to subsection (6) in 'any state 696 fiscal year .must be dedicated to the commercial and music video 697 queue. A qualified production company that produces national or 698 regional commercials or music videos that meet- the following 699 criteria is eligible for tax credits equal to 20 percent of its 700 actual qualified expenditures, up to a maximum moray be igible 701 fnr a tax eL-e l; t ajiaiEi if IBClef e 4ELc-,t n Fft±n±ft{sir-ve 1 nn' nnn 702 1 n qua 1 i f 1\..... V L1 N\.111.A 1 l�l.A L 1.J 1✓`.L SZ-Q-I..L�C-J'1 1 1 Page 27 of 32 CODING: Words sirinkee are deletions; words underlined are additions. hb0983-00 F L O R I D A . ' H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 703 — e T—ee a nd eiieeeds a eoffibiped held. of $500, 000 if it : 704 a. Demonstrates a minimum of $100, 000 in qualified 705 expenditures per national or regional commercial or music video 706 and exceeds a combined threshold of $500, 000 after combining 707 actual qualified expenditures from qualified commercials and 708 music videos during a single state fiscal year. 709 b. Meets the -hiring requirements in subparagraph (1) (j ) 1 . 710 C. Satisfies all other requirements in this section afteiF 711 eefftbiningaetual firuallfle6 e1Epen6 i tt3 res f rem fir;' , _f_eE 712 e.7 el a l s anel. mu-s Tg i f deer E'.,'.-I 'rte le C,'� .. t-,t`-, fi srr-1 year-. Af.....r a qualifi`.0 .r,iv..,.u`.ti.,.a eefapany GT'ILT�SredideCs eeffffnerelals, 714 mom,-±e �7r4:Eie s eic bet beth re aehes he thineshel d e f $509, 900, t is 715 eligible to apply fer eertifieatlen f r taiE r d t w- rte The 716 ere i t awaEd shall be equal to 29 eiF ent of its t -,l qua 1 1 1 1 l..LA C..c _ X riLTC1T_1_1_ T, $509, 99&. 718 719 If there is a surplus at the end of a fiscal year after the 720 Office of Film and Entertainment certifies and determines the 721 tax credits for all qualified commercial and video projects, 722 such surplus tax credits shall be carried forward' to the 723 following fiscal year and are available to any eligible 724 qualified productions under the general production queue. 725 3 . a. Independent and emerging media production queue.- 726 Three percent of tax credits authorized pursuant to subsection 727 (6) in any state fiscal year must be dedicated to the 728 independent .'and emerging media production queue. This queue is Page 28 of 32 CODING: Words StF'GkeF are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S. E O F R E P R E S E N T. A T I V E S H B 983 2014 729 intended to encourage independent film and emerging media 730 production ,-.in this state. Any qualified production, excluding 731 commercials, infomercials, or music videos,. -that meets the 732 following criteria whieh ,a,.ffte,.,stEa4 -es at ! } $199,igoof but net 733 m .r e than $6-2r, in tetal q_ _ --__= a -errs is eligible 734 for tax credits equal to 20 percent of its actual qualified 735 expenditures if it : 736 (I) Demonstrates at least $100, 000, but not more than 737 $625, 000, in total qualified expenditures . 738 (II) Meets the hiring requirements in subparagraph 739 (1) (j ) 1 . 740 (III) Submits the documentation and proof of financing 741 required under paragraph (3) (b) . 742 (IV) Satisfies all other requirements in this section. 743 744 If a surplus exists at the end of a fiscal year after the Office 745 of Film and Entertainment certifies and determines the tax 746 credits for all qualified independent and emerging media 747 production projects, such surplus tax credits shall be carried 748 forward to .the. following fiscal year and are available to any 749 eligible qualified productions under the general production 750 queue. 751 b. A qualified production in the independent and emerging 752 media production queue may receive a maximum of one of the 753 additional :tax. credits provided under this sub-subparagraph. 754 However, a qualified production in the independent and emerging Page 29 of 32 CODING: Words s#fiQkee'are deletions; words underlined are additions. hb0983-00 i F L O R I D A . H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 755 media production queue. may not receive a tax credit under this 756 sub-subparagraph that, when combined with all tax credits 757 received by the production under this section, would equal more 758 than 30 percent of its actual qualified expenses . 759 (I) An off-season certified production that is a feature 760 film, independent film, or television series or pilot is 761 eligible for an additional 5-percent tax credit on actual 762 qualified .expenditures . An off-season certified production that 763 does not complete either 75 percent of principal photography or 764 98 total production days from June l through November' 30 due to 765 a disruption caused by a hurricane or tropical storm may not be 766 disqualified. from eligibility for the additional 5-percent 767 credit as a result of the disruption. 768 I I 4 . Fami 1 y-f ; , redly picedi :�; .. ( ) 1 ______� 1 r_ .—A certified theatrical 769 or direct=to-video motion picture production or video game 770 determined by the Commissioner of Film and Entertainment, with 771 the advice of the Florida Film and Entertainment Advisory 772 Council, to be family-friendly, based on review of the script 773 and review of., the final release version, is eligible for an 774 additional tax credit equal to 5 percent of its actual qualified 775 expenditures . A production may be considered family-friendly if 776 it has piceel ,,-t ens aLce then tha*=- ha:v es cross-generational 777 appeal; would` be considered suitable for viewing by children age 778 5 or older; is aEe appropriate in theme, content, .- and language 779 for a broad family audience; portrays eery a responsible 780 resolution of issues; and does cue not exhibit or imply an afi-y Page 30 of 32 CODING: Words stFiGkee are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 781 act of smoking, sex, nudity, or vulgar or profane language. 782 (7) ANNUAL .ALLOCATION OF TAX CREDITS .- 783 (a) The aggregate amount of the tax credits that may be 784 certified pursuant to paragraph (3) (d) may not exceed: 785 1 . For fiscal year 2010-2011, $53 . 5 million. 786 2 . For fiscal -year 2011-2012, $74 . 5 million. 787 3 . For fiscal years 2012-2013 and,- 2013-2014, 2014-2015), 788 and 2915-2016-F $42 million per fiscal year. 789 4 . For fiscal years 2014-2015, 2015-2016, 2016-2017, 2017- 790 2018, 2018-2019, and 2019-2020, $200 million per fiscal year. 791 (c) Upon approval of the final tax credit. award amount 792 pursuant to subparagraph (3) (g) 2 . `�_,'-,-�,-�,. an amount- equal to 793 the difference between the maximum tax credit award amount 794 previously certified under paragraph (3) (d) and the approved 795 final tax credit award amount shall immediately be available for 796 recertification during the current and following -fiscal years in 797 addition to the amounts available for certification under 798 paragraph (a) ..f or those fiscal years . 799 (11) REPEAL.-This section is repealed July 1, 2020 2916, 800 except that: 801 (a) Tax,-.credits certified under paragraph (3) (d)(d) before 802 July 1, 2020 2916, ' may be awarded under paragraph (3) (g) (3) (f) 803 on or after July 1, 2020 2-816, if the other requirements of this 804 section are met . 805 (b) Tax . credits carried forward under paragraph (4) (e) 806 remain valid for the period specified. Page 31 of 32 CODING: Words StFiGkep are deletions; words underlined are additions. hb0983-00 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S H B 983 2014 807 (c) Subsections (5) , (8) , and (9) shall remain in effect 808 until July 11 2025 2 9-21-. 809 Section 2 . This act shall take effect July 1, 2014 .. Page 32 of 32 CODING: Words s 'Gken are deletions; words underlined are additions. hb0983-00