Bill > SB1179

This bill renames the motion picture production tax credit to the content manufacturing tax credit and removes its sunset provision, which previously set the credit to expire after the 2026 tax year. The bill expands the tax credit by increasing the total amount of credits that can be allocated to eligible taxpayers from $6.5 million to $11.5 million beginning in fiscal year 2025 and allows any unclaimed credits to be carried over to the next fiscal year. The bill defines an "eligible project" as the production of a motion picture or episodic television series, excluding political advertising, news programs, live sporting events, obscene material, and reality TV shows. Qualifying expenses include goods and services purchased in Virginia, with specific limitations on high-value goods and individual compensation. Production companies can receive a refundable tax credit of 15% (or 20% in economically distressed areas) of qualifying expenses, with additional credits available for total production costs and first-time Virginia resident employment. To claim the credit, production companies must apply through the Virginia Tourism Authority, meet specific criteria, and provide detailed documentation about their production expenses and economic impact on the state.

Budget and Finance

https://lis.virginia.gov/bill-details/20251/SB1179