Bill > SB612

This bill extends the sunset date for the motion picture production tax credit, which provides financial incentives for film companies to shoot in Virginia. Currently, this tax credit is set to expire after the taxable year 2026, but this legislation pushes that expiration date back to the taxable year 2030. The tax credit, which can be a refundable credit against state income taxes, is available to motion picture production companies that incur qualifying expenses of at least $250,000 for productions filmed in the Commonwealth, with higher credit percentages offered for productions filmed in economically distressed areas. Qualifying expenses include goods and services leased or purchased in Virginia, as well as compensation and wages paid to employees, with certain limitations on high salaries. The bill also outlines additional credits for employing Virginia residents and for first-time Virginia actors or crew members, and specifies exclusions for certain types of productions like political advertising or reality television. The Virginia Economic Development Partnership Authority and the Virginia Tourism Authority play roles in designating distressed areas and establishing criteria and procedures for claiming these credits, which are subject to annual allocation limits.