Bill > H3335

This bill proposes the following key provisions: 1. It amends the existing law to provide a 25% tax credit on the total aggregate payroll paid by a motion picture, video game, or interactive digital media production company that constitutes Massachusetts source income, when total production costs incurred in the commonwealth equal or exceed $50,000 during the taxable year. 2. It provides an additional 25% tax credit on all Massachusetts production expenses, excluding payroll expenses, for motion pictures, video games, or interactive digital media that are eligible for the credit under the first provision and either have Massachusetts production expenses exceeding 50% of the total production expenses or at least 50% of the total principal photography days or production taking place in the commonwealth. 3. It offers an additional 5% tax credit on all Massachusetts production expenses for video game studios or interactive digital media studios located in gateway municipalities, up to $500,000 per year. 4. It allows the tax credits to be transferred, sold, or assigned to other taxpayers with liabilities under the state's corporate or personal income tax, with certain restrictions and conditions. 5. It creates a new tax credit system specifically for video game and interactive digital media production, including a 35% credit on eligible labor expenditures, additional workforce credits based on employment levels, and a 25% credit for eligible 2-year on-the-job training wages. 6. It includes provisions for the forfeiture and recapture of these video game and interactive digital media tax credits if the recipient discontinues operations in the commonwealth within the first 2.5 years, with some exceptions.

Budget and Finance

https://malegislature.gov/Bills/190/H3335