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Washington, D.C. - Congressmen David Dreier (R-San Dimas) and Howard Berman (D-Van Nuys) joined by a bipartisan group of 44 Members of the House of Representatives today re-introduced legislation that provides wage-based tax relief for film and television projects produced in the United States. The United States Independent Film and Television Act of 2003, H.R. 715, aims to create incentives to keep production projects here in the United States at a time when numerous projects are being filmed in Canada and elsewhere.
“When productions head to countries like Canada, they take American jobs with them,” said Dreier, Chairman of the House Rules Committee. “It’s the caterers, florists, retailers and truck drivers that suffer as a result of runaway production. I’m a free trader, but I believe in a level playing field. Countries like Canada are providing tax incentives that make it cheaper for productions to work north of the border. We need to be able to compete by making it just as enticing to do that work here at home.”
“The U.S. film industry is being undermined by an array of tax incentives, employee credits and loan programs offered by Canada and other countries,” said Berman. “These nations understand quite well that film productions stimulate local, regional and national economic activity like few other industries.”
“The consequence of this targeting of U.S. jobs has been devastating in California and throughout the nation,” Berman continued. “And the problem is escalating. The sound stages, editing facilities and increased experience of Canadian crews makes it easier and easier to shoot films and tv there.”
The bill, which is identical to legislation introduced last Congress, is targeted at the segment of the market most vulnerable to runaway production, small and independent film and television productions. It provides a wage-based tax credit for television and film projects produced in the United States. The amount of the wage credit, in most cases, would be 25 percent of the first $25,000 in qualified wages per employee.
Dreier and Berman praised the strong bipartisan support behind the bill. “The issue of runaway production hasn’t gone away,” Dreier said. “We need to keep raising awareness among our colleagues so that our film and television industries, and the small businesses that depend on them, can continue to thrive.”
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H.R. 715, THE UNITED STATES INDEPENDENT FILM AND
TELEVISION PRODUCTION INCENTIVE ACT OF 2003
FACT SHEET
OVERVIEW:
The bill provides a Federal income tax credit designed to address the issue of “runaway film and television production.” It would encourage film and television production in the United States and employment of U.S. small business workers on such productions.
DESCRIPTION:
The wage credit would be structured as a "general business credit" in the tax code (like other business credits), and would be a dollar-for-dollar offset against any Federal tax liability. Like other business credits, it is nonrefundable to the extent a taxpayer has no further tax liability. If the credit is not used in one year (because the taxpayer had no tax liability) it can be carried back one year or carried forward up to 20 years.
AMOUNT:
There would be two tiers of credits: (1) a credit amounting to 25% of the costs of “qualified wages and salaries” – those wages and salaries paid or incurred by an employer to “qualified employees” (members of targeted group) involved in a “qualified U.S. production” (targeted activity); (2) or a credit amounting to 35% of such costs if incurred in a “low-income community” (similar to the existing definition for the “New Markets Tax Credit”).
DOLLAR LIMIT:
The credit would only be available on the first $25,000 of qualified wages and salaries, i.e., all employeeswould qualify, but only on the first $25,000 of wages.
QUALIFIED EMPLOYEES (Targeted Group):
The credit would only apply to the wages of any employee who performs substantially all of his/her services in connection with a “qualified U. S. production.”
QUALIFIED FILM PRODUCTION IN THE U.S. (Targeted Activity):
Eligible productions would be any public entertainment or educational motion picture film (whether released theatrically or directly to video cassette or other format), television or cable programming, mini series, episodic television, movies of the week or pilots that were produced in the United States.
QUALIFYING TAXPAYERS:
The credit would be targeted to the segment of the market most impacted by “runaway production,” and therefore, has additional limits:
The credit would only be available if total “wages” (i.e., labor costs) are more than $200,000 and less than $10 million; and
The credit would not be available to a production subject to the reporting requirements of 18 USC 2257 (reporting of books, films, etc. with sexually explicit conduct).
H.R. 715, THE UNITED STATES INDEPENDENT FILM AND
TELEVISION PRODUCTION INCENTIVE ACT OF 2003
Congressional Sponsors
INTRODUCED BY:
Congressman David Dreier (R-CA),
Congressman Charles B. Rangel (D-NY)
Congressman Howard L. Berman (D-CA)
BILL INTRODUCTION:
February 12, 2003
47 ORIGINAL CO-SPONSORS:
Neil Abercrombie (D-HI)
Joe Baca (D-CA)
Xavier Becerra (D-CA)
Earl Blumenauer (D-OR)
Mary Bono (R-CA)
Madeleine Bordallo (D-Guam)
Rick Boucher (D-VA)
Ken Calvert (R-CA)
Lois Capps (D-CA)
Howard Coble (R-NC)
Mike Doyle (D-PA)
Jennifer Dunn (R-WA)
Sam Farr (D-CA)
Bob Filner (D-CA)
Mark Foley (R-FL)
Martin Frost (D-TX)
Jim Gibbons (R-NV)
Jim Greenwood (R-PA)
Jane Harman (D-CA)
Chris John (D-LA)
Nancy Johnson (R-CT)
Ric Keller, (R-FL)
Tom Lantos (D-CA)
James McGovern (D-MA)
Mike McIntyre (D-NC)
Howard “Buck” McKeon (R-CA)
Robert Matsui (D-CA)
Juanita Millender-McDonald (D-CA)
Sue Myrick (R-NC)
Jerrold Nadler (D-NY)
David E. Price (D-NC)
George Radanovich (R-CA)
Lucille Roybal-Allard (D-CA)
Adam Schiff (D-CA)
Brad Sherman (D-CA)
Louise M. Slaughter (D-NY)
Lamar Smith (R-TX)
W.J. “Billy” Tauzin (R-LA)
Mike Thompson (D-CA)
Diane Watson (D-CA)
Henry A. Waxman (D-CA)
Jerry Weller (R-IL)
Robert Wexler (D-FL)
Lynn Woolsey (D-CA) |
