(1) In addition to the requirements for receiving a motion picture incentive as set forth in this part, the office, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall make rules establishing:

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Terms Used In Utah Code 63N-8-104

  • Commission: means the Unified Economic Opportunity Commission created in Section 63N-1a-201. See Utah Code 63N-1a-102
  • Digital media company: means a company engaged in the production of a digital media project. See Utah Code 63N-8-102
  • Digital media project: means all or part of a production of interactive entertainment or animated production that is produced for distribution in commercial or educational markets, which shall include projects intended for Internet or wireless distribution. See Utah Code 63N-8-102
  • Dollars left in the state: means expenditures made in the state for a state-approved production, including:
         (3)(a) an expenditure that is subject to:
              (3)(a)(i) a corporate franchise or income tax under Title 59, Chapter 7, Corporate Franchise and Income Taxes;
              (3)(a)(ii) an individual income tax under Title 59, Chapter 10, Individual Income Tax Act;
              (3)(a)(iii) a sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act, notwithstanding any sales and use tax exemption allowed by law; or
              (3)(a)(iv) a combination of Subsections (3)(a)(i), (ii), and (iii);
         (3)(b) payments made to a nonresident only to the extent of the income tax paid to the state on the payments, the amount of per diems paid in the state, and other direct reimbursements transacted in the state; and
         (3)(c) payments made to a payroll company or loan-out corporation that is registered to do business in the state, only to the extent of the amount of withholding under Section 59-10-402. See Utah Code 63N-8-102
  • Motion picture company: means a company engaged in the production of:
         (5)(a) motion pictures;
         (5)(b) television series; or
         (5)(c) made-for-television movies. See Utah Code 63N-8-102
  • Motion picture incentive: means either a cash rebate from the Motion Picture Incentive Account or a refundable tax credit under Section Utah Code 63N-8-102
  • New state revenue: means :
         (7)(a) incremental new state sales and use tax revenue generated as a result of a digital media project that a digital media company pays under Title 59, Chapter 12, Sales and Use Tax Act;
         (7)(b) incremental new state tax revenue that a digital media company pays as a result of a digital media project under:
              (7)(b)(i) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
              (7)(b)(ii) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information;
              (7)(b)(iii) Title 59, Chapter 10, Part 2, Trusts and Estates;
              (7)(b)(iv) Title 59, Chapter 10, Part 4, Withholding of Tax; or
              (7)(b)(v) a combination of Subsections (7)(b)(i), (ii), (iii), and (iv);
         (7)(c) incremental new state revenue generated as individual income taxes under Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, paid by employees of the new digital media project as evidenced by payroll records from the digital media company; or
         (7)(d) a combination of Subsections (7)(a), (b), and (c). See Utah Code 63N-8-102
  • Restricted account: means the Motion Picture Incentive Account created in Section 63N-8-103. See Utah Code 63N-8-102
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • State-approved production: means a production under Subsections (2) and (5) that is:
         (12)(a) approved by the office and ratified by the Board of Tourism Development created in Section 63N-7-201; and
         (12)(b) produced in the state by a motion picture company. See Utah Code 63N-8-102
     (1)(a) the standards that a motion picture company or digital media company must meet to qualify for the motion picture incentive; and
     (1)(b) criteria for determining the amount of the incentive.
(2) The office shall ensure that those standards include the following:

     (2)(a) an incentive may only be issued for a state-approved production by a motion picture company or digital media company;
     (2)(b) financing has been obtained and is in place for the production; and
     (2)(c) the economic impact of the production on the state represents new incremental economic activity in the state as opposed to existing economic activity.
(3) With respect to a digital media project, the office shall consider economic modeling, including the costs and benefits of the digital media project to state and local governments in determining the motion picture incentive amount.
(4) The office may also consider giving preference to a production that stimulates economic activity in rural areas of the state or that has Utah content, such as recognizing that the production was made in the state or uses Utah as Utah in the production.
(5)

     (5)(a) The office, with advice from the Board of Tourism Development created in Section 63N-7-201, may enter into an agreement with a motion picture company or digital media company that meets the standards established under this section and satisfies the other qualification requirements under this part.
     (5)(b) Subject to Subsection 63N-8-103(3), the office may commit or authorize a motion picture incentive:

          (5)(b)(i) to a motion picture company of up to 20% of the dollars left in the state by the motion picture company, and a motion picture company can receive an additional 5%, not to exceed 25% of the dollars left in the state by the motion picture company if the company fulfills certain requirements determined by the office including:

               (5)(b)(i)(A) employing a significant percentage of cast and crew from Utah;
               (5)(b)(i)(B) highlighting the state of Utah and the Utah Film Commission in the motion picture credits; or
               (5)(b)(i)(C) other promotion opportunities as agreed upon by the office and the motion picture company; and
          (5)(b)(ii) to a digital media company, if the incentive does not exceed 100% of the new state revenue less the considerations under Subsection (3), but not to exceed 20% of the dollars left in the state by the digital media company.
     (5)(c) The office may not give a cash rebate incentive from the Motion Picture Incentive Restricted Account for a digital media project.
(6) The office shall ensure that the agreement entered into with a motion picture company or digital media company under Subsection (5)(a):

     (6)(a) details the requirements that the motion picture company or digital media company must meet to qualify for an incentive under this part;
     (6)(b) specifies:

          (6)(b)(i) the nature of the incentive; and
          (6)(b)(ii) the maximum amount of the motion picture incentive that the motion picture company or digital media company may earn for a taxable year and over the life of the production;
     (6)(c) establishes the length of time over which the motion picture company or digital media company may claim the motion picture incentive;
     (6)(d) requires the motion picture company or digital media company to retain records supporting its claim for a motion picture incentive for at least four years after the motion picture company or digital media company claims the incentive under this part; and
     (6)(e) requires the motion picture company or digital media company to submit to audits for verification of the claimed motion picture incentive.
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