BILL NUMBER: AB 1780	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Donnelly

                        FEBRUARY 18, 2014

   An act relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1780, as introduced, Donnelly. Income taxes: credit: motion
pictures.
   The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws, including a
credit against those taxes for taxable years beginning on or after
January 1, 2011, in an amount equal to a specified percentage of the
qualified expenditures, as defined, attributable to the production of
a qualified motion picture in California.
   This bill would state the intent of the Legislature to enact
legislation to allow a transferable tax credit for specified motion
pictures in an amount equal to 20% of production and postproduction
expenditures, as provided.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature to enact
legislation to provide a credit against the taxes imposed under the
Personal Income Tax Law and the Corporation Tax Law for motion
pictures that would accomplish all of the following:
   (a) Provide for a transferable tax credit in an amount equal to 20
percent of the qualified production and postproduction expenditures
for the motion picture paid or incurred within California, provided
the motion picture is not subject to specified recordkeeping
requirements under federal law.
   (b) Provide for an additional 10 percent credit amount if a
production company of a motion picture eligible for the tax credit
includes an imbedded California promotional logo in the feature film,
television series, music video, or video game project.
   (c) Include in the calculation of the qualified expenditures the
number and wages of in-state and out-of-state residents working in
California, including any employee fringe benefits.
   (d) Allow the credit without including a repeal date.
   (e) Allow the taxpayer to group multiple qualified motion
pictures, specifically commercials and music videos, in order to
reach the minimum qualified expenditure amount.