Current law provides a film production incentive that allows a production company a performance-based cash rebate equal to 20%, or in the discretion of the director of the office of economic development a higher amount, of qualified Colorado expenditures for films, television, series, commercials, and video games produced in the state. The act:
- Restructures the film incentive program, from its current state as a cash rebate program into a refundable income tax credit (credit) for qualified production companies only for income tax years commencing on or after January 1, 2024, but before January 1, 2025, and only if there are at least $50 million of excess state revenues for state fiscal year 2023-24 that are required to be refunded above amounts being refunded by specified existing or future refund mechanisms.
- Specifies that the credit is not otherwise allowed for any such income tax year unless the general assembly, acting by bill, specifies a maximum aggregate amount of such tax credits that is allowed for that income tax year; and
- Requires the office of economic development and the office of film, televison, and media to jointly review the effectiveness of the credit and report the results of the review to the house of representatives finance committee and the senate finance committee, or their successor committees, no later than February 4, 2025.
The act also reduces the state fiscal year 2023-24 long bill appropriation from the Colorado office of film, television, and media operational account cash fund to the office of the governor for use by economic development programs for Colorado office of film, television, and media by $282,417.
APPROVED by Governor June 5, 2023
EFFECTIVE August 7, 2023
NOTE: This act was passed without a safety clause and takes effect 90 days after sine die.
(Note: This summary applies to this bill as enacted.)