Mike Gatto
- Democratic
Author
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 an applicable percentage of either 20% or 25%, respectively, of the qualified expenditures, as defined, attributable to the production of a qualified motion picture in California, or, where the qualified motion picture is a television series that relocated to California or is an independent film, as provided. Existing law imposes specified duties on the California Film Commission related to the administration of the credits, including a requirement to allocate the tax credits until July 1, 2017, and limits the aggregate amount of credits that may be allocated to qualified motion pictures in any fiscal year to $100,000,000 through the 2016–17 fiscal year. Existing law, for taxable years beginning on or after January 1, 2011, in lieu of the credits authorized under the Personal Income Tax Law and the Corporation Tax Law for qualified motion pictures described above, also allows a credit against qualified state sales and use taxes, as provided. Existing law provides for a tentative minimum tax and further provides that, except for specified credits, no other credit shall reduce the tax imposed below the tentative minimum tax. This bill would establish similar credits under the Personal Income Tax Law and the Corporation Tax Law for taxable years beginning on or after January 1, 2016, to be allocated by the California Film Commission on or after July 1, 2015, and before July 1, 2020. This bill would, as compared to the existing tax credits, extend the scope of the credits for a qualified motion picture to the applicable percentage of qualified expenditures up to $100,000,000, would extend the credit to qualified expenditures for television pilot episodes, and would determine an applicable percentage of 25% or 20% for qualified expenditures, with an additional credit amount available, as specified. This bill would limit the aggregate amount of these new credits to be allocated in each fiscal year to up to $330 million, and would, subject to a computation and ranking of applicants based on the jobs ratio, as defined, require the California Film Commission to allocate credit amounts subject to specified categories of qualified motion pictures. This bill would, for taxable years beginning on or after January 1, 2016, in lieu of the credits authorized under the Personal Income Tax Law and the Corporation Tax Law for qualified motion pictures described above, allow a credit against qualified state sales and use taxes, as provided. This bill would also require the Legislative Analyst's Office to prepare reports related to the effectiveness and administration of the qualified motion picture credit under the Sales and Use Tax Law, the Personal Income Tax Law, and the Corporation Tax Law. This bill would, for taxable years, beginning on or after January 1, 2016, additionally allow the credit under the Corporation Tax Law for qualified expenditures for the production of qualified motion pictures to reduce the tentative minimum tax. This bill would also make findings and declarations related to the entertainment industry, and would urge the United States Department of Commerce and the International Trade Commission to investigate and impose sanctions on specified motion picture productions and elements of production to combat unfair and illegal competition. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The bill would state that its provisions are severable. This bill would incorporate additional changes in Section 23036 of the Revenue and Taxation Code, proposed by AB 2754, to be operative only if AB 2754 and this bill are both chaptered and become effective on or before January 1, 2015, and this bill is chaptered last. This bill would take effect immediately as a tax levy.
Chaptered by Secretary of State - Chapter 413, Statutes of 2014.
Approved by the Governor.
Enrolled and presented to the Governor at 3:30 p.m.
Assembly Rule 77 suspended. (Page 6736.)
In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 31 pursuant to Assembly Rule 77.
Read third time. Passed. Ordered to the Assembly. (Ayes 34. Noes 2. Page 4993.).
Withdrawn from committee.
Ordered to third reading.
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 72. Noes 0. Page 6738.).
Assembly Rule 63 suspended. (Page 6736.)
Senate Rule 29.3(b) suspended. (Page 4922.)
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on RLS.
Read second time. Ordered to third reading.
Read third time and amended. Ordered to second reading.
Read second time and amended. Ordered to third reading.
From committee: Do pass as amended. (Ayes 5. Noes 0.) (August 14).
In committee: Placed on APPR. suspense file.
In committee: Set, first hearing. Hearing canceled at the request of author.
Read second time and amended. Re-referred to Com. on APPR.
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 25).
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on GOV. & F.
In Senate. Read first time. To Com. on RLS. for assignment.
Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 5253.)
Read second time. Ordered to third reading.
From committee: Do pass as amended. (Ayes 16. Noes 0.) (May 23).
Read second time and amended. Ordered to second reading.
Joint Rule 62(a), file notice suspended. (Page 5065.)
In committee: Set, first hearing. Referred to APPR. suspense file.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (May 13). Re-referred to Com. on APPR.
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 7. Noes 0.) (March 25). Re-referred to Com. on REV. & TAX.
Measure version as amended on March 19 corrected.
From committee chair, with author's amendments: Amend, and re-refer to Com. on A.,E.,S.,T., & I.M. Read second time and amended.
Referred to Coms. on A.,E.,S.,T., & I.M. and REV. & TAX.
From printer. May be heard in committee March 21.
Read first time. To print.
| Bill Text Versions | Format |
|---|---|
| AB1839 | HTML |
| 02/18/14 - Introduced | |
| 03/19/14 - Amended Assembly | |
| 05/23/14 - Amended Assembly | |
| 06/17/14 - Amended Senate | |
| 07/02/14 - Amended Senate | |
| 08/20/14 - Amended Senate | |
| 08/22/14 - Amended Senate | |
| 08/27/14 - Amended Senate | |
| 09/04/14 - Enrolled | |
| 09/18/14 - Chaptered |
| Document | Format |
|---|---|
| No related documents. |
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