SB 1420 Summary

• Establishes motion picture production tax incentives available from January 1, 2011 through December 31, 2015, allowing qualified production companies a 20% income tax credit on qualified production costs up to $20 million per production.

• Requires productions to incur at least 75% of qualified costs in Arizona, employ at least 50% Arizona residents at the soundstage, and include state acknowledgment in credits; applications processed by Department of Commerce with preapproval and postapproval requirements.

• Authorizes Department of Revenue to issue transaction privilege and use tax exemption certificates to qualified motion picture production companies for purchases of production equipment, services, and materials in Arizona.

• Extends motion picture infrastructure project tax credits through December 31, 2015 (previously ending December 31, 2010), providing 15% credits for soundstage and support facility investments, with specific spending requirements and dollar limits.

• Allows unlimited carriage forward of unused credits, permits credits to be sold or transferred to other taxpayers subject to department approval and a one percent processing fee, and allows voluntary audits to protect credits from future recapture.