SB1159 Summary

• Establishes a 20% income tax credit for motion picture production companies with qualified expenditures exceeding $250,000 in Arizona, plus an additional 5% if using a privately funded production facility with $50 million infrastructure investment.

• Limits individual production credits to $15 million and caps total annual preapproved credits at $70 million across both corporate and individual income taxes, with $10 million reserved for infrastructure projects and $4 million for commercial advertisements and music videos.

• Requires production companies to undergo managed reviews by independent certified public accountants and obtain department of revenue preapproval and postapproval certification; credits are not subject to recapture if company meets all requirements and files timely tax returns.

• Applies to taxable years from December 31, 2010 through December 31, 2040 and allows credits to be refunded if they exceed tax liability; excess amounts can be carried forward for corporate taxpayers or paid as refunds to individual taxpayers.

• Directs Arizona Commerce Authority to develop mentoring and internship programs with universities and community colleges for motion picture production companies, with reports required by December 31, 2011 and July 31, 2015.