HB 2156 Summary: Motion Picture Production Tax Credits

• Establishes an Arizona Motion Picture Production Program administered by the Arizona Commerce Authority to certify and promote motion picture production companies filming in Arizona, effective for taxable years beginning after December 31, 2022.

• Provides tiered income tax credits ranging from 15% to 20% of qualified production costs based on spending level, plus additional credits up to 2.5% each for in-state resident labor, use of qualified production facilities, and long-term facility tenancy.

• Caps annual tax credit preapprovals at $75 million in 2023, $100 million in 2024, and $125 million in 2025 and thereafter, with up to $25 million annually reserved for productions filmed at practical locations.

• Requires motion picture production companies to apply for preapproval and postapproval from the Arizona Commerce Authority, maintain production labor in Arizona, and include Arizona filming acknowledgments in credits.

• Authorizes the Arizona Commerce Authority to conduct audits every five years starting year five of the program, with reporting requirements on employment, wages, and economic impact analysis; program and related tax credits expire December 31, 2043.