HB 1498 Summary

• Increases the income tax credit for motion picture, digital media, and film productions by an additional 5% for qualified productions that utilize qualified production facilities located within the State.

• Defines "qualified production facility" as a building or complex with at least one sound stage, offices, catering facilities, parking, facades, and mill space on a minimum 10-acre property leased or purchased from government entities, constructed after December 31, 2024, at a cost of at least $100,000,000.

• Treats motion picture, digital media, and film production as manufacturing for general excise tax purposes, applying the 0.5% manufacturing rate instead of the higher 4% service rate.

• Exempts from general excise tax amounts received by motion picture project employers from clients equal to amounts disbursed for employee wages, salaries, payroll taxes, insurance premiums, benefits, and payments to loan-out companies.

• Changes the per-production tax credit cap and annual aggregate cap amounts to unspecified dollar figures (blanks in the bill text); applies to taxable years beginning after December 31, 2024, with the general excise tax exemption effective January 1, 2026.