H.B. 599 Summary: Entertainment Technology Initiative

• Establishes refundable income tax credit for entertainment technology companies engaged in postproduction and digital distribution services for motion pictures and extended reality experiences.

• Companies must meet criteria including employing at least 5 qualifying employees (3 if completed before July 1, 2025), hiring 2 interns from Ohio higher education institutions, maintaining $300,000+ aggregate qualifying payroll (or $150,000 before July 1, 2025), and incurring $500,000+ in Ohio investment expenditures.

• Credit amounts: 10% of qualifying expenditures if project is tax credit-eligible production under existing law; 30% if not tax credit-eligible, plus additional 5% if services performed at qualifying facility owned or leased by company.

• Establishes annual aggregate credit limits: $2 million (FY 2022-2023), $5 million (FY 2024-2025), $10 million (FY 2026-2027), and $20 million (FY 2028+); single company and affiliates limited to 20% of annual cap.

• Credits are refundable and transferable among taxpayers; director of development administers applications with 30-day approval timeline; excess credits over tax liability are refunded.