C.R.S.
Section 24-48.5-116
Film, television, and media
- performance-based incentive for film production in Colorado
- Colorado office of film, television, and media operational account cash fund
- creation
- definition
(1)
Subject to the provisions of this section, on or after July 1, 2012, but before January 1, 2024, and on or after January 1, 2025, any production company employing a workforce for any in-state production activities made up of at least fifty percent Colorado residents may claim a performance-based incentive in an amount as follows:(a)
Except as provided in subsection (1.5) of this section, for a production company that originates production activities in Colorado, an amount equal to twenty percent of the total amount of the production company’s qualified local expenditures if the total of such expenditures equals or exceeds one hundred thousand dollars; and(b)
Intentionally left blank —Ed.(I)
Except as provided in subsections (1)(b)(II) and (1.5) of this section, for a production company that does not originate production activities in Colorado, an amount equal to twenty percent of the total amount of the production company’s qualified local expenditures if the total of such expenditures equals or exceeds one million dollars.(II)
Except as provided in subsection (1.5) of this section, for a production company that produces a television commercial or video game and that does not originate production activities in Colorado, any production company employing a workforce for any in-state production activities made up of at least fifty percent Colorado residents may claim a performance-based incentive in an amount equal to twenty percent of the total amount of the production company’s qualified local expenditures if the total of such expenditures equals or exceeds two hundred fifty thousand dollars.(1.5)
The executive director of the office of economic development may, in the executive director’s discretion, authorize the approval or issuance of an incentive in an amount that exceeds twenty percent of local expenditures for a production company that qualifies for an incentive under subsection (1) of this section.(2)
Intentionally left blank —Ed.(a)
In order for a production company to claim a performance-based incentive for production activities in Colorado pursuant to this section, the production company shall apply to the office, in a manner to be determined by the office, prior to beginning production activities in the state for the project for which the production company is seeking a performance-based incentive. The application must include a statement of intent by the production company to produce a film in Colorado for which the production company will be eligible to receive the incentive. The production company shall submit, in conjunction with the application, any documentation necessary to demonstrate that:(I)
The production company’s projected qualified local expenditures will satisfy the expenditures specified in subsections (1)(a) and (1)(b) of this section, as applicable; and(II)
If the production company seeks an incentive specified in subsection (1)(a) of this section, the production company meets the definition of “originates” set forth in section 24-48.5-114 (4), including copies of income tax forms, proof of voter registration, or copies of utility bills, to provide documentary evidence that as of the date of applying for a performance-based incentive:(A)
The production company engaged in production activities in the state for other projects in the past twelve consecutive months; or(B)
If the production company created a business entity for the sole purpose of conducting production activities in the state, the manager of the business entity is a resident in the state for the past twelve consecutive months.(b)
The office shall review each application submitted by a production company before the production company begins work on a film in Colorado. Based on the information provided in the production company’s application, the office shall make an initial determination of whether the production company will be eligible to receive a performance-based incentive and estimate the amount of the incentive that will be due to the production company. The office, with approval of the Colorado economic development commission created in section 24-46-102, shall grant conditional written approval to a production company that, based on the information provided by the production company and based on an analysis of such information by the office and the Colorado economic development commission, will satisfy the requirements of this section and be eligible to claim an incentive. The office shall not issue a performance-based incentive to a production company until the production company and the office have entered into a contract in accordance with the “Procurement Code”, articles 101 to 112 of this title 24.(c)
Intentionally left blank —Ed.(I)
Upon completion of production activities in Colorado, a production company that received conditional approval for a performance-based incentive from the office shall retain a certified public accountant to review and report in writing, and in accordance with professional standards, regarding the accuracy of the financial documents that detail the expenses incurred in the course of the film production activities in Colorado. The certified public accountant’s written report shall include documentation of the production company’s actual expenditures, including its actual qualified local expenditures, and any documentation necessary to show that the production company employed a workforce for the in-state production activities made up of at least fifty percent Colorado residents. When the production company provides a copy of the certified public accountant’s written report and the production company certifies in writing to the office that the amount of the production company’s actual qualified local expenditures equals or exceeds the minimum total amount of the production company’s qualified local expenditures as specified in subsection (1) of this section, the office shall conduct a review of the certified public accountant’s written report to ensure the requirements of this section are met. If the office is satisfied that the requirements of this section are met, and the office confirms that the certified public accountant who provided the written report is from the list described in subsection (2)(c)(II)(C) of this section, then the office may issue an incentive to the production company.(II)
Intentionally left blank —Ed.(A)
For purposes of this subsection (2)(c), “certified public accountant” means a certified public accountant licenced to practice in this state or a certified public accounting firm that is registered in this state.(B)
Any services of a certified public accountant provided to meet the requirements of this subsection (2)(c) shall be performed in Colorado.(C)
The office shall develop a list of certified public accountants that meet the requirements of this section. Such list must be made available to all production companies and must be posted on the office of economic development’s website.(d)
The office shall develop procedures for the administration of this section, including application guidelines for production companies applying to receive a performance-based incentive and for the office to issue payment of the incentives pursuant to this section.(e)
If a performance-based incentive is erroneously or improperly issued to a production company for any reason, including for ineligibility, overpayment, or improper payment, the office shall engage the services of the attorney general to recover from the production company any amount of the performance-based incentive that was erroneously or improperly issued. The state treasurer shall credit any such recovered performance-based incentives to the fund.(3)
Through 2024, the office shall include data regarding the number of production companies that claimed the performance-based incentive pursuant to this section and the total amount of all incentives claimed during the most recent fiscal year for which such information is available in an annual report to the general assembly.(4)
The total amount of performance-based incentives that the office issues pursuant to this section in any fiscal year shall not exceed the amount appropriated to the office to be used for the purposes of this section in the applicable fiscal year and any moneys not expended or encumbered from previous fiscal years that were appropriated to the office to be used for the purposes of this section.(5)
Intentionally left blank —Ed.(a)
There is hereby created in the state treasury the Colorado office of film, television, and media operational account cash fund, referred to in this section as the “fund”. The fund consists of:(I)
Money transferred to the fund in accordance with section 44-30-701 (2);(II)
Money transferred to the fund, including five million dollars that shall be transferred on July 1, 2021, from the general fund, up to one million dollars transferred pursuant to section 24-32-129 (3)(b)(II) to the Colorado office of film, television, and media operational account cash fund, and money transferred pursuant to subsection (5)(a.5) of this section; and(III)
Any gifts, grants, or donations from private or public sources that the office is hereby authorized to seek and accept.(a.5)
On July 1, 2022, the state treasurer shall transfer two million dollars from the general fund to the fund.(b)
The moneys in the fund shall be annually appropriated to the office for the operation of the office, for the performance-based incentive for film production in Colorado as specified in subsection (1) of this section, and for the loan guarantee program as specified in section 24-48.5-115 (3).(c)
All moneys not expended or encumbered, and all interest earned on the investment or deposit of moneys in the fund, remain in the fund and do not revert to the general fund or any other fund at the end of any fiscal year. Any moneys not expended or encumbered from any appropriation at the end of any fiscal year remain available for expenditure in the next fiscal year without further appropriation.(6)
A production company shall not apply and the office shall not award a performance-based incentive for any qualified local expenditures, for which the production company has applied, for an income tax credit pursuant to section 39-22-559.
Source:
Section 24-48.5-116 — Film, television, and media - performance-based incentive for film production in Colorado - Colorado office of film, television, and media operational account cash fund - creation - definition, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-24.pdf (accessed Oct. 20, 2023).
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