Nebraska LB 1022: Adopt the Cast and Crew Nebraska Act and provide for tax credits and grants

Bill Text

LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1022

Introduced by Sanders, 45.
Read first time January 05, 2024
Committee: Revenue
A BILL FOR AN ACT relating to film incentives; to amend section 81-1220,1
Revised Statutes Cumulative Supplement, 2022, and sections2
77-2715.07, 77-2717, and 77-2734.03, Revised Statutes Supplement,3
2023; to adopt the Cast and Crew Nebraska Act; to provide for tax4
credits; to provide for grants; to define terms; to harmonize5
provisions; and to repeal the original sections.6
Be it enacted by the people of the State of Nebraska,7
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Section 1. Sections 1 to 13 of this act shall be known and may be1
cited as the Cast and Crew Nebraska Act.2
Sec. 2. (1) The Legislature finds that:3
(a) Film and television production in Nebraska not only provides4
jobs for residents of Nebraska and dollars for Nebraska businesses but5
also enhances the state's image nationwide;6
(b) The high cost of film and television production is driving such7
production to other states, and the industry is always seeking attractive8
locations that can help cut the costs of production;9
(c) The retention of Nebraska's youth is one of the top priorities10
in growing the state's economy. Film studies and creative arts students11
from the universities and colleges in Nebraska are taking their talents12
to other states due to the lack of strongly developed media production13
facilities within the state;14
(d) The State of Nebraska, with the appropriate incentive, can build15
on past success as an attractive site for film and television production;16
(e) Nebraska is presently among several states with minimal17
incentives to attract the film and television industry; and18
(f) A new and attractive film incentive should be used in19
conjunction with the Local Option Municipal Economic Development Act,20
passed by the Ninety-Second Legislature, First Session, 1991, as21
Legislative Bill 840, for municipalities that have included production of22
films or television programs as a qualifying business expense.23
(2) It is the intent of the Legislature to provide an incentive that24
will allow the state to compete with other states and increase film and25
television production in this state.26
Sec. 3. For purposes of the Cast and Crew Nebraska Act:27
(1) Above-the-line employee means production company employees28
involved in the creative development, direct production, and direction of29
a production activity including screenwriters, producers, directors,30
casting directors, and cast;31
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(2) Below-the-line employee means production company employees that1
are responsible for keeping production operations on schedule and2
preparing all lights, sets, props, and all other aspects for production;3
(3) Department means the Department of Economic Development;4
(4)(a) Expatriate means a person that previously resided in Nebraska5
for at least one year but does not currently reside in Nebraska.6
(b) The Nebraska Film Office shall partner with other in-state film7
offices and production companies in the state to maintain a roster of8
cast and crew who are expatriates and shall make such roster available to9
any production company upon request;10
(5) Film office means a specialized office under the authority of a11
government entity or an administrative office with the purpose of12
promoting the local region through the development of film, video, and13
multimedia productions;14
(6) Full-length means a production at least forty minutes in length15
including credits;16
(7) Loan out means payments to a loan out company by a production17
company if the production company withheld and remitted Nebraska18
applicable income tax on all payments to the loan out company for19
services performed in this state. The amount withheld is considered to20
have been withheld by the loan out company on wages paid to its employees21
for services performed in this state. Loan out company nonresident22
employees performing services in this state must be considered taxable23
nonresidents and the loan out company is subject to income taxation in24
the taxable year in which the loan out company's employees perform25
services in this state;26
(8) Nebraska Film Office means the Nebraska Film Office within the27
Department of Economic Development or its successor;28
(9) Nebraska supplier means a brick and mortar Nebraska-based29
corporation or limited liability company registered, licensed, and in30
good standing with the Secretary of State;31
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(10) Pre-production means the planning process and execution of1
every task that must take place before production begins;2
(11) Post-production means the time period after the production is3
completed and the editing of the visual and audio materials begins. Post-4
production includes, but is not limited to, all of the tasks associated5
with cutting raw footage, assembling that footage, and addin