Wisconsin AB 231: Relating to: creating a tax credit for expenses related to film production services and for capital investments made by a film production company, granting rule-making authority, and making an appropriation. (FE)

Bill Text

2025 - 2026 LEGISLATURE LRB-2456/1
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2025 ASSEMBLY BILL 231
May 2, 2025 - Introduced by Representatives ARMSTRONG, CALLAHAN, HURD,
BROWN, DOYLE, EMERSON, GOODWIN, GREEN, JOHNSON, KITCHENS, KREIBICH,
MAXEY, MELOTIK, MIRESSE, MOSES, MURSAU, O'CONNOR, PRADO, SNYDER,
STEFFEN, SWEARINGEN, TITTL, WICHGERS and ZIMMERMAN, cosponsored by
Senators BRADLEY, TESTIN, DRAKE, FEYEN, LARSON, PFAFF, QUINN and
SPREITZER. Referred to Committee on Ways and Means.
AN ACT to amend 71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4.,
71.30 (3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10. and 71.49 (1) (f); to create 13.94 (1)
(zm), 15.448, 20.835 (2) (bm), 41.152, 71.07 (5f), 71.07 (5h), 71.10 (4) (fs), 71.10
(4) (ft), 71.28 (5f), 71.28 (5h), 71.30 (3) (epr), 71.30 (3) (eps), 71.47 (5f), 71.47
(5h), 71.49 (1) (epr) and 71.49 (1) (eps) of the statutes; relating to: creating a
tax credit for expenses related to film production services and for capital
investments made by a film production company, granting rule-making
authority, and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates income and franchise tax credits for film production
companies and creates the State Film Office, attached to the Department of
Tourism, to implement the tax credit accreditations and allocations. Under the bill,
a film production company may claim a credit in an amount that is equal to 30
percent of the salary or wages paid to the company’s employees in the taxable year
for services rendered in this state to produce a film, video, broadcast advertisement,
or television production, as approved by the State Film Office, and paid to
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employees who were residents of this state at the time that they were paid. The
total amount of the credits that may be claimed by a taxpayer may not exceed an
amount that is equal to the first $250,000 of salary or wages paid to each of the
taxpayer’s employees in the taxable year, not including the salary or wages paid to
the taxpayer’s two highest-paid employees in the taxable year, for a production with
budgeted expenditures of $1,000,000 or more. If the total amount of the credits
claimed by a taxpayer exceeds the taxpayer’s tax liability, the state will not issue a
refund, but the taxpayer may carry forward any remaining credit to subsequent
taxable years.
Under the bill, a film production company may claim an income and franchise
tax credit in an amount that is equal to 30 percent of the production expenditures
paid by the company in the taxable year to produce a film, video, broadcast
advertisement, or television production. If the total amount of the credits claimed
by the company exceeds the company’s tax liability, the state will issue a refund.
The bill also allows a film production company to claim an income and
franchise tax credit, for the first three taxable years that the company is doing
business in this state, in an amount that is equal to 30 percent of the amount that
the claimant paid in the taxable year to purchase depreciable tangible personal
property or to acquire, construct, rehabilitate, remodel, or repair real property.
Under the bill, a film production company may claim an income and franchise
tax credit in an amount that is equal to the amount of sales and use taxes that the
claimant paid for tangible personal property and taxable services that are used to
produce a film, video, broadcast advertisement, or television production in this
state.
The bill provides that the State Film Office may not allocate more than
$10,000,000 in film production and investment tax credits in each fiscal year. The
bill also requires the State Film Office to annually submit a report to the legislature
that specifies the number of persons who submitted credit applications in the
previous year and the amount of the credits allocated to each such applicant and to
make recommendations on improving the efficiency of the program. Finally, the bill
requires the Legislative Audit Bureau to biennially prepare a performance
evaluation audit of the accreditation program implemented by the State Film
Office.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. 13.94 (1) (zm) of the statutes is created to read:
13.94 (1) (zm) Biennially, beginning in 2027, prepare a performance
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evaluation audit of the program to accredit productions for purposes of ss. 71.07 (5f)
and (5h), 71.28 (5f) and (5h), and 71.47 (5f) and (5h) by the state film office.
SECTION 2. 15.448 of the statutes is created to read:
15.448 Same; offices. (1) STATE FILM OFFICE. There is created a state film
office in the department of tourism. The director of the office shall be appointed by
t