2005 Idaho Code - 63-3622TT — MEDIA PRODUCTION PROJECT TAX REBATE

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 36
                                  SALES TAX
    63-3622TT.  MEDIA PRODUCTION PROJECT TAX REBATE. [EFFECTIVE UNTIL JULY 1,
2011] (1) An eligible media production company which purchases tangible
personal property used directly in a media production  project and which makes
qualifying media production expenditures may qualify for a rebate of sales or
use taxes paid on such purchases if the purchaser develops, with such tangible
personal property or qualifying media production project expenditures in
Idaho, the production in Idaho of a media production project and if the
purchase or use of such tangible personal property is subject to the sales and
use tax. To be eligible for the rebate pursuant to this section, a media
production company shall submit to the department of commerce and labor
information required by the director of the department of commerce and labor
to demonstrate conformity with the requirements of this section and shall have
expended or will expend a minimum of two hundred thousand dollars ($200,000)
on qualifying media production project expenses in Idaho within a consecutive
thirty-six (36) month period for each media production project. Application
for the rebate shall be made within thirty-six (36) months of the expenditure
qualifying for the rebate. The department of commerce and labor shall
determine eligibility of the company and shall report this information to the
state tax commission in a manner and at a time upon which the department of
commerce and labor and the tax commission shall agree. The department of
commerce and labor may charge an application fee not in excess of five hundred
dollars ($500) for a media production company's application to be qualified
for the sales tax rebate pursuant to this section[.]
    (2)  To receive the rebate pursuant to this section, the media production
company shall apply to the state tax commission on forms and in the manner the
commission requires. The application shall include a certification of the
amount of expenditures made in Idaho with respect to the purchase of tangible
personal property  by the media production company by the director of the
department of commerce and labor or the director's designee. The rebate shall
be paid within sixty (60) days from the date the tax commission receives a
qualified application. If the rebate is not paid within that period, the
amount owed to the taxpayer shall accrue interest at the rate provided in
section 63-3045, Idaho Code.
    (3)  As used in this section:
    (a)  "Media production project" is defined as the production of a single
    project through a variety of techniques and media including live action
    camera work, animation, computer-generated imagery or other recorded work
    during the process of preproduction, production and postproduction, that
    are intended to be exhibited in theaters, licensed for exhibition on
    television or cable stations or networks, licensed for or produced for
    sale or rental to home or commercial viewing markets or a future viewing
    or listening medium. Products of a media production project include
    feature films, videos, television series or movies, industrials and
    education programs or shows, video or computer games, and documentaries,
    but shall not include production of news and athletic event programming,
    political advertisements, family or personal productions, filming of live
    staged events to which tickets are sold or any material of an indecent or
    obscene nature as provided in chapter 41, title 18, Idaho Code. "Media
    production project" includes "preproduction," "production," and
    "postproduction."
    (b)  "Postproduction" means the final stage in a media production project
    after principal photography, including editing, the addition of
    sound/visual effects and  musical scoring, mixing and dubbing and
    distributing.
    (c)  "Preproduction" means the planning stage in a media production
    project after the project is financed and before principal photography or
    actual shooting commences, including script treatment and
    editing/rewriting, scheduling, set design and construction, casting,
    budgeting and financial planning, and scouting or selection of locations.
    (d)  "Production" means the general process of putting a media production
    project together, including casting, set construction, principal
    photography and shooting.
    (e)  "Qualifying media production project expenditures" in Idaho includes,
    but is not limited to, wages from eleven dollars ($11.00) per hour to one
    hundred twenty-five dollars ($125) per hour, fringe benefits, commissions
    or fees and per diem expenses for labor paid in Idaho; contract labor paid
    in Idaho; equipment rentals and purchases during preproduction, production
    and postproduction such as grip, lighting, editing, camera, communication
    and computers; film, videotape stock or digital recording medium and
    processing and transfer costs; expendables such as gaffer's tape or gel;
    wardrobe and costuming; makeup and hairdressing supplies; set construction
    and set decoration materials, prop rentals and purchases, including lumber
    and construction materials, tools and equipment; stage, location site and
    office space rentals, equipment and expendables; vehicle, truck, boat and
    aircraft rentals, leases and purchases; food purchased for cast and crew;
    airfare or other travel purchased through an Idaho based travel agency;
    insurance and completion bond coverage purchased through an Idaho based
    agency; lodging expenses for hotels, motels, apartments and houses; motor
    vehicle expenses, including gas, oil, servicing and reimbursed mileage;
    laundry and dry cleaning; and shipping services.
    (4)  Any rebate paid shall be subject to recapture by the commission at
one hundred percent  (100%) in the event that the tax incentive criteria are
not met at the project site during the project period or in the event that the
media production company did not otherwise qualify. Any recapture amount due
under this section shall be a deficiency in tax for the period in which the
disqualification first occurs for purposes of section 63-3629, Idaho Code, and
may be enforced and collected in the manner provided by the Idaho sales tax
act in which the disqualification first occurs for purposes of section
63-3629, Idaho Code, and may be enforced and collected in the manner provided
by the Idaho sales tax act.