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Wisconsin Legislature: SB231: Bill Text
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SB231: Bill Text
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2025 - 2026 LEGISLATURE
LRB-2810/1
KP:wlj
2025 SENATE BILL 231
April 29, 2025 - Introduced by Senators
Bradley
,
Testin
,
Drake
,
Feyen
,
Larson
,
Pfaff
,
Quinn
and
Spreitzer
, cosponsored 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
. Referred to Committee on Utilities and Tourism.
SB231,1,8
1
An Act
to amend
71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4.,
2
71.30 (3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10. and 71.49 (1) (f);
to create
13.94 (1)
3
(zm), 15.448, 20.835 (2) (bm), 41.152, 71.07 (5f), 71.07 (5h), 71.10 (4) (fs), 71.10
4
(4) (ft), 71.28 (5f), 71.28 (5h), 71.30 (3) (epr), 71.30 (3) (eps), 71.47 (5f), 71.47
5
(5h), 71.49 (1) (epr) and 71.49 (1) (eps) of the statutes;
relating to:
creating a
6
tax credit for expenses related to film production services and for capital
7
investments made by a film production company, granting rule-making
8
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 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:
SB231,1
1
Section
1
.
13.94 (1) (zm) of the statutes is created to read:
SB231,3,2
2
13.94
(1)
(zm) Biennially, beginning in 2027, prepare a performance
1
evaluation audit of the program to accredit productions for purposes of ss. 71.07 (5f)
2
and (5h), 71.28 (5f) and (5h), and 71.47 (5f) and (5h) by the state film office.
SB231,2
3
Section
2
.
15.448 of the statutes is created to read:
SB231,3,6
4
15.448 Same; offices. (1)
State film office.
There is created a state film
5
office in the department of tourism. The director of the office shall be appointed by
6
the secretary of tourism.
SB231,3
7
Section
3
.
20.835 (2) (bm) of the statutes is created to read:
SB231,3,9
8
20.835
(2)
(bm)
Film production services credit
. A sum sufficient to make the
9
payments under ss. 71.07 (5f) (d) 2., 71.28 (5f) (d) 2., and 71.47 (5f) (d) 2.
SB231,4
10
Section
4
.
41.152 of the statutes is created to read:
SB231,3,14
11
41.152 Film production tax credits. (1)
The state film office shall
12
implement a program to accredit productions for purposes of ss. 71.07 (5f) and (5h),
13
71.28 (5f) and (5h), and 71.47 (5f) and (5h). Application for accreditation shall be
14
made to the office in each taxable year for which accreditation is desired.
SB231,4,3
15
(2)
If the state film office accredits a production under sub. (1), the office shall
16
determine the amount of the production’s production expenditures, as defined in s.
17
71.07 (5f) (a) 4. The state film office shall not issue an accreditation under sub. (1)
18
without first receiving written confirmation from the applicant that the applicant
19
has retained a certified public accountant located in this state to conduct periodic
20
audits to ensure compliance with this section and ss. 71.07 (5f) and (5h), 71.28 (5f)
21
and (5h), and 71.47 (5f) and (5h), as prescribed by rule by the office. An entity
22
applying for a tax credit under s. 71.07 (5f), 71.28 (5f), or 71.47 (5f) that does not
23
have its commercial domicile in this state shall indicate that on its application
1
along with the amount of production expenditures it anticipates spending in this
2
state and the amount of expenditures, if any, it anticipates spending in another
3
state on the same production.
SB231,4,8
4
(3)
The state film office shall notify the department of revenue of every
5
production accredited under sub. (1), the amount of the production’s production
6
expenditures, as defined in s. 71.07 (5f) (a) 4., and the amount of the tax credits
7
under ss. 71.07 (5f) and (5h), 71.28 (5f) and (5h), and 71.47 (5f) and (5h) allocated to
8
the applicant for the taxable year for which the applicant’s claim relates.
SB231,4,12
9
(4)
The state film office may not allocate more than $10,000,000 in tax credits
10
under ss. 71.07 (5f) and (5h), 71.28 (5f) and (5h), and 71.47 (5f) and (5h) in each
11
fiscal year and no more than $1,000,000 in tax credits to any single applicant in
12
each fiscal year.
SB231,4,17
13
(5)
Each applicant who produces an accredited production, as defined in s.
14
71.07 (5f) (a) 1., that is eligible for a tax credit under s. 71.07 (5f), 71.28 (5f), or
15
71.47 (5f) shall include in the finished production an acknowledgment to the state
16
of Wisconsin and the state film office as designed by the state film office, including
17
a logo designed by the state film office.
SB231,5,2
18
(6)
Annually, beginning in 2027, the state film office shall prepare a report
19
specifying the number of persons who submitted tax credit applications in the
20
previous year and the amount of the tax credits allocated to each such applicant.
21
The report shall also provide recommendations and suggestions on improving the
22
efficiency of the program implemented under this section. The office shall submit
1
the report to the legislature, in the manner provided under s. 13.172 (2), no later
2
than April 30 each year.
SB231,5,3
3
(7)
The department shall promulgate rules to administer this section.
SB231,5
4
Section
5
.
71.05 (6) (a) 15. of the statutes is amended to read:
SB231,5,10
5
71.05
(6)
(a) 15. The amount of the credits computed under s. 71.07 (2dm),
6
(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
(5f), (5h),
7
(5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership,
8
limited liability company, or tax-option corporation that has added that amount to
9
the partnership’s, company’s, or tax-option corporation’s income under s. 71.21 (4)
10
or 71.34 (1k) (g).
SB231,6
11
Section
6
.
71.07 (5f) of the statutes is created to read:
SB231,5,13
12
71.07
(5f)
Film production services credit.
(a)
Definitions
. In this
13
subsection:
SB231,5,21
14
1. “Accredited production” means a film, video, broadcast advertisement, or
15
television production, as approved by the state film office, for which the aggregate
16
salary and wages included in the cost of the production for the period ending 12
17
months after the month in which the principal filming or taping of the production
18
begins exceeds $100,000 for a production that is 30 minutes or longer or $50,000 for
19
a production that is less than 30 minutes. “Accredited production” includes a
20
scripted, unscripted, reality, or competition production, but does not include any of
21
the following, regardless of the production costs:
SB231,5,23
22
a. News, current events, or public programming or a program that includes
23
weather or market reports.
SB231,5,24
24
b. A talk show.
SB231,6,1
1
c. A sports event or sports activity.
SB231,6,2
2
d. A gala presentation or awards show.
SB231,6,3
3
e. A finished production that solicits funds.
SB231,6,6
4
f. A production for which the production company is required under
18 USC
5
2257
to maintain records with respect to a performer portrayed in a single media or
6
multimedia program.
SB231,6,8
7
g. A production produced primarily for industrial, corporate, or institutional
8
purposes.
SB231,6,14
9
2. “Claimant” means a film production company, as defined in sub. (5h) (a) 2.,
10
that operates an accredited production in this state, if the company owns the
11
copyright in the accredited production or has contracted directly with the copyright
12
owner or a person acting on the owner’s behalf and if the company has a viable plan,
13
as determined by the state film office, for the commercial distribution of the
14
finished production.
SB231,6,19
15
3. “Commercial domicile” means the location from which a trade or business is
16
principally managed and directed, based on any factors the state film office
17
determines are appropriate, including the location where the greatest number of
18
employees of the trade or business work, the trade or business has its office or base
19
of operations, or from which the employees are directed or controlled.
SB231,7,12
20
4. “Production expenditures” means any expenditures that are incurred in
21
this state and directly used to produce an accredited production, including
22
expenditures for writing, budgeting, casting, location scouts, set construction and
23
operation, wardrobes, makeup, clothing accessories, photography, sound recording,
1
sound synchronization, sound mixing, lighting, editing, film processing, film
2
transferring, special effects, visual effects, renting or leasing facilities or
3
equipment, renting or leasing motor vehicles, food, lodging, and any other similar
4
pre-production, production, and post-production expenditure as determined by the
5
state film office. “Production expenditures” includes expenditures for music that is
6
performed, composed, or recorded by a musician who is a resident of this state or
7
published or distributed by an entity that has its commercial domicile in this state;
8
air travel that is purchased from a travel agency or company that has its commercial
9
domicile in this state; and insurance that is purchased from an insurance agency or
10
company that has its commercial domicile in this state. “Production expenditures”
11
does not include salary or wages or expenditures for the marketing and distribution
12
of an accredited production.
SB231,7,15
13
(b)
Filing claims
. Subject to the limitations provided in this subsection, for
14
taxable years beginning after December 31, 2025, a claimant may claim as a credit
15
against the tax imposed under s. 71.02 any of the following amounts:
SB231,7,19
16
1. An amount equal to 30 percent of the salary or wages paid by the claimant
17
to the claimant’s employees in the taxable year for services rendered in this state to
18
produce an accredited production and paid to employees who were residents of this
19
state at the time that they were paid.
SB231,7,21
20
2. An amount equal to 30 percent of the production expenditures paid by the
21
claimant in the taxable year to produce an accredited production.
SB231,8,3
22
3. An amount equal to the taxes imposed under ss. 77.52 and 77.53 that the
23
claimant paid in the taxable year on the purchase of tangible personal property and
1
taxable services that are used directly in producing an accredited production in this
2
state, including all stages from the final script stage to the distribution of the
3
finished production.
SB231,8,7
4
(c)
Limitations
. 1. No amount of the salary or wages paid under par. (b) 1.
5
may be the basis for a credit under this subsection unless the salary or wages are
6
paid for services rendered after December 31, 2025, and directly incurred to
7
produce the accredited production.
SB231,8,13
8
2. The total amount of the credits that may be claimed by a claimant under
9
par. (b) 1. shall not exceed an amount equal to the first $250,000 of salary or wages
10
paid to each of the claimant’s employees, as described in par. (b) 1., in the taxable
11
year, not including the salary or wages paid to the claimant’s 2 highest-paid
12
employees, as described in par. (b) 1., in the taxable year, if the claimant’s budgeted
13
production expenditures are $1,000,000 or more.
SB231,8,17
14
3. No credit may be allowed under this subsection unless the claimant files an
15
application with the state film office, at the time and in the manner prescribed by
16
the office, and the office approves the application. The claimant shall submit a copy
17
of the approved application with the claimant’s return.
SB231,9,2
18
4. Partnerships, limited liability companies, and tax-option corporations may
19
not claim the credit under this subsection, but the eligibility for, and the amount of,
20
the credit are based on their payment of amounts under par. (b). A partnership,
21
limited liability company, or tax-option corporation shall compute the amount of
22
credit that each of its partners, members, or shareholders may claim and shall
23
provide that information to each of them. Partners, members of limited liability
1
companies, and shareholders of tax-option corporations may claim the credit in
2
proportion to their ownership interest.
SB231,9,6
3
(d)
Administration
. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
4
credit under s. 71.28 (4), applies to the credits under this subsection. Section 71.28
5
(4) (f), as it applies to the credit under s. 71.28 (4), applies to the credits under par.
6
(b) 1. and 3.
SB231,9,11
7
2. If the allowable amount of the claim under par. (b) 2. exceeds the tax
8
otherwise due under s. 71.02 or no tax is due under s. 71.02, the amount of the
9
claim not used to offset the tax due shall be certified by the department of revenue
10
to the department of administration for payment by check, share draft, or other
11
draft drawn from the appropriation account under s. 20.835 (2) (bm).
SB231,9,20
12
3. Any person, including a nonprofit entity described in section 501 (c) (3) of
13
the Internal Revenue Code, may sell or otherwise transfer a credit under this
14
subsection, in whole or in part, to another person who is subject to the taxes
15
imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
16
transfer, and submits with the notification a copy of the transfer documents, and
17
the department certifies ownership of the credit. The transferee may first use the
18
credit to offset tax of the transferor in the taxable year in which the transfer occurs
19
and may use the credit only to offset tax in taxable years in which the credit is
20
otherwise allowed to be claimed and carried forward by the original claimant.
SB231,7
21
Section
7
.
71.07 (5h) of the statutes is created to read:
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