Sec. 44.33.235. - Award of film production tax credit. - Alaska Statutes

(a) Subject to AS 43.98.030 (f), the film office, in cooperation with the Department of Revenue, shall determine the amount of the tax credit under AS 43.98.030 available to a producer who has obtained a notice of qualification under AS 43.33.234 (b), based on the qualified expenditures of the production under AS 44.33.236 .

(b) The base amount of a tax credit awarded under this section is equal to 30 percent of the qualified expenditures of the production.

(c) In determining the amount of the tax credit, the percentage provided by (b) of this section shall be increased by the film office based on the following criteria:

(1) an additional 10 percent of qualified expenditures that are wages paid to Alaska residents;

(2) an additional two percent of qualified expenditures made in a rural area; and

(3) an additional two percent of qualified expenditures made in the state between October 1 and March 30.

(d) After completion of the production, the producer shall provide the film office with a production cost report detailing the qualified expenditures of the production, with verification by an independent certified public accountant approved by the film office that the costs claimed in the report are qualified expenditures under AS 44.33.236 .

(e) Subject to (g) of this section, the film office, in cooperation with the Department of Revenue, shall determine the amount of the tax credit based on the information provided by the producer under (d) of this section and shall award a tax credit in cooperation with the Department of Revenue under AS 43.98.030 if the producer has satisfied all requirements under AS 44.33.231 - 44.33.239.

(f) The award of a tax credit under this section is conditioned on the producer's and the production's full compliance with all applicable state laws and regulations. At the request of the film office, a producer shall provide any information necessary for the film office to determine the producer's and production's compliance with this subsection.

(g) In determining the amount of a tax credit awarded under this section, the film office may reduce the amount of the tax credit by any amount the film office considers necessary to allow the state, or a political subdivision of the state, to recover the cost of any damages caused by any act or omission of the producer or production.

(h) The film office, in cooperation with the Department of Revenue, may withhold the award of a tax credit under this section if the office determines that there are filed, but unresolved, legal actions in the state involving the producer or production.