Form Sc Sch.tc-25 - Motion Picture Credits After June 30, 2004 (Page 3 of 3) in pdf

A "motion picture production facility" is a site in South Carolina that contains soundstages designed for the express

purpose of film and television production for both theatrical and video release. Production includes, but is not limited to,

motion pictures, made-for-television movies, and episodic television to a national or regional audience. The motion picture

production facility site must include production offices, construction shops/mills, prop and costume shops, storage area,

parking for production vehicles, all of which complement the production needs and orientation of the overall facility

purpose. The term does not include television stations, recording studios, or facilities predominately used to produce

videos, commercials, training films, or advertising films.

A "post-production facility" is a site in South Carolina designated for the express purpose of accomplishing the

post-production stage of film and television production for both theatrical and video release including the creation of visual

effects, editing, and sound mixing. A post-production facility site is not required to contain a soundstage or be physically

located at or near soundstages.

The total amount of credit that may be claimed by all taxpayers with respect to the construction, or conversion and/or

equipping of a single motion picture production or post-production facility may not exceed $5,000,000. A taxpayer may

claim the credit allowed by this section only once in connection with a single motion picture production facility and once in

a single post-production facility.

The credit is earned when the cash is spent or when qualifying real property is dedicated for use as part of a South

Carolina motion picture production facility or South Carolina post-production facility. Documentation to the Department of

Commerce sufficient to provide confirmation of this threshold must accompany the application for the credit.

Rules Pertaining to Parts I and II

Any unused credit may be carried forward for 15 consecutive years.

If a South Carolina motion picture project, South Carolina motion picture production facility, or South Carolina

post-production facility fails to meet the minimum investment requirements within 3 years from the end of the taxpayer's

tax year when the credit was first claimed, then the taxpayer must increase its income tax liability in the fourth year by an

amount equal to the amount of credits claimed.

These credits, when combined with any other state income tax credits allowed the taxpayer for a particular taxable year,

cannot reduce the taxpayer's South Carolina income tax liability more than 50%.

All documentation provided by investors and their agents to the Department of Revenue in connection with claiming the

credits allowed by this section is considered a tax return, and is subject to the penalty provisions of Section 12-54-40(f).

Credits allowed to investors in a motion picture equity fund are allocated to the fund, based upon 20% of the cash value of

its investment in a qualified South Carolina motion picture project and distributed to equity fund members based upon the

percentage of their interest in the equity fund.

Social Security Privacy Act Disclosure

It is mandatory that you provide your social security number on this tax form if you are an individual taxpayer. 42 U.S.C

405(c)(2)(C)(i) permits a state to use an individual's social security number as means of identification in administration of

any tax. SC Regulation 117-201 mandates that any person required to make a return to the SC Department of Revenue

shall provide identifying numbers, as prescribed, for securing proper identification. Your social security number is used for

identification purposes.

The Family Privacy Protection Act

Under the Family Privacy Protection Act, the collection of personal information from citizens by the Department of

Revenue is limited to the information necessary for the Department to fulfill its statutory duties. In most instances, once

this information is collected by the Department, it is protected by law from public disclosure. In those situations where

public disclosure is not prohibited, the Family Privacy Protection Act prevents such information from being used by third

parties for commercial solicitation purposes.

33883026

Form Sc Sch.tc-25 - Motion Picture Credits After June 30, 2004 Page 3