Free 2008 IC-062 Schedule FP - Film Production Credit - Wisconsin


File Size: 204.6 kB
Pages: 3
File Format: PDF
State: Wisconsin
Category: Tax Forms
Author: revvar
Word Count: 966 Words, 14,083 Characters
Page Size: Letter (8 1/2" x 11")
URL

http://www.dor.state.wi.us/forms/2008/08ic-062.pdf

Download 2008 IC-062 Schedule FP - Film Production Credit ( 204.6 kB)


Preview 2008 IC-062 Schedule FP - Film Production Credit
Schedule

FP

FilewithWisconsinForm1,1NPR,2,3,4,4I,4T,5,or5S
Read instructions before filling in this schedule
IdentifyingNumber

Film Production Credits

WisconsinDepartment ofRevenue
Name

2008
1 2

Part I

Nonrefundable Film Production Services Credit

1 FillintheamountofqualifyingwagespaidtoWisconsinresidentsforservicesinWisconsintoproduce an accredited production, subject to the limitations described in the instructions . . . . . . . . . . . . . . . . . . . 2 Multiply the amount on line 1 by .25 (25%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 FillintheamountofWisconsinsalesandusetaxpaidonthepurchaseoftangiblepersonalpropertyor taxableservicesusedinproducinganaccreditedproductioninWisconsin.(Donotincludecountyor special district sales or use taxes .) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Fillinnonrefundablefilmproductionservicescreditpassedthroughfromotherentities . . . . . . . . . . . . . . 6 Add lines 4 and 5 . This is your 2008 nonrefundable credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 4 5 6 7 8 9 10

Part II

Refundable Film Production Services Credit

7 Fill in the production expenditures paid to produce an accredited production . . . . . . . . . . . . . . . . . . . . . . 8 Multiply the amount on line 7 by .25 (25%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Fillinrefundablefilmproductionservicescreditpassedthroughfromotherentities . . . . . . . . . . . . . . . . . 10 Add lines 8 and 9 . This is your 2008 refundable credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III Film Production Company Investment Credit
11 Fillinthepurchasepriceofdepreciable,tangiblepersonalpropertyusedtoestablishafilmproduction company in Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Fill in the amount expended to acquire, construct, rehabilitate, remodel, or repair real property in Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Add lines 11 and 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Multiply the amount on line 13 by .15 (15%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Fillinthefilmproductioncompanyinvestmentcreditpassedthroughfromotherentities . . . . . . . . . . . . . 16 Addlines14and15.Thisisyour2008filmproductioncompanyinvestmentcredit . . . . . . . . . . . . . . . . . 11 12 13 14 15 16

Instructions for 2008 Schedule FP
GENERAL INSTRUCTIONS Purpose of Schedule FP UseScheduleFPtoclaimfilmproductioncredits.Thefilm productionservicescreditsareavailabletoafilmproduction company that operates an accredited production in Wisconsinandthatreceivedacommitmentletterandlist of approved expenses from the Wisconsin Department ofCommerceasaresultoffilinganapplication.Thefilm production company investment credit may be claimed wheretheDepartmentofCommercehascertifiedinwriting thatthecreditsareforexpensesrelatedtoestablishinga filmproductioncompanyinWisconsin. For information on certification and approvals by the DepartmentofCommerce,visittheDepartmentofCommercewebsiteatwww.commerce.wi.govorwritetothe Wisconsin Department of Commerce, PO Box 7970, MadisonWI53707-7970.
IC-062

Who is Eligible to Claim the Credit Anyindividual,estate,trust,partnership,limitedliability company(LLC),corporation,ortax-exemptorganization thatiscertifiedorapprovedbytheDepartmentofCommerceandthatcreatesfilms,videos,electronicgames, broadcastadvertisements,orcertaintelevisionproductionsmaybeeligible. Tax-option (S) corporations, partnerships, and LLCs treated as partnerships cannot claim the credit at the entitylevel.However,thecreditattributabletotheentity's business operations passes through to the entity's shareholders, partners, or members in proportion to their ownershipinterest. Afilmproductioncompanymayclaimthefilmproduction companyinvestmentcreditonlyforthefirstthreetaxable yearsthatthecompanyisdoingbusinessinWisconsin asafilmproductioncompany.

Credit is Income ThecreditthatyoucomputeonScheduleFPisincomeand must be reported on your Wisconsin franchise or income tax return as income in the year computed . Carryover of Unused Credit ThefilmproductionservicescreditcomputedinPartIof ScheduleFPandthefilmproductioncompanyinvestment credit are nonrefundable . Any unused credit may be carriedforwardfor15years.Ifthereisareorganizationofa corporationclaimingthecredit(s),thelimitationsprovided byInternalRevenueCode(IRC)sec.383mayapplyto thecarryoverofanyunusedcredit. Definitions "Accredited production" means a film, video, electronic game,broadcastadvertisement,ortelevisionproduction, asapprovedbytheDepartmentofCommerce,forwhich theaggregatesalaryandwagesincludedinthecostof theproductionfortheperiodending12monthsafterthe monthinwhichtheprincipalfilmingortapingoftheproductionbeginsexceeds$100,000foraproductionthatis 30minutesorlongeror$50,000foraproductionthatis less than 30 minutes . "Accredited production" does not includeanyofthefollowing,regardlessoftheproduction costs: News, current events, or public programming or a programthatincludesweatherormarketreports. Atalkshow. Aproductionwithrespecttoaquestionnaireorcontest . Asportseventorsportsactivity. Agalapresentationorawardsshow. Afinishedproductionthatsolicitsfunds. A production for which the production company is requiredunder18USC2257tomaintainrecordswith respecttoaperformerportrayedinasinglemediaor multimediaprogram. A production produced primarily for industrial, corporate, or institutional purposes . "Film production company" means an entity that creates films, electronic games, broadcast advertisements, or television productions, not including the productions describedabove. "Previouslyownedproperty"meansrealpropertythatthe claimantorarelatedpersonownedduringthetwoyears priortodoingbusinessinWisconsinasafilmproduction companyandforwhichtheclaimantmaynotdeducta lossfromthesaleofthepropertyto,oranexchangeof thepropertywith,therelatedpersonundersec.267ofthe IRC,exceptthatsec.267oftheIRCismodifiedsothat iftheclaimantownsanypartoftheproperty,ratherthan 50percentownership,theclaimantissubjecttosec.267 oftheIRCforpurposesofthefilmproductioncompany investmentcredit.

"Productionexpenditures"meansanyexpendituresthat are incurred in Wisconsin and directly used to produce anaccreditedproduction,includingexpendituresforset constructionandoperation,wardrobes,make-up,clothing accessories,photography,soundrecording,soundsynchronization,soundmixing,lighting,editing,filmprocessing, filmtransferring,specialeffects,visualeffects,rentingor leasingfacilitiesorequipment,rentingorleasingmotor vehicles,food,lodging,andanyothersimilarexpenditure asdeterminedbytheDepartmentofCommerce."Production expenditures" include expenditures for music that is performed,composed,orrecordedbyamusicianwhois a resident of Wisconsin or published or distributed by an entitythathasitsheadquartersinWisconsin;airtravel thatispurchasedfromatravelagencyorcompanythat has its headquarters in Wisconsin; and insurance that is purchasedfromaninsuranceagencyorcompanythathas itsheadquartersinWisconsin."Productionexpenditures" do not include salary or wages or expenditures for the marketinganddistributionofanaccreditedproduction. SPECIFIC INSTRUCTIONS The film production services credits may be claimed byafilmproductioncompanythatoperatesanaccredited production in Wisconsin, if the company owns the copyrightintheaccreditedproductionorhascontracted directlywiththecopyrightownerorapersonactingon theowner'sbehalfandifthecompanyhasaviableplan, asdeterminedbytheDepartmentofCommerce,forthe commercialdistributionofthefinishedproduction. Part I Credit Nonrefundable Film Production Services

Line 1.Fillintheamountofwagesorsalarypaidduring the taxable year for services performed in Wisconsin toproduceanaccreditedproduction,afterapplyingthe followinglimitations: ThewagesorsalarymusthavebeenpaidtoemployeeswhowereresidentsofWisconsinatthetimethey werepaid. Includeonlysalaryorwagesdirectly incurred to produce the accredited production . Donotincludeanyamountspaidin2008forservices rendered before January 1, 2008 . Donotincludethewagesorsalaryoftheclaimant's twohighestpaidemployeeswhoperformedservices in Wisconsin to produce the accredited production . Youmayincludeamaximumof$25,000foreachemployeethatisnotexcludedbythelimitationsabove. Line 3. Fill in the amount of Wisconsin sales and use tax paidinthetaxableyearonthepurchaseoftangiblepersonal propertyandtaxableservicesthatwereuseddirectlyin producinganaccreditedproductioninWisconsin,includingallstagesfromthefinalscriptstagetothedistribution ofthefinishedproduction.Caution:Includeonlythe5%

Wisconsin sales and use tax paid. Do not include any county and special district sales and use taxes . Line 5.Ifapplicable,fillintheamountofnonrefundablefilm productionservicescreditpassedthroughfromtax-option (S)corporations(fromSchedule5K-1),partnershipsand LLCstreatedaspartnerships(fromSchedule3K-1),and estatesandtrusts(fromSchedule2K-1). Line 6.Forestatesortrusts,showonlytheestate'sor trust'sportionofthecreditonline6,andshowthebeneficiaries'portionofthecredittotheleftofline6.Labelit "Beneficiaries'portion."Proratethebeneficiaries'portion amongthebeneficiariesonSchedule2K-1.Fortax-option (S)corporations,partnerships,andLLCstreatedaspartnerships,showtheentireamountofcreditonline6and proratethatamountamongtheshareholders,partners, ormembersonSchedule5K-1or3K-1. Part II Refundable Film Production Services Credit Line 7. Fill in the production expenditures paid in the taxable year to produce an accredited production . Line 9.Ifapplicable,fillintheamountofrefundablefilm productionservicescreditpassedthroughfromtax-option (S)corporations(fromSchedule5K-1),partnershipsand LLCstreatedaspartnerships(fromSchedule3K-1),and estatesandtrusts(fromSchedule2K-1). Line 10. Forestatesortrusts,showonlytheestate'sor trust'sportionofthecreditonline10,andshowthebeneficiaries'portionofthecredittotheleftofline10.Labelit "Beneficiaries'portion."Proratethebeneficiaries'portion amongthebeneficiariesonSchedule2K-1.Fortax-option (S)corporations,partnerships,andLLCstreatedaspartnerships,showtheentireamountofcreditonline10and proratethatamountamongtheshareholders,partners, ormembersonSchedule5K-1or3K-1. Part III Film Production Company Investment Credit ThefilmproductioncompanyinvestmentcreditisavailabletopersonswhodobusinessinWisconsinasafilm productioncompany.Theexpensesmustbecertified,in writing,bytheDepartmentofCommercethatthecredits areforexpensesrelatedtoestablishingafilmproduction company in Wisconsin .

Line 11.Fillinthepurchasepriceofdepreciable,tangible personal property that was paid in the taxable year to establishafilmproductioncompanyinWisconsin.The tangiblepersonalpropertymusthavebeenpurchasedafter December31,2007,andthepersonalpropertyusedfor at least 50 percent of its use in the claimant's business asafilmproductioncompany. Line 12. Fill in the amount expended to acquire, construct, rehabilitate, remodel, or repair real property . OnlyamountsexpendedafterDecember31,2007,forthe physicalworkofconstruction,rehabilitation,remodeling, or repair, or any demolition or destruction in preparation forthephysicalworkmaybeused.Thecompletedproject must have been placed in service after December 31, 2007 . "Physical work" does not include preliminary activities suchasplanning,designing,securingfinancing,researching, developing specifications or stabilizing property to preventdeterioration. The credit may be claimed for an amount expended to acquirerealproperty,ifthepropertyisnotpreviouslyowned propertyandifthepropertyisacquiredafterDecember 31,2007,andthecompletedprojectisplacedinservice afterDecember31,2007. Line 16. For estates or trusts, show only the estate's ortrust'sportionofthecreditonline16,andshowthe beneficiaries'portionofthecredittotheleftofline16. Labelit"Beneficiaries'portion."Proratethebeneficiaries' portionamongthebeneficiariesonSchedule2K-1.For tax-option(S)corporations,partnerships,andLLCstreated aspartnerships,showtheentireamountofcreditonline 16 and prorate that amount among the shareholders, partners,ormembersonSchedule5K-1or3K-1. Required Attachments File your completed Schedule FP with your Wisconsin franchise or income tax return. For the film production servicescredit,alsofileacopyofthecommitmentletter andlistofapprovedexpensesfromtheDepartmentof Commerce.Forthefilmproductioninvestmentcredit,file acopyofthecertificationfromtheDepartmentofCommerce that the credits claimed are for expenses related toestablishingafilmproductioncompanyinWisconsin. Shareholdersoftax-option(S)corporations,partnersof partnerships,membersofLLCstreatedaspartnerships, and beneficiaries of estates or trusts must file a copy of Schedule 5K-1, 3K-1, or 2K-1, as appropriate, with ScheduleFPinsteadoftheapprovedapplicationand/or certification.