Colorado § 24-48.5-114 - Film, television, and media - definitions.

§ 24-48.5-114. Film, television, and media - definitions.

As used in this section and sections 24-48.5-115 and 24-48.5-116, unless the context otherwise requires:

(1) (a) "Film" means any visual or audiovisual work, including, without limitation, a video game, television show, or a television commercial, that contains a series of related images, regardless of the medium by which the work is fixed and from which it can be viewed or reproduced, and that is primarily intended to be either:

(I) Commercially exploited by being shown in theaters or on television licensed for the home or international market, or otherwise; or

(II) For internal industrial, corporate, or institutional use.

(b) "Film" does not include an obscene film.

(2) "Obscene" has the same meaning as set forth in section 18-7-101 (2), C.R.S.

(3) "Office" means the Colorado office of film, television, and media created pursuant to section 24-48.5-115.

(4) "Originates" means the production company has been a resident of the state or registered with the secretary of state for at least twelve consecutive months and, as of the date of applying for a performance-based incentive as specified in section 24-48.5-116, has engaged in production activities in the state for other projects in the past twelve consecutive months; except that, if the production company creates a business entity for the sole purpose of conducting production activities in the state, then such business entity need not be registered with the secretary of state for twelve consecutive months, but the manager of the business entity must be a resident of the state for at least twelve consecutive months as of the date of applying for a performance-based incentive as specified in section 24-48.5-115. For purposes of this subsection (4), "manager of the business entity" means a manager with decision-making authority to make financial or legal commitments on behalf of the production or business.

(4.5) (a) "Personal service corporation" has the same meaning as set forth in section 269A (b)(1) of the internal revenue code.

(b) "Employee-owner of a personal service corporation" has the same meaning as "employee owner" as set forth in section 269A (b)(2) of the internal revenue code.

(5) "Production activities" means the shooting of a film, support activities related to such shooting, and any preshooting or postshooting activities that commence on or after July 1, 2009, and that are necessary to produce a finished film, including but not limited to editing and the creation of sets, props, costumes, and special effects.

(6) "Production company" means a person, including a corporation or other business entity, that engages in production activities for the purpose of producing all or any portion of a film in Colorado.

(7) "Qualified local expenditure" means a payment made by a production company operating in Colorado to a person or business in Colorado in connection with production activities in Colorado. "Qualified local expenditure" includes, but is not limited to:

(a) Payments made in connection with developing or purchasing the story and scenario to be used for a film;

(b) Payments made for the costs of set construction and operations, wardrobe, accessories, and related services;

(c) Payments made for the costs of photography, sound recording and synchronization, lighting, and related services;

(d) Payments made for the costs of editing, post-production, music, and related services;

(e) Payments made for the costs of renting facilities and equipment, including location fees, leasing vehicles, and providing food and lodging to people working on the film production;

(f) Payments for airfare purchased through a Colorado-based travel agency or company;

(g) Payments for insurance and bonding purchased through a Colorado-based insurance agent;

(h) Payments for other direct costs incurred by the film production company that are deemed appropriate by the office;

(i) Payments of up to one million dollars per employee or contractor, made by a production company to pay the wages or salaries of employees or contractors who participate in the production activities. In order for any wage or salary to be considered a qualified local expenditure, all Colorado income taxes shall be withheld and paid either by the production company or the individual. Any payments in excess of one million dollars per employee or contractor shall be excluded; and

(j) Payments of up to one million dollars per calendar year per personal service corporation, made by a production company to a personal service corporation to pay the wages or salaries of an employee-owner of the personal service corporation who participates in the production activities. In order for any wage or salary to be a considered a qualified local expenditure, the production company must file an information return pursuant to section 39-22-604 (21) regarding the payments made to the personal service corporation. Any payments in excess of one million dollars per personal service corporation shall be excluded.

Source: L. 2012: Entire section added, (HB 12-1286), ch. 186, p. 704, § 2, effective July 1. L. 2018: (4) amended, (SB 18-103), ch. 39, p. 456, § 1, effective March 15. L. 2023: (4.5) and (7)(j) added and IP(7), (7)(h), and (7)(i) amended, (HB 23-1275), ch. 289, p. 1735, § 1, effective August 7.

Editor's note: This section is similar to former § 24-48.5-309 as it existed prior to 2012.

Cross references: For the legislative declaration in the 2012 act adding this section, see section 1 of chapter 186, Session Laws of Colorado 2012.