SB 880

Taxation

Retirement

Current law allows an individual to claim an income tax subtraction for the amount of the payments or distributions received each year from a qualified retirement plan or from an individual retirement account. The amount may not exceed $24,000 in any taxable year for an individual taxpayer or $48,000 in a taxable year for spouses filing a joint return. An individual or couple who claims the subtraction for a taxable year may not claim any state income tax credit under current law for that same taxable year. Under the bill, in addition to being prohibited from claiming any state income tax credit for the taxable year, the individual or couple may not claim the unused amount of any such credit in a subsequent taxable year. The bill also makes technical changes to the subtraction.

Film production tax credit

Under current law, a film production company may claim an income and franchise tax credit equal to 30 percent of the salary or wages paid to its employees in this state for services rendered to produce a film, video, broadcast advertisement, or television production in this state. The total amount of the credit may not exceed the first $250,000 of salary or wages paid to each of the claimant’s employees in the taxable year. However, if the claimant’s budgeted production expenditures for that year are $1,000,000 or more, the salaries or wages paid to the claimant’s two highest-paid employees may not be used to claim the credit. Under the bill, a claimant may not use the salary or wages paid to the claimant’s two highest-paid employees in the taxable year to claim the credit if the claimant

actual

production expenditures for that year are $1,000,000 or more. The bill also makes technical changes to the the film production credit and the film production company investment credit.

Purchasing

Under current law, if contractual services are purchased by the Department of Administration or an agent of DOA—typically another state agency—that would require an individual performing the services to have access to federal tax information received directly from the federal Internal Revenue Service or from a source that is authorized by the IRS, a background check must be performed on each individual performing the services. Under the bill, the Department of Revenue may be an agent of DOA for the purchase of such contractual services.