SB 159: Regards film and theater production tax credits

As Introduced

136th General Assembly Regular Session 2025-2026

S. B. No. 159

Senators Patton, Timken

Cosponsors: Senators Lang, O'Brien, Antonio, Smith

To amend sections 122.85, 5726.98, 5747.98, and 1
5751.98 and to repeal sections 122.852, 5726.59, 2
5747.67, and 5751.55 of the Revised Code to 3
modify the film and theater production tax 4
credit and to repeal the film and theater 5
capital improvement tax credit. 6

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 122.85, 5726.98, 5747.98, and 7
5751.98 of the Revised Code be amended to read as follows: 8
Sec. 122.85. (A) As used in this section and in sections 9
5726.55, 5733.59, 5747.66, and 5751.54 of the Revised Code: 10
(1) "Tax credit-eligible production" means a motion 11
picture or broadway theatrical production certified by the 12
director of development under division (B) of this section as 13
qualifying the production company for a tax credit under section 14
5726.55, 5733.59, 5747.66, or 5751.54 of the Revised Code. 15
(2) "Certificate owner" means a production company to 16
which a tax credit certificate is issued. 17
(3) "Production company" means an individual, corporation, 18
partnership, limited liability company, or other form of 19

S. B. No. 159 As Introduced

business association that is registered with the secretary of 20
state and that is producing a motion picture or broadway 21
theatrical production. 22
(4) "Eligible expenditures" means expenditures made after 23
June 30, 2009, for goods or services purchased and consumed in 24
this state by a production company directly for the production 25
of a tax credit-eligible production, for postproduction 26
activities, or for advertising and promotion of the production. 27
"Eligible expenditures" do not include qualified 28
expenditures for which a production company receives a tax 29
credit under section 122.852 of the Revised Code. 30
"Eligible expenditures" include expenditures for cast and 31
crew wages, accommodations, costs of set construction and 32
operations, editing and related services, photography, sound 33
synchronization, lighting, wardrobe, makeup and accessories, 34
film processing, transfer, sound mixing, special and visual 35
effects, music, location fees, and the purchase or rental of 36
facilities and equipment. 37
(5) "Motion picture" means entertainment content created 38
in whole or in part within this state for distribution or 39
exhibition to the general public, including, but not limited to, 40
feature-length films; documentaries; long-form, specials, 41
miniseries, series, and interstitial television programming; 42
interactive web sites; sound recordings; videos; music videos; 43
interactive television; interactive games; video games; 44
commercials; any format of digital media; and any trailer, 45
pilot, video teaser, or demo created primarily to stimulate the 46
sale, marketing, promotion, or exploitation of future investment 47
in either a product or a motion picture by any means and media 48
in any digital media format, film, or videotape, provided the 49

S. B. No. 159 As Introduced

motion picture qualifies as a motion picture. "Motion picture" 50
does not include any television program created primarily as 51
news, weather, or financial market reports, a production 52
featuring current events or sporting events, an awards show or 53
other gala event, a production whose sole purpose is 54
fundraising, a long-form production that primarily markets a 55
product or service or in-house corporate advertising or other 56
similar productions, a production for purposes of political 57
advocacy, or any production for which records are required to be 58
maintained under 18 U.S.C. 2257 with respect to sexually 59
explicit content. 60
(6) "Broadway theatrical production" means a prebroadway 61
production, long run production, or tour launch that is 62
directed, managed, and performed by a professional cast and crew 63
and that is directly associated with New York city's broadway 64
theater district. 65
(7) "Prebroadway production" means a live stage production 66
that is scheduled for presentation in New York city's broadway 67
theater district after the original or adaptive version is 68
performed in a qualified production facility. 69
(8) "Long run production" means a live stage production 70
that is scheduled to be performed at a qualified production 71
facility for more than five weeks, with an average of at least 72
six performances per week. 73
(9) "Tour launch" means a live stage production for which 74
the activities comprising the technical period are conducted at 75
a qualified production facility before a tour of the original or 76
adaptive version of the production begins. 77
(10) "Qualified production facility" means a facility 78

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located in this state that is used in the development or 79
presentation to the public of theater productions. 80
(11) "Investment intent letter" means a letter that 81
satisfies all of the following: 82
(a) Is executed on official letterhead of the production 83
company, investor, or investment entity; 84
(b) Clearly states the amount of investment being 85
committed; 86
(c) Specifies the date on which the investment is to be 87
made available; 88
(d) Identifies the motion picture or broadway theatrical 89
production to which the funds are allocated. 90
(B) For the purpose of encouraging and developing strong 91
film and theater industries in this state, the director of 92
development may certify a motion picture or broadway theatrical 93
production produced by a production company as a tax credit- 94
eligible production. In the case of a television series, the 95
director may certify the production of each episode of the 96
series as a separate tax credit-eligible production. A 97
production company shall apply for certification of a motion 98
picture or broadway theatrical production as a tax credit- 99
eligible production on a form and in the manner prescribed by 100
the director. Each application shall include the following 101
information: 102
(1) The name and telephone number of the production 103
company; 104
(2) The name and telephone number of the company's contact 105
person; 106

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(3) A list of the first preproduction date through the 107
last production and postproduction dates in Ohio and, in the 108
case of a broadway theatrical production, a list of each 109
scheduled performance in a qualified production facility; 110
(4) The Ohio production office or qualified production 111
acility address and telephone number; 112
(5) The total production budget; 113
(6) The total budgeted eligible expenditures and the 114
percentage that amount is of the total production budget of the 115
motion picture or broadway theatrical production; 116
(7) In the case of a motion picture, the total percentage 117
of the production being shot in Ohio; 118
(8) The level of employment of cast and crew who reside in 119
Ohio; 120
(9) A synopsis of the script; 121
(10) In the case of a motion picture, the shooting script; 122
(11) A creative elements list that includes the names of 123
he principal cast and crew and the producer and director; 124
(12) Documentation of financial ability to undertake and 125
omplete the motion picture or broadway theatrical production, 126
including documentation that shows that the company has secured 127
unding equal to at least fifty per cent of the total production 128
budget, which may be in the form of an investment intent letter; 129
(13) Estimated value of the tax credit based upon total 130
udgeted eligible expenditures; 131
(14) Estimated amount of state and local taxes to be 132
generated in this state from the production; 133

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(15) Estimated economic impact of the production in this 134
state; 135
(16) Any other information considered necessary by the 136
director. 137
Within ninety days after certification of a motion picture 138
or broadway theatrical production as a tax credit-eligible 139
production, and any time thereafter upon the request of the 140
director, the production company shall present to the director 141
sufficient evidence of reviewable progress. If the production 142
company fails to present sufficient evidence, the director may 143
rescind the certification. If the production of a motion picture 144
or broadway theatrical production does not begin within ninety 145
days after the date it is certified as a tax credit-eligible 146
production, the director shall rescind the certification unless 147
the director finds that the production company shows good cause 148
for the delay, meaning that the production was delayed due to 149
unforeseeable circumstances beyond the production company's 150
control or due to action or inaction by a government agency. 151
Upon rescission, the director shall notify the applicant that 152
the certification has been rescinded. Nothing in this section 153
prohibits an applicant whose tax credit-eligible production 154
certification has been rescinded from submitting a subsequent 155
application for certification. 156
(C)(1) A production company whose motion picture or 157
broadway theatrical production has been certified as a tax 158
credit-eligible production may apply to the director of 159
development on or after July 1, 2009, for a refundable credit 160
against the tax imposed by section 5726.02, 5733.06, 5747.02, or 161
5751.02 of the Revised Code. The director in consultation with 162
the tax commissioner shall prescribe the form and manner of the 163

S. B. No. 159 As Introduced

application and the information or documentation required to be 164
submitted with the application. 165
The credit is determined as follows: 166
(a) If the total budgeted eligible expenditures stated in 167
the application submitted under division (B) of this section or 168
the actual eligible expenditures as finally determined under 169
division (D) of this section, whichever is least, is less than 170
or equal to three hundred thousand dollars, no credit is 171
allowed; 172
(b) If the total budgeted eligible expenditures stated in 173
the application submitted under division (B) of this section or 174
the actual eligible expenditures as finally determined under 175
division (D) of this section, whichever is least, is greater 176
than three hundred thousand dollars, the credit equals thirty 177
per cent of the least of such budgeted or actual eligible 178
expenditure amounts. 179
(2) Except as provided in division (C)(4) of this section, 180
if the director of development approves a production company's 181
application for a credit, the director shall issue a tax credit 182
certificate to the company. The director in consultation with 183
the tax commissioner shall prescribe the form and manner of 184
issuing certificates. The director shall assign a unique 185
identifying number to each tax credit certificate and shall 186
record the certificate in a register devised and maintained by 187
the director for that purpose. The certificate shall state the 188
amount of the eligible expenditures on which the credit is based 189
and the amount of the credit. Upon the issuance of a 190
certificate, the director shall certify to the tax commissioner 191
the name of the production company to which the certificate was 192
issued, the amount of eligible expenditures shown on the 193

S. B. No. 159 As Introduced

certificate, the amount of the credit, and any other information 194
required by the rules adopted to administer this section. 195
(3) The amount of eligible expenditures for which a tax 196
credit may be claimed is subject to inspection and examination 197
by the tax commissioner or employees of the commissioner under 198
section 5703.19 of the Revised Code and any other applicable 199
law. Once the eligible expenditures are finally determined under 200
section 5703.19 of the Revised Code and division (D) of this 201
section, the credit amount is not subject to adjustment unless 202
the director determines an error was committed in the 203
computation of the credit amount. 204

(4) No tax credit certificate may be issued before the completion of the tax credit-eligible production. The amount of tax credit allowed per fiscal year shall not exceed the sum of (a) fifty one hundred million dollars, (b) the difference between the maximum credit amount for that fiscal year under section 122.852 of the Revised Code and the amount the director of development elects to allow under this section pursuant to division (D)(1) of section 122.852 of the Revised Code, and (c) the difference between the maximum amount of credits that could have been awarded in the previous fiscal year under this section and the amount actually awarded. Out of that sum, five million dollars shall be reserved for broadway theatrical productions, and the balance may be allowed for any tax credit-eligible production. For any fiscal year in which less than five million dollars of tax credits are allowed for broadway theatrical productions, the amount of the five million dollars not allowed and added to the maximum annual amount for the following fiscal year shall be reserved for broadway theatrical productions in the following fiscal year.

S. B. No. 159 As Introduced

(5) The Except as otherwise provided in this division, the 224
director shall review and approve applications for tax credits 225
in two rounds each fiscal year on a first-come, first-served, 226
basis. The first round of credits shall be awarded not later 227
than the last day of July of the fiscal year, and the second 228
round of credits shall be awarded not later than the last day of 229
the ensuing January. The amount of credits awarded in the first 230
round of applications each fiscal year shall not exceed one-half 231
of the maximum allowance for the fiscal year calculated 232

If, at any time, all complete and pending, but unapproved, applications would, if all approved, result in awarded credits in excess of the limit established under division (C)(4) of this section, two million five hundred thousand dollars of which shall be reserved for broadway theatrical productions. For each round, the director shall rank the complete and pending applications on the basis of the extent of positive economic impact each tax credit-eligible production is likely to have in this state and the effect on developing a permanent workforce in motion picture or theatrical production industries in the state. For the purpose of such ranking, the director shall give priority to tax-credit eligible productions that are television series or miniseries due to the long-term commitment typically associated with such productions. The economic impact ranking shall be based on the production company's total expenditures in this state directly associated with the tax credit-eligible production. The effect on developing a permanent workforce in the motion picture or theatrical production industries shall be evaluated first by the number of new jobs created and second by amount of payroll added with respect to employees in this state.

The When ranking is required under this division, the director shall approve productions in the order of their

S. B. No. 159 As Introduced

ranking, from those with the greatest positive economic impact 255
and workforce development effect to those with the least 256
positive economic impact and workforce development effect. 257
(D) A production company whose motion picture or broadway 258
theatrical production has been certified as a tax credit- 259
eligible production shall engage, at the company's expense, an 260
independent certified public accountant to examine the company's 261
production, postproduction, and advertising and promotion 262
expenditures to identify the expenditures that qualify as 263
eligible expenditures. The certified public accountant shall 264
review and certify to the director all contract and expense 265
items greater than or equal to ten thousand dollars and review 266
and certify to the director not less than fifty per cent of the 267
contracts and expense items less than ten thousand dollars. The 268
certified public accountant shall then issue a report to the 269
company and to the director of development certifying the 270
company's eligible expenditures and any other information 271
required by the director. Upon receiving and examining the 272
report, the director may disallow any expenditure the director 273
determines is not an eligible expenditure. If the director 274
disallows an expenditure, the director shall issue a written 275
notice to the production company stating that the expenditure is 276
disallowed and the reason for the disallowance. Upon examination 277
of the report and disallowance of any expenditures, the director 278
shall determine finally the lesser of the total budgeted 279
eligible expenditures stated in the application submitted under 280
division (B) of this section or the actual eligible expenditures 281
for the purpose of computing the amount of the credit. 282
(E) No credit shall be allowed under section 5726.55, 283
5733.59, 5747.66, or 5751.54 of the Revised Code unless the 284
director has reviewed the report and made the determination 285

S. B. No. 159 As Introduced

prescribed by division (D) of this section. 286

(F) This state reserves the right to refuse the use of 287
this state's name in the credits of any tax credit-eligible 288
motion picture production or program of any broadway theatrical 289
production. 290

(G)(1) The director of development in consultation with the tax commissioner shall adopt rules for the administration of this section, including rules setting forth and governing the criteria for determining whether a motion picture or broadway theatrical production is a tax credit-eligible production; activities that constitute the production or postproduction of a motion picture or broadway theatrical production; reporting sufficient evidence of reviewable progress; expenditures that qualify as eligible expenditures; a schedule and deadlines for applications to be submitted and reviewed; a competitive process for approving credits based on likely economic impact in this state and development of a permanent workforce in motion picture or theatrical production industries in this state; consideration of geographic distribution of credits; and implementation of the program described in division (H) of this section. The rules shall be adopted under Chapter 119. of the Revised Code.

(2) To cover the administrative costs of the program, the 307
director shall require each applicant to pay an application fee 308
equal to the lesser of ten thousand dollars or one per cent of 309
the estimated value of the tax credit as stated in the 310
application. The fees collected shall be credited to the tax 311
incentives operating fund created in section 122.174 of the 312
Revised Code. All grants, gifts, fees, and contributions made to 313
the director for marketing and promotion of the motion picture 314
industry within this state shall also be credited to the fund. 315

S. B. No. 159 As Introduced

(H) The director of development shall establish a program 316
for the training of Ohio residents who are or wish to be 317
employed in the film or multimedia industry. Under the program, 318
the director shall: 319
(1) Certify individuals as film and multimedia trainees. 320
In order to receive such a certification, an individual must be 321
an Ohio resident, have participated in relevant on-the-job 322
raining or have completed a relevant training course approved 323
y the director, and have met any other requirements established 324
by the director. 325
(2) Accept applications from production companies that 326
intend to hire and provide on-the-job training to one or more 327
certified film and multimedia trainees who will be employed in 328
he company's tax credit-eligible production; 329
(3) Upon completion of a tax-credit eligible production, 330
and upon the receipt of any salary information and other 331
ocumentation required by the director, authorize a 332
reimbursement payment to each production company whose 333
application was approved under division (H)(2) of this section. 334
The payment shall equal fifty per cent of the salaries paid to 335
ilm and multimedia trainees employed in the production. 336
Sec. 5726.98. (A) To provide a uniform procedure for 337
alculating the amount of tax due under section 5726.02 of the 338
Revised Code, a taxpayer shall claim any credits to which the 339
taxpayer is entitled under this chapter in the following order: 340
The nonrefundable job retention credit under division (B) 341
of section 5726.50 of the Revised Code; 342
The nonrefundable credit for purchases of qualified low- 343
income community investments under section 5726.54 of the 344

S. B. No. 159 As Introduced

Revised Code; 345

The nonrefundable credit for qualified research expenses 346
under section 5726.56 of the Revised Code; 347
The nonrefundable credit for qualifying dealer in 348
intangibles taxes under section 5726.57 of the Revised Code; 349
The nonrefundable Ohio low-income housing tax credit under 350
section 5726.58 of the Revised Code; 351
The nonrefundable affordable single-family home credit 352
under section 5726.60 of the Revised Code; 353
The nonrefundable welcome home Ohio (WHO) program credit 354
under section 122.633 of the Revised Code; 355
The nonrefundable opportunity zone investment credit under 356
section 5726.61 of the Revised Code; 357
The refundable credit for rehabilitating an historic 358
building under section 5726.52 of the Revised Code; 359
The refundable job retention or job creation credit under 360
division (A) of section 5726.50 of the Revised Code; 361
The refundable credit under section 5726.53 of the Revised 362
Code for losses on loans made under the Ohio venture capital 363
program under sections 150.01 to 150.10 of the Revised Code; 364
The refundable motion picture and broadway theatrical 365
production credit under section 5726.55 of the Revised Code; 366
The refundable credit for film and theater capital 367
improvement projects under section 5726.59 of the Revised Code. 368
(B) For any credit except the refundable credits 369
enumerated in this section, the amount of the credit for a 370
taxable year shall not exceed the tax due after allowing for any 371

S. B. No. 159 As Introduced

other credit that precedes it in the order required under this 372
section. Any excess amount of a particular credit may be carried 373
forward if authorized under the section creating that credit. 374
Nothing in this chapter shall be construed to allow a taxpayer 375
to claim, directly or indirectly, a credit more than once for a 376
taxable year. 377
Sec. 5747.98. (A) To provide a uniform procedure for 378
calculating a taxpayer's aggregate tax liability under section 379
5747.02 of the Revised Code, a taxpayer shall claim any credits 380
to which the taxpayer is entitled in the following order: 381
Either the retirement income credit under division (B) of 382
section 5747.055 of the Revised Code or the lump sum retirement 383
income credits under divisions (C), (D), and (E) of that 384
section; 385
Either the senior citizen credit under division (F) of 386
section 5747.055 of the Revised Code or the lump sum 387
distribution credit under division (G) of that section; 388
The dependent care credit under section 5747.054 of the 389
Revised Code; 390
The credit for displaced workers who pay for job training 391
under section 5747.27 of the Revised Code; 392
The campaign contribution credit under section 5747.29 of 393
the Revised Code; 394
The twenty-dollar personal exemption credit under section 395
5747.022 of the Revised Code; 396
The joint filing credit under division (G)(E) of section 397
5747.05 of the Revised Code; 398
The earned income credit under section 5747.71 of the 399

S. B. No. 159 As Introduced

Revised Code; 400
The nonrefundable credit for education expenses under 401
section 5747.72 of the Revised Code; 402
The nonrefundable credit for donations to scholarship 403
granting organizations under section 5747.73 of the Revised 404
Code; 405
The nonrefundable credit for tuition paid to a 406
nonchartered nonpublic school under section 5747.75 of the 407
Revised Code; 408
The nonrefundable vocational job credit under section 409
5747.057 of the Revised Code; 410
The nonrefundable job retention credit under division (B) 411
of section 5747.058 of the Revised Code; 412
The enterprise zone credit under section 5709.66 of the 413
Revised Code; 414
The credit for beginning farmers who participate in a 415
financial management program under division (B) of section 416
5747.77 of the Revised Code; 417
The credit for commercial vehicle operator training 418
expenses under section 5747.82 of the Revised Code; 419
The nonrefundable welcome home Ohio (WHO) program credit 420
under section 122.633 of the Revised Code; 421
The credit for selling or renting agricultural assets to 422
beginning farmers under division (A) of section 5747.77 of the 423
Revised Code; 424
The credit for purchases of qualifying grape production 425
property under section 5747.28 of the Revised Code; 426

S. B. No. 159 As Introduced

The small business investment credit under section 5747.81 427
of the Revised Code; 428
The nonrefundable lead abatement credit under section 429
5747.26 of the Revised Code; 430
The opportunity zone investment credit under section 431
5747.86 of the Revised Code; 432
The enterprise zone credits under section 5709.65 of the 433
Revised Code; 434
The research and development credit under section 5747.331 435
of the Revised Code; 436
The credit for rehabilitating a historic building under 437
section 5747.76 of the Revised Code; 438
The nonrefundable Ohio low-income housing tax credit under 439
section 5747.83 of the Revised Code; 440
The nonrefundable affordable single-family home credit 441
under section 5747.84 of the Revised Code; 442
The nonresident credit under division (A) of section 443
5747.05 of the Revised Code; 444
The credit for a resident's out-of-state income under 445
division (B) of section 5747.05 of the Revised Code; 446
The refundable motion picture and broadway theatrical 447
production credit under section 5747.66 of the Revised Code; 448
The refundable credit for film and theater capital 449
improvement projects under section 5747.67 of the Revised Code; 450
The refundable jobs creation credit or job retention 451
credit under division (A) of section 5747.058 of the Revised 452
Code; 453

S. B. No. 159 As Introduced

The refundable credit for taxes paid by a qualifying 454
entity granted under section 5747.059 of the Revised Code; 455
The refundable credits for taxes paid by a qualifying 456
pass-through entity granted under division (I) of section 457
5747.08 of the Revised Code; 458
The refundable credit under section 5747.80 of the Revised 459
Code for losses on loans made to the Ohio venture capital 460
program under sections 150.01 to 150.10 of the Revised Code; 461
The refundable credit for rehabilitating a historic 462
building under section 5747.76 of the Revised Code; 463
The refundable credit under section 5747.39 of the Revised 464
Code for taxes levied under section 5747.38 of the Revised Code 465
paid by an electing pass-through entity. 466
(B) For any credit, except the refundable credits 467
enumerated in this section and the credit granted under division 468
(H) of section 5747.08 of the Revised Code, the amount of the 469
credit for a taxable year shall not exceed the taxpayer's 470
aggregate amount of tax due under section 5747.02 of the Revised 471
Code, after allowing for any other credit that precedes it in 472
the order required under this section. Any excess amount of a 473
particular credit may be carried forward if authorized under the 474
section creating that credit. Nothing in this chapter shall be 475
construed to allow a taxpayer to claim, directly or indirectly, 476
a credit more than once for a taxable year. 477
Sec. 5751.98. (A) To provide a uniform procedure for 478

calculating the amount of tax due under this chapter, a taxpayer shall claim any credits to which it is entitled in the following order: 4

The nonrefundable jobs retention credit under division (B)

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of section 5751.50 of the Revised Code; 483
The nonrefundable credit for qualified research expenses 484
under division (B) of section 5751.51 of the Revised Code; 485
The nonrefundable credit for a borrower's qualified 486
research and development loan payments under division (B) of 487
section 5751.52 of the Revised Code; 488
The nonrefundable credit for calendar years 2010 to 2029 489
for unused net operating losses under division (B) of section 490
5751.53 of the Revised Code; 491
The refundable motion picture and broadway theatrical 492
production credit under section 5751.54 of the Revised Code; 493
The refundable credit for film and theater capital 494
improvement projects under section 5751.55 of the Revised Code; 495
The refundable jobs creation credit or job retention 496
credit under division (A) of section 5751.50 of the Revised 497
Code; 498
The refundable credit for calendar year 2030 for unused 499
net operating losses under division (C) of section 5751.53 of 500
the Revised Code. 501
(B) For any credit except the refundable credits 502
enumerated in this section, the amount of the credit for a tax 503
period shall not exceed the tax due after allowing for any other 504
credit that precedes it in the order required under this 505
section. Any excess amount of a particular credit may be carried 506
forward if authorized under the section creating the credit. 507
Section 2. That existing sections 122.85, 5726.98, 508
5747.98, and 5751.98 of the Revised Code are hereby repealed. 509

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Section 3. That sections 122.852, 5726.59, 5747.67, and 5
5751.55 of the Revised Code are hereby repealed. 5