The Film Act (675)

To promote the Republic of Kodiak as a prime destination for film production by providing tax incentives for domestic and international filmmakers.

Article 1: Purpose and Definitions

1. Purpose:
   • To encourage the development of Kodiak’s film industry by offering tax exemptions for film production activities conducted within the Republic of Kodiak.
   • To support economic growth by attracting small and large studios to invest in local talent, services, and infrastructure.
2. Definitions:
   • Eligible Film Production: A film, television, or digital media project that incurs qualifying expenses within the Republic of Kodiak.
   • Small Studio: A production company with an annual revenue of less than 25 million Florins.
   • Large Studio: A production company with an annual revenue of 25 million Florins or more.
   • Qualifying Expenses: Expenses directly related to film production, including but not limited to:
     • Salaries for Kodiak citizens employed in production.
     • Equipment rentals and purchases.
     • Location fees and permits.
     • Construction of sets and production facilities.
     • Post-production activities conducted in Kodiak.

Article 2: Tax Incentives

1. Tax Exemption Rates:
   • Small Studios: Eligible for a tax exemption of up to 30% of qualifying expenses incurred within the Republic of Kodiak.
   • Large Studios: Eligible for a tax exemption of up to 25% of qualifying expenses incurred within the Republic of Kodiak.
2. Application Process:
   • Studios must submit a detailed application to the Ministry of Commerce, including:
     • A production budget with estimated qualifying expenses.
     • A project timeline and expected completion date.
     • Documentation demonstrating the studio’s revenue classification (small or large).
   • Applications will be reviewed for compliance with this Act, and tax exemptions will be granted on a case-by-case basis.

Article 3: Local Economic Contribution Requirements

1. Hiring Kodiak Citizens:
   • At least 40% of the production workforce must consist of Kodiak citizens to qualify for the full tax exemption.
2. Use of Local Services:
   • Studios are encouraged to utilize local vendors, facilities, and resources wherever possible.
3. Community Engagement:
   • Productions must provide evidence of community engagement, such as hiring local talent, conducting workshops, or hosting local screenings.

Article 4: Monitoring and Compliance

1. Expense Verification:
   • All qualifying expenses must be documented and verified by the Ministry of Commerce and Labor before tax exemptions are approved.
   • False or misleading claims may result in penalties, including repayment of tax benefits and fines of up to 500,000 Florins.
2. Annual Reporting:
   • Studios benefiting from this Act must submit an annual report detailing:
     • Actual qualifying expenses incurred.
     • The number of Kodiak citizens employed.
     • Any community engagement initiatives undertaken.

Written by Malia Mackenzie Marshall (CAP)