HB 25-1005: Tax Incentive for Film Festivals - Colorado

Rerevised (03/28/2025) → Revised (03/27/2025) · 3 edits

MINOR

The bill was revised to update its version status from 'Rerevised' to 'Revised' and to add new definitions for key terms. The most significant change is the addition of a new definition for 'GLOBAL FILM FESTIVAL ENTITY,' which now requires the entity to be either tax-exempt or for-profit, have a multi-decade operating history, and demonstrate a track record of attracting large numbers of attendees. A new definition for 'OFFICE' was also added to clarify which state agency is responsible.

Scope change

The bill's scope was expanded by adding specific eligibility criteria for the 'GLOBAL FILM FESTIVAL ENTITY' definition, requiring a multi-decade operating history and verified attendance metrics.

DEFINITION

Added a new definition for 'GLOBAL FILM FESTIVAL ENTITY' requiring the entity to be tax-exempt or for-profit, have a multi-decade operating history, and demonstrate a track record of attracting 100,000+ in-person attendees and tens of thousands of out-of-state/international attendees.

Added a new definition for 'OFFICE' to specify it means the Colorado Office of Economic Development created in Section 24-48.5-101(1).

TECHNICAL

Updated version header from 'REREVISED' to 'REVISED' and adjusted the amendment adoption language to reflect 'Second Reading' instead of '3rd Reading Unamended'.

PA1 (02/07/2025) → Rerevised (03/28/2025) · 7 edits

MODERATE

The bill was revised from a preliminary version to a re-revised version that includes all amendments adopted in the second house. The most significant substantive change is that the new tax credit statute (39-22-571) was moved from being added as a new section to amending an existing film production incentive statute (24-48.5-116). This integrates the film festival tax credit into the broader film production incentive framework rather than creating a standalone section.

Scope change

The bill's scope was expanded by integrating the film festival tax credit into the existing film production incentive statute, aligning it with other film-related tax incentives rather than creating a separate, isolated provision.

TECHNICAL

The bill header was updated from 'PREAMENDED' to 'REREVISED' to indicate this version includes all amendments adopted in the second house, replacing the earlier version that only included committee amendments not yet adopted.

House sponsorship was updated to include additional legislators (Duran, Bird, Boesenecker, Brown, Camacho, Carter, Froelich, Joseph, Lieder, Lindsay, Lindstedt, McCormick, Phillips, Rydin, Sirota, Smith, Soper, Stewart K., Stewart R., Valdez, Woodrow) replacing the original McCluskie and Titone sponsorship.

Senate sponsorship was expanded to include additional legislators (Bridges, Catlin, Coleman, Cutter, Exum, Jodeh, Kipp, Kirkmeyer, Michaelson Jenet, Mullica, Rich, Roberts, Simpson, Snyder) while retaining the original Amabile and Baisley sponsorship.

Committee assignments were updated to include Appropriations for both House and Senate, and reading status dates were added (3rd Reading Unamended March 28, 2025 for Senate; 2nd Reading Unamended March 27, 2025 for Senate; Amended 2nd Reading March 12, 2025 for House).

The bill summary section was updated with new reading dates and locations, changing from a generic introduction note to specific dates for House and Senate readings.

SCOPE

The primary substantive change is that the new tax credit statute (39-22-571) was moved from being added as a completely new section to amending an existing film production incentive statute (24-48.5-116), specifically amending subsection (5)(b) to include the film festival incentive fund allocation.

A new Section 2 was added to formally establish the film festival incentive tax credit statute (39-22-571) with definitions for 'Global Film Festival Entity,' 'Existing or Small Colorado Film Festival Entity,' and 'Qualified Expenditure,' including specific criteria for eligibility and credit amounts.

Final Act (04/03/2025) → PA1 (02/07/2025) · 3 edits

MINOR

The bill was reorganized to include proper legislative formatting and committee information. The core policy content regarding tax incentives for film festivals remains substantively unchanged, with the same eligibility criteria, funding limits, and effective dates preserved in the new structure.

Scope change

No substantive change to the bill's scope or applicability; changes are primarily formatting and structural reorganization.

TECHNICAL

Added standard legislative header information including session details, committee assignments, and bill summary explaining the tax credit for relocating film festivals.

Removed preliminary notes about bill status and signatures that were not part of the final enacted text.

Reorganized the bill text to follow standard Colorado legislative formatting conventions with proper section numbering and statutory language structure.

Signed Act (04/08/2025) → Final Act (04/03/2025) · 4 edits

MODERATE

This bill was amended to clarify its purpose by adding a title describing tax incentives for the film festival industry, and to remove a requirement that a film festival must relocate to Colorado by January 1, 2026 to qualify for the tax credit. The changes adjust the bill's scope by eliminating a relocation mandate while preserving the tax credit structure and funding provisions.

Scope change

The bill's scope was narrowed by removing the requirement that a qualified film festival entity must relocate its festival to Colorado by January 1, 2026 to receive the tax credit.

SCOPE

Added a title clarifying the bill concerns tax incentives to support the film festival industry.

REQUIREMENT

Removed the requirement that at least one qualified global film festival entity must commence relocation of its festival to Colorado by January 1, 2026 to be eligible for the tax credit.

TECHNICAL

Added a note indicating the bill has been prepared for signatures of legislative officers and the Governor.

Changed capitalization of certain terms in the statute text from all caps to sentence case for consistency.

Reengrossed (03/13/2025) → Signed Act (04/08/2025) · 5 edits · Apr 8, 2025

MODERATE

The bill was amended to add more Senate sponsors and clarify the legislative declaration about economic benefits. The core policy changes include adding specific annual funding limits for tax credit reservations ($4M-$5M-$3M for global festivals and $500K for smaller festivals), establishing a conditional requirement that at least one global film festival must relocate to Colorado by January 1, 2026 before any credits are available, and expanding the list of qualified expenditures to include capital costs and depreciable investments.

Scope change

The bill's scope expanded to include specific funding caps and a relocation trigger requirement that was not clearly defined in the original version.

FISCAL

Added specific annual limits on tax credit reservations: $4 million per year for 2027-2028, $5 million for 2029, and $3 million per year for 2030-2036 for global festivals, plus $500,000 per year for smaller Colorado festivals.

REQUIREMENT

Added a new requirement that at least one qualified global film festival must begin relocating to Colorado by January 1, 2026 before any tax credits can be issued under this bill.

DEFINITION

Expanded the definition of qualified expenditures to include capital costs and depreciable investments in real or business personal property needed to operate the film festival in Colorado.

ENFORCEMENT

Added language requiring the Office to determine if the relocation requirement is satisfied and notify the Department before credits are issued.

TECHNICAL

Added additional Senate sponsors to the bill sponsorship list.

Engrossed (03/12/2025) → Reengrossed (03/13/2025) · 3 edits · Mar 28, 2025

MINOR

The bill was reengrossed to include additional co-sponsors and updated the status to reflect amendments adopted in the House of Introduction. The substantive policy change involves removing specific language from the definition of 'qualified expenditure' that previously allowed tax credit funds to be used for salaries, benefits, contractors, rentals, and storage related to festival operations. This change likely narrows the scope of eligible expenses for the new refundable tax credit.

Scope change

The bill's scope was narrowed by removing provisions that allowed festival-related operational costs to qualify for the tax credit refundable expenditure definition.

ELIGIBILITY

Removed eligibility criteria allowing tax credit funds to cover salaries, benefits, contractors, film rentals, equipment, venue rentals, and office space for festival operations.

TECHNICAL

Added additional co-sponsors to the bill and updated the document status to reflect reengrossment with amendments.

Updated the bill summary note to indicate that a new summary for the reengrossed version will be available after third reading.

Introduced (01/08/2025) → Engrossed (03/12/2025) · 4 edits · Mar 28, 2025

MODERATE

The bill was amended to change the statute it modifies and reorganize its structure. The original bill sought to add a new tax credit statute, but the amended version now amends an existing film production incentive statute (24-48.5-116) to add funding sources. The core tax credit provisions for film festivals remain largely intact but are now presented as a separate section added to the existing law rather than as a completely new statute.

Scope change

The bill's scope changed from creating a standalone new tax credit statute to amending an existing film production incentive statute to include additional funding sources for the Office of Film, Television, and Media.

FISCAL

The bill now amends an existing statute (24-48.5-116) to add additional funding sources for the Colorado Office of Film, Television, and Media, including money from the film production incentive program and loan guarantee program.

TECHNICAL

The bill structure changed from adding a completely new statute (39-22-571) to amending an existing statute and adding the tax credit provisions as a separate section within the amended law.

The bill sponsor changed from McCluskie and Titone to Duran and Titone, and the bill status changed from Introduced to Engrossed, indicating it has passed through the House and includes all amendments.

SCOPE

The bill's committee assignments changed from Business Affairs & Labor to Finance and Appropriations, indicating a shift in legislative focus toward funding and budgetary matters.

Tax Incentive for Film Festivals

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