R357-5-2. Definitions

  (1) The definitions below are in addition to or serve to clarify the definitions found in Utah Code Section 63N-8-102.

  (2) "Community Film Incentive Program" means a production where a motion picture company has a maximum budget of under $500,000.

  (3) "Dollars Left in the State" means in addition to 63N-8 does NOT include:

  (a) Salary for any individual earning more than 500,000

  (b) Marketing and distributions expenditures

  (c) 50% of shipping or airfare charges with one destination point within Utah and all shipping or airfare outside of Utah

  (d) any value beyond the depreciated amount for capital expenditures, rentals, and any purchases made where the item is used for only a portion of its useful life

  (e) any per diem value beyond 100 percent of the current federal rate for the area

  (4) "Deferred Payment" means, tax credits in amounts over $2,000,000 paid in installments over a specified number of years but not to exceed three years.

  (5) "Independent Utah CPA" means, a Certified Public Accountant (CPA) holding an active license in the state of Utah that is independent of the production and production activities.

  (6) "Motion Pictures" means, but is not limited to, narrative or documentary films or high definition digital production, and originally intended for commercial distribution to motion picture theaters, directly to the home video and/or DVD markets, cable television, broadcast television or video on demand.

  (a) The term "Motion Picture" does not include:

  (i) News;

  (ii) Commercials;

  (iii) Live Broadcasts;

  (iv) Digital Media Products;

  (v) Live Sporting events;

  (vi) Live Coverage of other theatrical or entertainment events;

  (vii) Programs that solicit funds; or

  (viii) Reality television.

  (7) "Rural Utah" means all counties outside of Davis County, Salt Lake County, Utah County, and Weber County.

  (8) "Significant Percentage of cast and crew from Utah" means

  (a) For productions that have less than $500,000 dollars left in state: that at least 85% of the cast and crew are Utah residents excluding extras and five principal cast.

  (b) For productions that have more than $500,000 dollars left in state: that at least 75% of the cast and crew are Utah residents excluding extras and five principal cast.

  (9) "State-approved production" means a production that is:

  (a) approved by the office and ratified by the Governor's Office of Economic Development Board; and

  (b) all or a portion of the production is produced in the state.

  (10) "Total budget for the product" means the total budget for Dollars left in state of pre-production, production and post-production.

  (11) "Treatment" means: A written description of the production.

  (12) "UFC" means: the Utah Film Commission, a sub-entity of the Utah Governor's Office of Economic Development.

  (13) "Utah Resident" means a person who files a Utah State Tax Return as a resident of Utah.