Montana's Senate Taxation Committee is taking bold steps to boost the state's film industry with a new reservation bucket system aimed at keeping production dollars circulating locally. During a recent meeting, key proposals were outlined to enhance the economic impact of film productions in Montana.

The plan includes a 60% reservation bucket specifically for Montana-based productions, designed to ensure that funds generated from film projects remain within the state. This initiative aims to create a multiplier effect, enhancing local economies through increased spending. A significant aspect of this proposal is the establishment of a $10 million minimum capital expenditure for qualified facilities, which will drive infrastructure investment and create sustainable studio environments.

Additionally, a 25% reservation bucket will be allocated for domiciled companies—those that pay Montana state corporate income tax and employ local residents. This move is expected to combat the brain drain of talent from the state and ensure that profits from successful productions, even those filmed out of state, contribute back to Montana's economy.

The committee also proposed a 10% reservation bucket for independent Montana productions, which are crucial for training local talent and hiring industry professionals. Furthermore, a 40% open reservation bucket will cater to larger out-of-state production companies, encouraging them to hire locally and utilize Montana facilities.

To qualify for these incentives, productions must meet a minimum 60% threshold of principal photography days spent in Montana, ensuring that the state benefits directly from the filming activities. The committee is also looking to limit the state's liability by implementing a carry-forward clause for tax credits, ensuring that benefits do not extend indefinitely.

These proposed amendments signal a significant shift in Montana's approach to film production, aiming to create a thriving local industry while maximizing economic benefits for the state. As discussions continue, the focus remains on capturing and retaining production dollars within Montana, fostering growth and sustainability in the film sector.