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H 3085

Child Custody

2025-2026 Regular Session Introduced by Bill Chumley and 6 co-sponsors

Creates 25% payroll and 25% additional production expense tax credits to incentivize digital interactive media production in Massachusetts.

Member(s) request name added as sponsor: Edgerton
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Bill Summary · H 3085

Summary — H 3085 (House Docket No. 4011)

Title(s) in file: appears as "Child Custody" in the docket header, but the bill text and primary provisions establish tax incentives for the digital interactive media/interactive entertainment industries. Sponsor: Rep. Daniel M. Donahue (primary). Member Edgerton later added as sponsor.

Date introduced / key actions
- Prefiled: 2024-12-05; Introduced and read first time: 2025-01-14
- Referred to Committee on Judiciary (01/14/2025) and to Committee on Revenue (02/27/2025)
- Senate concurred: 02/27/2025
- Hearing scheduled: 10/28/2025 (B‑2)
- Related bill: HD 4011 (replaces)

Purpose
- To create and clarify statutory definitions for “Digital Interactive Media/Interactive Entertainment,” establish what costs qualify as Massachusetts production expenses for digital interactive media, and provide state tax incentives (credits) to encourage production and employment in Massachusetts by digital interactive media production companies.

Key provisions
1. Definitions inserted into G.L. c.62, §6(l)(1):
- “Digital interactive media/Interactive Entertainment” — commercial products/platforms that include at least two data types (text, sound, images, video, 3D geometry, etc.) and meet three characteristics: digital, interactive, and media. Excludes internal-operational software, largely static informational websites, and products regulated under gambling law.
- “Digital Interactive Media Production Company” — a company (including subsidiaries) producing digital interactive media; excludes firms more than 25% owned/controlled by an entity/person in default on a Commonwealth loan or loan guarantee.
- “Digital Interactive Media Production expense” — enumerates qualifying in‑state expenditures (e.g., source code development, engine/back‑end programming, motion capture, audio production, IT support, rentals, prepackaged assets/licenses, level design). Exclusions: marketing/promotional costs; administrative/payroll/management not directly related; amounts reimbursed by the state; costs related to tax credit transfers; profit-participation payments.

  1. Payroll tax credit (added to c.62, §6(l)(2)):

    • A credit equal to 25% of total aggregate payroll paid by a digital interactive media production company that is Massachusetts‑source income, available when total production costs incurred in the Commonwealth during the taxable year are ≥ $50,000.
    • Aggregate payroll excludes any employee salary ≥ $1,000,000.

  2. Additional production expense credit (amendment to c.62, §6(l)(3)):

    • An additional credit equal to 25% of all Massachusetts production expenses where the production occurs in a “gateway municipality” (the bill text references this bonus but does not define “gateway municipality” in the provided excerpt).

  3. Scope and administration:

    • Adds “digital interactive media” references to existing motion‑picture related provisions.
    • Creates (within the Massachusetts Film Office) a division to manage and administer digital interactive media/interactive entertainment programs and to promote production in the state.

Affected parties
- Digital interactive media production companies operating in Massachusetts (including developers of commercial video games, interactive platforms with the defined characteristics).
- Employees of such companies (jobs and payroll may be incentivized).
- Commonwealth finances (foregone revenue from credits) and state film office administration.

Procedural / drafting notes and open items
- The docket header and some legislative actions reference “Child Custody” and a South Carolina custody bill text — this appears to be unrelated material appended to the file and does not match the Massachusetts tax‑incentive content; readers should treat the digital interactive media text as the operative content for H 3085.
- The term “gateway municipality” is referenced for the enhanced credit but is not defined in the provided text; final application will depend on either statutory definition elsewhere or administrative rulemaking.
- An amendment to G.L. c.63, §38X is truncated in the excerpt — full bill text should be consulted for complete cross‑chapter changes.

Potential impacts
- Expected to incentivize game and interactive media production, potentially increasing in‑state employment, studio/activity spending, and related economic activity.
- Will reduce state tax revenues to the extent credits are claimed; net fiscal impact depends on induced economic activity and credit uptake.
- Administrative burden: Film Office will need capacity to certify, monitor, and audit qualifying projects and expenses.

Compiled from official sources — confirm details with the bill’s official record.

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