Section 67-6-323 - Tangible personal property, computer software, or services that are necessary to and primarily used for qualified production(a) For purposes of this section: (1) "Applicant" means a person applying for an exemption under this section;(2) "Best interests of the state" means a determination by the commissioners of revenue and economic and community development that the qualified production is a result of the exemption provided in this section and the benefits to the state resulting from the production outweigh the anticipated costs. In making this determination, the commissioners may consider the investment made, jobs created, impact to the community, and any other matters deemed appropriate by the commissioners;(3) "Commission" means the Tennessee film, entertainment and music commission, created by § 4-3-5003;(4) "Esports" means leagues, competitive circuits, tournaments, or similar competitions where individuals or teams play video games, typically for spectators, either in-person or online, for the purpose of ranking, prizes, money, or entertainment; and(5) "Qualified production" means any of the following activities, as determined by the commission: (A) The production of a film, pilot episode, series, esports event, or other episodic content in this state;(B) The creation of computer-generated imagery, video games, or interactive digital media in this state; or(C) Stand-alone audio or visual post-production scoring and editing in this state.(b) The sale, use, storage, or consumption of tangible personal property, computer software, or services that are necessary to and primarily used for a qualified production are exempt from the tax imposed by this chapter, if the commissioner of revenue and the commissioner of economic and community development determine under the process set forth in subsection (c), in their sole discretion and in writing, that such an exemption is in the best interests of the state.(c) Eligibility for the exemption set forth in subsection (b) is determined as follows: (1) An applicant must apply to the commission, on a form prescribed by the commission, describing the basis for seeking an exemption under subsection (b), including the nature of the production activities involved;(2) If the commission determines that the applicant is engaging in a qualified production, then the commission shall notify the applicant and the department of revenue of that determination, and the applicant may apply to the department of revenue for the exemption under subsection (b) on a form prescribed by the department of revenue;(3) The department of revenue shall not approve an application for the exemption under subsection (b) unless the commissioner of revenue and the commissioner of economic and community development each determine, in their sole discretion and in writing, that approving the exemption is in the best interests of the state.(d) If the exemption is approved by the department of revenue, then the department of revenue shall issue a sales and use tax exemption certificate to the applicant that identifies the qualified production.(e) A third party purchasing or using tangible personal property, computer software, or services that are necessary to and primarily used for a qualified production that is granted an exemption may separately apply to the department of revenue, on a form prescribed by the department of revenue, to use the exemption to make purchases on a tax-exempt basis for the identified qualified production. If the third party is approved by the department of revenue, then the department of revenue shall issue a sales and use tax exemption certificate to the third party that identifies the qualified production.(f) An exemption certificate issued pursuant to this section expires two (2) years from its effective date. The person to whom the exemption certificate is granted may apply for renewals of the exemption certificate through the process described in subsections (c) and (e). For each renewal application granted, the department of revenue shall issue to the applicant a sales and use tax exemption certificate that expires two (2) years from its effective date.Added by 2021 Tenn. Acts, ch. 70, s 1, eff. 7/1/2021.