§44-31.2-5  Motion picture production company tax credit. –


Published: 2015

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TITLE 44

Taxation

CHAPTER 44-31.2

Motion Picture Production Tax Credits

SECTION 44-31.2-5



   § 44-31.2-5  Motion picture production

company tax credit. –

(a) A motion picture production company shall be allowed a credit to be

computed as provided in this chapter against a tax imposed by chapters 11, 14,

17 and 30 of this title. The amount of the credit shall be twenty-five percent

(25%) of the state certified production costs incurred directly attributable to

activity within the state, provided that the primary locations are within the

state of Rhode Island and the total production budget as defined herein is a

minimum of one hundred thousand dollars ($100,000). The credit shall be earned

in the taxable year in which production in Rhode Island is completed, as

determined by the film office in final certification pursuant to subsection

44-31.2-6(c).



   (b) For the purposes of this section: "total production

budget" means and includes the motion picture production company's

pre-production, production and post-production costs incurred for the

production activities of the motion picture production company in Rhode Island

in connection with the production of a state-certified production. The budget

shall not include costs associated with the promotion or marketing of the film,

video or television product.



   (c) Notwithstanding subsection (a), the credit shall not

exceed five million dollars ($5,000,000) and shall be allowed against the tax

for the taxable period in which the credit is earned and can be carried forward

for not more than three (3) succeeding tax years. Pursuant to rules promulgated

by the tax administrator, the administrator may issue a waiver of the five

million dollar ($5,000,000) tax credit cap for any feature-length film or

television series up to the remaining funds available pursuant to section (e).



   (d) Credits allowed to a motion picture production company,

which is a subchapter S corporation, partnership, or a limited liability

company that is taxed as a partnership, shall be passed through respectively to

persons designated as partners, members or owners on a pro rata basis or

pursuant to an executed agreement among such persons designated as subchapter S

corporation shareholders, partners, or members documenting an alternate

distribution method without regard to their sharing of other tax or economic

attributes of such entity.



   (e) No more than fifteen million dollars ($15,000,000) in

total may be issued for any tax year beginning after December 31, 2007 for

motion picture tax credits pursuant to this chapter and/or musical and

theatrical production tax credits pursuant to chapter 31.3 of this title. Said

credits shall be equally available to motion picture productions and musical

and theatrical productions. No specific amount shall be set aside for either

type of production.



History of Section.

(P.L. 2005, ch. 95, § 1; P.L. 2005, ch. 118, § 1; P.L. 2006, ch. 19,

§ 2; P.L. 2006, ch. 20, § 2; P.L. 2008, ch. 100, art. 32, § 5;

P.L. 2012, ch. 241, art. 21, § 10.)

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