Motion Picture Production Tax Credits
§ 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
(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.)