TITLE 44

Taxation

CHAPTER 44-31.2

Motion Picture Production Tax Credits

SECTION 44-31.2-9



   § 44-31.2-9  Transferability of the credit.

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(a) Any motion picture production company tax credit certificate issued in

accordance with § 44-31.2-5, which has been issued to a motion picture

production company or passed through in accordance with subsection

44-31.2-5(d), and to the extent not previously claimed against the tax of the

motion picture production company or of the owner of the certificate if the

certificate was issued in accordance with subsection 44-31.2-5(d), may be

transferred or sold by such company to another Rhode Island taxpayer, subject

to the following conditions:



   (1) A single transfer or sale may involve one or more

transferees, assignees or purchasers. A transfer or sale of the credits may

involve multiple transfers to one or more transferees, assignees or purchasers.



   (2) Transferors and sellers shall submit to the Rhode Island

Film Office, and to the tax administrator in writing, a notification of any

transfer or sale of tax credits within thirty (30) days after the transfer or

sale of such tax credits. The notification shall include the transferor's tax

credit balance prior to transfer, the credit certificate number, the name of

the state-certified production, the transferor's remaining tax credit balance

after transfer, all tax identification numbers for both transferor and

transferee, the date of transfer, the amount transferred, a copy of the credit

certificate, and any other information required by the Rhode Island office of

film and television or the division of taxation. The notification submitted to

the division of taxation shall include a processing fee of up to two hundred

dollars ($200) per transferee which shall be deposited as general revenues.



   (3) Failure to comply with this section will result in the

disallowance of the tax credit until the taxpayers are in full compliance.



   (4) The transfer or sale of this credit does not extend the

time in which the credit can be used. The carry forward period for credit that

is transferred or sold begins on the date on which the credit was originally

granted by the film office.



   (5) To the extent that the transferor did not have rights to

claim or use the credit at the time of the transfer, the division of taxation

shall either disallow the credit claimed by the transferee or recapture the

credit from the transferee through any collection method authorized by Rhode

Island general law. The transferee's recourse is against the transferor.



   (6) The film office shall assess and collect an

administrative fee of two hundred dollars ($200) per transfer, assignment or

sale for issuing multiple motion picture production company tax credit

certificates or for reissuing certificates.



   (b) The transferee, assignee or purchaser shall apply such

credits in the same manner as the motion picture production company originally

awarded the credit.



   (c) For purposes of this chapter, any assignment or sales

proceeds received by the motion picture production company for its assignment

or sale of the tax credits allowed pursuant to this section shall be exempt

from this title.



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.)