TITLE 44

Taxation

CHAPTER 44-31.2

Motion Picture Production Tax Credits

SECTION 44-31.2-6



   § 44-31.2-6  Certification and

administration. –

(a) Initial certification of a production. The applicant shall properly

prepare, sign and submit to the film office an application for initial

certification of the Rhode Island production. The application shall include

such information and data as the film office deems necessary for the proper

evaluation and administration of said application, including, but not limited

to, any information about the motion picture production company, and a specific

Rhode Island motion picture. The film office shall review the completed

application and determine whether it meets the requisite criteria and

qualifications for the initial certification for the production. If the initial

certification is granted, the film office shall issue a notice of initial

certification of the motion picture production to the motion picture production

company and to the tax administrator. The notice shall state that, after

appropriate review, the initial application meets the appropriate criteria for

conditional eligibility. The notice of initial certification will provide a

unique identification number for the production and is only a statement of

conditional eligibility for the production and, as such, does not grant or

convey any Rhode Island tax benefits.



   (b) Final certification of a production. Upon

completion of the Rhode Island production activities, the applicant shall

request a certificate of good standing from the Rhode Island division of

taxation. Such certificates shall verify to the film office the motion picture

production company's compliance with the requirements of subsection

44-31.2-2(5). The applicant shall properly prepare, sign and submit to the film

office an application for final certification of the production and which must

include the certificate of good standing from the division of taxation. In

addition, the application shall contain such information and data as the film

office determines is necessary for the proper evaluation and administration,

including, but not limited to, any information about the motion picture

production company, its investors and information about the production

previously granted initial certification. The final application shall also

contain a cost report and an "accountant's certification". The film office and

tax administrator may rely without independent investigation, upon the

accountant's certification, in the form of an opinion, confirming the accuracy

of the information included in the cost report. Upon review of a duly completed

and filed application, the film office will make a determination pertaining to

the final certification of the production. Within ninety (90) days after the

division of taxation's receipt of the motion picture production company final

certification and cost report, the division of taxation shall issue a

certification of the amount of credit for which the motion picture production

company qualifies under § 44-31.2-5. To claim the tax credit, the division

of taxation's certification as to the amount of the tax credit shall be

attached to all state tax returns on which the credit is claimed.



   (c) Final certification and credits. Upon

determination that the motion picture production company qualifies for final

certification, the film office shall issue a letter to the production company

indicating "certificate of completion of a state certified production". A

motion picture production company is prohibited from using state funds, state

loans or state guaranteed loans to qualify for the motion picture tax credit.

All documents that are issued by the film office pursuant to this section shall

reference the identification number that was issued to the production as part

of its initial certification.



   (d) The director of the department of administration, in

consultation as needed with the tax administrator, shall promulgate such rules

and regulations as are necessary to carry out the intent and purposes of this

chapter in accordance with the general guidelines provided herein for the

certification of the production and the resultant production credit.



   (e) The tax administrator of the division of taxation, in

consultation with the director of the Rhode Island film and television office,

shall promulgate such rules and regulations as are necessary to carry out the

intent and purposes of this chapter in accordance with the general guidelines

for the tax credit provided herein.



   (f) Any motion picture production company applying for the

credit shall be required to reimburse the division of taxation for any audits

required in relation to granting the credit.



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. 2012, ch. 241, art. 21, §

10.)