TITLE 44

Taxation

CHAPTER 44-31.2

Motion Picture Production Tax Credits

SECTION 44-31.2-2



   § 44-31.2-2  Definitions. –

For the purposes of this chapter:



   (1) "Accountant's certification" as provided in this chapter

means a certified audit by a Rhode Island certified public accountant licensed

in accordance with section 5-3.1.



   (2) "Base investment" means the actual investment made and

expended by a state-certified production in the state as production-related

costs.



   (3) "Documentary production" means a non-fiction production

intended for educational or commercial distribution that may require out of

state principal photography.



   (4) "Domiciled in Rhode Island" means a corporation

incorporated in Rhode Island or a partnership, limited liability company, or

other business entity formed under the laws of the state of Rhode Island for

the purpose of producing motion pictures as defined in this section, or an

individual who is a domiciled resident of the state of Rhode Island as defined

in chapter 30 of this title.



   (5) "Final Production Budget" means and includes the total

pre-production, production and post-production out-of-pocket costs incurred and

paid in connection with the making of the motion picture. The final production

budget excludes costs associated with the promotion or marketing of the motion

picture



   (6) "Motion picture" means a feature-length film, documentary

production, video, video games, television series, or commercial made in Rhode

Island, in whole or in part, for theatrical or television viewing or as a

television pilot or for educational distribution. The term "motion picture"

shall not include the production of television coverage of news or athletic

events, nor shall it apply to any film, video, television series or commercial

or a production for which records are required under section 2257 of title 18,

U.S.C., to be maintained with respect to any performer in such production or

reporting of books, films, etc. with respect to sexually explicit conduct.



   (7) "Motion picture production company" means a corporation,

partnership, limited liability company or other business entity engaged in the

business of producing one or more motion pictures as defined in this section.

Motion picture production company shall not mean or include: (a) any company

owned, affiliated, or controlled, in whole or in part by any company or person

which is in default: (i) on taxes owed to the state; or (ii) on a loan made by

the state in the application year; or (iii) on a loan guaranteed by the state

in the application year; or (b) any company or person who has discharged an

obligation to pay or repay public funds or monies by: (i) filing a petition

under any Federal or state bankruptcy or insolvency law; (ii) having a petition

filed under any Federal or state bankruptcy or insolvency law against such

company or person; (iii) consenting to, or acquiescing or joining in, a

petition named in (i) or (ii); (iv) consenting to, or acquiescing or joining

in, the appointment of a custodian, receiver, trustee, or examiner for such

company's or person's property; or (v) making an assignment for the benefit of

creditors or admitting in writing or in any legal proceeding its insolvency or

inability to pay debts as they become due.



   (8) "Primary locations" means the locations which (1) at

least fifty-one percent (51%) of the motion picture principal photography days

are filmed; or (2) at least fifty-one percent (51%) of the motion picture's

final production budget is spent and employs at least five (5) individuals

during the production in this state; or (3) for documentary productions, the

location of at least fifty-one percent (51%) of the total productions days,

which shall include pre- production and post-production locations.



   (9) "Rhode Island film and television office" means an office

within the department of administration that has been established in order to

promote and encourage the locating of film and television productions within

the state of Rhode Island. The office is also referred to within as the "film

office".



   (10) "State-certified production" means a motion picture

production approved by the Rhode Island film office and produced by a motion

picture production company domiciled in Rhode Island, whether or not such

company owns or controls the copyright and distribution rights in the motion

picture; provided, that such company has either: (a) signed a viable

distribution plan; or (b) is producing the motion picture for: (i) a major

motion picture distributor; (ii) a major theatrical exhibitor; (iii) television

network; or (iv) cable television programmer.



   (11) "State certified production cost" means any

pre-production, production and post-production cost that a motion picture

production company incurs and pays to the extent it occurs within the state of

Rhode Island. Without limiting the generality of the foregoing, "state

certified production costs" include: set construction and operation; wardrobes,

make-up, accessories, and related services; costs associated with photography

and sound synchronization, lighting, and related services and materials;

editing and related services, including, but not limited to, film processing,

transfers of film to tape or digital format, sound mixing, computer graphics

services, special effects services, and animation services, salary, wages, and

other compensation, including related benefits, of persons employed, either

director or indirectly, in the production of a film including writer, motion

picture director, producer (provided the work is performed in the state of

Rhode Island); rental of facilities and equipment used in Rhode Island; leasing

of vehicles; costs of food and lodging; music, if performed, composed, or

recorded by a Rhode Island musician, or released or published by a person

domiciled in Rhode Island; travel expenses incurred to bring persons employed,

either directly or indirectly, in the production of the motion picture, to

Rhode Island (but not expenses of such persons departing from Rhode Island);

and legal (but not the expense of a completion bond or insurance and accounting

fees and expenses related to the production's activities in Rhode Island);

provided such services are provided by Rhode Island licensed attorneys or

accountants.



   (12) "Application year" means within the calendar year the

motion picture production company files an application for the tax 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.)