§ 44-31.2-5 - Motion picture production company tax credit.
SECTION 44-31.2-5
§ 44-31.2-5 Motion picture productioncompany tax credit. – (a) A motion picture production company shall be allowed a credit to becomputed 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 toactivity within the state, provided that the primary locations are within thestate of Rhode Island and the total production budget as defined herein is aminimum of three hundred thousand dollars ($300,000). The credit shall beearned in the taxable year in which production in Rhode Island is completed, asdetermined by the film office in final certification pursuant to subsection44-31.2-6(c).
(b) For the purposes of this section: "total productionbudget" means and includes the motion picture production company'spre-production, production and post-production costs incurred for theproduction activities of the motion picture production company in Rhode Islandin connection with the production of a state-certified production. The budgetshall not include costs associated with the promotion or marketing of the film,video or television product.
(c) The credit shall not exceed the total production budgetand shall be allowed against the tax for the taxable period in which the creditis earned and can be carried forward for not more than three (3) succeeding taxyears.
(d) Credits allowed to a motion picture production company,which is a subchapter S corporation, partnership, or a limited liabilitycompany that is taxed as a partnership, shall be passed through respectively topersons designated as partners, members or owners on a pro rata basis orpursuant to an executed agreement among such persons designated as subchapter Scorporation shareholders, partners, or members documenting an alternatedistribution method without regard to their sharing of other tax or economicattributes of such entity.
(e) No more than fifteen million dollars ($15,000,000) may beissued for any tax year beginning after December 31, 2007.