§ 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 chapter 3.1 of title 5.
(2) "Application year� means within the calendar year the motion picture production company
files an application for the tax credit.
(3) "Base investment� means the actual investment made and expended by a state-certified
production in the state as production-related costs.
(4) "Documentary production� means a non-fiction production intended for educational or
commercial distribution that may require out-of-state principal photography.
(5) "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.
(6) "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.
(7) "Motion picture� means a feature-length film, documentary production, video, 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, or reality television show(s), nor shall it apply to any film, video,
television series, or commercial or a production for which records are required under
18 U.S.C. § 2257 to be maintained with respect to any performer in such production or reporting of
books, films, or other works or materials with respect to sexually explicit conduct.
(8) "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:
(i) Any company owned, affiliated, or controlled, in whole or in part, by any company
or person who or that is in default:
(A) On taxes owed to the state; or
(B) On a loan made by the state in the application year; or
(C) On a loan guaranteed by the state in the application year; or
(ii) Any company that or person who has discharged an obligation to pay or repay public
funds or monies by:
(A) Filing a petition under any federal or state bankruptcy or insolvency law;
(B) Having a petition filed under any federal or state bankruptcy or insolvency law against
such company or person;
(C) Consenting to, or acquiescing or joining in, a petition named in subsection (8)(ii)(A)
or (8)(ii)(B);
(D) Consenting to, or acquiescing or joining in, the appointment of a custodian, receiver,
trustee, or examiner for the company's or person's property; or
(E) 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.
(9) "Primary locations� means the locations that: (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.
(10) "Rhode Island film and television office� means an office within the Rhode Island
Council on the Arts 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.�
(11) "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 the company owns or controls the copyright and distribution
rights in the motion picture; provided, that the company has either:
(i) Signed a viable distribution plan; or
(ii) Is producing the motion picture for:
(A) A major motion picture distributor;
(B) A major theatrical exhibitor;
(C) Television network; or
(D) Cable television programmer.
(12) "State-certified production cost� means any pre-production, production, and post-production
cost incurred and paid by a motion picture production company for the performance
of services and use of property in Rhode Island for the production of a film. Except
as specifically required in this subsection for music, legal, or accounting services,
state-certified production costs shall include, without limitation as to the person
or business providing the goods or services, those costs, as long as services are
performed in Rhode Island, tangible personal property is used in Rhode Island, and
real property used by the motion picture production company is located in 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 directly
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. Vendors
providing goods and services in Rhode Island to a motion picture production company
shall comply with applicable Rhode Island laws, including, where required, registering
with the office of the secretary of state; provided, however, a vendor's failure to
comply is not a basis to disqualify a motion picture production company's state-certified
production costs provided by that vendor. If a vendor does not maintain a place of
business in Rhode Island, that failure is not a basis to disqualify a motion picture
production company's state-certified production costs provided by that vendor.