§ 44-31.2-5. Motion picture production company tax credit.
(a) A motion picture production company shall be allowed a credit to be computed 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 thirty percent (30%) of the state-certified production
costs incurred directly attributable to activity within the state, provided:
(1) That the primary locations are within the state of Rhode Island and the total production
budget as defined herein is a minimum of one hundred thousand dollars ($100,000);
or
(2) The motion picture production incurs and pays a minimum of ten million dollars ($10,000,000)
in state-certified production costs within a twelve-month (12) period.
The credit shall be earned in the taxable year in which production in Rhode Island
is completed, as determined by the film office in final certification pursuant to
§ 44-31.2-6(c).
(b) For the purposes of this section: "total production budget� means and includes the
motion picture production company's pre-production, production, and post-production
costs incurred for the production activities of the motion picture production company
in Rhode Island in connection with the production of a state-certified production.
The budget shall not include costs associated with the promotion or marketing of the
film, video, or television product.
(c) Notwithstanding subsection (a) of this section, the credit shall not exceed seven
million dollars ($7,000,000) and shall be allowed against the tax for the taxable
period in which the credit is earned and can be carried forward for not more than
three (3) succeeding tax years. Pursuant to rules promulgated by the tax administrator,
the administrator may issue a waiver of the seven million dollars ($7,000,000) tax
credit cap for any feature-length film or television series up to the remaining funds
available pursuant to section (e) of this section.
(d) Credits allowed to a motion picture production company, which is a subchapter S corporation,
partnership, or a limited liability company that is taxed as a partnership, shall
be passed through respectively to persons designated as partners, members, or owners
on a pro rata basis or pursuant to an executed agreement among such persons designated
as subchapter S corporation shareholders, partners, or members documenting an alternate
distribution method without regard to their sharing of other tax or economic attributes
of such entity.
(e) No more than fifteen million dollars ($15,000,000) in total may be issued for any
tax year beginning after December 31, 2007, for motion picture tax credits pursuant
to this chapter and/or musical and theatrical production tax credits pursuant to chapter
31.3 of this title. After December 31, 2019, no more than twenty million dollars ($20,000,000)
in total may be issued for any tax year for motion picture tax credits pursuant to
this chapter and/or musical and theater production tax credits pursuant to chapter
31.3 of this title. Said credits shall be equally available to motion picture productions
and musical and theatrical productions. No specific amount shall be set aside for
either type of production.
(f) Exclusively for tax year 2022 and tax year 2023, the total amount of motion picture
tax credits issued pursuant to this section and/or musical and theatrical production
tax credits pursuant to chapter 31.3 of this title shall not exceed thirty-five million
dollars ($35,000,000).
(g) Exclusively for tax year 2024, the total amount of motion picture tax credits issued
pursuant to this section and/or musical and theatrical production tax credits pursuant
to chapter 31.3 of this title shall not exceed forty million dollars ($40,000,000).