2020 -- S 2326 | |
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LC003974 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
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A N A C T | |
RELATING TO TAXATION -- MOTION PICTURE PRODUCTION TAX CREDITS | |
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Introduced By: Senators DiPalma, Miller, Ruggerio, Sosnowski, and Murray | |
Date Introduced: February 05, 2020 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 44-31.2-5 of the General Laws in Chapter 44-31.2 entitled "Motion |
2 | Picture Production Tax Credits" is hereby amended to read as follows: |
3 | 44-31.2-5. Motion picture production company tax credit. |
4 | (a) A motion picture production company shall be allowed a credit to be computed as |
5 | provided in this chapter against a tax imposed by chapters 11, 14, 17, and 30 of this title. The |
6 | amount of the credit shall be thirty percent (30%) of the state-certified production costs incurred |
7 | directly attributable to activity within the state, provided that the primary locations are within the |
8 | state of Rhode Island and the total production budget as defined herein is a minimum of one |
9 | hundred thousand dollars ($100,000). The credit shall be earned in the taxable year in which |
10 | production in Rhode Island is completed, as determined by the film office in final certification |
11 | pursuant to § 44-31.2-6(c). The film office director may issue a waiver of the primary location |
12 | requirement for any motion picture production which incurs and pays a minimum of ten million |
13 | dollars ($10,000,000) in state certified production costs, as defined in § 44-31.2-2, within a |
14 | twelve (12) month period. |
15 | (b) For the purposes of this section: "total production budget" means and includes the |
16 | motion picture production company's pre-production, production, and post-production costs |
17 | incurred for the production activities of the motion picture production company in Rhode Island |
18 | in connection with the production of a state-certified production. The budget shall not include |
19 | costs associated with the promotion or marketing of the film, video, or television product. |
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1 | (c) Notwithstanding subsection (a) of this section, the credit shall not exceed seven |
2 | million dollars ($7,000,000) and shall be allowed against the tax for the taxable period in which |
3 | the credit is earned and can be carried forward for not more than three (3) succeeding tax years. |
4 | Pursuant to rules promulgated by the tax administrator, the administrator may issue a waiver of |
5 | the seven million dollars ($7,000,000) tax credit cap for any feature-length film or television |
6 | series up to the remaining funds available pursuant to section (e) of this section. |
7 | (d) Credits allowed to a motion picture production company, which is a subchapter S |
8 | corporation, partnership, or a limited-liability company that is taxed as a partnership, shall be |
9 | passed through respectively to persons designated as partners, members, or owners on a pro rata |
10 | basis or pursuant to an executed agreement among such persons designated as subchapter S |
11 | corporation shareholders, partners, or members documenting an alternate distribution method |
12 | without regard to their sharing of other tax or economic attributes of such entity. |
13 | (e) No more than fifteen million dollars ($15,000,000) in total may be issued for any tax |
14 | year beginning after December 31, 2007, for motion picture tax credits pursuant to this chapter |
15 | and/or musical and theatrical production tax credits pursuant to chapter 31.3 of this title. After |
16 | December 31, 2019, no more than twenty million dollars ($20,000,000) in total may be issued for |
17 | any tax year for motion picture tax credits pursuant to this chapter and/or musical and theater |
18 | production tax credits pursuant to chapter 31.3 of this title. Said credits shall be equally available |
19 | to motion picture productions and musical and theatrical productions. No specific amount shall be |
20 | set aside for either type of production. |
21 | SECTION 2. This act shall take effect upon passage. |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO TAXATION -- MOTION PICTURE PRODUCTION TAX CREDITS | |
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1 | This act would authorize the film office director to waive the primary locations within the |
2 | state requirement for any motion picture production which incurs and pays a minimum of ten |
3 | million dollars ($10,000,000) in state certified production costs, within a twelve (12) month |
4 | period. |
5 | This act would take effect upon passage. |
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