Rhode Island 2023 Regular Session

Rhode Island House Bill H5632 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 5632
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7	7	LC001279
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
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14	14	A N A C T
15	15	RELATING TO TAXATION -- MOTION PICTURE PRODUCTION TAX CREDI TS
16	16	Introduced By: Representatives Craven, Caldwell, Dawson, and Finkelman
17	17	Date Introduced: February 15, 2023
18	18	Referred To: House Finance
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21	21	It is enacted by the General Assembly as follows:
22	22	SECTION 1. Section 44-31.2-5 of the General Laws in Chapter 44-31.2 entitled "Motion 1
23	23	Picture Production Tax Credits" is hereby amended to read as follows: 2
24	24	44-31.2-5. Motion picture production company tax credit. 3
25	25	(a) A motion picture production company shall be allowed a credit to be computed as 4
26	26	provided in this chapter against a tax imposed by chapters 11, 14, 17, and 30 of this title. The 5
27	27	amount of the credit shall be thirty percent (30%) of the state-certified production costs incurred 6
28	28	directly attributable to activity within the state, provided: 7
29	29	(1) That the primary locations are within the state of Rhode Island and the total production 8
30	30	budget as defined herein is a minimum of one hundred thousand dollars ($100,000); or 9
31	31	(2) The motion picture production incurs and pays a minimum of ten million dollars 10
32	32	($10,000,000) in state-certified production costs within a twelve-month (12) period. 11
33	33	The credit shall be earned in the taxable year in which production in Rhode Island is 12
34	34	completed, as determined by the film office in final certification pursuant to § 44-31.2-6(c). 13
35	35	(b) For the purposes of this section: “total production budget” means and includes the 14
36	36	motion picture production company’s pre-production, production, and post-production costs 15
37	37	incurred for the production activities of the motion picture production company in Rhode Island in 16
38	38	connection with the production of a state-certified production. The budget shall not include costs 17
39	39	associated with the promotion or marketing of the film, video, or television product. 18
40	40	(c) Notwithstanding subsection (a) of this section, the credit shall not exceed seven ten 19
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44	44	million dollars ($7,000,000) ($10,000,000) and shall be allowed against the tax for the taxable 1
45	45	period in which the credit is earned and can be carried forward for not more than three (3) 2
46	46	succeeding tax years. Pursuant to rules promulgated by the tax administrator, the administrator may 3
47	47	issue a waiver of the seven ten million dollars ($7,000,000) ($10,000,000) tax credit cap for any 4
48	48	feature-length film or television series up to the remaining funds available pursuant to section (e) 5
49	49	of this section. Beginning in tax year 2025, the credit shall not exceed fifteen million dollars 6
50	50	($15,000,000) and shall be allowed against the tax for the taxable period in which the credit is 7
51	51	earned and can be carried forward for not more than three (3) succeeding tax years. Pursuant to 8
52	52	rules promulgated by the tax administrator, the administrator may issue a waiver of the fifteen 9
53	53	million dollars ($15,000,000) tax credit cap for any feature-length film or television series up to 10
54	54	the remaining funds available pursuant to subsection (e) of this section. 11
55	55	(d) Credits allowed to a motion picture production company, which is a subchapter S 12
56	56	corporation, partnership, or a limited-liability company that is taxed as a partnership, shall be 13
57	57	passed through respectively to persons designated as partners, members, or owners on a pro rata 14
58	58	basis or pursuant to an executed agreement among such persons designated as subchapter S 15
59	59	corporation shareholders, partners, or members documenting an alternate distribution method 16
60	60	without regard to their sharing of other tax or economic attributes of such entity. 17
61	61	(e) No more than fifteen million dollars ($15,000,000) in total may be issued for any tax 18
62	62	year beginning after December 31, 2007, for motion picture tax credits pursuant to this chapter 19
63	63	and/or musical and theatrical production tax credits pursuant to chapter 31.3 of this title. After 20
64	64	December 31, 2019, no more than twenty million dollars ($20,000,000) in total may be issued for 21
65	65	any tax year for motion picture tax credits pursuant to this chapter and/or musical and theater 22
66	66	production tax credits pursuant to chapter 31.3 of this title. Said credits shall be equally available 23
67	67	to motion picture productions and musical and theatrical productions. No specific amount shall be 24
68	68	set aside for either type of production. 25
69	69	(f) Exclusively for tax year 2022, the total amount of motion picture tax credits issued 26
70	70	pursuant to this section and/or musical and theatrical production tax credits pursuant to chapter 31.3 27
71	71	of this title shall not exceed thirty million dollars ($30,000,000). 28
72	72	(g) Exclusively for tax year 2023 and tax year 2024, the total amount of motion picture tax 29
73	73	credits issued pursuant to this section and/or musical and theatrical production tax credits pursuant 30
74	74	to chapter 31.3 of this title shall not exceed forty million dollars ($40,000,000). 31
75	75	(h) Beginning in tax year 2025, the total amount of motion picture tax credits issued 32
76	76	pursuant to this section and/or musical and theatrical production tax credits pursuant to chapter 31.3 33
77	77	of this title shall not exceed fifty million dollars ($50,000,000). Beginning in tax year 2026, the 34
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81	81	total amount of motion picture tax credits issued pursuant to this section and/or musical and 1
82	82	theatrical production tax credits pursuant to chapter 31.3 of this title shall not exceed sixty million 2
83	83	dollars ($60,000,000). 3
84	84	SECTION 2. Section 44-31.2-11 of the General Laws in Chapter 44-31.2 entitled "Motion 4
85	85	Picture Production Tax Credits" is hereby repealed. 5
86	86	44-31.2-11. Sunset. 6
87	87	No credits shall be issued on or after July 1, 2027, unless the production has received initial 7
88	88	certification under § 44-31.2-6(a) prior to July 1, 2027. 8
89	89	SECTION 3. This act shall take effect upon passage. 9
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96	96	EXPLANATION
97	97	BY THE LEGISLATIVE COUNCIL
98	98	OF
99	99	A N A C T
100	100	RELATING TO TAXATION -- MOTION PICTURE PRODU CTION TAX CREDITS
101	101	***
102	102	This act would increase the motion picture tax credit to ten million dollars ($10,000,000) 1
103	103	and then to fifteen million dollars ($15,000,000) for 2025. This act would also increase the total 2
104	104	available credits to fifty million dollars ($50,000,000) for 2025 and sixty million dollars 3
105	105	($60,000,000) for 2026. This act would also eliminate the sunset provision. 4
106	106	This act would take effect upon passage. 5
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