2023 -- S 0949
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LC002887
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO TAXATION -- MOTION PICTURE PRODUCTION TAX CREDITS
Introduced By: Senators Miller, Gallo, LaMountain, Britto, and Pearson
Date Introduced: April 27, 2023
Referred To: Senate Finance
It is enacted by the General Assembly as follows:
SECTION 1. Section 44-31.2-5 of the General Laws in Chapter 44-31.2 entitled "Motion 1
Picture Production Tax Credits" is hereby amended to read as follows: 2
44-31.2-5. Motion picture production company tax credit. 3
(a) A motion picture production company shall be allowed a credit to be computed as 4
provided in this chapter against a tax imposed by chapters 11, 14, 17, and 30 of this title. The 5
amount of the credit shall be thirty percent (30%) of the state-certified production costs incurred 6
directly attributable to activity within the state, provided: 7
(1) That the primary locations are within the state of Rhode Island and the total production 8
budget as defined herein is a minimum of one hundred thousand dollars ($100,000); or 9
(2) The motion picture production incurs and pays a minimum of ten million dollars 10
($10,000,000) in state-certified production costs within a twelve-month (12) period. 11
The credit shall be earned in the taxable year in which production in Rhode Island is 12
completed, as determined by the film office in final certification pursuant to § 44-31.2-6(c). 13
(b) For the purposes of this section: “total production budget” means and includes the 14
motion picture production company’s pre-production, production, and post-production costs 15
incurred for the production activities of the motion picture production company in Rhode Island in 16
connection with the production of a state-certified production. The budget shall not include costs 17
associated with the promotion or marketing of the film, video, or television product. 18
(c) Notwithstanding subsection (a) of this section, the credit shall not exceed seven million 19
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dollars ($7,000,000) ten million dollars ($10,000,000) and shall be allowed against the tax for the 1
taxable period in which the credit is earned and can be carried forward for not more than three (3) 2
succeeding tax years. Pursuant to rules promulgated by the tax administrator, the administrator may 3
issue a waiver of the seven million dollars ($7,000,000) ten million dollars ($10,000,000) tax credit 4
cap for any feature-length film or television series up to the remaining funds available pursuant to 5
section (e) of this section. 6
(d) Credits allowed to a motion picture production company, which is a subchapter S 7
corporation, partnership, or a limited-liability company that is taxed as a partnership, shall be 8
passed through respectively to persons designated as partners, members, or owners on a pro rata 9
basis or pursuant to an executed agreement among such persons designated as subchapter S 10
corporation shareholders, partners, or members documenting an alternate distribution method 11
without regard to their sharing of other tax or economic attributes of such entity. 12
(e) No more than fifteen million dollars ($15,000,000) in total may be issued for any tax 13
year beginning after December 31, 2007, for motion picture tax credits pursuant to this chapter 14
and/or musical and theatrical production tax credits pursuant to chapter 31.3 of this title. After 15
December 31, 2019, no more than twenty million dollars ($20,000,000) in total may be issued for 16
any tax year for motion picture tax credits pursuant to this chapter and/or musical and theater 17
production tax credits pursuant to chapter 31.3 of this title. Said credits shall be equally available 18
to motion picture productions and musical and theatrical productions. No specific amount shall be 19
set aside for either type of production. 20
(f) Exclusively for tax year 2022, the total amount of motion picture tax credits issued 21
pursuant to this section and/or musical and theatrical production tax credits pursuant to chapter 31.3 22
of this title shall not exceed thirty million dollars ($30,000,000). 23
(g) Exclusively for tax year 2023 and tax year 2024, the total amount of motion picture tax 24
credits issued pursuant to this section and/or musical and theatrical production tax credits pursuant 25
to chapter 31.3 of this title shall not exceed forty million dollars ($40,000,000). 26
(h) Beginning in tax year 2024, the total amount of motion picture tax credits issued 27
pursuant to this section and/or musical and theatrical production tax credits pursuant to chapter 31.3 28
of this title shall not exceed forty million dollars ($40,000,000). 29
SECTION 2. Section 44-31.2-11 of the General Laws in Chapter 44-31.2 entitled "Motion 30
Picture Production Tax Credits" is hereby repealed. 31
44-31.2-11. Sunset. 32
No credits shall be issued on or after July 1, 2027, unless the production has received initial 33
certification under § 44-31.2-6(a) prior to July 1, 2027. 34
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SECTION 3. This act shall take effect upon passage. 1
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- MOTION PICTURE PRODU CTION TAX CREDITS
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This act would increase the motion picture production company tax credit to ten million 1
dollars ($10,000,000) and cap the available total of credits to forty million dollars ($40,000,000). 2
This act would also eliminate the sunset provision. 3
This act would take effect upon passage. 4
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LC002887
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