2010 Rhode Island Code
Title 44 Taxation
CHAPTER 44-31.2 Motion Picture Production Tax Credits
§ 44-31.2-2 Definitions.

§ 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 section 5-3.1.

(2) "Base investment" means the actual investment made and expended by a state-certified production in the state as production-related costs.

(3) "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.

(4) "Motion picture" means a feature-length film, video, video games, television series, or commercial made in Rhode Island, in whole or in part, for theatrical or television viewing or as a television pilot. The term "motion picture" shall not include the production of television coverage of news or athletic events, nor shall it apply to any film, video, television series or commercial or a production for which records are required under section 2257 of title 18, U.S.C., to be maintained with respect to any performer in such production or reporting of books, films, etc. with respect to sexually explicit conduct.

(5) "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: (a) any company owned, affiliated, or controlled, in whole or in part by any company or person which is in default: (i) on taxes owed to the state; or (ii) on a loan made by the state; or (iii) a loan guaranteed by the state; nor (iv) any company or person who has even declared bankruptcy under which an obligation of the company or person to pay or repay public funds or monies was discharged as a part of such bankruptcy.

(6) "Primary locations" means the locations within which at least fifty-one percent (51%) of the motion picture principal photography days are filmed.

(7) "Rhode Island film and television office" means an office within the Rhode Island state 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".

(8) "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 such company owns or controls the copyright and distribution rights in the motion picture; provided, that such company has either: (a) signed a viable distribution plan; or (b) is producing the motion picture for: (i) a major motion picture distributor; (ii) a major theatrical exhibitor; (iii) television network; or (iv) cable television programmer.

(9) "State certified production cost" means any pre-production, production and post-production cost that a motion picture production company incurs and pays to the extent it occurs within the state of 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 director 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.
History of Section.
(P.L. 2005, ch. 95, § 1; P.L. 2005, ch. 118, § 1; P.L. 2006, ch. 19, § 2; P.L. 2006, ch. 20, § 2.)