Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 5 - Rules and Regulations for the Certification of Motion Picture Production Tax Credits (280-RICR-20-20-5) › Section 280-RICR-20-20-5.5 - Definitions

Current through June 14, 2024
A. "Above-the-line person" means a motion
				 picture director, writer, producer or featured actor. Motion picture directors,
				 writers, producers, featured actors and their fees are grouped within the
				 "pre-production," "production" and/or "post-production section of a typical
				 motion picture budget, above a solid, bold line, separating these few
				 "above-the-line" persons from the majority of the "below-the-line" crew, other
				 production and post-production expenses.
B. "Accountant's certification" means a
				 certified audit by a Rhode Island certified public accountant licensed in
				 accordance with R.I. Gen. Laws §
										5-3.1-5.
C. "Act" means R.I. Gen. Laws Chapter
				 44-31.2, as amended.
D.
				 "Alternative distribution method" for the purposes of the production tax credit
				 means an executed agreement among all participants of a pass-through entity, or
				 among all owners of a motion picture having multiple owners, setting forth the
				 method for allocation of the motion picture production tax credit agreed upon
				 by and among the participants or co-owners. An alternative distribution method
				 may include, without limitation, a partnership agreement, an operating
				 agreement of a limited liability company, a shareholders agreement, or any
				 other instrument executed by all participants or co-owners.
E. "Amended production" means one additional
				 separate and distinct application that is allowable for the same production for
				 purposes such as "re-shoots", "retakes", added scenes or any additional
				 production expenditures incurred and paid within the State of Rhode Island (but
				 not previously included in the cost report) provided that the motion picture
				 has already met the conditions required for, and has already been approved for
				 final certification by the film office and the Division of Taxation. The
				 amended application must individually meet the statutory requirements for a
				 state certified production including, but not limited to, a total production
				 budget of a minimum of one hundred thousand dollars ($100,000). The additional
				 production expenditures shall be included in a separate cost report, require a
				 separate accountant's certification, and be subject to a separate review by the
				 Division of Taxation.
F.
				 "Applicant" means a motion picture production company domiciled in Rhode
				 Island, which is a corporation, partnership, limited partnership, or other
				 entity or individual, submitting an application to the film office and the
				 Division of Taxation for initial or final certification of a
				 production.
G. "Application year"
				 means within the calendar year the motion picture production company files any
				 application for the tax credit.
H.
				 "Certificate of motion picture production tax credit" means a certificate
				 issued by the Division of Taxation, which states the amount of the motion
				 picture production tax credit for which the production has qualified. A motion
				 picture production company is prohibited from using State funds, State loans or
				 State guaranteed loans to qualify for the motion picture tax credit. The
				 certificate shall include, but not be limited to, the following information:
				 specific and unique certificate number, name and address of the approved
				 applicant, name of the state certified production, name of the qualified film
				 to which the credit applies, date on which production completed, date of final
				 certification by the Division of Taxation, the name and taxpayer identification
				 number of production company that incurred and paid state certified Rhode
				 Island production expenditures, total amount of state certified Rhode Island
				 production expenditures, name of initial holder of this certificate, taxpayer
				 identification number of initial holder of this certificate, and amount of
				 credit allocated to initial holder of this Certificate.
I. "Completion of a production" means the
				 date of completion of a motion picture's production in the State of Rhode
				 Island as certified to the film office and the Division of Taxation as part of
				 the production's cost report.
J.
				 "Costs"
1. include, but are not limited to,
				 the following pre-production, production and post-production expenses which
				 shall qualify when incurred within the State of Rhode Island and paid to a
				 qualified vendor:
a. set construction, set
				 dressing and operation - labor and materials provided by a qualified vendor
				 where the labor and materials are actually and physically provided, supplied,
				 consumed or used within Rhode Island;
b. wardrobes, make-up, accessories, props,
				 expendables, supplies and related services;
c. costs associated with photography and
				 sound synchronization, lighting, and related services and materials including
				 animation costs - labor and materials provided by a qualified vendor where the
				 labor and materials are actually and physically provided, supplied, consumed or
				 used within Rhode Island;
d.
				 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, and animation services - provided the work is
				 performed or procured in the state of Rhode Island;
e. salary, wages, and other compensation,
				 including related benefits paid by the employer for health insurance,
				 pension/retirement benefits, and life insurance of persons employed, either
				 directly or indirectly, in the production of a film including, but not limited
				 to, writer, actor, motion picture director, and producer (provided the work is
				 performed in the State of Rhode Island);
f. rental of facilities, site locations,
				 including preparation, security, clean-up and equipment located and procured in
				 the State of Rhode Island;
g.
				 leasing of vehicles from a qualified vendor where the vehicles are actually and
				 physically delivered, provided, supplied, consumed or used within Rhode
				 Island;
h. costs of food and
				 lodging - procured or performed by a qualified vendor where the food and
				 lodging are actually and physically provided, delivered, supplied, consumed or
				 used within Rhode Island;
i. music,
				 if performed, composed, or recorded by a Rhode Island musician, or released or
				 published by a person domiciled in Rhode Island;
j. travel expenses incurred to bring persons
				 employed, either directly or indirectly, in the production of the film to Rhode
				 Island (but not expenses of such persons departing from Rhode Island);
				 and
k. legal (but not expense of
				 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.