The bill amends the "Musical and Theatrical Production Tax Credits" in Rhode Island law by adding a new category of live stage presentations called "national touring productions" to the definition of "accredited theater production." This category is for productions that open their U.S. tour in Rhode Island and then perform in at least four other cities. The bill allows for a tax credit of thirty percent of certain expenditures, with a cap of five million dollars per production and a minimum production budget of one hundred thousand dollars. It also sets a combined annual cap of fifteen million dollars for both motion picture and musical/theatrical production tax credits, without reserving a specific amount for either category.

The bill outlines the process for transferring tax credits, which can be used to offset up to 100% of tax liabilities for up to three years, and exempts proceeds from the sale or assignment of tax credits from taxation. It details the certification process for theater productions to obtain tax credits, including application submission, cost reports, and accountant's certification. The bill prohibits using state funds to qualify for the tax credit and includes a sunset clause extending the expiration date from 2024 to 2027. The bill will take effect upon passage and includes insertions regarding the new category of productions, the extension of the sunset date, and the tax credit transfer provisions.