The bill amends Section 44-31.2-2 of the General Laws in Chapter 44-31.2, entitled "Motion Picture Production Tax Credits," by providing updated definitions and clarifications regarding the eligibility of certain costs for state-certified production tax credits. The bill defines terms such as "accountant's certification," "application year," "base investment," and "documentary production," among others. It specifies what constitutes a "motion picture" and outlines the criteria for a business to be considered a "motion picture production company." Notably, the bill excludes certain types of productions from the definition of a motion picture, such as news coverage, athletic events, reality TV shows, and productions associated with sexually explicit conduct.

The bill also introduces new language to clarify what qualifies as "state-certified production costs," emphasizing that these costs must be incurred and paid for services performed and the use of property in Rhode Island. It includes a broad range of production-related expenses, such as set construction, wardrobe, editing, salaries, and travel expenses to bring production staff to Rhode Island. The bill specifies that vendors providing goods and services in Rhode Island must comply with state laws but notes that a vendor's failure to comply or lack of a physical business presence in the state is not a basis to disqualify a motion picture production company's state-certified production costs. The act is set to take effect upon passage.

Statutes affected:
8180  SUB A: 44-31.2-2
8180: 44-31.2-2