§ 44-31.2-9. Transferability of the credit.
(a) Any motion picture production company tax credit certificate issued in accordance with § 44-31.2-5, which has been issued to a motion picture production company or passed through in accordance with subsection 44-31.2-5(d), and to the extent not previously claimed against the tax of the motion picture production company or of the owner of the certificate if the certificate was issued in accordance with subsection 44-31.2-5(d), may be transferred or sold by such company to another Rhode Island taxpayer, subject to the following conditions:
(1) A single transfer or sale may involve one or more transferees, assignees or purchasers. A transfer or sale of the credits may involve multiple transfers to one or more transferees, assignees or purchasers.
(2) Transferors and sellers shall submit to the Rhode Island Film Office, and to the tax administrator in writing, a notification of any transfer or sale of tax credits within thirty (30) days after the transfer or sale of such tax credits. The notification shall include the transferor’s tax credit balance prior to transfer, the credit certificate number, the name of the state-certified production, the transferor’s remaining tax credit balance after transfer, all tax identification numbers for both transferor and transferee, the date of transfer, the amount transferred, a copy of the credit certificate, and any other information required by the Rhode Island office of film and television or the division of taxation. The notification submitted to the division of taxation shall include a processing fee of up to two hundred dollars ($200) per transferee which shall be deposited as general revenues.
(3) Failure to comply with this section will result in the disallowance of the tax credit until the taxpayers are in full compliance.
(4) The transfer or sale of this credit does not extend the time in which the credit can be used. The carry forward period for credit that is transferred or sold begins on the date on which the credit was originally granted by the film office.
(5) To the extent that the transferor did not have rights to claim or use the credit at the time of the transfer, the division of taxation shall either disallow the credit claimed by the transferee or recapture the credit from the transferee through any collection method authorized by Rhode Island general law. The transferee’s recourse is against the transferor.
(6) The film office shall assess and collect an administrative fee of two hundred dollars ($200) per transfer, assignment or sale for issuing multiple motion picture production company tax credit certificates or for reissuing certificates.
(b) The transferee, assignee or purchaser shall apply such credits in the same manner as the motion picture production company originally awarded the credit.
(c) For purposes of this chapter, any assignment or sales proceeds received by the motion picture production company for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from this title.
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.