As posted, the regulation:
- adds a requirement that costs be arms-length transactions in order to qualify as costs for purposes of the credit;
- deletes video games from the definition of a motion picture;
- changes the language involving the sunset provision so that it reflects a recent update in the underlying law; and
- changes the regulation’s format so that it complies with the Rhode Island Code of Regulations, a uniform state code.
A public hearing on the proposed regulation was held earlier this year, but because of an inter-agency scheduling matter, the hearing had to be held again. With the hearings now complete, the Division was about to file the regulation as final with the Rhode Island Department of State (Secretary of State).
The Division of Taxation has filed numerous proposed and final regulations of late, and will continue to do so as part of its months-long effort to streamline and re-codify its regulations.
Most of the regulations as posted contain no substantive changes, but their format has been modified in accordance with the new Rhode Island Code of Regulations.
To view "Rules and Regulations for the Certification of Motion Picture Production Tax Credits," 280-RICR-20-20-5, click here.