Rhode Island Film Credits
Makers of motion pictures, videos, video games, television series or commercials produced primarily in the state of Rhode Island are eligible for a tax credit for every new dollar of spending they bring to Rhode Island. Furthermore, Rhode Island law (2006-H7839 Substitute A) allows companies to transfer the credits to other taxpayers. This allows for an active market which provides liquidity to the production companies.
KLR currently has RIFC available for sale to its clients at a price of 94 cents per dollar of credit allowed. The RIFC can be used for personal income taxes as well as corporate taxes. The credits reduce these taxes dollar for dollar regardless of the amount paid for the RIFC. For example, if a taxpayer buys $100,000 in RIFC for $9,400, they will be allowed a $100,000 reduction in their Rhode Island tax liability, a permanent savings of $100,000 in Rhode Island tax! The amount paid for the RIFC, in this example $9,400, can also be deducted by the taxpayer like any other income tax payment. Currently the minimum purchase for RIFC’s is $100,000 of credits.
KLR can help you with every aspect of the Rhode Island Film Production Credit (RIFC) . . .
- Consulting with production companies filming in Rhode Island
- Facilitate the purchase of available RIFC
- Income tax compliance services
- Sales and use tax consulting
- Production cost certification audits
- Not-for-profit services (non-profit production companies)