PROVIDENCE – 38 Studios LLC, the teetering video game company of former Red Sox pitcher Curt Schilling, could be ineligible for million in state tax credits because the firm is incorporated in Delaware, not Rhode Island, according to WPRI-TV CBS 12.
While the company registered its business in Rhode Island in September 2010, it did so as an out-of-state LLC, the news source reported.
The Ocean State’s tax credit law states that only company’s “formed under the laws of the state of Rhode Island” are eligible to receive tax credits.
The company applied for state film tax credits in 2011 and 2012. The 2011 request, which would be worth $2.1 million, is still being reviewed by the state film office, which has not identified any eligibility problems, state officials said.
The 2012 application – for $12 million – was pushed to the back of the line due to the fee-payment default.
Gov. Lincoln D. Chafee said 38 Studios has been trying to sell proceeds of the film tax credit to investors in anticipation of receiving it.
38 Studios, which was lured to Providence with a state $75 million loan guarantee, managed to make an overdue $1.125 million payment to the state on Friday.
The $1.125 million guarantee fee, which is 1.5 percent of the outstanding loan amount, was due May 1.
Estate and Corporate Income Taxes are changing next year, and business owners and executives should know the details. The PBN Summit on November 6th will provide those details and more - including how much Obamacare's Employer Mandate could cost.
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