38 Studios may miss out on tax credits

CURT SCHILLING, founder of 38 Studios LLC and a former Boston Red Sox pitcher, speaks during an interview in New York, U.S.
Posted 5/26/12

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.

According to gaming-industry publication Joystiq, 38 Studios employees have not been paid since May 1, and will lose their health insurance Thursday at midnight.

Employees are usually paid on the first and 15th of each month.

PBN Hosted

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot early!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Purchase Data
Book of Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  • Purchase an e-File of the entire Book of Lists database
  • Purchase a printed copy of the Book of Lists
    Latest News