It would end the requirement that more than half a production be shot in R.I. to qualify for tax credits worth 30% of in-state expenses.

Legislation that would let big budget film and television productions get Rhode Island tax credits even if they aren’t primarily shot here is nearing General Assembly approval.

Spurred by a unidentified high-profile production that is eyeing the state and its motion-picture incentives, the state Senate passed the bill Tuesday. A mirror version passed the House three weeks ago.

Unlike in the House, the vote Tuesday was not unanimous.

In recent years, producers have snapped up all the Rhode Island film tax credits available, and a few senators Tuesday were concerned that smaller, locally based independent films could be frozen out.

"A big production could come in and demand 30% of their state costs and wipe out the industry for a year, and that could be really harmful," said Sen. Sam Bell, D-Providence. "I think it undermines what has made our film tax credit program so special and different from what has made film credits problematic in other states."

He was joined by Pawtucket Democratic Sen. Donna Nesselbush and Hopkinton Republican Sen. Elaine Morgan voting against the bill. Thirty-five senators voted for it.

The state’s $20-million-per-year motion-picture incentive program provides tax credits worth 30% of a production’s in-state expenses. The bill passed by the Senate on Tuesday would eliminate the requirement — for productions with at least $10 million in spending — that more than half of it be filmed here.

In written testimony to the Senate Finance Committee last week, the Economic Progress Institute Rhode Island expressed concern that film tax credits were not generating enough public benefit. The group pointed to a 2018 report by the state Office of Revenue Analysis that showed the state tax credit program didn’t pay for itself.

"If we eliminate this requirement, it is not clear how the program will [incentivize] businesses to film here in Rhode Island," the left-leaning think tank wrote. "As we undertstand it, qualifying expenses include the salaries of high-paid stars, so that even the law’ $10-million minimum would not prove enough of a protection, and Rhode Islanders could wind up subsidizing productions largely conducted out of state."

But Sen. Josh Miller, D-Providence, said tax credits made it possible for hundreds of people to make a living behind the scenes in the industry.

"One of the only reasons we can make that a consistent way to make a living in Rhode Island on good-paying union jobs is to support a tax credit that has controls that are specifically designed to not have happen what Sen. Bell has explained can happen," Miller said. "I am confident that our tax credit and film office will not let it be taken over by one production."

panderson@providencejournal.com

(401)277-7384

On Twitter: PatrickAnderso_