Blue Cross refuses 38 Studios offer to buy R.I. tax credits [The Providence Journal, R.I.]
|By Katherine Gregg, The Providence Journal, R.I.|
|McClatchy-Tribune Information Services|
In response to an inquiry, company spokeswoman
"Blue Cross & Blue Shield of
She did not immediately respond to inquiries about who approached the company, or why the offer was rejected, but said
"We are then able to utilize these tax credits to offset a portion of BCBSRI's state tax liability," she said. "By purchasing tax credits at a discounted rate, BCBSRI is able to reduce its administrative expenses, which ultimately benefits its members."
38 Studios has applied for film tax credits of about
It remains unclear, however, whether 38 Studios was eligible, under terms of its
Eligibility for the tax credits would have been suspended when the company defaulted on a
Beyond that, the agreement bars the company from taking any "actions to obtain or otherwise avail itself of any tax credit," until it certifies that it has spent all of its share of the 2010 bond proceeds, and secured specified levels of additional financing.
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