870 R.I. Code R. 870-RICR-30-00-3.13

Current through December 3, 2024

Section 870-RICR-30-00-3.13 - Incentive Agreement

A. Upon approval of a Tax Credit for an Applicant by the Board, the Corporation and the Applicant will enter into an Incentive Agreement prior to the issuance of any Tax Credit to the Applicant. In order to safeguard the expenditure of public funds and ensure that the disbursement of funds further the objectives of the Act, the Incentive Agreement shall include, among others, the following terms:

1. The maximum amount and type of incentives awarded including any sales/use tax exemptions;

2. The incentives shall not be issued prior to the Qualified Development Project being Placed in Service

3. Evidence that the Applicant is in good standing with the Secretary of State and Division of Taxation at the time of execution of the Incentive Agreement; a Letter of Good Standing from the Division of Taxation shall be evidence of good standing;

4. A provision that the incentives shall be allowed in up to five annual increments and setting forth the annual increments in which they will be delivered;

5. If applicable, a provision requiring that the receipt of Tax Credits for any given year be subject to the Applicant meeting any job creation or retention requirements or any other conditions that the Corporation, in its sole discretion, shall set as a condition of its approval of Tax Credits for the Applicant;

6. Default and remedies including events, if any, that would trigger forfeiture, revocation and/or repayment of the awarded incentives;

7. Indemnification, insurance and other customary protective requirements;

8. Reporting requirements including, but not limited to, any requirements under the Act;

9. The imposition of such restrictions or covenants upon the Qualified Development Project as may be necessary to ensure continued compliance with the Act and the Rules;

10. At the Corporation's discretion, a provision requiring the Applicant to pay the Corporation's reasonable attorneys' fees incurred in connection with the negotiation, execution and enforcement of the Incentive Agreement;

11. A certification procedure, which shall include, but not be limited to, the following:

a. Representations that the Qualified Development Project complies with all applicable laws and regulations;

b. Evidence that the Applicant is in good standing with the Secretary of State and Division of Taxation at the time Applicant files its certification for issuance of incentives; a Letter of Good Standing from the Division of Taxation shall be evidence of good standing;

c. A requirement that the Applicant submit, prior to issuance of any incentive, satisfactory evidence of actual Project Costs, as certified by a certified public accountant licensed in the State. If the actual Project Costs are less than the estimated Project Costs forming the basis for the approval of the awarded incentives, then the awarded incentives shall be reduced based upon the actual Project Costs;

d. Evidence that the Qualified Development Project has been Placed in Service and/or meets such other criteria as imposed by the Board in its approving resolution; and

e. If applicable, evidence that the Applicant has met any additional job creation or retention requirements or any other conditions that the Corporation, in its sole discretion, set as a condition of its approval of Tax Credits for the Applicant

870 R.I. Code R. 870-RICR-30-00-3.13

Amended effective 12/19/2018