Section 870-RICR-30-00-3.16 - Assignment of Tax CreditsA. A Tax Credit Certificate may be assigned to any Person, provided that no Credit has been claimed based on the Tax Credit Certificate being assigned. The Tax Credit Certificate may be assigned by endorsing the assignment clause set forth on the Certificate and delivery of the original Certificate to the Assignee.B. The Assignee may use the Tax Credit only to offset the actual tax imposed and those taxes permitted to be offset under the Act as delineated in the Incentive Agreement, for the taxable year in which the Tax Credit is issued or for taxable years to which the Tax Credit is permitted to be carried forward.C. The original executed Tax Credit Certificate shall be attached to the tax return of the Owner, Participant or Assignee who desires to claim the Tax Credit. A Participant of a Pass-Through Entity who transfers its interest in the entity must also endorse and deliver the Tax Credit Certificate to the transferee if the transferee desires to claim the Tax Credit.D. An Assignor of all or any portion of the Tax Credit shall notify the Tax Division in writing within thirty (30) calendar days following the effective date of such assignment. Attached to such written notification (the Notification of Assignment) shall be: 1. A copy of the Tax Credit Certificate, endorsed to the Assignee. The original Certificate shall not be included with the Notification of Assignment, which must be retained by the Assignee and attached to the Assignee's tax return for the year with respect to which the Tax Credit is claimed.2. The name, address and telephone number of the Assignor and of the Assignee.3. The taxpayer identification number or social security number of the Assignor and the Assignee.4. For non-resident corporations, partnerships, limited liability companies, or other entities, the name and address of such entity's registered agent in the State and evidence of qualification to do business in the State.E. If the holder of a Tax Credit Certificate desires to assign its interest in the Tax Credit to more than one Assignee, the holder must, prior to utilizing any portion of the Tax Credit, request the Tax Division to reissue the original Certificate in such number of Certificates as the holder requires. The request must be made in writing, must specify the number of new Certificates required and the amount to be specified on each Certificate, and must attach the original Certificate for cancellation by the Tax Division.F. The Assignor of all or a portion of the Tax Credit shall not recognize any state income tax under the provisions of R.I. Gen. Laws Title 44 with respect to the proceeds of such assignment. The Assignor of any Credit shall attach a copy of the Tax Credit Certificate to its tax return to evidence that such proceeds are not subject to state income tax. If the Tax Credit is subsequently recaptured, revoked or adjusted, the Assignor's tax calculation for the year of revocation, recapture, or adjustment shall be increased by the total amount of the sales proceeds, if any, without proration, as a modification under R.I. Gen. Laws Chapter 44-30. In the event that the Assignor is not a natural person, the Assignor's tax calculation under R.I. Gen. Laws Chapters 44-11, 44-13 (other than with respect to the tax imposed under R.I. Gen. Laws § 44-13-13), 44-14, 44-17, or 44-30, as applicable, for the year of revocation, recapture, or adjustment, shall be increased by including the total amount of the sales proceeds, if any, without proration.G. The Tax Division may charge an administrative fee for issuing multiple Tax Credit Certificates or for reissuing Certificates.870 R.I. Code R. 870-RICR-30-00-3.16
Amended effective 12/19/2018