Section 870-RICR-30-00-4.15 - Incentive AgreementA. Upon approval of Tax Credits 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. A detailed description of the proposed job creation and the minimum number of New Full-Time Jobs necessary to qualify for the Tax Credit;2. The Eligibility Period of the Tax Credits, including the first year for which the Tax Credits may be claimed;3. The maximum amount of Tax Credits to be awarded;4. The Tax Credits shall not be issued prior to the Annual Certification by the Corporation;5. A requirement that the Applicant maintains in the State for the Commitment Period at least the minimum number of New Full-Time Jobs as required by the Act and these Rules;6. A method for the Applicant to annually certify that it has met the employment requirements of the Act for each year of the Commitment Period;7. A provision permitting an audit of the payroll records of the Applicant from time-to-time, as the Corporation deems necessary;8. A provision establishing the conditions under which the Incentive Agreement may be terminated;9. A provision that if, in any tax period, the Applicant reduces the total number of Full-Time Employees in its statewide workforce in the last tax period prior to the Tax Credit amount approval under this Act by more than twenty percent (20%) of the number of jobs which a credit was granted under the Act as described in the Applicant's Incentive Agreement, then the Applicant shall forfeit all credit amounts described in the Applicant's Incentive Agreement for that tax period and each subsequent tax period, until the first tax period for which documentation demonstrating the restoration of the Applicant's statewide workforce to the threshold levels required by the Incentive Agreement has been reviewed and approved by the Corporation, for which tax period and each subsequent tax period the full amount of the Tax Credit shall be allowed, so long as the Applicant maintains its statewide workforce at the levels required under this subsection;10. A provision that during the Commitment Period, if the Applicant ceases operation in the State or transfers more than fifty percent (50%) of the jobs for which a Tax Credit was granted under the Act to another state, the Tax Credit shall cease and the Applicant shall be liable to the State for, at a minimum, twenty percent (20%) of all tax benefits granted to the Applicant under the Act calculated from the date of the Incentive Agreement;11. A requirement that the Corporation is authorized to verify with the appropriate State agencies, including but not limited to the Tax Division and the Department of Labor and Training, any information required to be submitted by the Applicant;12. A provision specifying whether the Tax Credit maybe used as a credit against personal income taxes due under R.I. Gen. Laws Chapter 44-30.13. 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;14. 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;15. Indemnification requirements;16. Default and remedies including events other than those set forth above, if any, that would trigger forfeiture or revocation of the awarded incentives;17. Reporting requirements including, but not limited to, any requirements under the Act; and18. Any other provisions that the Corporation determines are appropriate.870 R.I. Code R. 870-RICR-30-00-4.15
Amended effective 12/19/2018