Section 870-RICR-30-00-4.5 - DefinitionsA. The following words and terms, when used in these Rules, shall have the following meanings, unless the context clearly indicates otherwise:1. "Act" means R.I. Gen. Laws Chapter 44-48.3 known as the Rhode Island Qualified Jobs Incentive Act of 2015.2. "Affiliate" means an entity that directly or indirectly controls, is under common control with, or is controlled by the Applicant. Control exists in all cases in which the entity is a member of an affiliated group of corporations as defined pursuant to § 1504 of the Internal Revenue Code of 1986 (26 U.S.C. § 1504) or the entity is an organization in a group of organizations under common control as defined pursuant to subsection (b) or (c) of § 414 of the Internal Revenue Code of 1986 (26 U.S.C. § 414(b) or (c)). An Affiliate or an Applicant may establish by clear and convincing evidence, as determined by the Corporation, that control exists in situations involving lesser percentages of ownership that required by those statutes. An Affiliate of the Applicant may contribute to meeting Full-Time Employee requirements of an Applicant that applies for a Tax Credit under the Act and these Rules.3. "Allocation agreement" means an executed agreement among all Participants of a Pass-Through Entity setting forth the method for allocation of the Tax Credit agreed upon among the Participants. An Allocation Agreement may include, without limitation, a partnership agreement, an operating agreement of a limited liability company, a shareholders agreement, or any other instrument executed by all Participants.4. "Annual certification" means the document issued annually to an Applicant certifying to the Tax Division the amount of the Tax Credit and taxable year in which such credit may be claimed, and such other information deemed appropriate by the Corporation.5. "Applicant" means a Business applying for a Tax Credit under the Act and these Rules.6. "Application" means the application, promulgated by the Corporation, which must be completed and submitted by an Applicant pursuant to the requirements of the Act and these Rules.7. "Assignee" means a Person to whom a Tax Credit Certificate is assigned pursuant to these Rules.8. "Assignor" means a holder of a Tax Credit Certificate who assigns such Tax Credit Certificate to an Assignee.9. "Board" means the board of directors of the Corporation.10. "Business" means a corporation, state bank, federal savings bank, trust company, national banking association, bank holding company, loan and investment company, mutual savings bank, credit union, building and loan association, insurance company, investment company, broker-dealer company or surety company, limited liability company, partnership or sole proprietorship qualified to do business in the State.11. "Capital investment" means expenses for: site preparation and construction, repair, renovation. Improvement, equipping, or furnishing on real property or of a building, structure, facility, or improvement to real property, including reasonable associated soft costs and the reasonable costs of relocating any former tenants; obtaining and installing furnishings and machinery, apparatus, or equipment, including as permitted in the sole discretion of the Corporation, but not limited to, material goods for the operation of a business on real property or in a building, structure, facility, or improvement to real property; site-related utility and transportation infrastructure improvements including on- and off-site utility, road, pier, wharf, bulkhead or sidewalk construction or repair; plantings or other environmental components require to attain the level of silver rating or above in the Leadership in Energy and Environmental Design (LEED) Green Building Rating System; and environmental remediation of the Project site.12. "Corporation" means the Rhode Island Commerce Corporation established pursuant to R.I. Gen. Laws Chapter 42-64.13. "Commitment period" means the period of time that at a minimum is twenty percent (20%) longer than the Eligibility Period.14. "Economically fragile industry" means manufacturing and such other industries identified in the economic development vision and policy promulgated pursuant R.I. Gen. Laws § 42-64.17-1 as economically fragile or, until such time as any such economic development vision and policy is promulgated, as identified by the Corporation from time-to-time and published on the Corporation's website. Retail shall not be an economically fragile industry.15. "Eligibility period" means the period in which a Business may claim a Tax Credit under the Act, beginning at the end of the tax period in which the Corporation issues a Certification for the Business that it has met the employment requirements of the Act and extending thereafter for a term of not more than ten (10) years.16. "Eligible position" or "Full-Time job" means a full-time position in a Business which has been filled with a Full-Time Employee who earns no less than the median hourly wage as reported by the United States Bureau of Labor Statistics for the State, provided, that for Economically Fragile Industries, the Corporation may reduce the wage threshold.17. "Full-Time employee" means a natural person who is employed in the State by a Business for consideration for at least thirty-five (35) hours a week, or who is employed in the State by a professional employer organization pursuant to an employee leasing agreement between the Business and the professional employer organization for at least thirty-five (35) hours a week, and whose wages are subject to withholding.18. "Hope community" means a municipality with a percentage of families below the poverty level that is greater than the percentage of families below the poverty level for the state as a whole as determined by the United State Census Bureau's most recent American Community Survey.19. "Incentive agreement" means the contract between the Applicant and the Corporation that sets forth the terms and conditions under which the Applicant shall be eligible to receive the incentives authorized pursuant to the Act.20. "Incentive effective date" means the date the Corporation issues a certification for issuance of a Tax Credit.21. "Industrial design" means the profession of designing products to optimize the function, value, and appearance for the benefit of the user of the product and/or the manufacturer or creator of the product.22. "Initial certificate holder" means an Applicant or Participant named by the Applicant to receive the Tax Credit Certificate.23. "Letter of good standing" means a letter from the Division of Taxation certifying that the taxpayer is in good standing for purposes of these Rules; a taxpayer shall be entitled to a letter of good standing so long as a. the taxpayer is current on all outstanding filings and declared tax liabilities subject to audit;b. the taxpayer and the Division of Taxation have a workout payment agreement or other settlement with respect to any known delinquent tax liability and the taxpayer is current on that workout payment agreement or settlement; orc. the taxpayer has timely commenced or is engaged in an administrative or judicial proceeding concerning a tax liability the status of which would otherwise preclude the issuance of a letter of good standing;24. "New full-time job" means an Eligible Position created by the Applicant that did not previously exist in the State. The term "New Full-Time Job" does not include a position that is the result of an acquisition of an existing company located in the State by purchase, merger, or otherwise; or a position that is or was already located in the State regardless of the taxpayer for whom the individual performed services. For the purposes of determining the number of new Full-Time Jobs, the Eligible Positions of an Affiliate shall be considered Eligible Positions of the Applicant.25. "Notification of assignment" means the notification filed with the Division of Taxation of the assignment of all or a portion a Tax Credit.26. "Participant" means a partnership, member of a limited liability company, shareholder of an S-corporation, beneficial owner of a trust, or any other Person having an interest in a Pass-Through Entity.27. "Partnership" means an entity classified as a partnership for federal income tax purposes.28. "Pass-Through entity" means a partnership, limited liability company, S-corporation, association, nominee trust, or any other entity, the tax attributes of which are passed through to the Participants in such entity.29. "Percentage interest" means the Percentage Interest in the Tax Credit allocated to a Participant or another Person pursuant to the terms of the applicable Allocation Agreement.30. "Person" means any natural person, partnership, firm, corporation, (including both business and non-profit corporations), limited liability company, trust, estate, association, or other business entity.31. "Related company" means any entity controlling, controlled by or under common control with an Applicant.32. "Scientific research and development" means conducting research and experimental development in the physical, engineering, and life sciences, including but not limited to agriculture, electronics, biology, botany, biotechnology, computers, chemistry, food, fisheries, forests, geology, health, manufacturing, mathematics, medicine, oceanography, pharmacy, physics, veterinary, and other allied subjects.33. "State" means the state of Rhode Island and Providence Plantations.34. "Targeted industry" means any advanced, promising or otherwise prioritized industry identified in the economic development vision and policy promulgated pursuant R.I. Gen. Laws § 42-64.17-1 or, until such time as any such economic development vision and policy is promulgated, as identified by the Corporation from time-to-time and published on the Corporation's website.35. "Tax administrator" means the individual within the Rhode Island Department of Revenue as described in R.I. Gen. Laws Chapter 44-1.36. "Tax credit" means a tax credit granted under the Act.37. "Tax credit award request form" shall mean the form published from time to time by the Tax Division to be filed by an Applicant with the Tax Division together with the Certification issued by the Corporation.38. "Tax credit certificate" or "Certificate" means a certificate issued by the Tax Division to the Applicant who has received an Annual Certification from the Corporation substantiating compliance with an Incentive Agreement and entitlement to the issuance of Tax Credits under the Act. If the Applicant is a Pass-Through Entity, a Tax Credit Certificate may be issued to each Participant in the Pass-Through Entity. The Certificate shall specify the amount of the Tax Credit allocable to such Participant, determined pursuant to these Rules.39. "Tax division" means the Rhode Island Division of Taxation.40. "Taxpayer" means the Applicant granted a Tax Credit under this chapter or such person entitled to the Tax Credit because the Business is a Pass-Through Entity.41. "Transit oriented development area" means either of:a. an area that the Corporation, after consultation with the Rhode Island Department of Transportation and the Rhode Island Public Transit Authority, designates as a Transit Oriented Development Area because it supports, or has the potential to support, development that is in close proximity to, compatible with, and supporting of public transit; such discretionary designation can occur in response to an Application for an incentive under the Act or in a request submitted by a municipality to the Corporation in a form prescribed by the Corporation on its website; orb. an area with ready access to freight rail, air, and/or marine transportation where manufacturing, warehousing, distribution, and freight forwarding operations are or could be located.870 R.I. Code R. 870-RICR-30-00-4.5
Amended effective 12/19/2018