Section 42-64.30-5 - Allowance of tax credits(a) A Rhode Island business, upon application to and approval from the commerce corporation, shall be allowed a credit as set forth hereinafter against taxes imposed under applicable provisions of title 44 of the general laws for having played a substantial role in the decision of a qualified business to relocate a minimum number of jobs as provided below: (1) For the years 2015 through 2018, not less than ten (10) employees to Rhode Island; and(2) For the years 2019 through 2020, not less than twenty-five (25) employees to Rhode Island.(b) To be eligible for the tax credit, an existing Rhode Island business must demonstrate to the commerce corporation, in accordance with regulations promulgated by the commerce corporation, that it played a substantial role in the decision of a qualified business to relocate.(c) If the commerce corporation approves an application, then an eligible Rhode Island business which has procured a qualifying relocation shall be entitled to a tax credit. The amount of the tax credit shall be based upon criteria to be established by the commerce corporation. Such criteria shall include the number of jobs created, types of jobs and compensation, industry sector and whether the relocation benefits a hope community.(d) In determination of the tax credit amount, the commerce corporation may take into account such factors as area broker's fees, the strategic importance of the businesses involved, and the economic return to the state. The tax credits issued under this chapter shall not exceed the funds appropriated for these credit(s).(e) A Rhode Island business qualifying for the tax credit under this chapter shall not be eligible to receive a credit in excess of seventy-five percent (75%) of the amount appropriated in the fiscal year in which the tax credits are issued.(f) Tax credits allowed pursuant to this chapter shall be allowed for the taxable year in which the existing Rhode Island business demonstrates, to the satisfaction of the commerce corporation, both (1) that a certificate of occupancy issues for the project or as of a lease commencement date or other such related commitment; and (2) that the qualified business has created the number of net new jobs required by § 42-64.30-5(a)(1) and (2).(g) The tax credit allowed under this chapter may be used as a credit against corporate income taxes imposed under chapters 11, 12, 13, 14, or 17, of title 44.(h) In the case of a corporation, this credit is only allowed against the tax of a corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return.(i) If the existing Rhode Island business has not claimed the tax credit allowed under this chapter in whole or part, the existing Rhode Island business eligible for the tax credit shall, prior to assignment or transfer to a third party, file a request with the division of taxation to redeem the tax credit in whole or in part to the state. Within ninety (90) days from the submission of a request to the division of taxation to redeem the tax credits, the division shall be entitled to redeem the tax credits in exchange for payment by the state to the existing Rhode Island business of (1) one hundred percent (100%) of the value of the portion of the tax credit redeemed, or (2) for tax credits redeemed in whole, one hundred percent (100%) of the total remaining value of the tax credit; provided, however, that the redemption shall be prorated equally over each year of the remaining term of the eligible period of the tax credit.(j) Any redemption under subsection (h) of this section shall be subject to annual appropriation by the general assembly.R.I. Gen. Laws § 42-64.30-5
Added by 2015 Pub. Laws, ch. 141,§ 19-13, eff. 6/30/2015.