TITLE 44
Taxation
CHAPTER 44-48.2
Rhode Island Economic Development Tax Incentives Evaluation Act of 2013
SECTION 44-48.2-5
§ 44-48.2-5 Economic Development Tax
Incentive Evaluations, Analysis.
(a) The additional analysis as required by § 44-48.2-4 shall include, but
not be limited to:
(1) A baseline assessment of the tax incentive, including, if
applicable, the number of aggregate jobs associated with the taxpayers
receiving such tax incentive and the aggregate annual revenue that such
taxpayers generate for the state through the direct taxes applied to them and
through taxes applied to their employees;
(2) The statutory and programmatic goals and intent of the
tax incentive, if said goals and intentions are included in the incentive's
enabling statute or legislation;
(3) The number of taxpayers granted the tax incentive during
the previous twelve-month (12) period;
(4) The value of the tax incentive granted, and ultimately
claimed, listed by the North American Industrial Classification System (NAICS)
Code associated with the taxpayers receiving such benefit, if such NAICS Code
is available;
(5) An assessment and five-year (5) projection of the
potential impact on the state's revenue stream from carry forwards allowed
under such tax incentive;
(6) An estimate of the economic impact of the tax incentive
including, but not limited to:
(i) A cost-benefit comparison of the revenue foregone by
allowing the tax incentive compared to tax revenue generated by the taxpayer
receiving the credit, including direct taxes applied to them and taxes applied
to their employees;
(ii) An estimate of the number of jobs that were the direct
result of the incentive; and
(iii) A statement by the director of the economic development
corporation as to whether, in his or her judgment, the statutory and
programmatic goals of the tax benefit are being met, with obstacles to such
goals identified, if possible;
(7) The estimated cost to the state to administer the tax
incentive if such information is available;
(8) An estimate of the extent to which benefits of the tax
incentive remained in state or flowed outside the state, if such information is
available;
(9) In the case of economic development tax incentives where
measuring the economic impact is significantly limited due to data constraints,
whether any changes in statute would facilitate data collection in a way that
would allow for better analysis;
(10) Whether the effectiveness of the tax incentive could be
determined more definitively if the general assembly were to clarify or modify
the tax incentive's goals and intended purpose;
(11) A recommendation as to whether the tax incentive should
be continued, modified, or terminated; the basis for such recommendation; and
the expected impact of such recommendation on the state's economy;
(12) The methodology and assumptions used in carrying out the
assessments, projections and analyses required pursuant to subdivisions (1)
through (8) of this section.
(b) All departments, offices, boards, and agencies of the
state shall cooperate with the chief of the office of revenue analysis and
shall provide to the office of revenue analysis any records, information
(documentary and otherwise), data, and data analysis as may be necessary to
complete the report required pursuant to this section.
History of Section.
(P.L. 2013, ch. 155, § 5; P.L. 2013, ch. 209, § 5; P.L. 2014, ch.
528, § 65.)
