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§44-48.2-5  Economic Development Tax Incentive Evaluations, Analysis. –

Published: 2015

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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


   (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.)