TITLE 44
Taxation
CHAPTER 44-63
Incentives for Innovation and Growth
SECTION 44-63-3
§ 44-63-3 Eligibility for credit.
[Repealed effective December 31, 2016 pursuant to § 44-63-5.].
(a) Only companies with business primarily in those industries or trades,
identified by the corporation upon advisory resolution of the Rhode Island
Science and Technology Advisory Council as "Innovation Industries" producing
traded good or services, shall be eligible for the Incentives for Innovation
and Growth as provided in §§ 44-63-1 and 44-63-2. An eligible company
must make application to the corporation prior to claiming the credit, and the
corporation shall be authorized to approve no more than one million dollars
($1,000,000) in credit applications in any two (2) calendar year period.
(b) The corporation shall approve no application under this
chapter until it has first prepared and publicly released an analysis of the
impact the proposed investment will or may have on the State. The analysis
shall be supported by appropriate data and documentation and shall consider,
but not be limited to, the following factors:
(i) The impact on the industry or industries in which the
applicant will be involved;
(ii) State fiscal matters, including the state budget
(revenues and expenses);
(iii) The financial exposure of the taxpayers of the state
under the plans for the proposed investment and negative foreseeable
contingencies that may arise therefrom;
(iv) The approximate number of full-time, part-time,
temporary, seasonal and/or permanent jobs projected to be created, construction
and non-construction;
(v) Identification of geographic sources of the staffing for
identified jobs;
(vi) The projected duration of the identified construction
jobs;
(vii) The approximate wage rates for each category of the
identified jobs;
(viii) The types of fringe benefits to be provided with the
identified jobs, including healthcare insurance and any retirement benefits;
(ix) The projected fiscal impact on increased personal income
taxes to the state of Rhode Island; and
(x) The description of any plan or process intended to
stimulate hiring from the host community, training of employees or potential
employees, and outreach to minority job applicants and minority businesses.
(c) The corporation shall monitor every impact analysis it
completes through the duration of any approved tax credit and for two (2) years
after the taxpayer no longer receives the credit. Such monitoring shall include
annual reports which shall be transmitted to the division of taxation, and
shall be available to the public for inspection by any person, and shall be
published by the tax administrator on the tax division website. The annual
reports on the impact analysis shall include:
(1) Actual versus projected impact for all considered
factors; and
(2) Verification of all commitments made in consideration of
state incentives or aid.
(d) Upon its preparation and release of the analysis required
by subsection (b) of this section, the corporation shall provide copies of that
analysis to the chairpersons of the house and senate finance committees, the
house and senate fiscal advisors, the department of labor and training and the
division of taxation. Any such analysis shall be available to the public for
inspection by any person and shall by published by the tax administrator on the
tax division website. Annually thereafter, through and including the second tax
year after any taxpayer has applied for and received a tax credit pursuant to
this chapter, the department of labor and training shall certify to the
chairpersons of the house and senate finance committees, the house and senate
fiscal advisors, the corporation and the division of taxation that: (i) the
actual number of new full-time jobs with benefits created by the tax credit,
not including construction jobs, is on target to meet or exceed the estimated
number of new jobs identified in the analysis above; and (ii) the actual number
of existing full-time jobs with benefits has not declined. For purposes of this
section, "full-time jobs with benefits" means jobs that require working a
minimum of thirty (30) hours per week within the state, with a median wage that
exceeds by five percent (5%) the median annual wage for full-time jobs in Rhode
Island and within the taxpayer's industry, with a benefit package that includes
healthcare insurance plus other benefits typical of companies within the
taxpayer's industry. The department of labor and training shall also certify
annually to the chairpersons of the house and senate finance committees, the
house and senate fiscal advisors, and the division of taxation that jobs
created by the tax credit are "new jobs" in the state of Rhode Island, meaning
that the employees of the project are in addition to, and without a reduction
of, those employees of the taxpayer currently employed in Rhode Island, are not
relocated from another facility of the taxpayer in Rhode Island or are
employees assumed by the taxpayer as the result of a merger or acquisition of a
company already located in Rhode Island. The certifications made by the
department of labor and training shall be available to the public for
inspection by any person and shall be published by the tax administrator on the
tax division website.
(e) The corporation, with the assistance of the taxpayer, the
department of labor and training, the department of human services and the
division of taxation shall provide annually an analysis of whether any of the
employees of the taxpayer has received RIte Care or RIte Share benefits and the
impact such benefits or assistance may have on the state budget. This analysis
shall be available to the public for inspection by any person and shall be
published by the tax administrator on the tax division website. Notwithstanding
any other provision of law or rule or regulation, the division of taxation, the
department of labor and training and the department of human services are
authorized to present, review and discuss taxpayer-specific tax or employment
information or data with the Rhode Island Economic Development Corporation
(RIEDC), the chairpersons of the house and senate finance committees, and/or
the house and senate fiscal advisors for the purpose of verification and
compliance with this tax credit reporting requirement.
(f) Any agreements or contracts entered into by the
corporation and the taxpayer shall be sent to the division of taxation and be
available to the public for inspection by any person and shall be published by
the tax administrator on the tax division website.
(g) By August 15th of each year the taxpayer shall report the
source and amount of any bonds, grants, loans, loan guarantees, matching funds
or tax credits received from any state governmental entity, state agency or
public agency as defined in § 37-2-7 received during the previous state
fiscal year. This annual report shall be sent to the division of taxation and
be available to the public for inspection by any person and shall be published
by the tax administrator on the tax division website.
(h) By August 15th of each year the division of taxation
shall report the name, address, and amount of tax credit received for each
taxpayer during the previous state fiscal year to the corporation, the
chairpersons of the house and senate finance committees, the house and senate
fiscal advisors, the department of labor and training and the division of
taxation. This report shall be available to the public for inspection by any
person and shall be published by the tax administrator on the tax division
website.
(i) On or before September 1, 2011, and every September 1
thereafter, the project lessee shall file an annual report with the tax
administrator. Said report shall contain each full-time equivalent, part-time
or seasonal employee's name, social security number, date of hire, and hourly
wage as of the immediately preceding July 1 and such other information deemed
necessary by the tax administrator. The report shall be filed on a form and in
a manner prescribed by the tax administrator.
History of Section.
(P.L. 2006, ch. 568, § 1; P.L. 2006, ch. 572, § 1; P.L. 2008, ch.
100, art. 32, § 4; P.L. 2008, ch. 165, § 2; P.L. 2008, ch. 173,
§ 2; P.L. 2011, ch. 151, art. 19, § 6.)
