TITLE 42
State Affairs and Government
CHAPTER 42-64.30
Anchor Institution Tax Credit
SECTION 42-64.30-5
§ 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.
History of Section.
(P.L. 2015, ch. 141, art. 19, § 13.)
