§ 42-64.20-3. Definitions.
As used in this chapter:
(1) "Adaptive reuse� means the conversion of an existing structure from the use for which
it was constructed to a new use by maintaining elements of the structure and adapting
such elements to a new use.
(2) "Affiliate� means an entity that directly or indirectly controls, is under common
control with, or is controlled by the business. Control exists in all cases in which
the entity is a member of a controlled group of corporations as defined pursuant to
section 1563 of the Internal Revenue Code of 1986 (26 U.S.C. § 1563) or the entity is an organization in a group of organizations under common control
as defined pursuant to subsection (b) or (c) of section 414 of the Internal Revenue Code of 1986 (26 U.S.C. § 414). A taxpayer may establish by clear and convincing evidence, as determined by the
tax administrator, that control exists in situations involving lesser percentages
of ownership than required by those statutes. An affiliate of a business may contribute
to meeting either the capital investment or full-time employee requirements of a business
that applies for a credit under this chapter.
(3) "Affordable housing� means housing for sale or rent with combined rental costs or
combined mortgage loan debt service, property taxes, and required insurance that do
not exceed thirty percent (30%) of the gross annual income of a household earning
up to eighty percent (80%) of the area median income, as defined annually by the United
States Department of Housing and Urban Development.
(4) "Applicant� means a developer applying for a rebuild Rhode Island tax credit under
this chapter.
(5) "Businessâ€� means a corporation as defined in § 44-11-1, or a partnership, an S corporation, a nonprofit corporation, a sole proprietorship,
or a limited liability corporation. A business shall include an affiliate of the business
if that business applies for a credit based upon any capital investment made by an
affiliate.
(6) "Capital investment� in a real estate project means expenses by a developer incurred
after application for:
(i) Site preparation and construction, repair, renovation, improvement, equipping, or
furnishing on real property or of a building, structure, facility, or improvement
to real property;
(ii) Obtaining and installing furnishings and machinery, apparatus, or equipment, including
but not limited to, material goods for the operation of a business on real property
or in a building, structure, facility, or improvement to real property.
In addition to the foregoing, if a developer acquires or leases a qualified development
project, the capital investment made or acquired by the seller or owner, as the case
may be, if pertaining primarily to the premises of the qualified development project,
shall be considered a capital investment by the developer and, if pertaining generally
to the qualified development project being acquired or leased, shall be allocated
to the premises of the qualified development project on the basis of the gross leasable
area of the premises in relation to the total gross leasable area in the qualified
development project. The capital investment described herein shall be defined through
rules and regulations promulgated by the commerce corporation.
(7) "Certified historic structure� means a property located in the state of Rhode Island
and is:
(i) Listed individually on the national register of historic places; or
(ii) Listed individually in the state register of historic places; or
(iii) Located in a registered historic district and certified by either the Rhode Island
historical preservation and heritage commission created pursuant to § 42-45-2 or the Secretary of the United States Department of the Interior as being of historic
significance to the district.
(8) "Commerce corporation� means the Rhode Island commerce corporation established pursuant
to § 42-64-1 et seq.
(9) "Commercial� shall mean nonresidential development.
(10) "Construction worker� means any laborer, mechanic, or machine operator employed by
a contractor or subcontractor in connection with the construction, alteration, repair,
demolition, reconstruction, or other improvements to real property.
(11) "Developer� means a person, firm, business, partnership, association, political subdivision,
or other entity that proposes to divide, divides, or causes to be divided real property
into a subdivision or proposes to build or builds a building or buildings or otherwise
improves land or existing structures, which division, building, or improvement qualifies
for benefits under this chapter.
(12) "Development� means the improvement of land through the carrying out of building,
engineering, or other operations in, on, over, or under land, or the making of any
material change in the use of any buildings or land for the purposes of accommodating
land uses.
(13) "Eligibility period� means the period in which a developer may claim a tax credit
under this act, beginning with the tax period in which the commerce corporation accepts
certification from the developer that it has met the requirements of the act and extending
thereafter for a term of five (5) years.
(14) "Full-time employee� means a person who is employed by a business for consideration
for a minimum of at least thirty-five (35) hours per week, or who renders any other
standard of service generally accepted by custom or practice as full-time employment,
or who is employed by a professional employer organization pursuant to an employee
leasing agreement between the business and the professional employer organization
for a minimum of thirty-five (35) hours per week, or who renders any other standard
of service generally accepted by custom or practice as full-time employment, and whose
wages are subject to withholding.
(15) "Hope community� means a municipality for which the five-year (5) average percentage
of families with income below the federal poverty level exceeds the state five-year
(5) average percentage, both as most recently reported by the U.S. Department of Commerce,
Bureau of the Census.
(16) "Manufacturer� shall mean any entity that:
(i) Uses any premises within the state primarily for the purpose of transforming raw materials
into a finished product for trade through any or all of the following operations:
adapting, altering, finishing, making, processing, refining, metalworking, and ornamenting,
but shall not include fabricating processes incidental to warehousing or distribution
of raw materials, such as alteration of stock for the convenience of a customer; or
(ii) Is described in codes 31-33 of the North American Industry Classification System,
as revised from time to time.
(17) "Mixed use� means a development comprising both commercial and residential components.
(18) "Partnership� means an entity classified as a partnership for federal income tax purposes.
(19) "Placed in service� means the earlier of (i) Substantial construction or rehabilitation
work has been completed that would allow for occupancy of an entire structure or some
identifiable portion of a structure, as established in the application approved by
the commerce corporation board; or (ii) Receipt by the developer of a certificate,
permit, or other authorization allowing for occupancy of the project or some identifiable
portion of the project by the municipal authority having jurisdiction.
(20) "Project� means qualified development project as defined under subsection (24).
(21) "Project area� means land or lands under common ownership or control in which a qualified
development project is located.
(22) "Project cost� means the costs incurred in connection with the qualified development
project or qualified residential or mixed use project by the applicant until the issuance
of a permanent certificate of occupancy, or until such other time specified by the
commerce corporation, for a specific investment or improvement, as defined through
rules and regulations promulgated by the commerce corporation.
(23) "Project financing gap� means:
(i) The part of the total project cost that remains to be financed after all other sources
of capital have been accounted for (the sources will include, but not be limited to,
developer-contributed capital), which shall be defined through rules and regulations
promulgated by the commerce corporation; or
(ii) The amount of funds that the state may invest in a project to gain a competitive advantage
over a viable and comparable location in another state by means described in this
chapter.
(24) "Qualified development project� means a specific construction project or improvement,
including lands, buildings, improvements, real and personal property or any interest
therein, including lands under water, riparian rights, space rights and air rights,
acquired, owned, leased, developed or redeveloped, constructed, reconstructed, rehabilitated
or improved, undertaken by a developer, owner or tenant, or both, within a specific
geographic area, meeting the requirements of this chapter, as set forth in an application
made to the commerce corporation.
(25) "Recognized historical structure� means a property located in the state of Rhode Island
and commonly considered to be of historic or cultural significance as determined by
the commerce corporation in consultation with the state historic preservation officer.
(26) "Residential� means a development of residential dwelling units.
(27) "Targeted industry� means any advanced, promising, or otherwise prioritized industry
identified in the economic development vision and policy promulgated pursuant to § 42-64.17-1 or, until such time as any such economic development vision and policy is promulgated,
as identified by the commerce corporation.
(28) "Transit-oriented development area� means an area in proximity to transit infrastructure
that will be further defined by regulation of the commerce corporation in consultation
with the Rhode Island department of transportation.
(29) "Workforce housing� means housing for sale or rent with combined rental costs or combined
mortgage loan debt service, property taxes, and required insurance that do not exceed
thirty percent (30%) of the gross annual income of a household earning between eighty
percent (80%) and one hundred and forty percent (140%) of the area median income,
as defined annually by the United States Department of Housing and Urban Development.