§ 42-64.22-2. 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. §â€‚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. §â€‚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 Providence-Fall River, RI-MA metropolitan area median
income, as defined annually by the United States Department of Housing and Urban Development.
(4) "Applicant� means a qualifying community or hope community applying for incentives
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 tax stabilization agreement based upon any capital
investment made by an affiliate.
(6) "Capital investment� in a qualified development project means expenses by a business
or any affiliate of the business 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; and/or
(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 business acquires or leases a qualified business
facility, 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 business facility,
shall be considered a capital investment by the business and, if pertaining generally
to the qualified business facility being acquired or leased, shall be allocated to
the premises of the qualified business facility on the basis of the gross leasable
area of the premises in relation to the total gross leasable area in the qualified
business facility. The capital investment described herein may include any capital
investment made or acquired within twenty-four (24) months prior to the date of application
so long as the amount of capital investment made or acquired by the business, any
affiliate of the business, or any owner after the date of application equals at least
fifty percent (50%) of the amount of capital investment, allocated to the premises
of the qualified business facility being acquired or leased on the basis of the gross
leasable area of such premises in relation to the total gross leasable area in the
qualified business facility made or acquired prior to the date of application.
(7) "Certified historic structure� means a property which is 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 commission or
Secretary of the Interior as being of historic significance to the district.
(8) "Commerce corporation� means the Rhode Island commerce corporation established pursuant
to §â€‚42-64-1 et seq.
(9) "Commercial� means nonresidential development.
(10) "Developer� means a person, firm, corporation, 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.
(11) "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.
(12) "Eligibility period� means the period in which a qualified community and/or Hope Community
may apply for reimbursement under this chapter. The eligibility period shall be subject
to the term defined in the qualifying tax stabilization agreement granted by said
community. The amounts subject to reimbursement shall cease upon any termination or
cessation of the underlying qualified tax stabilization agreement.
(13) "Forgone tax revenue� means the amount of revenue that a municipality would have received
from a qualified development project had a tax stabilization agreement not been in
place, less the amount of revenue the municipality would be expected to receive from
that qualified development project with a tax stabilization agreement in place.
(14) "Full-time job� means a position for which a person 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) "Project� means qualified development project as defined under subsection (18).
(17) "Project cost� means the costs incurred in connection with the qualified development
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.
(18) "Qualified development project� includes:
(i) Rehabilitation of an existing structure where the total cost of development budget
exceeds fifty percent (50%) of adjusted basis in such a qualifying property as of
the date that the parties applied for said qualifying tax stabilization agreement;
or
(ii) Construction of a new building wherein:
(A) The subject community has issued a tax stabilization agreement, as set forth herein
and pursuant to §â€‚44-3-9 as well as other applicable rules, regulations, and procedures;
(B) Construction commences within twelve (12) months of the subject tax stabilization
agreement being approved; and
(C) Completion of the proposed development project occurs within thirty six (36) months,
subject to the approval of qualifying or hope communities.
(19) "Qualifying communities� are those municipalities within the state that are not defined
as a hope community.
(20) "Qualifying property� means any building or structure used or intended to be used
essentially for offices or commercial enterprises or residential purposes.
(21) "Qualifying tax stabilization agreement� are those tax stabilization agreements with
a minimum term of twelve (12) years, granted by a qualified and/or hope community
in connection with a qualifying project.
(22) "Recognized historical structure� means a property that is located in the state of
Rhode Island and is commonly considered to be of historic or cultural significance
as determined by the commerce corporation in consultation with the state historic
preservation officer.
(23) "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 Providence-Fall River,
RI-MA metropolitan area median income, as defined annually by the United States Department
of Housing and Urban Development.