§ 42-64.3-6. Business tax credits.
A qualified business in an enterprise zone is allowed a credit against the tax imposed
pursuant to chapters 11, 13 (except the taxation of tangible personal property under
§ 44-13-13), 14, 17, and 30 of title 44:
(1) A credit equal to fifty percent (50%) of the total amount of wages paid to those enterprise
job employees comprising the five percent (5%) new jobs referenced in § 42-64.3-3(6)(i)(A). The wages subject to the credit shall be reduced by any direct state or federal
wage assistance paid to employers for the employee(s) in the taxable year. The maximum
credit allowed per taxable year under the provisions of this subsection shall be two
thousand five hundred dollars ($2,500), per employee. A taxpayer who takes this business
tax credit shall not be eligible for the resident business owner modification pursuant
to § 42-64.3-7.
(2) A credit equal to seventy five percent (75%) of the total amount of wages paid to
those enterprise job employees who are domiciliaries of an enterprise zone comprising
the five percent (5%) new jobs referenced in § 42-64.3-3(6)(i)(A). The wages subject to the credit shall be reduced by any direct state or federal
wage assistance in the taxable year. The maximum credit allowed per taxable year under
the provisions of this subsection shall be five thousand dollars ($5,000) per employee.
A taxpayer who takes this business tax credit is not eligible for the resident business
owner modification. The council shall promulgate appropriate rules to certify that
the enterprise job employees are domiciliaries of an enterprise zone and shall advise
the qualified business and the tax administrator. A taxpayer taking a credit for employees
pursuant to this subsection (2) shall not be entitled to a credit pursuant to subsection
(1) of this section for the employees.
(3) Any tax credit as provided in subsection (1) or (2) of this section shall not reduce
the tax below the minimum tax. Fiscal year taxpayers must claim the tax credit in
the year into which the December 31st of the certification year falls. The credit
shall be used to offset tax liability pursuant to the provisions of either chapter
11, 13, 14, 17, or 30 of title 44, but not more than one chapter.
(4) In the case of a corporation, the credit allowed under this section is only allowed
against the tax of that 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.
(5) In the case of multiple business owners, the credit provided in subsection (1) or
(2) of this section is apportioned according to the ownership interests of the qualified
business.
(6) The tax credits established pursuant to this section may be carried forward for a
period of three (3) years if in each of the three (3) calendar years a business which
has qualified for tax credits under this section: (i) does not reduce the number of
its employees from the last Effective Date of Certification; (ii) obtains certificates
of good standing from the Rhode Island division of taxation, the corporations division
of the Rhode Island secretary of state, and the appropriate municipal tax collector;
(iii) provides the council an affidavit stating under oath that this business has
not within the preceding twelve (12) months changed its legal status for the purpose
of gaining favorable treatment under the provisions of this chapter; and (iv) meets
any other requirements as may be established by the council in its rules and regulations.
(7) No new credits shall be issued on or after July 1, 2015, unless the business has received
certification under this chapter prior to July 1, 2015.