§ 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 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 that 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 subsections
(a)(1) and (a)(2) of this section.
(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 (i) of this section shall be subject to annual appropriation
by the general assembly.