§ 42-64.5-5. Election.
(a) An eligible company may elect to determine its "base employment� for the purposes
of this chapter on July 1 of any year subsequent to 1994, rather than on July 1, 1994;
provided, however, that an eligible company that is a telecommunication company shall
determine its base employment on either July 1, 2001, or July 1, 2002; and provided,
further, that except as otherwise provided in this chapter, an eligible company may
not use July 1, 2003, or any subsequent date to determine its base employment unless
a determination has been made by the board of directors of the Rhode Island commerce
corporation that: (i) but for the incentives available under this chapter the company
is not likely to retain, expand, or add employment in this state; and (ii) that the
company has provided reasonable evidence supporting a finding that the jobs retained,
expanded, or added will generate new tax revenue for the state that is at least equivalent
to the value of this incentive.
As a result of the election, rules comparable to those set forth elsewhere in this
chapter shall be applied to determine the rate reduction available for each of the
three (3) taxable years following the first anniversary of the date the eligible company
elected to use to determine its "base employment� and for the taxable years following
that three-year (3) period. This election: (i) shall be made in a manner that may
be determined by the tax administrator, and (ii) shall not be available to an eligible
company that previously claimed a rate reduction under this chapter.
(b) The corporation shall make no determination under subsection (a) of this section until
it has first prepared and publicly released an analysis of the impact the proposed
investment will or may have on the state. The analysis shall be supported by appropriate
data and documentation and shall consider, but not be limited to, the following factors:
(i) The impact on the industry or industries in which the applicant will be involved;
(ii) State fiscal matters, including the state budget (revenues and expenses);
(iii) The financial exposure of the taxpayers of the state under the plans for the proposed
investment and negative foreseeable contingencies that may arise therefrom;
(iv) The approximate number of full-time, part-time, temporary, seasonal and/or permanent
jobs projected to be created, construction and non-construction;
(v) Identification of geographic sources of the staffing for identified jobs;
(vi) The projected duration of the identified construction jobs;
(vii) The approximate wage rates for each category of the identified jobs;
(viii) The types of fringe benefits to be provided with the identified jobs, including healthcare
insurance and any retirement benefits;
(ix) The projected fiscal impact on increased personal income taxes to the state of Rhode
Island; and
(x) The description of any plan or process intended to stimulate hiring from the host
community, training of employees or potential employees, and outreach to minority
job applicants and minority businesses.
(c) The corporation shall monitor every impact analysis it completes through the duration
of any approved tax credit. Such monitoring shall include annual reports made available
to the public on the:
(1) Actual versus projected impact for all considered factors; and
(2) Verification of all commitments made in consideration of state incentives or aid.
(d) Upon its preparation and release of the analysis required by subsection (b) of this
section, the corporation shall provide copies of that analysis to the chairpersons
of the house and senate finance committees, the house and senate fiscal advisors,
the department of labor and training, and the division of taxation. Any such analysis
shall be available to the public for inspection by any person and shall be published
by the tax administrator on the tax division website. Annually thereafter, through
and including the second tax year after any taxpayer has applied for and received
a tax credit pursuant to this chapter, the department of labor and training shall
certify to the chairpersons of the house and senate finance committees, the house
and senate fiscal advisors, the corporation, and the division of taxation that: (i)
the actual number of new full-time jobs with benefits created by the tax credit, not
including construction jobs, is on target to meet or exceed the estimated number of
new jobs identified in the analysis above, and (ii) the actual number of existing
full-time jobs with benefits has not declined. For purposes of this section, "full-time
jobs with benefits� means jobs that require working a minimum of thirty (30) hours
per week within the state, with a median wage that exceeds by five percent (5%) the
median annual wage for full-time jobs in Rhode Island and within the taxpayer's industry,
with a benefit package that includes healthcare insurance plus other benefits typical
of companies within the taxpayer's industry. The department of labor and training
shall also certify annually to the chairpersons of the house and senate finance committees,
the house and senate fiscal advisors, and the division of taxation that jobs created
by the tax credit are "new jobs� in the state of Rhode Island, meaning that the employees
of the project are in addition to, and without a reduction of, those employees of
the taxpayer currently employed in Rhode Island, are not relocated from another facility
of the taxpayer in Rhode Island or are employees assumed by the taxpayer as the result
of a merger or acquisition of a company already located in Rhode Island. The certifications
made by the department of labor and training shall be available to the public for
inspection by any person and shall be published by the tax administrator on the tax
division website.
(e) The corporation, with the assistance of the taxpayer, the department of labor and
training, the department of human services, and the division of taxation shall provide
annually an analysis of whether any of the employees of the taxpayer has received
RIte Care or RIte Share benefits and the impact such benefits or assistance may have
on the state budget. This analysis shall be available to the public for inspection
by any person and shall be published by the tax administrator on the tax division
website. Notwithstanding any other provision of law or rule or regulation, the division
of taxation, the department of labor and training, and the department of human services
are authorized to present, review, and discuss taxpayer-specific tax or employment
information or data with the Rhode Island Commerce Corporation, the house and senate
fiscal committee chairs, and/or the house and senate fiscal advisors for the purpose
of verification and compliance with this tax credit reporting requirement.
(f) Any agreements or contracts entered into by the corporation and the taxpayer shall
be sent to the division of taxation and be available to the public for inspection
by any person and shall be published by the tax administrator on the tax division
website
(g) By August 15 of each year, the taxpayer shall report the source and amount of any
bonds, grants, loans, loan guarantees, matching funds, or tax credits received from
any state governmental entity, state agency, or public agency as defined in §â€‚37-2-7 received during the previous state fiscal year. This annual report shall be sent
to the division of taxation and be available to the public for inspection by any person
and shall be published by the tax administrator on the tax division website.
(h) By August 15 of each year, the division of taxation shall report the name, address,
and amount of tax credit received for each taxpayer during the previous state fiscal
year to the corporation, the chairpersons of the house and senate finance committees,
the house and senate fiscal advisors, the department of labor and training, and the
division of taxation. This report shall be available to the public for inspection
by any person and shall be published by the tax administrator on the tax division
website.