§ 42-64.9-4. Definitions and construction.
As used in this chapter, unless the context otherwise requires, the term:
(1) "Certifiable building� means a mill complex or a building:
(i) That was constructed prior to January 1, 1950;
(ii) Having at least two (2) floors, excluding a basement;
(iii) That is or will be used primarily for manufacturing, wholesale trade, and other commercial
purposes;
(iv) The use of which conforms to the comprehensive plan and local land use management
ordinances of the municipality in which the building is located;
(v) That is proposed for substantial rehabilitation;
(vi) That has been at a minimum seventy-five percent (75%) vacant for a minimum of twenty-four
(24) months at the time of submission by the municipality;
(vii) That is designated by the municipality for consideration as a certifiable building
as hereinafter provided;
(viii) Meets other requirements as established by the council; and
(ix) Designated by the enterprise zone council as a certified building pursuant to the
requirements of § 42-64.9-5.
(2) "Certification of an eligible business� means an annual process taking place on a
calendar year basis to certify entities as eligible businesses for the purpose of
this chapter. Businesses certified as eligible businesses for the purpose of this
chapter, and which may also be eligible for certification as certified businesses
under the provisions of § 42-64.3-3(6) must elect certification under only one designation of each certification year. This
election must be made for each certification year; provided, that the business continues
to be eligible for both designations on a year-to-year basis.
(3) "Certified building� means a building with respect to which the council has issued
a written notice of final designation as a certified building pursuant to the provisions
of § 42-64.9-6. A portion of a building may be treated as a separate building for purposes of this
chapter if:
(i) It consists of a clearly identifiable part of a certifiable building, including, without
limitation, one or more wings, stories, or other separable portions of a certifiable
building;
(ii) It is held by a single owner, whether in fee or as a condominium, cooperative, or
leasehold interest; and
(iii) At least one eligible business reasonably could be operated within the confines of
this portion.
(4) "Certified building owner� means an individual, partnership, corporation, limited
liability company, or other entity that is listed in the appropriate municipal records
of land evidence as the owner of a certified building, and may include one or more
successors in title to the owner of the building at the time the building received
written notice of final designation as a certified building pursuant to § 42-64.9-6. A certified building owner may include the owner of a leasehold interest with a
minimum term of fifty (50) years, with respect to which a memorandum of lease has
been recorded in the land evidence records.
(5) "Eligible business� means any business, corporation, sole proprietorship, partnership,
limited partnership, or limited liability company or other entity that:
(i) Is located in a certified building after the building has undergone substantial rehabilitation
as hereinafter defined;
(ii) Is engaged principally in manufacturing, wholesale trade, or other commercial business
activities;
(iii) Whose total Rhode Island salaries and wages exceed the total Rhode Island salaries
and wages paid to its employees in the prior calendar year;
(iv) Has received certification from the enterprise zone council pursuant to the rules
and regulations promulgated by the council; and
(v) Which, as part of its annual certification:
(A) 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 authority;
(B) Provides the enterprise zone council an affidavit stating under oath that the entity
seeking certification as a qualified business has not within the preceding twelve
(12) months from the date of application for certification changed its legal status
or location solely for the purpose of gaining favorable treatment under the provision
of this chapter; and
(C) Meets certain other requirements set forth by the council.
(6) "Enterprise zoneâ€� means an enterprise zone established pursuant to § 42-64.3-4.
(7) "Enterprise zone council� or the "council� means the enterprise zone council established
pursuant to § 42-64.3-3.1, and empowered with the same authority and given the same responsibilities under
that section.
(8) "Mill complex� means two (2) or more mill buildings, located on the same or contiguous
parcels of land, each of which, at one time, had the same owner(s).
(9) "Municipality� means any city or town within the state, whether now existing or hereafter
created.
(10) "Qualified employee� means a full-time employee of an eligible business whose business
activity originates and terminates from within the eligible business and certified
building on a daily basis, and who is employed by the eligible business at the end
of the calendar year, and who is a domiciled resident of the state of Rhode Island.
(11) "Rehabilitation and reconstruction costs� means and includes only those amounts incurred
and paid by the certified building owner, after issuance of the notice of final designation
of the building, solely and exclusively for the rehabilitation of the certified building
and that are incurred and paid by the certified building owner to acquire tangible
personal property and structural components of the certified building that:
(i) Are depreciated pursuant to 26 U.S.C. § 167;
(ii) Have a useful life of three (3) years or more as evidenced by the tax depreciation
method taken and shown on the federal tax return of the certified building owner;
and
(iii) Are acquired by purchase as defined in 26 U.S.C. § 179(d). Rehabilitation and reconstruction costs do not include amounts incurred or paid
with respect to tangible personal property and structural components of the certified
building that the certified building owner leases from any other person or corporation.
For the purposes of the preceding sentence, any contract or agreement to lease or
rent or for a license to use the property shall be considered a lease unless the contract
or agreement is treated for the federal income tax purposes of the certified building
owner as an installment purchase rather than a lease.
(12) "Salaries and wages� means salaries, wages, tips, and other compensation as defined
in the Internal Revenue Code of 1986, 26 U.S.C. § 61.
(13) "Substantial rehabilitation� means rehabilitation or reconstruction costs of a certified
building in a dollar amount that equals or exceeds twenty percent (20%) of the market
value of the certified building prior to rehabilitation or reconstruction, as said
prior market value is determined by a Rhode Island licensed and certified appraiser
who is independent of the certified building owner or owners and their affiliated
corporations, and/or any tenants of the certified building and their affiliated corporations.