§ 44-62-4. Calculation of tax credit and issuance of tax credit certificate.
(a) When the contribution has been made as set forth in section 3 above, the business
entity shall apply to the division of taxation for a tax credit certificate. The application
will include such information, documentation, and certification as the tax administrator
deems proper for the administration of this chapter including, but not limited to
a certification by an independent Rhode Island certified public accountant that the
cash contribution has actually been made to the qualified scholarship organization.
For purposes of the proper administration of this section, an independent Rhode Island
certified public accountant shall be licensed in accordance with RIGL 5-3.1 and means
a person, partnership, corporation, limited liability corporation that is not affiliated
with or an employee of said business entity or its affiliates and is not affiliated
in any manner whatsoever with a qualified scholarship organization or scholarship
program as defined in § 42-62-2 (a) — (j).
(b) The division of taxation will review the documentation submitted; calculate the tax
credit pertaining to the contribution, and prepare and mail a certificate for amount
of credit to be granted.
(c) Unless a two year contribution plan is in place, the credit, is computed at seventy-five
percent (75%) of the total voluntary cash contribution made by the business entity.
(d) This credit is available against taxes otherwise due under provisions of chapters
11, 13, 14, 15, 17 or 30 of title 44.
(e)(1) A two year contribution plan is based on the written commitment of the business entity
to provide the scholarship organization with the same amount of contribution for two
(2) consecutive tax years. The business entity must provide in writing a commitment
to this extended contribution to the scholarship organization and the division of
taxation at the time of application.
(2) In the event that a two year contribution plan is in place, the calculation of credit
for each year shall be ninety percent (90%) of the total voluntary contribution made
by a business entity.
(3) In the event that, in the second year of the plan, a business entity's contribution
falls below the contribution amount made in the first year but the second year's contribution
is eighty percent (80%) or greater than the first year's contribution, the business
entity shall receive a credit for both the first and second year contributions equal
to ninety percent (90%) of each year's contribution.
(4) If the amount of the second year contribution is less than eighty percent (80%) of
the first year contribution, then the credit for both the first and second year contributions
shall be equal to seventy-five percent (75%) of each year's contribution. In such
case, the tax administrator shall prepare the tax credit certificate for the second
year at seventy-five percent (75%). The difference in credit allowable for the first
year [90% — 75% = 15% x first year contribution] shall be recaptured by adding it
to the taxpayer's tax in that year.