2009 Rhode Island Code
Title 44 - Taxation
CHAPTER 44-63 - Incentives for Innovation and Growth
§ 44-63-3 - Eligibility for credit. [Repealed effective December 31, 2016 pursuant to § 44-63-5.].

SECTION 44-63-3

   § 44-63-3  Eligibility for credit. [Repealed effective December 31, 2016 pursuant to § 44-63-5.]. – (a) Only companies with business primarily in those industries or trades, identified by the corporation upon advisory resolution of the Rhode Island Science and Technology Advisory Council as "Innovation Industries" producing traded good or services, shall be eligible for the Incentives for Innovation and Growth as provided in §§ 44-63-1 and 44-63-2. An eligible company must make application to the corporation prior to claiming the credit, and the corporation shall be authorized to approve no more than one million dollars ($1,000,000) in credit applications in any two (2) calendar year period.

   (b) The corporation shall approve no application under this chapter 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 and for two (2) years after the taxpayer no longer receives the credit. Such monitoring shall include annual reports which shall be transmitted to the division of taxation, and shall be available to the public for inspection by any person, and shall be published by the tax administrator on the tax division website. The annual reports on the impact analysis shall include:

   (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 by 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 Economic Development Corporation (RIEDC), the chairpersons of the house and senate finance committees, 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 15th 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 § 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 15th 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.