2023 Rhode Island General Laws › Title 44 - Taxation › Chapter 44-62 - Tax Credits for Contributions to Scholarship Organizations › Section 44-62-4. - Calculation of tax credit and issuance of tax credit certificate.

§ 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.
History of Section.
P.L. 2006, ch. 246, art. 24, § 1; P.L. 2007, ch. 73, art. 7, § 1.