2023 Rhode Island General Laws › Title 42 - State Affairs and Government › Chapter 42-64.5 - Jobs Development Act › Section 42-64.5-5. - Election.

§ 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 economic development 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 (3) year 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 Economic Development Corporation (RIEDC), 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 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.
History of Section.
P.L. 1996, ch. 245, § 1; P.L. 1998, ch. 62, § 1; G.L. 1956, § 42-64.5-6; P.L. 1999, ch. 391, § 1; P.L. 2001, ch. 77, art. 7, § 4; P.L. 2003, ch. 150, § 1; P.L. 2003, ch. 159, § 1; P.L. 2004, ch. 333, § 1; P.L. 2004, ch. 396, § 1; P.L. 2008, ch. 165, § 3; P.L. 2008, ch. 173, § 3.