Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 7 - Rules and Regulations for the Anchor Institution Tax Credit › Rule 5 - Definitions

Current through June 14, 2024
The following words and terms, when used in these Rules,
					 shall have the following meanings, unless the context clearly indicates
					 otherwise:
(1)
"Act"
means Chapter 64.30 of Title 42 of the
					 General Laws known as the Anchor Institution Tax Credit Act.
(2)
"Affiliate"
means an entity that directly or
					 indirectly controls, is under common control with, or is controlled by a
					 Business. Control exists in all cases in which the entity is a member of a
					 controlled group of corporations as defined pursuant to section 1563 of the
					 Internal Revenue Code of 1986 (26 U.S.C. §
												1563) or the entity is an organization in a
					 group of organizations under common control as defined pursuant to subsection
					 (b) or (c) of section 414 of the Internal Revenue Code of 1986 (26 U.S.C. §
												414). A Business may establish by clear and
					 convincing evidence, as determined by the Corporation, that control exists in
					 situations involving lesser percentages of ownership than required by those
					 statutes.
(3)
"Anchor
				 Institution Tax Credit Fund"
means the fund established pursuant to
				 Section
				 42-64.30-8
				 of the General Laws.
(4)
"Applicant"
means a Business located in this State applying for a
				 Tax Credit under the Act and these Rules.
(5)
"Assignee"
means an entity
				 to whom a Tax Credit Certificate is assigned pursuant to these Rules.
(6)
"Assignor"
means a holder of
				 a Tax Credit Certificate who assigns such Tax Credit Certificate to an
				 Assignee.
(7)
"Board"
means the board of directors of the Corporation.
(8)
"Business"
means a
				 corporation, state bank, federal savings bank, trust company, national banking
				 association, bank holding company, loan and investment company, mutual savings
				 bank, credit union, building and loan association, insurance company,
				 investment company, broker-dealer company or surety company, limited liability
				 company, partnership or other entity.
(9)
"Certification"
means the
				 document issued to an Applicant by the Corporation certifying to the Tax
				 Division the amount of the Tax Credit and taxable year in which such Tax Credit
				 may be claimed, and such other information deemed appropriate by the
				 Corporation.
(10)
"Corporation"
means the Rhode Island Commerce Corporation
				 established pursuant to Chapter 64 of Title 42 of the General Laws.
(11)
"Eligibility Period"
means
				 the period in which an Applicant may claim a Tax Credit under the Act,
				 beginning with the tax period in which the Corporation accepts certification by
				 the Applicant that it has played a substantial role in the decision of a
				 Qualified Business to relocate to the State and extending thereafter for a term
				 of five (5) years.
(12)
"Final Application"
means the application, promulgated by the
				 Corporation, which must be completed and submitted by an Applicant, pursuant to
				 the requirements of the Act and these Rules, in order for the Applicant to
				 qualify for a Tax Credit under the Act.
(13)
"Full-time Employee"
means
				 a natural person who is employed by a Business for consideration for at least
				 thirty-five (35) hours a week, or who is employed by a professional employer
				 organization pursuant to an employee leasing agreement between the Business and
				 the professional employer organization for at least thirty-five (35) hours a
				 week, and whose wages are subject to Rhode Island income tax
				 withholding.
(14)
"Hope
				 Community"
means a municipality for which the five (5) year average
				 percentage of families with income below the federal poverty level exceeds the
				 State five (5) year average percentage, both most recently reported by the U.S.
				 Department of Commerce, Bureau of the Census.
(15)
"Incentive Agreement"
means
				 the incentive agreement entered into between an Applicant and the Corporation
				 pursuant to the Act.
(16)
"Letter of Good Standing"
means a letter from the Division of
				 Taxation certifying that the taxpayer is in good standing for purposes of these
				 Rules; a taxpayer shall be entitled to a letter of good standing so long as (1)
				 the taxpayer is current on all outstanding filings and declared tax liabilities
				 subject to audit; (2) the taxpayer and the Division of Taxation have a workout
				 payment agreement or other settlement with respect to any known delinquent tax
				 liability and the taxpayer is current on that workout payment agreement or
				 settlement; or (3) the taxpayer has timely commenced or is engaged in an
				 administrative or judicial proceeding concerning a tax liability the status of
				 which would otherwise preclude the issuance of a letter of good
				 standing.
(17)
"New
				 Facility"
means the facility in the State where the Qualified Business
				 adds the New Full-time Jobs required under sections
				 42-64.30-5(a)(1) and
				 (2) of the General Laws.
(18)
"New Full-time Job"
means a
				 position created by the Qualified Business that did not previously exist in the
				 State. The term "New Full-time Job" does not include a position that is the
				 result of an acquisition of an existing company located in the State by
				 purchase, merger, or otherwise; or a position that is or was already located in
				 the State regardless of the taxpayer for whom the individual performed
				 services. For the purposes of determining the number of New Full-Time Jobs, the
				 positions of an Affiliate of the Qualified Business shall be considered
				 positions of the Qualified Business.
(19)
"Notification of
				 Assignment"
means the notification filed with the Division of Taxation
				 of the assignment of all or a portion of the Tax Credit.
(20)
"Preliminary Application"
means the application, promulgated by the Corporation, which must be completed
				 and submitted by an Applicant.
(21)
"Qualified Business"
means a Business that supplies goods or
				 services to an Applicant or is a material service provider or a material
				 customer of an Applicant, or is an Affiliate of such supplier, service
				 provider, or customer.
(22)
"Qualifying Relocation"
means a Qualified Business with the
				 minimum number of employees as set forth in Section
				 42-64.30-5(a)(1) and
				 (2) of the General Laws, which moves an
				 existing facility to the State, moves into an existing facility in the State,
				 or constructs a new facility in the State to supply goods or services to a
				 Rhode Island Business. A Qualifying Relocation shall not include a Qualified
				 Business's expansion in this State of a line of business that the Qualified
				 Business or its Affiliate already operated in this State in the 12 months prior
				 to the date of the Application.
(23)
"Redevelopment Area"
means
				 an area designated as a redevelopment area in accordance with Section
				 45-32-4
				 of the General Laws.
(24)
"Relocation Search"
means the engagement by a business or its
				 agent of a broker to identify a site or sites where the business could locate
				 operations in the State, or the business or its agent initiating negotiations
				 with persons who control a site or sites in this State about acquiring,
				 leasing, or otherwise relocating to said site or sites, or an equivalent formal
				 act taken by the business to identify such a site or sites.
(25)
"Rhode Island Business"
means a Business physically located in, and authorized to do business in the
				 State.
(26)
"State"
means the State of Rhode Island and Providence Plantations.
(27)
"Targeted Industry"
means
				 any advanced, promising or otherwise prioritized industry identified in the
				 economic development vision and policy promulgated pursuant section
				 42-64.17-1
				 of the General Laws or, until such time as any such economic development vision
				 and policy is promulgated, as identified by the Corporation from time-to-time
				 and published on the Corporation's website.
(28)
"Tax Credit"
means a tax
				 credit granted under the Act.
(29)
"Tax Credit Certificate"
or
"Certificate"
means a
				 certificate issued by the Tax Division to an Applicant who has received a
				 Certification from the Corporation substantiating compliance with an Incentive
				 Agreement and entitlement to the issuance of Tax Credits under the
				 Act.
(30)
"Tax
				 Division"
means the Rhode Island Division of Taxation.