Rhode Island Code of Regulations › Title 870 - Rhode Island Commerce Corporation › Chapter 30 - Tax Credits and Exemptions › Subchapter 00 - N/A › Part 3 - Rules and Regulations for the Rebuild Rhode Island Tax Credit Program › Section 870-RICR-30-00-3.13 - Incentive Agreement

Current through June 14, 2024
A. Upon approval of
							a Tax Credit for an Applicant by the Board, the Corporation and the Applicant
							will enter into an Incentive Agreement prior to the issuance of any Tax Credit
							to the Applicant. In order to safeguard the expenditure of public funds and
							ensure that the disbursement of funds further the objectives of the Act, the
							Incentive Agreement shall include, among others, the following terms:
1. The maximum amount and type of incentives
							awarded including any sales/use tax exemptions;
2. The incentives shall not be issued prior
							to the Qualified Development Project being Placed in Service
3. Evidence that the Applicant is in good
							standing with the Secretary of State and Division of Taxation at the time of
							execution of the Incentive Agreement; a Letter of Good Standing from the
							Division of Taxation shall be evidence of good standing;
4. A provision that the incentives shall be
							allowed in up to five annual increments and setting forth the annual increments
							in which they will be delivered;
5.
							If applicable, a provision requiring that the receipt of Tax Credits for any
							given year be subject to the Applicant meeting any job creation or retention
							requirements or any other conditions that the Corporation, in its sole
							discretion, shall set as a condition of its approval of Tax Credits for the
							Applicant;
6. Default and remedies
							including events, if any, that would trigger forfeiture, revocation and/or
							repayment of the awarded incentives;
7. Indemnification, insurance and other
							customary protective requirements;
8. Reporting requirements including, but not
							limited to, any requirements under the Act;
9. The imposition of such restrictions or
							covenants upon the Qualified Development Project as may be necessary to ensure
							continued compliance with the Act and the Rules;
10. At the Corporation's discretion, a
							provision requiring the Applicant to pay the Corporation's reasonable
							attorneys' fees incurred in connection with the negotiation, execution and
							enforcement of the Incentive Agreement;
11. A certification procedure, which shall
							include, but not be limited to, the following:
a. Representations that the Qualified
							Development Project complies with all applicable laws and
							regulations;
b. Evidence that the
							Applicant is in good standing with the Secretary of State and Division of
							Taxation at the time Applicant files its certification for issuance of
							incentives; a Letter of Good Standing from the Division of Taxation shall be
							evidence of good standing;
c. A
							requirement that the Applicant submit, prior to issuance of any incentive,
							satisfactory evidence of actual Project Costs, as certified by a certified
							public accountant licensed in the State. If the actual Project Costs are less
							than the estimated Project Costs forming the basis for the approval of the
							awarded incentives, then the awarded incentives shall be reduced based upon the
							actual Project Costs;
d. Evidence
							that the Qualified Development Project has been Placed in Service and/or meets
							such other criteria as imposed by the Board in its approving resolution;
							and
e. If applicable, evidence that
							the Applicant has met any additional job creation or retention requirements or
							any other conditions that the Corporation, in its sole discretion, set as a
							condition of its approval of Tax Credits for the Applicant