Rhode Island Code of Regulations › Title 870 - Rhode Island Commerce Corporation › Chapter 30 - Tax Credits and Exemptions › Subchapter 00 - N/A › Part 5 - 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.