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 13 - Incentive Agreement

Current through June 14, 2024
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:
(a) the
				 maximum amount of Tax Credits awarded and a schedule on which the Tax Credits
				 may be awarded;
(b) a provision
				 that the Tax Credits shall not be issued prior to both (1) the issuance of a
				 certificate of occupancy for the project or as of a lease commencement date or
				 other such related commitment; and (2) validation by the Corporation that the
				 Qualified Business has created the number of New Full-Time Jobs required by
				 Section
				 42-64.30-5(a)(1) and
				 (2) of the General Laws;
(c) a provision detailing the minimum number
				 of New Full-Time Jobs to be created and such additional qualifying criteria
				 that formed the basis for the approval of Tax Credits for the
				 Applicant;
(d) a provision
				 specifying for the withholding of any portion of a Tax Credit or requiring
				 repayment of a Tax Credit if the Qualified Business leaves the State within a
				 period of time set forth in the Incentive Agreement;
(e) 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;
(f) 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;
(g) indemnification and insurance
				 requirements;
(h) default and
				 remedies including events that would trigger forfeiture or revocation of the
				 awarded Tax Credits including, but not limited to, a provision that if
				 information comes to the attention of the Corporation that is materially
				 inconsistent with representations made in an Preliminary or Final Application
				 and/or any request for Certification, the Corporation may deny a request for
				 Certification, or revoke a Certification previously given, with any processing
				 fees paid to be forfeited;
(i)
				 reporting requirements including, but not limited to, any requirements under
				 the Act;
(j) an acknowledgment from
				 the Qualified Business that it will provide information reasonably necessary to
				 validate the Applicant's qualification for Tax Credits under the Act and these
				 Rules;
(k) a certification
				 procedure, which shall include, but not be limited to, the following:
(1) Representations that the Qualifying
				 Relocation meets the eligibility criteria under the Act and these
				 Rules;
(2) Representations that the
				 Qualifying Relocation meets all of the criteria set forth in the Incentive
				 Agreement;
(3) 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; and
(4)
				 A requirement that the Applicant submit with its request for certification for
				 issuance of the Tax Credits, satisfactory evidence of the New Full-Time Jobs
				 created and the compensation and benefits provided for such jobs, which
				 evidence shall be certified by a certified public accountant; and