reglab/statecodes huggingface dataset:
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 6 - Historic Preservation Tax Credits 2013 (280-RICR-20-20-6) › Section 280-RICR-20-20-6.21 - Assignment of Historic Preservation Tax Credits

Current through June 14, 2024
A.
				 Issuance of Assignable Historic Preservation Tax Credit Certificate to Owner,
				 initial Assignee, or participant. Upon approval by the Commission of the
				 Substantial Rehabilitation of a Certified Historic Structure and by the
				 Division of Taxation of the amount of credit allowed pursuant to these rules,
				 the Division of Taxation shall issue an Assignable Historic Preservation Tax
				 Credit Certificate to the Owner or any eligible Initial Certificate Holder. If
				 the Owner or the participant is a pass-through entity, or if there are multiple
				 Owners, the Division of Taxation may issue an Assignable Historic Preservation
				 Tax Credit Certificate to each participant in such pass-through entity or each
				 Owner, indicating on the face of such certificate(s) the amount of the historic
				 preservation tax credit allocable to such participant. The amount assigned to
				 each participant will be the amount represented by the Applicant in the
				 application for issuance of tax credit certification.
B. Determination of Amount of Credit
				 allocated to Participants in Pass-Through Entities. The amount allocated to
				 each participant on the Assignable Historic Preservation Tax Credit Certificate
				 issued to such participant must be either:
1.
				 In proportion to the number of participants in the Owner; or
2. Determined in accordance with any
				 allocation method set forth in an Allocation Agreement among all participants,
				 which may be without regard to their sharing of other tax or economic
				 attributes of such entity set forth in the Allocation Agreement. The Division
				 of Taxation shall have no obligation to confirm the amount stated for each
				 participant in the application for completed work or to review the Allocation
				 Agreement.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 6 - Historic Preservation Tax Credits 2013 (280-RICR-20-20-6) › Section 280-RICR-20-20-6.22 - Processing Fees and Contracts of Guaranty

Current through June 14, 2024
A.
				 Within thirty (30) days of the date of Part 2 certification, the Applicant
				 shall pay to the Division of Taxation a non-refundable Processing Fee equal to
				 three percent (3%) of the estimated QREs and shall enter into a Contract with
				 the Division of Taxation.
B. The
				 Contract will guarantee the amount of tax credit as the lesser of:
1. The amount specified in the Contract;
				 or
2. The actual QREs as verified
				 by the Division of Taxation multiplied by the applicable tax credit percentage
				 as provided in §
											6.7     of this Part, provided
				 that the project's Substantial Construction activities are commenced within
				 twelve (12) months from the certification date of the Part 2 Application, that
				 the project has not Remained Idle, and that the tax credits are not otherwise
				 revoked, forfeited, recaptured or disallowed pursuant to the express provisions
				 of this regulation.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 6 - Historic Preservation Tax Credits 2013 (280-RICR-20-20-6) › Section 280-RICR-20-20-6.23 - Restrictive Covenant; Recapture

Current through June 14, 2024
A. Restrictive
				 covenant. Upon issuance of a Certificate of Completed Work, the Owner shall
				 cause to be recorded in the applicable land evidence records a restrictive
				 covenant pursuant to which:
1. During the
				 Holding Period, no alteration to the Certified Historic Structure will be made
				 without the Commission's approval and in a manner consistent with the Standards
				 for Rehabilitation;
2. The
				 Certified Historic Structure may not become Exempt from Real Property Tax;
				 and
3. The Commission and/or the
				 Division of Taxation shall be granted the right to one or more Inspections
				 during the Holding Period to confirm matters represented in the Historic
				 Preservation Certification Application and to review any alterations. If the
				 Owner is the holder of leasehold title, the fee Owner of the Certified Historic
				 Structure must also execute the restrictive covenant.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 6 - Historic Preservation Tax Credits 2013 (280-RICR-20-20-6) › Section 280-RICR-20-20-6.24 - Inspection Rights

Current through June 14, 2024
A. Commission's and
				 Division of Taxation's Inspection Rights. The Commission or the Division of
				 Taxation shall have the right at reasonable times to make an Inspection and to
				 enter upon any property that is the subject of an application for
				 certification, whether the Rehabilitation is proposed, ongoing, or completed,
				 and for the entire Holding Period following issuance of a Certificate of
				 Completed Work, to verify that the Rehabilitation is as represented and that no
				 unpermitted alterations or changes are made after issuance of a Certificate of
				 Completed Work.
B. Commission's and
				 Division of Taxation's Inspection Rights to Deny or Revoke Credit. If
				 information comes to the attention of the Commission at any time up to and
				 including the last day of the Holding Period that is materially inconsistent
				 with representations made in an application, the Commission may deny the
				 requested certification or revoke a certification previously given. If
				 information comes to the attention of the Division of Taxation at any time up
				 to and including the last day of the Holding Period that is materially
				 inconsistent with representations made in the Accountant's Certification or any
				 supporting materials, the Division of Taxation may revoke the Assignable
				 Historic Tax Credit Certificate and cancel the Contract for tax credits and any
				 Processing Fees paid thereunder shall be forfeited, and the Applicant shall
				 forfeit the rights and entitlements to any remaining tax credits. If any tax
				 credits have been claimed by any taxpayer based on an Assignable Historic
				 Preservation Tax Credit Certificate that has been revoked or a Contract that
				 has been canceled, the Person who filed the Accountant's Certification shall
				 pay to the Division of Taxation an amount equal to the tax credits issued.
				 There shall be no adjustment to the tax credit claimed by the taxpayer if a
				 taxpayer acquired the Assignable Historic tax Credit Certificate, directly or
				 indirectly, from the Owner or a participant in the Owner without notice of the
				 materially inconsistent information upon which the certificate or Contract has
				 been revoked.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 6 - Historic Preservation Tax Credits 2013 (280-RICR-20-20-6) › Section 280-RICR-20-20-6.25 - Sunset

Current through June 14, 2024
No credits shall be authorized to be reserved or contract
					 entered into pursuant to R.I. Gen. Laws Chapter 44-33.6 on or after the
					 established date in R.I. Gen. Laws §
										44-33.6-11 or
					 upon the exhaustion of the maximum aggregate credits, whichever comes
					 first.
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 1 - Purpose

Current through June 14, 2024
These rules and regulations (the "Rules") are promulgated
					 to set forth the principles, policies and practices of the Rhode Island
					 Commerce Corporation and the Rhode Island Division of Taxation in implementing
					 and administering Chapter 64.30 of Title 42 of the Rhode Island General Laws,
					 the Anchor Institution Tax Credit Act (the "Act").
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 2 - Authority

Current through June 14, 2024
These Rules are promulgated pursuant to Chapter 64.30 of
					 Title 42 of the General Laws. These Rules have been prepared in accordance with
					 the requirements of the Rhode Island Administrative Procedures Act, Chapter 35
					 of Title 42 of the General Laws.
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 3 - Scope

Current through June 14, 2024
These Rules shall apply to any application for or receipt
					 of tax credits under the Act. Notwithstanding anything contained in these Rules
					 to the contrary, the Rhode Island Commerce Corporation and the Rhode Island
					 Division of Taxation shall, respectively, have and may exercise all general
					 powers set forth in the Act that are necessary or convenient to effect its
					 purposes and these Rules shall be liberally construed so as to permit the Rhode
					 Island Commerce Corporation and the Rhode Island Division of Taxation to
					 effectuate the purposes of the Act, the Public Interest, and other applicable
					 state laws and regulations. The Rhode Island Commerce Corporation, upon an
					 affirmative vote of its board of directors, may provide exemption from the
					 application of such portion of these Rules as may be warranted by extenuating
					 circumstances arising from such application, based upon the written
					 recommendation of the staff of the Rhode Island Commerce Corporation
					 delineating the reasons for such exemption.
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 4 - Severability

Current through June 14, 2024
If any provision of these Rules, or the application thereof
					 to any person or circumstance, is held invalid by a court of competent
					 jurisdiction, the validity of the remainder of the Rules shall not be affected
					 thereby.
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 6 - Eligibility

Current through June 14, 2024
(a) To be eligible for a Tax Credit, an
				 existing Rhode Island Business shall file:
(1) a Preliminary Application with the
				 Corporation identifying a Qualified Business that may relocate to the State;
				 and
(2) a Final Application
				 demonstrating to the Corporation that the Rhode Island Business played a
				 substantial role in the decision of the Qualified Business to complete a
				 Qualifying Relocation.
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 7 - Tax Credit Amount

Current through June 14, 2024
(a) The Tax Credits
				 issued under the Act shall not exceed the funds appropriated by the State for
				 this program.
(b) An Applicant
				 shall not be eligible to receive a Tax Credit in excess of seventy-five percent
				 (75%) of the amount appropriated in the fiscal year in which the Tax Credits
				 are issued.
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 8 - Preliminary Application

Current through June 14, 2024
The Preliminary Application promulgated by the Corporation
					 shall require submission of the following information from each
					 Applicant:
(a) the name, address, and
				 principal contact for the Applicant;
(b) state and federal tax identification
				 numbers;
(c) the identification of
				 the Qualified Business;
(d) a
				 detailed description of the relationship between the Applicant and the
				 Qualified Business that establishes that the Qualified Business, or its
				 Affiliate, supplies goods or services to the Applicant or is a material service
				 provider or material customer of the Applicant, including appropriate
				 documentation to support the description; and
(e) any other necessary and relevant
				 information as determined by the Corporation.
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 9 - Final Application

Current through June 14, 2024
After the Qualified Business identified in the Preliminary
					 Application decides to engage in a Qualified Relocation, the Applicant shall
					 submit a Final Application which shall require submission of the following
					 information:
(a) a detailed
				 description of the number and types of New Full-Time Jobs to be located in the
				 State;
(b) the annual compensation
				 and benefits for each New Full-Time Job to be located in the State;
(c) a detailed description of the products
				 and/or services that will be supplied by the Qualified Business from its
				 location within the State;
(d) a
				 statement detailing the facts and circumstances that provide evidence of the
				 substantial role of the Applicant in the decision of a Qualified Business to
				 complete a Qualifying Relocation, along with such documentation acceptable to
				 the Corporation substantiating the facts and circumstances set forth in the
				 statement;
(e) a submission from
				 the Applicant and the Qualified Business stating that the Qualified Business
				 had not commenced or engaged in a Relocation Search in this State within the 12
				 months prior to the date of the Applicant's Preliminary Application;
(f) whether the Qualified Business will be
				 purchasing or leasing a facility in the State;
(g) details relative to development
				 activities associated with the Qualifying Relocation including, but not limited
				 to, costs associated with any real estate development;
(h) a delineation of any other federal, State
				 or local incentives, grants, tax credits, or other aid that will or may be
				 received by the Qualified Business in completing a Qualifying Relocation;
				 and
(i) any other necessary and
				 relevant information as determined by the Corporation.
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 10 - Fees

Current through June 14, 2024
(a) An Applicant may be charged a one-time,
				 non-refundable application fee by the Corporation, as well as fees for ongoing
				 administration in relation to an award of Tax Credits to the Applicant approved
				 by the Board. The Corporation shall annually publish a fee schedule on its
				 website commencing on or before December 31, 2015.
(b) An Applicant may be required to pay to
				 the Corporation the full amount of direct fees and costs paid to third-parties
				 by the Corporation in relation to the consideration and/or approval of Tax
				 Credits for the Applicant.
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 11 - Review Process

Current through June 14, 2024
(a) Each
				 Preliminary and Final Application shall be reviewed to confirm compliance with
				 the Act and these Rules, and the Corporation may reject any incomplete or
				 deficient Application.
(b) The
				 Corporation may require the submission of additional information in connection
				 with any Preliminary or Final Application or the revision of any Preliminary or
				 Final Application, and may permit the resubmission of a Preliminary or Final
				 Application rejected as being incomplete or deficient.
(c) After submission of complete Preliminary
				 and Final Applications and review by the Corporation in accordance with the
				 requirements of the Act and these Rules, the Corporation will determine whether
				 to recommend to the Board that it approve a Tax Credit for the Applicant and
				 the amount of the Tax Credit. Factors considered in formulation of the
				 recommendation may include, but not be limited to:
(1) the number of New Full-Time Jobs
				 created;
(2) the compensation for
				 the New Full-Time Jobs created including benefits;
(3) the length of time the New Full-Time Jobs
				 are committed to remain in the State;
(4) whether the jobs created are in a
				 Targeted Industry;
(5) whether the
				 Qualifying Relocation benefits a Hope Community;
(6) whether the Qualifying Relocation occurs
				 in a Redevelopment Area;
(7) the
				 strategic importance of the Qualified Business and/or the Applicant;
(8) the economic return to the State;
				 and
(9) area brokers'
				 fees.
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 12 - Board Approval

Current through June 14, 2024
(a) Prior to Board
				 consideration for approval of any award of Tax Credits under the Act the
				 following conditions shall be satisfied:
(1)
				 The Chief Executive Officer of the Corporation has provided written
				 confirmation to the Board (i) that the Corporation has reviewed the Application
				 and any determination regarding the potential impact on the Qualified
				 Business's ability to promote the retention and expansion of existing jobs;
				 stimulate the creation of new jobs, including good-paying jobs; attract new
				 business and industry to the State; and stimulate growth in real estate
				 developments and/or businesses that are prepared to make meaningful investment
				 and foster job creation in the State; and (ii) of the recommendation of the
				 Corporation as to the total Tax Credit to be awarded the Applicant;
				 and
(2) The Secretary of Commerce
				 has provided written confirmation to the Board that the recommendation provided
				 by the Chief Executive Officer of the Corporation is consistent with the
				 purposes of the Act.
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 14 - Discretion and Judicial Review

Current through June 14, 2024
(a) The Corporation
				 shall not have any obligation to make any award or grant any benefits under the
				 Act or these Rules.
(b) A review of
				 a Preliminary or Final Application shall not constitute a "contested case"
				 under the Administrative Procedures Act, section
				 42-35-9
				 of the General Laws, and no opportunity to object to a Preliminary or Final
				 Application shall be afforded, nor shall judicial review be available from a
				 decision rendered by the Corporation or the Board in connection with any
				 Preliminary or Final Application.
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 15 - Issuance of Tax Credit Certificates

Current through June 14, 2024
(a) Upon the
				 presentation to the Tax Division of a Certification from the Commerce
				 Corporation substantiating compliance with the terms of an Incentive Agreement,
				 the Tax Division shall issue Tax Credit Certificates to the Applicant in the
				 amounts and for the years as agreed to by the Corporation and reflected in the
				 Certification from the Corporation.
(b) The Tax Credit reflected in the Tax
				 Credit Certificate may be used as a credit against taxes imposed under Chapters
				 11, 12, 13, 14, or 17 of Title 44 of the General Laws.
(c) If the Applicant is a corporation, the
				 Tax Credit is only allowed against the tax of a corporation included in a
				 consolidated return that qualifies for the Tax Credit and not against the tax
				 of other corporations that may join in the filing of a consolidated
				 return.
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 16 - Redemption of Tax Credit

Current through June 14, 2024
(a) Prior to
				 assignment of a Tax Credit to a third party, the Applicant shall file a request
				 with the Tax Division to redeem the Tax Credit, in whole or in part.
(b) Upon request of an Applicant holding a
				 valid Tax Credit Certificate, the Tax Division shall be entitled to redeem such
				 credit in whole or in part for one hundred percent (100%) of the value of the
				 Tax Credit to the extent of available funds in the Anchor Institution Tax
				 Credit Fund; provided that the Applicant must qualify for a Letter of Good
				 Standing in order to be eligible to redeem any portion of a credit..
(c) An Applicant seeking redemption of a Tax
				 Credit shall file an application on the form prescribed by the Tax Division
				 together with the original Tax Credit Certificate. The Tax Division shall be
				 entitled to pay the redemption amount within ninety (90) days of submission of
				 a complete redemption application by the Applicant to the extent of available
				 funds in the Anchor Institution Tax Credit Fund. To the extent of any
				 insufficiency of funds in the Anchor Institution Tax Credit Fund, the Tax
				 Division shall either return the original Tax Credit Certificate to the
				 Applicant or issue a new Tax Credit Certificate for such partial amounts that
				 are not redeemed by the Tax Division.
(d) An Assignee of the Tax Credit is not
				 entitled to redeem a Tax Credit.
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 17 - Assignment of Tax Credit

Current through June 14, 2024
(a) A Tax Credit
				 Certificate may be assigned, provided that no Credit has been claimed based on
				 the Tax Credit Certificate being assigned. The Tax Credit Certificate may be
				 assigned by endorsing the assignment clause set forth on the Certificate and
				 delivery of the original Certificate to the Assignee.
(b) The Assignee may use the Tax Credit only
				 to offset the actual tax imposed for and for those taxes permitted to be offset
				 under the Act as delineated in the Incentive Agreement, the taxable year in
				 which the Credit is issued during the Eligibility Period.
(c) The original executed Tax Credit
				 Certificate shall be attached to the tax return of the Applicant or Assignee
				 who desires to claim the Credit.
(d) An Assignor of all or any portion of the
				 Tax Credit, shall notify the Tax Division in writing within thirty (30)
				 calendar days following the effective date of such assignment. Attached to such
				 written notification (the Notification of Assignment) shall be:
(1) a copy of the Tax Credit Certificate,
				 endorsed to the Assignee. The original Certificate shall not be included with
				 the Notification of Assignment, which must be retained by the Assignee and
				 attached to the Assignee's tax return for the year with respect to which the
				 Tax Credit is claimed;
(2) The
				 name, address and telephone number of the Assignor and of the
				 Assignee;
(3) The taxpayer
				 identification number or social security number of the Assignor and the
				 Assignee; and
(4) For non-resident
				 entities, the name and address of such entity's registered agent in the State
				 of Rhode Island and evidence of qualification to do business in Rhode
				 Island.
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 18 - Revocation of Tax Credit

Current through June 14, 2024
(a) Upon breach of
				 an Incentive Agreement, the Corporation may deny the issuance of a
				 Certification or revoke a Certification or the Tax Credit Certificate. If any
				 Tax Credits have been claimed by any taxpayer based upon a Tax Credit
				 Certificate that has been revoked, the Applicant shall pay to the Corporation
				 an amount equal to the Tax Credit claimed. There shall be no adjustment to the
				 Tax Credit claimed by the taxpayer if a taxpayer acquired the Tax Credit
				 Certificate, directly or indirectly, in an arms-length transaction, for value,
				 and without notice of violation, fraud or misrepresentation.
(b) The Corporation shall notify the Tax
				 Division of any revocation of a Certification or Tax Credit
				 Certificate.
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 19 - Administration and Examination of Records

Current through June 14, 2024
The Corporation may examine any books, paper, records or
					 memoranda bearing upon the approval of incentives awarded under the Act, and
					 may require the attendance of any person executing any Application, report or
					 other statement, or of any officer or employee of any taxpayer, or the
					 attendance of any other person, and may examine such person under oath
					 respecting any matter which the Corporation deems pertinent or material in
					 determining eligibility for incentives claimed under the Act.
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 20 - Effective Date

Current through June 14, 2024
This Regulation is identified by ERLID Number 8186 and is
					 effective on October 27, 2015.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 8 - Rules and Regulations for the Rhode Island Qualified Jobs Incentive Act of 2015 › Section 280-RICR-20-20-8.1 - Jointly Promulgated Regulation

Current through June 14, 2024
A. The Rhode Island
				 Commerce Corporation and the Rhode Island Division of Taxation jointly
				 promulgate 870-RICR- 30-00-4. "Rules and Regulations for the Rhode Island
				 Qualified Jobs Incentive Act of 2015."
B. This Part hereby adopts and references
				 870-RICR- 30-00-4.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 9 - Rules and Regulations for the Rebuild Rhode Island Tax Credit › Section 280-RICR-20-20-9.1 - Jointly Promulgated Regulation

Current through June 14, 2024
A. The Rhode Island
				 Commerce Corporation and the Rhode Island Division of Taxation jointly
				 promulgate 870-RICR- 30-00-3, "Rules and Regulations for the Rebuild Rhode
				 Island Tax Credit."
B. This Part
				 hereby adopts and references 870-RICR- 30-00-3.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 10 - Rules and Regulations for the Wavemaker Fellowship Program › Section 280-RICR-20-20-10.1 - Jointly Promulgated Regulation

Current through June 14, 2024
A. The Rhode Island
				 Commerce Corporation and the Rhode Island Division of Taxation jointly
				 promulgate 870-RICR- 30-00-1, "Rules and Regulations for the Wavemaker
				 Fellowship Program."
B. This Part
				 hereby adopts and references 870-RICR- 30-00-1.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 11 - Small Business Capital Development (280-RICR-20-20-11) › Section 280-RICR-20-20-11.1 - General

Current through June 14, 2024
R.I. Gen. Laws Chapter 44-43 provides special tax
					 incentives for small business capital development. These special incentives are
					 of three types: deductions or modifications for investment, capital gain
					 exclusions and wage credits.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 11 - Small Business Capital Development (280-RICR-20-20-11) › Section 280-RICR-20-20-11.2 - Certification

Current through June 14, 2024
No deductions, modifications, capital gain exclusions or
					 wage credits will be allowed unless the qualifying business entity or certified
					 venture capital partnership has been certified (or recertified) by the Commerce
					 Corporation to tax incentive eligibility. The certification number must be
					 shown where required on all tax incentive claims.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 11 - Small Business Capital Development (280-RICR-20-20-11) › Section 280-RICR-20-20-11.3 - Definition

Current through June 14, 2024
A. In general, definitions and regulations
				 set out by the Commerce Corporation in accordance with R.I. Gen. Laws §
										44-43-7 will be used in administering the small business capital development incentives
				 unless a different meaning is clearly intended.
1. "Entrepreneur" means any individual
				 employed full time by the qualifying business entity who owns an equity
				 interest in the qualifying business entity of at least 5% of the value of the
				 entity.
2. "Value of the entity"
				 means the net book value of the entity as shown on the entity's books and
				 records computed for each calendar year for the purposes of calculation of the
				 wage credit.
3. "Wages" means the
				 sums defined in Internal Revenue Code,
				  26 U.S.C. §
												3121(a).
4. "Qualifying investment" means that part of
				 a taxpayer's investment in a certified venture capital partnership (Internal
				 Revenue Code,
				  26 U.S.C. §
												702(a)(8)) that was
				 invested by the partnership in qualifying business activities during the
				 taxpayer's taxable year.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 11 - Small Business Capital Development (280-RICR-20-20-11) › Section 280-RICR-20-20-11.4 - Deductions or Modifications

Current through June 14, 2024
A. General: As
				 applicable, deductions or modifications for investments in certified venture
				 capital partnerships or in qualifying business entities are allowed in the
				 computation of business corporation tax (R.I. Gen. Laws Chapter 44-11), public
				 service corporation tax (R.I. Gen. Laws Chapter 44-13), bank excise tax (R.I.
				 Gen. Laws Chapter 44-14), gross premiums tax (R.I. Gen. Laws Chapter 44-17)
				 and personal income tax (R.I. Gen. Laws Chapter 44-30).
B. Calculation and Documentation: The
				 deduction or modification allowed is equal to the taxpayer's qualifying
				 investment in a certified venture capital partnership or equal to the
				 entrepreneur's investment in a qualifying business entity. The amount is
				 measured at the year end of the certified venture capital partnership, the year
				 end of the qualifying business entity or the year end of the investing
				 taxpayer, whichever comes first. The deduction or modification is allowed only
				 in the year in which the taxpayer first makes an investment.
1. EXAMPLE: C Corporation makes a first time
				 investment of $40,000 in a certified venture capital partnership which invests
				 90% of its capital in qualifying activities. All year ends coincide. C
				 Corporation may deduct 90% of the $40,000 or $36,000 from net income in
				 computing its business corporation tax under R.I. Gen. Laws Chapter
				 44-11.
2. EXAMPLE: John Taxpayer is
				 an entrepreneur in Small Company, a qualifying business entity, and makes two
				 investments of $10,000 each. One investment is made on March 10 and the other
				 is made on July 10. John is a calendar year taxpayer and Small Company is a
				 June 30 year end. John is entitled to a modification of $10,000 reducing his
				 federal adjusted gross income because Small Company's year end (June 30) occurs
				 first and, at that time, John had made only the March 10th investment of
				 $10,000. Taxpayers seeking the deduction or modification must provide proof of
				 the investment in a certified venture capital partnership or qualifying
				 business entity; of that partnership's or entity's status AT THE DATE OF
				 INVESTMENT; of the amount of investment and of the year ends of the taxpayer
				 and partnership or entity. The taxpayer must show the certification number of
				 the certified venture capital partnership or qualifying business entity where
				 indicated on appropriate tax forms.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 11 - Small Business Capital Development (280-RICR-20-20-11) › Section 280-RICR-20-20-11.5 - Capital Gains Exclusion

Current through June 14, 2024
A. General: The
				 calculation of business corporation tax, public service corporation tax, bank
				 excise tax or personal income tax may exclude long term capital gains from the
				 sale or exchange of an interest in a qualifying business entity or certified
				 venture capital partnership.
B.
				 Calculation and Documentation: To the extent that a long term capital gain
				 (Internal Revenue Code
				  26 U.S.C. §
											1222(3)) was included in
				 the calculation of tax under R.I. Gen. Laws Chapter 44-11, R.I. Gen. Laws
				 Chapter 44-13, R.I. Gen. Laws Chapter 44-14 or R.I. Gen. Laws Chapter 44-30,
				 the gain shall be excluded if:
1. it is
				 recognized by a partner in a certified venture capital partnership from the
				 sale or exchange of an interest in the partnership, or
2. it is a partner's distributive share (from
				 a certified venture capital partnership) of a long term capital gain recognized
				 by the partnership from the sale or exchange of an interest in a qualifying
				 business entity; or
3. it is
				 recognized by an entrepreneur from the sale or exchange of an interest in a
				 qualifying business entity.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 11 - Small Business Capital Development (280-RICR-20-20-11) › Section 280-RICR-20-20-11.6 - Wage Credit

Current through June 14, 2024
A. General: A
				 credit is available against an entrepreneur's personal income tax (R.I. Gen.
				 Laws Chapter 44-30) for his/her share of wages paid by a qualifying business
				 entity.
B. Calculation and
				 Documentation: The wage credit is computed annually beginning with the first
				 calendar year in which the business first qualified as a qualified business
				 entity. The credit is first computed at 3% of the wages paid to employees for
				 the calendar year in excess of $50,000 and excludes;
1. wages paid to owners;
2. wages paid more than 5 years after the
				 start or purchase of the business; and
3. wages paid to employees who are not
				 principally employed in Rhode Island and whose wages are not subject to Rhode
				 Island withholding.
4. The credit
				 is then divided among the entrepreneurs of the qualifying business entity by
				 using the ratio of each entrepreneur's interest compared to the total interest
				 held by all entrepreneurs.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 12 - Elective Deduction for New Research and Development Facilities (280-RICR-20-20-12) › Section 280-RICR-20-20-12.1 - General

Current through June 14, 2024
A. For taxable years beginning on or after
				 July 1, 1974, at the election of a taxpayer who is subject to the income tax
				 imposed by R.I. Gen. Laws Chapter 44-11 or 44-30, there shall be deducted from
				 the portion of its entire net income allocated within this state, a one-year
				 write-off of new research and development facilities, as described in R.I. Gen.
				 Laws §
										44-31-2,
				 in lieu of depreciation or investment tax credit. The research and development
				 deduction shall be allowed on all qualifying depreciable tangible property
				 including buildings constructed, reconstructed, erected or acquired during the
				 taxable year, provided, however, that a research and development deduction will
				 be allowed against the entire net income of only that corporation, included in
				 a consolidated Rhode Island tax return, that qualifies for the research and
				 development deduction and will not be allowed against the entire net income of
				 other corporations that may join in the filing of a consolidated Rhode Island
				 tax return with such corporation.
B. In order to qualify for this deduction
				 from allocated net income, the property must:
1. be new property (not used);
2. be depreciable pursuant to
				  26 U.S.C. §
												179(d);
3. be acquired by purchase as defined in
				  26 U.S.C. §
												179(d);
4. have a situs in this state;
5. be used or acquired for use by the
				 taxpayer in Rhode Island in its trade or business for the purposes of research
				 and development in the experimental or laboratory sense;
6. not have been allowed an election for
				 amortization of air or water pollution control facilities;
7. not have been allowed an investment tax
				 credit;
8. not be leased to or by
				 the taxpayer.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 12 - Elective Deduction for New Research and Development Facilities (280-RICR-20-20-12) › Section 280-RICR-20-20-12.2 - Time and Scope of Election

Current through June 14, 2024
The election provided by R.I. Gen. Laws §
										44-31-1 may
					 be made for any taxable year beginning on or after July 1, 1974, but only if
					 made not later than the time prescribed by law for filing the return for such
					 taxable year (including extensions thereof).
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 12 - Elective Deduction for New Research and Development Facilities (280-RICR-20-20-12) › Section 280-RICR-20-20-12.3 - Deduction Allowed

Current through June 14, 2024
The deduction for new research and development facilities
					 shall be allowed in the year in which the expenditure is paid or incurred,
					 provided, however, that only the portion of expenditures that is property
					 attributable to construction, reconstruction, erection or acquisition on or
					 after July 1, 1974 is taken into account. Any unused deduction may be carried
					 forward for three years. A research and development deduction shall be applied
					 only after any net operating loss deduction has been applied for that year.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 12 - Elective Deduction for New Research and Development Facilities (280-RICR-20-20-12) › Section 280-RICR-20-20-12.4 - Definitions

Current through June 14, 2024
A. "Research and Development Deduction" means
				 the elective deduction under R.I. Gen. Laws §
										44-32-1 for expenditures paid or incurred during the taxable year for new depreciable
				 tangible property including buildings which is used or to be used by the
				 taxpayer in its trade or business for the purpose of research or development in
				 the experimental or laboratory sense. The term "research and development"
				 includes, generally, the development of an experimental or pilot model, a plant
				 process, a product, a formula, an invention or similar property and the
				 improvement of already existing property of the type mentioned. The term
				 "research and development" does not include the ordinary testing or inspection
				 of materials or products for quality control, efficiency surveys, management
				 studies, consumer surveys, advertising, promotions or research in connection
				 with literary, historical or similar projects.
B. "Taxpayer" mean and include, as
				 appropriate, an individual, a partnership, a corporation or other taxable
				 entity.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 12 - Elective Deduction for New Research and Development Facilities (280-RICR-20-20-12) › Section 280-RICR-20-20-12.5 - Depreciation not Allowed

Current through June 14, 2024
The research and development deduction shall be allowed
					 only on condition that entire net income for the taxable year and all
					 succeeding taxable years be computed without the deduction of any such
					 expenditures allowed for federal purposes and without any deduction for
					 depreciation of the same property except to the extent that its basis may be
					 attributable to factors other than such expenditures. In case only a part of
					 the deduction for research and development facilities is allowable pursuant to
					 this section and a deduction is fully allowable for federal income tax
					 purposes, then such expenditures and depreciation as allowed for federal
					 purposes shall be proportionately reduced for the taxable year and all
					 succeeding taxable years.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 12 - Elective Deduction for New Research and Development Facilities (280-RICR-20-20-12) › Section 280-RICR-20-20-12.6 - Leased Property

Current through June 14, 2024
A. A taxpayer shall
				 not be allowed a deduction with respect to tangible property leased by it to
				 any other person or corporation or leased from any other person or corporation.
				 For the purpose of the preceding sentence, any contract or agreement to lease
				 or rent or for a license to use such property shall be considered a lease
				 unless such contract or agreement is treated for federal income tax purposes as
				 an installment purchase rather than a lease.
B. In order to be considered the owner of
				 such property, a taxpayer must be allowed federal depreciation on such
				 property. Since property rented to others does not qualify for the deduction,
				 the deduction shall not be allowed where the purchaser is not the user of the
				 qualified property, even where the purchaser and the user may be included in a
				 consolidated federal and/or a consolidated state tax return.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 12 - Elective Deduction for New Research and Development Facilities (280-RICR-20-20-12) › Section 280-RICR-20-20-12.7 - Recomputation

Current through June 14, 2024
A. A recomputation of a portion of the
				 research and development deduction is required where property on which such
				 deduction has been allowed is used for purposes other than research and
				 development to a greater extent than originally reported, except where the
				 property was in qualified use in Rhode Island for its entire useful life. As
				 used in R.I. Gen. Laws §
										44-32-1(1)(a) 
				 and this paragraph, the phrase "purposes other than research and development"
				 includes any change in use of the property in whole or in part from that which
				 originally qualified the property for the research and development deduction.
				 For the purpose of this paragraph, the useful life of the property shall be the
				 same as the taxpayer uses for depreciation purposes when computing the federal
				 tax liability.
B. The following are
				 examples of events that may require a recomputation of the research and
				 development deduction:
1. Liquidation or legal
				 dissolution;
2. Exchange of
				 property;
3. Foreclosure of a
				 security interest;
4. Retirement
				 prior to expiration of useful life;
5. Involuntary conversion arising from fire,
				 storm, shipwreck, or other casualty, or from theft;
6. Leasing property;
7. Removal of property from Rhode
				 Island;
8. Termination of ownership
				 interest;
9. Reduction or cessation
				 of qualified use;
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 12 - Elective Deduction for New Research and Development Facilities (280-RICR-20-20-12) › Section 280-RICR-20-20-12.8 - Property Ceasing to Qualify

Current through June 14, 2024
A. Generally, the
				 format for the computation of the research and development deduction to be
				 recomputed as Rhode Island income when the property is used for purposes other
				 than for research and development will be;
1.
				 Research and development deduction taken on property ceasing to qualify X
				 Useful Life (in months) - Qualified Use (in months) = Useful life (in
				 months)
2. Research and development
				 deduction recomputed is reportable as additional Rhode Island income for the
				 year or years for which the deduction was allowed. Any tax that may be due as a
				 result of this recomputation must be paid at the time of reporting such
				 recomputation.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 12 - Elective Deduction for New Research and Development Facilities (280-RICR-20-20-12) › Section 280-RICR-20-20-12.9 - Transaction in which Recomputation is not Required

Current through June 14, 2024
A. A
				 recomputation of the research and development deduction is not required if all
				 of the following elements are present in the transaction:
1. The property is transferred from one
				 taxpayer to another by a transaction in which the basis of the property in the
				 hands of the transferee is determined in whole or in part by reference to the
				 basis in the hands of the transferor, or a mere change in the form of the
				 taxpayer's business; and
2. the
				 acquiring taxpayer is taxable under R.I. Gen. Laws Chapters 44-11 or 44-30,
				 and
3. the property continues to be
				 in qualified use: