Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 20 - TAX CREDITS/DEDUCTIONS › Part 1 - Investment Tax Credit (280-RICR-20-20-1) › Section 280-RICR-20-20-1.3 - Qualified Taxpayer(s)

Current through June 14, 2024
A. Generally
1. A "qualified taxpayer" shall be allowed a
				 credit computed in accordance with R.I. Gen. Laws §
											44-31-1 against the tax imposed by R.I. Gen. Laws Chapters 44-11, 44-14, 44-17 and
				 44-30. The amount of the credit shall be ten percent (10%) of the cost or other
				 basis for Federal income tax purposes, and the qualified amounts for leased
				 assets of tangible personal property and other tangible property acquired,
				 constructed, reconstructed or erected on or after January 1, 1998.
2. A "qualified taxpayer" means a taxpayer in
				 any of the businesses described in the major groups 20 through 39, 50 and 51,
				 60 through 67, 73, 76, 80 through 82, 87 and 89 of the SIC Code (or the
				 corresponding industry sectors of the North American Industry Classification
				 System ["NAICS"]) and/or any of the businesses described in the three (3) digit
				 SIC Code 781 (or the corresponding industry sector of the NAICS) which meet
				 certain wage criteria and with respect to the major groups set forth in R.I.
				 Gen. Laws §
											44-31-1(b)(3)(d)(2) 
				 the additional requirement relating to gross revenues.
3. A credit is allowed with respect to
				 buildings and structural components that are acquired, constructed,
				 reconstructed, or erected after July 1, 2001, which are depreciable pursuant to
				  26 U.S.C. §
												167, have a useful life of four
				 (4) years or more, are acquired by purchase as defined in
				  26 U.S.C. §
												179(d)  or acquired by
				 lease after July 1, 2001 for a term of twenty (20) years or more, excluding
				 renewal periods, have a situs in this state and to the extent the property is
				 used by a high performance manufacturer. The term "high performance
				 manufacturer" means a taxpayer engaged in any of the businesses described in
				 the major groups 28, 30, 34 to 36, and 38 of the SIC codes, that pays its
				 full-time equivalent employees a median annual wage above the average annual
				 wage paid by all taxpayers in the state which share the same two-digit SIC
				 Code, unless the high performance manufacturer is the only high performance
				 manufacturer in the state conducting business in that two-digit SIC Code, in
				 which case this requirement does not apply and whose expenses for training or
				 retraining its employees exceeds two percent (2%) of its total payroll costs,
				 or that pays its full-time equivalent employees a median annual wage equal to
				 or greater than one hundred twenty-five percent (125%) of the average annual
				 wage paid in this state by employers to employees, or that pays its full-time
				 equivalent employees classified as production workers by the Rhode Island
				 Department of Labor and Training an average annual wage above the average
				 annual wage paid to the production workers of all taxpayers in the state which
				 share the same two-digit SIC Code.