Rhode Island Code of Regulations › Title 870 - Rhode Island Commerce Corporation › Chapter 30 - Tax Credits and Exemptions › Subchapter 00 - N/A › Part 4 - Rules and Regulations for the Rhode Island Qualified Jobs Incentive Act of 2015 › Section 870-RICR-30-00-4.15 - Incentive Agreement

Current through June 14, 2024
A. Upon approval of
							Tax Credits 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. A detailed description of the proposed job
							creation and the minimum number of New Full-Time Jobs necessary to qualify for
							the Tax Credit;
2. The Eligibility
							Period of the Tax Credits, including the first year for which the Tax Credits
							may be claimed;
3. The maximum
							amount of Tax Credits to be awarded;
4. The Tax Credits shall not be issued prior
							to the Annual Certification by the Corporation;
5. A requirement that the Applicant maintains
							in the State for the Commitment Period at least the minimum number of New
							Full-Time Jobs as required by the Act and these Rules;
6. A method for the Applicant to annually
							certify that it has met the employment requirements of the Act for each year of
							the Commitment Period;
7. A
							provision permitting an audit of the payroll records of the Applicant from
							time-to-time, as the Corporation deems necessary;
8. A provision establishing the conditions
							under which the Incentive Agreement may be terminated;
9. A provision that if, in any tax period,
							the Applicant reduces the total number of Full-Time Employees in its statewide
							workforce in the last tax period prior to the Tax Credit amount approval under
							this Act by more than twenty percent (20%) of the number of jobs which a credit
							was granted under the Act as described in the Applicant's Incentive Agreement,
							then the Applicant shall forfeit all credit amounts described in the
							Applicant's Incentive Agreement for that tax period and each subsequent tax
							period, until the first tax period for which documentation demonstrating the
							restoration of the Applicant's statewide workforce to the threshold levels
							required by the Incentive Agreement has been reviewed and approved by the
							Corporation, for which tax period and each subsequent tax period the full
							amount of the Tax Credit shall be allowed, so long as the Applicant maintains
							its statewide workforce at the levels required under this subsection;
10. A provision that during the Commitment
							Period, if the Applicant ceases operation in the State or transfers more than
							fifty percent (50%) of the jobs for which a Tax Credit was granted under the
							Act to another state, the Tax Credit shall cease and the Applicant shall be
							liable to the State for, at a minimum, twenty percent (20%) of all tax benefits
							granted to the Applicant under the Act calculated from the date of the
							Incentive Agreement;
11. A
							requirement that the Corporation is authorized to verify with the appropriate
							State agencies, including but not limited to the Tax Division and the
							Department of Labor and Training, any information required to be submitted by
							the Applicant;
12. A provision
							specifying whether the Tax Credit maybe used as a credit against personal
							income taxes due under R.I. Gen. Laws Chapter 44-30.
13. 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;
14. 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;
15. Indemnification requirements;
16. Default and remedies including events
							other than those set forth above, if any, that would trigger forfeiture or
							revocation of the awarded incentives;
17. Reporting requirements including, but not
							limited to, any requirements under the Act; and
18. Any other provisions that the Corporation
							determines are appropriate.