2013 -- S 0248

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LC01108

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TAXATION -- BUSINESS TAX CREDIT

     Introduced By: Senators Pichardo, Raptakis, Nesselbush, and Crowley

     Date Introduced: February 13, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

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adding thereto the following chapter:

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     CHAPTER 46.1

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RHODE ISLAND ENGLISH LANGUAGE EDUCATION BUSINESS TAX CREDIT

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     44-46.1-1. Legislative findings. – The general assembly finds that diverse ethnic and

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linguistic communities have contributed greatly to the social and economic prosperity of Rhode

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Island. It is the welcomed responsibility and opportunity of the state of Rhode Island to respect

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and facilitate the efforts of all cultural, ethnic and linguistic segments of the population to become

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fully engaged participants in the Rhode Island community. Further, the general assembly finds

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that the state of Rhode Island's economic well-being increasingly depends on foreign and

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international trade. If Rhode Island is to prosper in this global marketplace, it must have citizens

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who are multilingual. At the same time, English is and will remain the primary language of the

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United States, and society recognizes the importance of English to national life, individual

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accomplishments and personal enrichment. The ability to communicate in English and other

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languages has promoted and can enhance American economic, political and cultural vitality.

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While recognizing the value of multilingual backgrounds, the general assembly also realizes the

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importance of all its citizens becoming proficient in English in order to facilitate full participation

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of all individuals in society. It is the intent of the general assembly by enactment of this

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legislation to encourage businesses to educate non-English speaking employees in the English

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language.

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     44-46.1-2. Definitions. – The following definitions shall apply for the purposes of this

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chapter, unless the context otherwise requires:

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     (1) "Business entity" means a person conducting a trade or business in this state.

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     (2) "Qualified English language training expense" means amounts incurred by a business

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entity for training in English language literacy to employees of that business entity with limited

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English language proficiency. Such expenses include, and are limited to:

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     (i) Books and supplies;

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     (ii) Tuition paid or incurred by a business entity to an institution for providing language

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training to employees of the business;

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     (iii) Pro-rated portion of wages paid or incurred by a business entity to a person for the

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purpose of providing language training to employees of the business; and

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     (iv) Wages paid to an employee receiving language training to the extent allocable to the

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time when that employee is receiving training.

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     44-46.1-3. Tax credit for businesses that provide English language classes to

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employees. – (a) A qualified business entity may claim a tax credit against taxes otherwise due

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under the provisions of chapters 11, 13, 14, 15, 17 and 30 of this title in the amount determined

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under subsection (b), for qualified English language training expenses that are paid in the taxable

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year for which the business entity claims a credit. The same tax credit may not be applied more

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than once against different taxes by the same taxpayer.

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     (b) Subject to subsection (a), for each taxable year, a business entity is eligible for a

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credit allowed in an amount equal to fifty percent (50%) of the qualified English language

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training expenses paid. The maximum allowable credit for a business is ten thousand dollars

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($10,000) for any taxable year.

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     44-46.1-4. Administration. – The tax administrator shall make available suitable forms

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with instructions for claiming the credit. The claim shall be in a form that the tax administrator

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may prescribe. The tax administrator may prescribe rules and regulations, not inconsistent with

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law, to carry into effect the provisions of this chapter.

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     44-46.1-5. Accounting. – An itemized accounting of the costs associated with the credit

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established under this chapter and an affidavit attesting to the facts shall be furnished by the

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claimant taxpayer to the division of taxation.

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     SECTION 2. This act shall take effect on October 1, 2013, and shall be applicable to all

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taxable years after December 31, 2013.

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LC01108

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION -- BUSINESS TAX CREDIT

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     This act would create a tax credit for businesses that provide English language classes for

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its non-English speaking employees.

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     This act would take effect on October 1, 2013, and would be applicable to all taxable

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years after December 31, 2013.

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LC01108

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