2015 -- H 5729

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LC001189

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO TAXATION

     

     Introduced By: Representatives Lima, Costantino, and Handy

     Date Introduced: February 26, 2015

     Referred To: House 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 70

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TAX CREDIT BENEFIT VERIFICATION

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     44-70-1. Benefit of tax credits to the state of Rhode Island to be verified. – Any

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business applying for a tax credit pursuant to title 42 or title 44 shall comply with the provisions

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of this chapter relating to tax credit benefits to the state of Rhode Island deriving from the

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issuance of tax credits to businesses. Any business applying for a tax credit shall provide the

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division of taxation with:

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     (1) A waiver of confidentiality providing the division of taxation access to any and all

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business or financial records necessary to verify the benefit to the state of Rhode Island from the

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issuance of the tax credit to the business.

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     (2) A signed affidavit indicating that the business shall turn over all financial records

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which are relevant to determine what the benefit to the state of Rhode Island is as a result of the

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issuance of the tax credit to the business.

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     44-70-2. Benefit of tax credits to the state of Rhode Island to be verified—Existing

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recipients requirements. – (a) Any business currently receiving a tax credit pursuant to title 42

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or title 44 shall comply with the provisions of § 44-70-1 by providing the division of taxation

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with a waiver of confidentiality and an affidavit indicating that the business will provide all

 

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relevant business records necessary to verify benefits to the state of Rhode Island resulting from

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the issuance of the tax credit to the business.

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     (b) Any business which fails to comply with the provisions of this chapter shall return to

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the state of Rhode Island an amount equal to the tax credit already given.

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     44-70-3. Rules and regulations. – The tax administrator is authorized and empowered to

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promulgate rules and regulations necessary for the proper administration and enforcement of this

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chapter.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION

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     This act would require business tax credit recipients to provide the state with financial

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business records to document any benefit to the state resulting from the issuance of the tax credit.

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     This act would take effect upon passage.

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LC001189

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