2015 -- H 6085

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LC002438

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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 Maldonado, Marshall, McKiernan, Carson, and Morin

     Date Introduced: April 16, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

adding thereto the following chapter:

CHAPTER 43.2

SMALL BUSINESS TAX CREDIT

     44-43.2-1. Application. -- For the purposes of this chapter, a "small business" means any

corporation, partnership, sole proprietorship, or other business entity qualifying as "small" under

the standards contained in 13 C.F.R 121.

     44-43.2-2. Credit against tax imposed. -- Every small business formed under the laws

of the state of Rhode Island and operating within the State of Rhode Island shall be entitled to

claim as a credit against the tax imposed by chapters 11 through 17 and 30 of this title any

amount paid to the U.S. Small Business Administration (SBA) as a guaranty fee pursuant to the

obtaining of SBA guaranteed financing. This credit will be available to the small business up to

sixty (60) months after the payment of the guaranty fee; provided, however, where a minimum

tax is provided under this title, the credit shall not reduce the tax below the minimum tax and

shall be claimable only by the small business which is the primary obligor in the financing

transaction and which actually paid the guaranty fee.

     SECTION 2. This act shall take effect upon passage, and is applicable to tax years

beginning on or after January 1, 2016.

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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 allow small businesses to claim a tax credit, for up to sixty (60) months,

for amounts paid to the United States Small Business Administration as a guaranty fee when

offering SBA guaranty financing.

     This act would take effect upon passage, and would be applicable to tax years beginning

on or after January 1, 2016.

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