2015 -- S 0370

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LC001691

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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 -- BUSINESS TAX CREDIT

     Introduced By: Senators Pichardo, Jabour, and Metts

     Date Introduced: February 25, 2015

     Referred To: Senate 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 46.1

RHODE ISLAND ENGLISH LANGUAGE EDUCATION BUSINESS TAX CREDIT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

language.

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

chapter, unless the context otherwise requires:

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

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

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

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

     (i) Books and supplies;

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

training to employees of the business;

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

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

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

time when that employee is receiving training.

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

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

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

under subsection (b) of this section, for qualified English language training expenses that are paid

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

applied more than once against different taxes by the same taxpayer.

     (b) Subject to subsection (a) of this section, for each taxable year, a business entity is

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

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

dollars ($10,000) for any taxable year.

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

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

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

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

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

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

claimant taxpayer to the division of taxation.

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     SECTION 2. This act shall take effect on October 1, 2015, and shall be applicable to all

taxable years after December 31, 2015.

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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

its non-English speaking employees.

     This act would take effect on October 1, 2015, and would be applicable to all taxable

years after December 31, 2015.

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