2016 -- S 2749

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LC005365

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TAXATION - TAX CREDITS

     Introduced By: Senators Miller, Ruggerio, Goodwin, Pearson, and Sosnowski

     Date Introduced: March 10, 2016

     Referred To: Senate Finance

     (General Treasurer)

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 70

THE TAX CREDIT REPORTING AND REDEMPTION ACT

     44-70-1. Short title. -- This act shall be known and may be cited as "The Tax Credit

Reporting and Redemption Act."

     44-70-2. Purpose. -- The purpose of this chapter is to enhance reporting requirements

related to the transfer or conveyance of transferable tax credits, and to increase the level at which

the state shall redeem transferable credits to one hundred percent (100%) of the value of the tax

credits.

     44-70-3. Reporting. -- (a) The division of taxation shall establish, by regulation, the

process for the assignment, transfer or conveyance of transferable tax credits for credits under the

following chapters of the general laws: chapter 42-64.20 ("Rebuild Rhode Island Tax Credit");

chapter 44-31.2 ("Motion Picture Production Tax Credits"); chapter 44-33.6 ("Historic

Preservation Tax Credits 2013"); and chapter 44-48.3 ("Rhode Island New Qualified Jobs

Incentive Act 2015").

     (b) The reporting requirements promulgated by the division of taxation shall include a

notification of any assignment, transfer, or conveyance of tax credits within thirty (30) days after

the transfer or sale of such tax credits. The notification shall include the transferor's tax credit

balance prior to transfer, the credit certificate number, the transferor's remaining tax credit

balance after transfer, all identification numbers for both transferor and transferee, the date of

transfer, the amount transferred, the price paid for the credits, a copy of the credit certificate, and

any other information required by the division of taxation.

     44-70-4. Redemption. -- (a) The division of taxation shall establish, by regulation, a

redemption process for tax credits referenced under the following chapters of the general laws:

chapter 42-64.20 ("Rebuild Rhode Island Tax Credit"); chapter 44-31.2 ("Motion Picture

Production Tax Credits"); chapter 44-33.6 ("Historic Preservation Tax Credits 2013"); and

chapter 44-48.3 ("Rhode Island New Qualified Jobs Incentive Act 2015").

     (b) Upon request of a taxpayer and subject to annual appropriation, the state shall redeem

all credits referenced in chapter 42-64.20 ("Rebuild Rhode Island Tax Credit"), chapter 44-31.2

("Motion Picture Production Tax Credits"), chapter 44-33.6 ("Historic Preservation Tax Credits

2013"), and chapter 44-48.3 ("Rhode Island New Qualified Jobs Incentive Act 2015") of the

general laws, in whole or in part, for one hundred percent (100%) of the value of the tax credit.

     SECTION 2. This act shall take effect on January 1, 2017.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION - TAX CREDITS

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     This act would enhance the reporting requirements related to the transfer or conveyance

of transferable tax credits and would increase the level at which the state would redeem

transferable credits to one hundred percent (100%) of the value of the tax credits.

     This act would take effect on January 1, 2017.

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