2016 -- S 2749 SUBSTITUTE A

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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

reporting requirements for the assignment, transfer or conveyance of transferable tax credits for

credits under chapter 64.20 of title 42 ("Rebuild Rhode Island Tax Credit"); chapter 31.2 of title

44 ("Motion Picture Production Tax Credits"); chapter 31.3 of title 44 (“Musical and Theatrical

Production Tax Credits”); chapter 33.6 of title 44 ("Historic Preservation Tax Credits 2013"); and

chapter 48.3 of title 44 ("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.

     (c) Each year at the end of the month of January, the division of taxation shall report a

record of each tax credit transfer made during the previous year, including the following

information for each transfer: the credit amount transferred, the price paid for the credits and the

date on which the transfer occurred. This report shall be available to the public for inspection by

any person and shall be published by the tax administrator on the tax division website.

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

redemption process for tax credits referenced under chapter 64.20 of title 42 ("Rebuild Rhode

Island Tax Credit"); chapter 31.2 of title 44 ("Motion Picture Production Tax Credits"); chapter

31.3 of title 44 (“Musical and Theatrical Production Tax Credits”); chapter 33.6 of title 44

("Historic Preservation Tax Credits 2013"); and chapter 48.3 of title 44 ("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 issued after July 1, 2016, under chapter 64.20 of title 42 ("Rebuild Rhode Island Tax

Credit"); chapter 31.2 of title 44 ("Motion Picture Production Tax Credits"); chapter 31.3 of title

44 (“Musical and Theatrical Production Tax Credits”); chapter 33.6 of title 44 ("Historic

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

Incentive Act 2015"), in whole or in part, for one hundred percent (100%) of the value of the tax

credit; provided that the redemption of credits issued pursuant to chapter 48.3 of title 44 shall not

be subject to annual appropriation, but be subject to the provisions of § 44-48.3-8.

     SECTION 2. This act shall take effect on July 1, 2016.

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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, 2016.

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