2016 -- H 7936

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LC005378

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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: Representatives O`Grady, Tanzi, Carson, Handy, and Marshall

     Date Introduced: March 11, 2016

     Referred To: House Finance

     (General Treasurer)

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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THE TAX CREDIT REPORTING AND REDEMPTION ACT

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

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Reporting and Redemption Act."

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

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

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

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credits.

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

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

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

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

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

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Incentive Act 2015").

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

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

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

 

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

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

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

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any other information required by the division of taxation.

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

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

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

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

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

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

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

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

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

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

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     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

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

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

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     This act would take effect on January 1, 2017.

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