2018 -- S 2216

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LC003287

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO TAXATION -- RHODE ISLAND OCEAN STATE FUND

     

     Introduced By: Senators Pearson, Conley, Sosnowski, Seveney, and Miller

     Date Introduced: February 01, 2018

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is

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hereby amended by adding thereto the following section:

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     44-30-101. Credit for contributions to the Rhode Island Ocean State Fund.

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     (a) For the taxable years beginning on or after January 1, 2018, there shall be allowed as

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a credit against the personal income tax otherwise due for the taxable year under this chapter, an

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amount equal to the amount contributed by the taxpayer for the taxable year to the Rhode Island

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Ocean State Fund.

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     (b)(1) The Rhode Island Ocean State Fund is hereby created in the state's general fund to

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accept monetary contributions for exclusively public purposes as specified under Section 170 of

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the Internal Revenue Code, as amended, relating to charitable contributions and gifts. All

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amounts in the fund shall be used for those public purposes upon appropriation by the general

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assembly.

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     (2) For the purposes of this section, the general treasurer shall do both of the following:

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     (i) Establish a procedure for the public to make monetary contributions to the Rhode

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Island Ocean State Fund and for any taxpayer to obtain from the general treasurer a certification

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for the credit allowed by this section. The procedure shall require the general treasurer to certify

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the contribution amount eligible for credit within forty-five (45) days following receipt of the

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contribution.

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     (ii) Provide to the division of taxation a copy of each credit certificate issued for the

 

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calendar year by March 1 of the calendar year immediately following the year in which those

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certificates are issued.

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     (c)(1) The general treasurer shall adopt any regulations necessary or appropriate to

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implement this section.

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     (2) Chapter 35 of title 42 ("the administrative procedures act") shall not apply to any

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regulation adopted by the general treasurer pursuant to subsection (2)(i) of this section.

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     (d)(1) In the case where the credit allowed by this section exceeds the personal income

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tax otherwise due for the taxable year under this chapter, the excess may be carried over to reduce

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the personal income tax due under this chapter in the following year, and succeeding five (5)

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years if necessary, until the credit is exhausted.

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     (2) A deduction shall not be allowed for amounts taken into account under this section in

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calculating the credit allowed by this section.

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     (e) The tax credit allowed by subsection (a) of this section for donations to the Rhode

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Island Ocean State Fund shall be known as the Rhode Island Ocean State Fund Tax Credit.

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     SECTION 2. Chapter 44-11 of the General Laws entitled "Business Corporation Tax" is

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hereby amended by adding thereto the following section:

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     44-11-46. Credit for contributions to the Rhode Island Ocean State Fund.

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     (a) For the taxable years beginning on or after January 1, 2018, there shall be allowed as

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a credit against the tax otherwise due for the taxable year under this chapter, an amount equal to

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the amount contributed by the taxpayer for the taxable year to the Rhode Island Ocean State

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Fund, created pursuant to ยง 44-30-101.

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     (b)(1) In the case where the credit allowed by this section exceeds the tax otherwise due

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for the taxable year under this chapter, the excess may be carried over to reduce the tax due under

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this chapter in the following year, and succeeding five (5) years if necessary, until the credit is

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exhausted.

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     (2) A deduction shall not be allowed for amounts taken into account under this section in

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calculating the credit allowed by this section.

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     (c) The tax credit allowed by subsection (a) of this section for donations to the Rhode

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Island Ocean State Fund shall be known as the Rhode Island Ocean State Fund Tax Credit.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- RHODE ISLAND OCEAN STATE FUND

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     This act would, for taxable years beginning on or after January 1, 2018, allow a credit

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equal to the amount contributed by a taxpayer for the taxable year to the Rhode Island Ocean

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State Fund, which is created in the general fund to accept monetary contributions for exclusively

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public purposes. This act would further require all amounts in this fund to be used for those

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public purposes upon appropriation by the general assembly.

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     This act would also require the general treasurer to establish a procedure for the public to

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make monetary contributions to the Rhode Island Ocean State Fund and for any taxpayer to

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obtain from the general treasurer a certification for the credit allowed.

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     This act would take effect upon passage.

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