2023 -- H 6012

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO TAXATION -- RHODE ISLAND WOMEN'S EQUITY INCENTIVE ACT OF

2023

     Introduced By: Representatives Donovan, Boylan, Tanzi, Kazarian, Casimiro, Fogarty,
Caldwell, McEntee, and Spears

     Date Introduced: March 01, 2023

     Referred To: House 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 48.4

RHODE ISLAND WOMEN'S EQUITY INCENTIVE ACT OF 2023

     44-48.4-1. Short title.

     This chapter shall be known and may be cited as the "Rhode Island Women’s Equity

Incentive Act of 2023."

     44-48.4-2. Findings and declaration.

     (a) It is hereby found and declared that Rhode Island women continue to experience barriers

and challenges to economic security and prosperity despite their critical role in society and the

economy. Generally, they are paid less than men, are overrepresented in low-paying jobs and are

more likely to live in poverty. Without purposeful action, economic disparities can and will simply

reproduce themselves.

     (b) Economic recovery depends on addressing longstanding discrimination and barriers

that have hampered women including women of color from fully participating in the labor force.

Persistent inequities in access to executive tracked careers and in innovation and STEM industries

prevent our economy from reaching its full potential. Our economy and our state is better off when

women are better off.

     (c) Through the establishment of the women’s equity incentive program, Rhode Island can

take steps to stimulate business expansion and attraction, create well-paying jobs for traditionally

underrepresented members of our workforce, and generate revenues for necessary state and local

governmental services.

     44-48.4-3. Definitions.

     As used in this chapter, unless the context clearly indicates otherwise, the following words

and phrases shall have the following meanings:

     (1) "Eligible business" means an applicant that is a corporation, state bank, federal savings

bank, trust company, national banking association, bank holding company, loan and investment

company, mutual savings bank, credit union, building and loan association, insurance company,

investment company, broker-dealer company or surety company, limited liability company,

partnership, or sole proprietorship.

     (2) "Eligibility period" means the period in which an eligible business may claim a tax

credit under the program, which shall be a calendar year.

     (3) "Eligible position" means a position filled by a full time employee in an eligible

business which is a new position, or a position not previously held by a woman, that pays no less

than the U.S. Bureau of Labor Statics annual mean wage of management occupations for Rhode

Island and for which wages are subject to withholding.

     (4) "Full-time employee" means a woman who is employed by an eligible business for

consideration for at least thirty-five (35) hours a week.

     44-48.4-4. Rhode Island women's equity program.

     (a) The Rhode Island women’s equity program is hereby established as a program under

the jurisdiction of and shall be administered by the division of taxation. The program shall provide

tax credits to eligible businesses for an eligibility period.

     (b) An eligible business under the program shall be any entitled to a credit against taxes

imposed pursuant to chapters 11, 13, 14, 17 or 30 of title 44 for any eligible position and as further

provided under this chapter.

     (c) In the event that the attestation by the chief executive officer of the business, or

equivalent officer, required under subsection (d) of this section is found to be willfully false, the

division of taxation may revoke any award of tax credits in their entirety, which revocation shall

be in addition to any other criminal or civil penalties that the business and/or the officer may be

subject to under applicable law. Additionally, the division of taxation may revoke any award of tax

credits in its entirety if the eligible business is convicted of bribery, fraud, theft, embezzlement,

misappropriation, and/or extortion involving the state, any state agency or political subdivision of

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the state.

     (d) The chief executive officer of the business shall provide a written attestation that the

documents and financial information provided by the business is true and accurate to the best of

their knowledge and belief.

     44-48.4-5. Total amount of tax credit for eligible business.

     The base amount of the tax credit for an eligible business for each new full-time position

shall be up to three thousand five hundred dollars ($3,500), annually per new employee.

     44-48.4-6. Documentation.

     (a) A business shall maintain documentation indicating that it has met the employment

requirements for the tax credit amount set forth in § 44-48.4-7.

     (b) Full-time employment for an accounting or privilege period shall be determined as the

average of the monthly full-time employment for the period.

     44-48.4-7. Credit for qualified women's equity program expenses.

     (a) "Qualified expenses" and "base period expenses" have the same meaning as defined in

26 U.S.C. § 41; provided that, the expenses have been incurred in this state after July 1, 2023.

     (b) The credit allowed under this section shall only be allowed against the tax of that

corporation included in a consolidated return that qualifies for the credit and not against the tax of

other corporations that may join in the filing of a consolidated return.

     (c) In the event the taxpayer is a partnership, joint venture or small business corporation,

the credit is divided in the same manner as income.

     44-48.4-8. Transfer or redemption of tax credits.

     The division of taxation shall establish, by regulation, the process for the assignment,

transfer or conveyance of tax credits.

     44-48.4-9. Administration.

     The division of taxation shall adopt rules and regulations as are necessary to implement

this chapter.

     44-48.4-10. Program integrity.

     Program integrity being of paramount importance, the division of taxation shall establish

procedures to ensure ongoing compliance with the terms and conditions of the program established

herein, including procedures to safeguard the expenditure of public funds and to ensure that the

funds further the objectives of the program.

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     SECTION 2. 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 WOMEN'S EQUITY INCENTIVE ACT OF

2023

***

     This act would create the Rhode Island Women’s Equity Incentive Act of 2023 to address

the inequities experienced by women in the workforce by offering tax credits up to three thousand

five hundred dollars ($3,500) per employee, per year to eligible businesses.

     This act would take effect upon passage.

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