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| ARTICLE 2 |
RELATING TO ECONOMIC DEVELOPMENT AND TAX CREDITS
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| SECTION 1. Sections 42-64.28-2, 42-64.28-3, 42-64.28-4, and 42-64.28-5 of the General |
| Laws in Chapter 42-64.28 entitled "Innovation Initiative" are hereby amended to read as follows: |
| 42-64.28-2 Definitions. |
| As used in this chapter: |
| (1) "Commerce corporation" means the Rhode Island commerce corporation established |
| pursuant to 42-64-1 et seq. |
| (2)(4) "Small business" means a business that is resident in Rhode Island, has its business |
| facility located within the state, and employs five hundred (500) or fewer persons. |
| (3)(2) "Manufacturer" shall mean any entity that: |
| (i) Uses any premises within the state primarily for the purpose of transforming raw |
| materials into a finished product for trade through any or all of the following operations: adapting, |
| altering, finishing, making, processing, refining, metalworking, and ornamenting, but shall not |
| include fabricating processes incidental to warehousing or distribution of raw materials, such as |
| alteration of stock for the convenience of a customer; or |
| (ii) Is described in codes 31-33 of the North American Industry Classification system, as |
| revised from time to time. |
| (4)(5) "Small business manufacturer" shall mean a business that meets the definitions of |
| terms small business and manufacturer as defined herein. |
| (30)(5)(3) "Match" shall mean a funding match, or in kind services provided by a third |
| party. |
| (4) (6) "Targeted industry" means any advanced, promising or otherwise prioritized |
| industry identified in the economic development vision and policy promulgated pursuant to § 42- |
| 64.17-1 or, until such time as any such economic development vision and policy is promulgated, |
| as identified by the commerce corporation. |
| 42-64.28-3 Programs Established. |
| (a) The Rhode Island commerce corporation shall establish a voucher program and an |
| innovation network program as provided under this chapter. The programs are subject to available |
| appropriations and such other funding as may be dedicated to the programs. |
| (b) There is established an account in the name of the "innovation initiative fund" (the |
| "fund") under the control of the commerce corporation to fund the programs. |
| (1) The fund shall consist of: |
| (i) Money appropriated in the state budget to the fund; |
| (ii) Money made available to the fund through federal grants, programs, or private |
| contributions; |
| (iii) Application or other fees paid to the fund to process applications for awards under this |
| chapter; and |
| (iv) Any other money made available to the fund. |
| (c) Voucher program. The commerce corporation is authorized, to develop and implement |
| an innovation voucher program to provide financing to small businesses to purchase research and |
| development support or other forms of technical assistance and services from Rhode Island |
| institutions of higher education and other providers and to fund research and development by and |
| for small business manufacturers. |
| (d) Innovation network program. The commerce corporation is authorized to provide |
| innovation grants to organizations, including non-profit organizations, for-profit organizations, |
| universities, and co-working space operators that offer technical assistance, space on flexible terms, |
| and access to capital to businesses in advanced or targeted industries. The commerce corporation |
| shall only issue grants under this subsection when those grants are matched by private-sector or |
| non-profit partners. The commerce corporation shall establish guidelines for appropriate matching |
| criteria under this section, including necessary matching ratios. |
| 42-64.28-4 Eligible uses. |
| (a) Vouchers available under this chapter shall be used for the benefit of small businesses |
| to access technical assistance and other services including, but not limited to,: research, |
| technological development, product development, commercialization, market development, |
| technology exploration, and improved business practices that implement strategies to grow |
| business and create operational efficiencies. |
| (b) Vouchers available under this chapter shall be used to provide funding to finance |
| internal research and development by and for small business manufacturers, including, but not |
| limited to,: research, technological development, product development, commercialization, market |
| development, technology exploration, and improved business practices that implement strategies |
| to grow business and create operational efficiencies. Subject to appropriation, the commerce |
| corporation shall reserve an amount not to exceed fifty percent (50%) of the voucher program's |
| annual appropriation to be made available in fiscal year 2018 for vouchers awarded to small |
| business manufacturers under this subsection. |
| (b) (c) Matching fund awards shall be used for the benefit of small businesses in industries |
| designated from time-to-time by the corporation, including without limitation,: life science and |
| healthcare;, food and agriculture;, clean technology and energy efficiency;, and cyber security to |
| pay for and access technological assistance, to procure space on flexible terms, and to access capital |
| from organizations, including non-profit organizations, for-profit organizations, universities, and |
| co-working space businesses. |
| 42-64.28-5 Qualification. |
| (a)To qualify for a voucher or for a matching fund award under this chapter, a business |
| must make application to the commerce corporation, and upon selection, shall enter into an |
| agreement with the commerce corporation. The commerce corporation shall have no obligation to |
| issue any voucher, make any award, or grant any benefits under this chapter. |
| (b) In a given tax year, a business shall not receive a voucher or matching-fund award |
| provided for under this chapter in conjunction with the tax credit provided for in §44-32-3 of the |
| general laws. |
| SECTION 2. Section 44-33.6-11 of the General Laws in Chapter 44-33.6 entitled "Historic |
| Preservation Tax Credits 2013" is hereby amended to read as follows: |
| 44-33.6-11. Sunset. |
| No credits shall be authorized to be reserved pursuant to this chapter on or after June 30, |
| 2017 2019, or upon the exhaustion of the maximum aggregate credits, whichever comes first. |
| SECTION 3. Section 1 of this article shall take on July 1, 2017. Section 2 shall take effect |
| upon passage. |