It is enacted by the General Assembly as follows:
SECTION 1. Sections 42-64.6-3 and 42-64.6-4 of the General Laws in Chapter 42-64.6 entitled "RHODE ISLAND JOBS TRAINING TAX CREDIT ACT" are hereby amended to read as follows:
42-64.6-3. Definitions. -- As used in this chapter unless the context clearly requires otherwise, the following words and phrases shall have the following meanings:
"Election" means the election to be filed by a qualifying employer with the Human Resource Investment Council.
"Qualifying employer" means any employer who files an election with the Human Resource Investment Council in such manner as may be provided by the Human Resource Investment Council to be covered by the provisions set forth in this chapter but shall not include any physicians or any employer whose principal business is providing legal, accounting, engineering, architectural, or other similar professional services. The election shall set forth such information as the Human Resource Investment Council shall require describing the program for training and/or retraining employees, the duration of the program, an estimate and description of the amounts to be spent to implement the program, the nature of the program to be provided to employees, an estimate of the number of the employees who shall be covered by the program and the relationship, if any, of the employer to the party or parties offering such program and the agreement of the employer to provide such additional information following the date of such election as shall be requested by the Human Resource Investment Council.
"Qualifying expenses" means those reasonable expenses
(less any federal, state or local grants or other payments received
by the employer to provide such training or retraining) incurred
by an employer following the date of such employer's election
to be covered by the provisions of this chapter, that are directly
attributable to providing training and/or retraining to qualifying
employees that shall improve the skills required of such employees.
Such expenses shall include all reasonable amounts paid by the
employer to public or private degree granting educational institutions
or directly to instructors to provide such training and/or retraining
and any other reasonable direct cash expenses incurred by the
employer to provide such training and/or retraining. The training
and/or retraining, however, shall be provided solely at one (1)
or more locations in this state unless the employer shall establish
that the training and/or retraining was not available at any location
in this state or that it could be obtained at another location
at a lower price. {DEL The maximum amount per employee on
which the credit shall be based is five thousand dollars ($5,000)
in any three (3) year period. DEL}
"Qualifying employee" means an individual (other than an employee who would be treated as a "highly compensated employee" under 26 U.S.C. section 414(q) or any physician or veterinarian) employed by the employer who works a minimum of thirty (30) hours per week within the state and earns or shall earn immediately following the completion of the training and/or retraining program no less than one hundred and fifty percent (150%) of the hourly minimum wage prescribed by Rhode Island law.
42-64.6-4. Determination of credit. -- The credit provided in this chapter shall be equal to twenty-five percent (25%) of the qualifying expenses incurred in 1996 and fifty percent (50%) of the qualifying expenses incurred after 1996 to provide training and/or retraining for a qualifying employee, of which fifty percent (50%) of the credit shall be allowed in the taxable year in which the expense is paid and the balance of the credit shall be allowed in the following taxable year. {ADD The maximum amount of credit per employee shall not exceed five thousand dollars ($5,000) in any three (3) year period. ADD} The credit allowed pursuant to the provisions of this chapter that is attributable to the cost of providing training and/or retraining to a qualifying employee shall be recaptured if the employee involuntarily other than as a result of death or disability no longer qualifies as a qualifying employee of the employer at any time during the eighteen (18) month period following the employee's completion of the program.
SECTION 2. This act shall take effect on passage and shall apply
to all taxable years ending on or after August 6, 1996.
