§ 42-64.3-6. Business tax credits.
A qualified business in an enterprise zone is allowed a credit against the tax imposed pursuant to chapters 11, 13 (except the taxation of tangible personal property under § 44-13-13), 14, 17, and 30 of title 44:
(1) A credit equal to fifty percent (50%) of the total amount of wages paid to those enterprise job employees comprising the five percent (5%) new jobs referenced in § 42-64.3-3(4)(i)(A). The wages subject to the credit shall be reduced by any direct state or federal wage assistance paid to employers for the employee(s) in the taxable year. The maximum credit allowed per taxable year under the provisions of this subsection shall be two thousand five hundred dollars ($2,500), per employee. A taxpayer who takes this business tax credit shall not be eligible for the resident business owner modification pursuant to § 42-64.3-7.
(2) A credit equal to seventy five percent (75%) of the total amount of wages paid to those enterprise job employees who are domiciliaries of an enterprise zone comprising the five percent (5%) new jobs referenced in § 42-64.3-3(4)(i)(A). The wages subject to the credit shall be reduced by any direct state or federal wage assistance in the taxable year. The maximum credit allowed per taxable year under the provisions of this subdivision shall be five thousand dollars ($5,000) per employee. A taxpayer who takes this business tax credit is not eligible for the resident business owner modification. The council shall promulgate appropriate rules to certify that the enterprise job employees are domiciliaries of an enterprise zone and shall advise the qualified business and the tax administrator. A taxpayer taking a credit for employees pursuant to this subdivision (2) shall not be entitled to a credit pursuant to subdivision (1) of this section for the employees.
(3) Any tax credit as provided in subdivision (1) or (2) of this section shall not reduce the tax below the minimum tax. Fiscal year taxpayers must claim the tax credit in the year into which the December 31st of the certification year falls. The credit shall be used to offset tax liability pursuant to the provisions of either chapters 11, 13, 14, 17, or 30 of title 44, but not more than one chapter.
(4) In the case of a corporation, the credit allowed under this section is only 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 tax return.
(5) In the case of multiple business owners, the credit provided in subdivision (1) or (2) of this section is apportioned according to the ownership interests of the qualified business.
(6) The tax credits established pursuant to this section may be carried forward for a period of three (3) years if in each of the three (3) calendar years a business which has qualified for tax credits under this section: (a) does not reduce the number of its employees from the last Effective Date of Certification; (b) obtains certificates of good standing from the Rhode Island division of taxation, the corporations division of the Rhode Island secretary of state and the appropriate municipal tax collector; (c) provides the council an affidavit stating under oath that this business has not within the preceding twelve (12) months changed its legal status for the purpose of gaining favorable treatment under the provisions of chapter 64.3 of this title; and (d) meets any other requirements as may be established by the council in its rules and regulations.
(7) No new credits shall be issued on or after July 1, 2015 unless the business has received certification under this chapter prior to July 1, 2015.
History of Section.
P.L. 1982, ch. 396, § 1; P.L. 1991, ch. 340, § 1; P.L. 1994, ch. 176, § 1; P.L. 1995,
ch. 72, § 1; P.L. 1996, ch. 140, § 2; P.L. 1997, ch. 68, § 1; P.L. 1998, ch. 61, §
1; P.L. 1999, ch. 31, art. 13, § 1; P.L. 1999, ch. 153, § 1; P.L. 1999, ch. 177, §
1; P.L. 2004, ch. 595, art. 17, § 1; P.L. 2015, ch. 141, art. 11, § 1.