§ 44-48.3-8. Carry forward, transfer or redemption of tax credits, redemption fund.
(a) If the amount of the tax credit allowed under this chapter exceeds the taxpayer's total tax liability for the year in which the credit is allowed, the amount of such credit that exceeds the taxpayer's tax liability may be carried forward and applied against the taxes imposed for the succeeding four (4) years, or until the full credit is used, whichever occurs first. Credits allowed to a partnership, a limited liability company taxed as a partnership, or multiple owners of property shall be passed through to the persons designated as partners, members or owners respectively pro rata or pursuant to an executed agreement among such persons designated as partners, members or owners documenting an alternate distribution method without regard to their sharing of other tax or economic attributes of such entity.
(b) The commerce corporation shall establish, by regulation, the process for the assignment, transfer or conveyance of tax credits.
(c) For purposes of this chapter, any assignment or sales proceeds received by the taxpayer for its assignment or sale of the tax credits allowed pursuant to this section shall be exempt from taxation under title 44. If a tax credit is subsequently revoked or adjusted, the seller's tax calculation for the year of revocation or adjustment shall be increased by the total amount of the sales proceeds, without proration, as a modification under chapter 30 of title 44. In the event that the seller is not a natural person, the seller's tax calculation under chapters 11, 13, 14, or 17 of title 44, as applicable, for the year of revocation, or adjustment, shall be increased by including the total amount of the sales proceeds without proration.
(d) The tax credit allowed under this chapter may be used as a credit against corporate income taxes imposed under chapters 11, 13, 14, or 17 of title 44, or as determined by the commerce corporation may be used as a credit against personal income taxes imposed under chapter 30 of title 44. No more than the amount of tax credits equal to the total credit amount divided by the duration of the eligibility period in years may be taken in any tax period.
(e) Prior to assignment or transfer of a tax credit granted under this chapter, the division of taxation shall, at the request of the business, redeem such credit in whole or in part for ninety percent (90%) of the value of the tax credit with monies in the jobs tax credit redemption fund created under subsection (f) of this section. The division of taxation shall establish by regulation a redemption process for tax credits.
(f) The division of taxation is hereby authorized and empowered to segregate taxes collected as a result of the creation of new full-time jobs under this chapter and transfer such amounts to the general treasurer for deposit in a restricted account known as the jobs tax credit redemption fund. The jobs tax credit redemption fund shall be used solely to pay for the redemption of tax credits granted under this chapter. The director of the department of revenue shall annually determine if a surplus exists in the job tax credit redemption fund over amounts necessary to redeem tax credits in a fiscal year and may authorize the general treasurer to transfer any surplus to the general fund.
(g) The unexpended balance of such sum of money received and appropriated for the jobs tax credit redemption fund remaining in the treasury at the close of each fiscal year, shall be continued to and is hereby annually appropriated for the same account for the ensuing year.
(h) The commerce corporation shall have no obligation to make any award or grant any benefits under this chapter.
(P.L. 2015, ch. 141, art. 19, § 15.)