Rhode Island General Laws 42-64.9-8. Business tax credits
A taxpayer who owns and operates an eligible business within a certified building that has been substantially rehabilitated is allowed a credit against the tax imposed pursuant to chapter 11 or 30 of title 44 as follows:
(1) A credit equal to one hundred percent (100%) of the total amount of Rhode Island salaries and wages as are paid to qualified employees in excess of Rhode Island salaries and wages paid to the same employees in the prior calendar year. The maximum credit allowable per taxable year under the provisions of this subsection is three thousand dollars ($3,000) per qualified employee.
(2) Any tax credits provided in subdivision (1) shall not offset any tax liability in years other than the year in which the taxpayer qualifies for the credit. Fiscal year taxpayers must claim the tax credit in the year in which the December 31st of the certification year falls. The credit shall not reduce the tax below the minimum tax. The credit shall be used to offset tax liability under either chapter 11 or 30 of title 44, but not both.
(3) 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.
(4) In the case of multiple business owners, the credit provided in subdivision (1) is apportioned according to the ownership interests of the eligible business.
(5) In the event that the eligible business is located within an enterprise zone and is a certified business under the provisions of § 42-64.3-6, the taxpayer must elect to use the credit provided under subdivision (1) or the credit provided in § 42-64.3-6 to offset tax liability, but the taxpayer may not elect to claim both.
History of Section.
P.L. 2004, ch. 277, § 1; P.L. 2004, ch. 284, § 1.
Terms Used In Rhode Island General Laws 42-64.9-8
- Certified building: means a building with respect to which the council has issued a written notice of final designation as a certified building pursuant to the provisions of § 42-64. See Rhode Island General Laws 42-64.9-4
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Eligible business: means any business, corporation, sole proprietorship, partnership, limited partnership or limited liability company or other entity which:
(i) Is located in a certified building after the building has undergone substantial rehabilitation as hereinafter defined;
(ii) Is engaged principally in manufacturing, wholesale trade, or other commercial business activities;
(iii) Whose total Rhode Island salaries and wages exceed the total Rhode Island salaries and wages paid to its employees in the prior calendar year;
(iv) Has received certification from the enterprise zone council pursuant to the rules and regulations promulgated by the council; and
(v) Which, as part of its annual certification:
(A) 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 authority;
(B) Provides the enterprise zone council an affidavit stating under oath that the entity seeking certification as a qualified business has not within the preceding twelve (12) months from the date of application for certification changed its legal status or location solely for the purpose of gaining favorable treatment under the provision of this chapter; and
(C) Meets certain other requirements set forth by the council. See Rhode Island General Laws 42-64.9-4
- Enterprise zone: means an enterprise zone established pursuant to § 42-64. See Rhode Island General Laws 42-64.9-4
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Qualified employee: means a full-time employee of an eligible business whose business activity originates and terminates from within the eligible business and certified building on a daily basis, and who is employed by the eligible business at the end of the calendar year, and who is a domiciled resident of the state of Rhode Island. See Rhode Island General Laws 42-64.9-4
- Salaries and wages: means salaries, wages, tips and other compensation as defined in the Internal Revenue Code of 1986, 26 U. See Rhode Island General Laws 42-64.9-4