Chapter
572
2006 -- S 2995
Enacted 07/11/06
A N A
C T
RELATING TO TAXATION
- INCENTIVES FOR INNOVATION AND GROWTH
Introduced By: Senators
Walaska, Bates, Sheehan, and DaPonte
Date Introduced: April 04,
2006
It is enacted
by the General Assembly as follows:
SECTION
1. Title 44 of the General Laws entitled "TAXATION" is hereby amended
by
adding
thereto the following chapter:
CHAPTER 63
INCENTIVES FOR INNOVATION AND GROWTH
44-63-1.
Definitions. -- For the purpose of this chapter:
(a)
"Corporation" means the Rhode Island economic development
corporation.
(b)
"Executive employee" means any employee designated as such by the
taxpayer, but in
no
case shall a taxpayer designate more than ten (10) executive employees.
(c)
"Qualified innovative company" means any business entity formed or
registered to
conduct
business under the laws of the state of Rhode Island that has provided
satisfactory
evidence
to the corporation, as submitted by an independent certified public accountant,
that the
entity
has in the prior two (2) calendar years had annual gross revenues of less than
one million
dollars
($1,000,000).
(d)
"Rhode Island Science and Technology Advisory Council" means that body
created
by
executive order 05-07, or any subsequently established successor entity.
(e)
"Traded goods or services" means the services produced or goods
manufactured in
those
industries or businesses which are capable of exporting or importing across
state
boundaries.
44-63-2.
Innovation credit. -- (a) An eligible qualified innovative company
may apply to
the
division of taxation for a tax credit certificate in an amount equal to fifty
percent (50%) of any
investment
made in the company, but in no case shall the amount of the tax credit
certificate
exceed
one hundred thousand dollars ($100,000). The tax credit certificate may be
issued in the
name
of the eligible company, or an executive employee or employees of the company,
an
investor
in the company, or any combination thereof as requested by the company, and may
be
applied
against state tax liability arising under chapters 44-11, 44-12, or 44-30 by
the holders of
the
certificates. If not applied in full at the time of the next following tax
filing period, the
certificate(s)
or the remaining value thereof may be carried forward for a period not to
exceed
three
(3) years.
44-63-3.
Eligibility for credit. -- Only companies with business primarily in
those
industries
or trades, identified by the corporation upon advisory resolution of the Rhode
Island
Science
and Technology Advisory Council as "Innovation Industries" producing
traded good or
services,
shall be eligible for the Incentives for Innovation and Growth as provided in
sections 44-
63-1
and 44-63-2. An eligible company must make application to the corporation prior
to
claiming
the credit, and the corporation shall be authorized to approve no more than two
million
dollars
($2,000,000) in credit applications in any two (2) calendar year period.
44-63-4.
Rules and regulations. -- The tax administrator is authorized and
empowered to
promulgate
rules and regulations that he or she may deem necessary for the proper
administration
and
enforcement of this chapter, excepting those matters committed to the
supervision of the
economic
development corporation. The director of the economic development corporation
is
authorized
and empowered to promulgate rules and regulations pertaining to those matters
committed
to the supervision of the economic development corporation.
44-63-5.
Sunset. -- The corporation shall not approve any application for tax
credit
eligibility
after December 31, 2016, and the chapter shall be repealed on said date.
SECTION
2. This act shall take effect on January 1, 2007, and would be repealed on
December
31, 2016.
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LC02943
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