law16142-17

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art.017/4/017/3/017/2/016/2

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ARTICLE 17 AS AMENDED

RELATING TO COMMERCE AND ECONOMIC DEVELOPMENT

SECTION 1. Section 42-63.1-3 of the General Laws in Chapter 42-63.1 entitled

"Tourism and Development" is hereby amended to read as follows:

42-63.1-3. Distribution of tax. -- (a) For returns and tax payments received on or before

December 31, 2015, except as provided in § 42-63.1-12, the proceeds of the hotel tax, excluding

such portion of the hotel tax collected from residential units offered for tourist or transient use

through a hosting platform, shall be distributed as follows by the division of taxation and the city

of Newport:

(1) Forty-seven percent (47%) of the tax generated by the hotels in the district, except as

otherwise provided in this chapter, shall be given to the regional tourism district wherein the hotel

is located; provided, however, that from the tax generated by the hotels in the city of Warwick,

thirty-one percent (31%) of the tax shall be given to the Warwick regional tourism district

established in § 42-63.1-5(a)(5) and sixteen percent (16%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors' Bureau established in § 42-63.1-11; and provided

further, that from the tax generated by the hotels in the city of Providence, sixteen percent (16%)

of that tax shall be given to the Greater Providence-Warwick Convention and Visitors' Bureau

established by § 42-63.1-11, and thirty-one percent (31%) of that tax shall be given to the

Convention Authority of the city of Providence established pursuant to the provisions of chapter

84 of the public laws of January, 1980; provided, however, that the receipts attributable to the

district as defined in § 42-63.1-5(a)(7) shall be deposited as general revenues, and that the

receipts attributable to the district as defined in § 42-63.1-5(a)(8) shall be given to the Rhode

Island commerce corporation as established in Rhode Island General Law Chapter 42-64;

chapter 64 of title 42.

(2) Twenty-five percent (25%) of the hotel tax shall be given to the city or town where

the hotel, which generated the tax, is physically located, to be used for whatever purpose the city

or town decides.

(3) Twenty-one (21%) of the hotel tax shall be given to the Rhode Island commerce

corporation established in chapter 42-64 of title 42, and seven percent (7%) to the Greater

Providence-Warwick Convention and Visitors' Bureau.

(b) For returns and tax payments received after December 31, 2015, except as provided

in § 42-63.1-12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected

from residential units offered for tourist or transient use through a hosting platform, shall be

distributed as follows by the division of taxation and the city of Newport:

(1) For the tax generated by the hotels in the Aquidneck Island district, as defined in §

42-63.1-5, forty-two percent (42%) of the tax shall be given to the Aquidneck Island district,

twenty-five (25%) of the tax shall be given to the city or town where the hotel, which generated

the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-

eight percent (28%) of the tax shall be given to the Rhode Island commerce corporation

established in chapter 42-64 of title 42 .

(2) For the tax generated by the hotels in the Providence district as defined in § 42-63.1-

5, twenty eight percent (28%) of the tax shall be given to the Providence district, twenty-five

percent (25%) of the tax shall be given to the city or town where the hotel, which generated the

tax, is physically located, twenty-three (23%) of the tax shall be given to the Greater Providence-

Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-four (24%) of

the tax shall be given to the Rhode Island commerce corporation established in chapter 42-64 of

title 42.

(3) For the tax generated by the hotels in the Warwick district as defined in § 42-63.1-5,

twenty-eight percent (28%) of the tax shall be given to the Warwick District, twenty-five percent

(25%) of the tax shall be given to the city or town where the hotel, which generated the tax, is

physically located, twenty-three percent (23%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-

four (24%) of the tax shall be given to the Rhode Island commerce corporation established in

chapter 42-64.

(4) For the tax generated by the hotels in the Statewide district, as defined in § 42-63.1-5,

twenty-five percent (25%) of the tax shall be given to the city or town where the hotel, which

generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and seventy

percent (70%) of the tax shall be given to the Rhode Island commerce corporation established in

chapter 42-64 of title 42.

(5) With respect to the tax generated by hotels in districts other than those set forth in

sections subdivisions (b)(1) through (b)(4) above, forty-two percent (42%) of the tax shall be

given to the regional tourism district, as defined in § 42-63.1-5, wherein the hotel is located,

twenty-five percent (25%) of the tax shall be given to the city or town where the hotel, which

generated the tax, is physically located, five percent (5%) of the tax shall be given to the Greater

Providence-Warwick Convention and Visitors Bureau established in § 42-63.1-11, and twenty-

eight (28%) of the tax shall be given to the Rhode Island commerce corporation established in

chapter 42-64 of title 42.

transient use through a hosting platform shall distributed as follows by the division of taxation

and the city of Newport: twenty-five percent (25%) of the tax shall be given to the city or town

where the residential unit, which generated the tax, is physically located, and seventy-five percent

(75%) of the tax shall be given to the Rhode Island commerce corporation established in chapter

64 of title 42.

(d) The Rhode Island commerce corporation shall be required in each fiscal year to

spend on the promotion and marketing of Rhode Island as a destination for tourists or businesses

an amount of money of no less than the total proceeds of the hotel tax it receives pursuant to this

chapter for such fiscal year.

(e) Notwithstanding the foregoing provisions of this section, for returns and tax payments

received on or after July 1, 2016 and on or before June 30, 2017, except as provided in §42-63.1-

12, the proceeds of the hotel tax, excluding such portion of the hotel tax collected from residential

units offered for tourist or transient use through a hosting platform, shall be distributed in

accordance with the distribution percentages established in §42-63.1-3(a)(1) through §42-63.1-

3(a)(3) by the division of taxation and the city of Newport.

SECTION 2. Sections 42-64.20-5, 42-64.20-6 and 42-64.20-7 of the General Laws in

Chapter 42-64.20 entitled "Rebuild Rhode Island Tax Credit" are hereby amended to read as

follows:

42-64.20-5. Tax credits. -- (a) An applicant meeting the requirements of this chapter may

be allowed a credit as set forth hereinafter against taxes imposed upon such person under

applicable provisions of title 44 of the general laws for a qualified development project.

(b) To be eligible as a qualified development project entitled to tax credits, an applicant's

chief executive officer or equivalent officer shall demonstrate to the commerce corporation, at the

time of application, that:

(1) The applicant has committed capital investment or owner equity of not less than

twenty percent (20%) of the total project cost;

(2) There is a project financing gap in which after taking into account all available

private and public funding sources, the project is not likely to be accomplished by private

enterprise without the tax credits described in this chapter; and

(3) The project fulfills the state's policy and planning objectives and priorities in that:

(i) The applicant will, at the discretion of the commerce corporation, obtain a tax

stabilization agreement from the municipality in which the real estate project is located on such

terms as the commerce corporation deems acceptable;

(ii) It (A) is a commercial development consisting of at least 25,000 square feet occupied

by at least one business employing at least 25 full-time employees after construction or such

additional full-time employees as the commerce corporation may determine; (B) is a multi-family

residential development in a new, adaptive reuse, certified historic structure, or recognized

historical structure consisting of at least 20,000 square feet and having at least 20 residential units

in a hope community; or (C) is a mixed-use development in a new, adaptive reuse, certified

historic structure, or recognized historical structure consisting of at least 25,000 square feet

occupied by at least one business, subject to further definition through rules and regulations

promulgated by the commerce corporation; and

(iii) Involves a total project cost of not less than $5,000,000, except for a qualified

development project located in a hope community or redevelopment area designated under § 45-

32-4 of the general laws in which event the commerce corporation shall have the discretion to

modify the minimum project cost requirement.

General Laws shall be exempt from the requirements of subsections subparagraphs (b)(3)(ii)

and (b)(3)(iii) of this section. The following procedure shall apply to such applicants:

(1) The division of taxation shall remain responsible for determining the eligibility of an

applicant for tax credits awarded under chapter 44-33.6 of title 44 of the General Laws;

(2) The commerce corporation shall retain sole authority for determining the eligibility

of an applicant for tax credits awarded under this chapter; and

(3) The commerce corporation shall not award in excess of fifteen percent (15%) of the

annual amount appropriated in any fiscal year to applicants seeking tax credits pursuant to this

subsection (c).

(d) Maximum project credit.

(i) For qualified development projects, the maximum tax credit allowed under this

chapter shall be the lesser of (1) thirty percent (30%) of the total project cost; or (2) the amount

needed to close a project financing gap (after taking into account all other private and public

funding sources available to the project), as determined by the commerce corporation.

(ii) The credit allowed pursuant to this chapter shall not exceed fifteen million dollars

($15,000,000) for any qualified development project under this chapter. No building or qualified

development project to be completed in phases or in multiple projects shall exceed the maximum

project credit of fifteen million dollars ($15,000,000) for all phases or projects involved in the

rehabilitation of such building. Provided, however, that for purposes of this subsection and no

more than once in a given fiscal year, the commerce corporation may consider the development

of land and buildings by a developer on the “I-195 land” (as defined in section 42-64.24-3(6) of

the general laws) as a separate, qualified development project from a qualified development

project by a tenant or owner of a commercial condominium or similar legal interest including

leasehold improvement, fit out, and capital investment. Such qualified development project by a

tenant or owner of a commercial condominium or similar legal interest on the I-195 land may be

exempted from subparagraph (d)(i)(1).

(e) Credits available under this chapter shall not exceed twenty percent (20%) of the

project cost, provided, however, that the applicant shall be eligible for additional tax credits of not

more than ten percent (10%) of the project cost, if the qualified development project meets any of

the following criteria or other additional criteria determined by the commerce corporation from

time to time in response to evolving economic or market conditions:

(1) The project includes adaptive reuse or development of a recognized historical

structure;

(2) The project is undertaken by or for a targeted industry;

(3) The project is located in a transit-oriented development area;

(4) The project includes residential development of which at least twenty percent (20%)

of the residential units are designated as affordable housing or workforce housing;

(5) The project includes the adaptive reuse of property subject to the requirements of the

industrial property remediation and reuse act, sections 23-19.14-1, et seq. of the general laws; or

(6) The project includes commercial facilities constructed in accordance with the

minimum environmental and sustainability standards, as certified by the commerce corporation

pursuant to Leadership in Energy and Environmental Design or other equivalent standards.

(f) Maximum aggregate credits. The aggregate sum authorized pursuant to this chapter

shall not exceed one hundred and fifty million dollars ($150,000,000).

(f)(g) Tax credits shall not be allowed under this chapter prior to the taxable year in

which the project is placed in service.

(g)(h) The amount of a tax credit allowed under this chapter shall be allowable to the

taxpayer in up to five, annual increments; no more than thirty percent (30%) and no less than

fifteen percent (15%) of the total credits allowed to a taxpayer under this chapter may be

allowable for any taxable year.

(h)(i) If the portion of the tax credit allowed under this chapter exceeds the taxpayer's

total tax liability for the year in which the relevant portion of the credit is allowed, the amount

that exceeds the taxpayer's tax liability may be carried forward for credit 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.

(i)(j) The commerce corporation in consultation with the division of taxation shall

establish, by regulation, the process for the assignment, transfer, or conveyance of tax credits.

(j)(k) 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 of the general laws. 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 of the general laws. 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 of the general laws, as applicable, for the

year of revocation, or adjustment, shall be increased by including the total amount of the sales

proceeds without proration.

(k)(l) 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 may be used as a credit

against personal income taxes imposed under chapter 30 of title 44 for owners of pass-through

entities such as a partnership, a limited liability company taxed as a partnership, or multiple

owners of property.

(l)(m) In the case of a corporation, this credit is only allowed against the tax of a

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.

(m)(n) Upon request of a taxpayer and subject to annual appropriation, the state shall

redeem such credit, in whole or in part, for ninety percent (90%) of the value of the tax credit.

The division of taxation, in consultation with the commerce corporation, shall establish by

regulation a redemption process for tax credits.

(n)(o) Projects eligible to receive a tax credit under this chapter may, at the discretion of

the commerce corporation, be exempt from sales and use taxes imposed on the purchase of the

following classes of personal property only to the extent utilized directly and exclusively in such

project: (1) fFurniture, fixtures and equipment, except automobiles, trucks, or other motor

vehicles; or (2) sSuch other materials, including construction materials and supplies, that are

depreciable and have a useful life of one year or more and are essential to the project.

(o)(p) The commerce corporation shall promulgate rules and regulations for the

administration and certification of additional tax credit under subsection (e) of this section,

including criteria for the eligibility, evaluation, prioritization, and approval of projects that

qualify for such additional tax credit.

(p)(q) The commerce corporation shall not have any obligation to make any award or

grant any benefits under this chapter.

42-64.20-6. Administration. -- (a) To obtain the tax credit authorized in this chapter,

applicants shall apply to the commerce corporation board for approval of a qualified development

project for credits under this chapter. Such approval shall at a minimum require:

(1) That the applicant has submitted a completed application as developed by the

commerce corporation in consultation with the division of taxation;

(2) That the chief executive of the commerce corporation provide written confirmation to

the commerce corporation board (i) tThat the commerce corporation has reviewed the application

and any determination regarding the potential impact on the project's ability to stimulate business

development; retain and attract new business and industry to the state; create jobs, including

good-paying jobs, for its residents; assist with business, commercial, and industrial real estate

development; and generate revenues for necessary state and local governmental services; and (ii)

tThe total credits to be awarded to the applicant.

(3) That the secretary of commerce provide written confirmation to the commerce

corporation board that the recommendation of the commerce corporation is consistent with the

purposes of this chapter; and

(4) That the director of the office of management and budget provide (i) written

confirmation to the commerce corporation board that the total aggregate credits recommended by

the commerce corporation pursuant to this chapter do not exceed the existing and anticipated

revenue capacity of the state and its funding commitment described in 42-64.20-7; and (ii) an

analysis of the fiscal impact, if any, in the year of application and any subsequent year. Such

determination shall be made in a timely manner. maximum aggregate credits allowed under this

chapter in accordance with §42-64.20-5(f).

(b) As the commerce corporation board determines whether to grant credits under this

chapter, it shall consider the purposes for which this chapter is established, which include (but are

not necessarily limited to) the following: (i) tTo create jobs with an emphasis on jobs that pay at

least the most recent state median wage as defined by the Ddepartment of Llabor and Ttraining;

and (ii) tTo spur economic growth and new development in Rhode Island.

shall apply to the commerce corporation for a certification that the project has met all

requirements of this chapter and any additional requirements set by the commerce corporation

subsequent to the time the qualified development project is placed in service. The commerce

corporation shall issue to the applicant a certification or a written response detailing any

deficiencies precluding certification. The commerce corporation may deny certification, or may

revoke the delivery of tax credits if the project does not meet all requirements of this chapter and

any additional requirements set by the commerce corporation.

(d) Upon issuance of a certification by the commerce corporation under subsection (c) of

this section, the division of taxation shall, on behalf of the State of Rhode Island, issue tax credit

certificates equaling one hundred percent (100%) of the tax credits approved by the commerce

corporation.

(e) In the event that tax credits, or a portion of tax credits, are revoked by the commerce

corporation and such tax credits have been transferred or assigned, the commerce corporation will

pursue its recapture rights and remedies against the applicant of the tax credits who shall be liable

to repay to the commerce corporation the face value of all tax credits assigned or transferred, and

all fees paid by the applicant shall be deemed forfeited. No redress shall be sought against

assignees or transferees of such tax credits provided the tax credits were acquired by way of an

arms-length transaction, for value, and without notice of violation, fraud, or misrepresentation.

(f) The commerce corporation and division of taxation shall promulgate such rules and

regulations as are necessary to carry out the intent and purpose and implementation of the

responsibilities of each under this chapter.

42-64.20-7. Rebuild Rhode Island tax credit fund. – (a) There is hereby established at

the commerce corporation a restricted account known as the rebuild Rhode Island tax-credit fund

(the "fund" "Fund" ) in which all amounts appropriated for the redemption and/or reimbursement

of tax credits program created under this chapter shall be deposited. The Ffund shall be used (i) to

pay for the redemption of tax credits or reimbursement to the state for tax credits applied against

a taxpayer's liability. The commerce corporation may pledge and reserve amounts deposited into

the fund for the purpose of securing payment for the redemption of tax credits or for making

reimbursements to municipalities pursuant to chapter 64.22 of title 42 of the general laws. The

Ffund shall be exempt from attachment, levy, or any other process at law or in equity. The

director of the department of revenue shall make a requisition to the commerce corporation for

funding during any fiscal year as may be necessary to pay for the redemption of tax credits

presented for redemption or to reimburse the state for tax credits applied against a taxpayer's tax

liability. The commerce corporation shall pay from the Ffund such amounts as requested by the

director of the department of revenue necessary for redemption or reimbursement in relation to

tax credits granted under this chapter. ; provided, however, that the commerce corporation shall

not be required to pay from the fund such sums pledged and reserved by the commerce

corporation, as permitted in this section, except for redemption of tax credits.

(b) Notwithstanding anything in this chapter to the contrary, the commerce corporation

may make a loan or equity investment as an alternative incentive in lieu of the provision of tax

credits so long as the applicant otherwise qualifies for tax credits under this chapter. In addition to

the qualification requirements of this chapter, any loan or equity investment shall be subject to the

provisions of §§42-64.20-5(b), (d), (e), (f), (g), (n), (o), (p), and (q), 42-64.20-7, 42-64.20-8, 42-

64.20-9, and 42-64.20-10 as if such loan or equity investment were a tax credit. The commerce

corporation may pay, reserve, and/or pledge monies for a loan or equity investment from the

fund.

SECTION 3. Title 42 of the General Laws entitled ''STATE AFFAIRS AND

GOVERNMENT" is hereby amended by adding thereto the following chapter:

CHAPTER 64.32

AIR SERVICE DEVELOPMENT FUND

42-64.32-1. Legislative findings. -- It is hereby found and declared as follows: (a) The

development of additional scheduled air carrier and cargo services (''air service") to T. F. Green

state airport is essential to improving the overall economic climate of the state, attracting

businesses, promoting tourism, and growing jobs. Such additional air service is particularly

important to advanced industries, industries characterized by high levels of research and

development expenditures and reliance on science, technology, design, engineering, and

mathematics workers.

(b) Providing incentives, revenue guarantees, and/or other support for new or additional

air service on new or additional routes is an important step in meeting these economic

development goals.

incentives for air service to T. F. Green state airport that the Rhode Island airport corporation

may otherwise not be able to finance under the regulations and policies of the federal aviation

administration. For that reason, this program is established independently of, and unrelated to, the

Rhode Island airport corporation.

42-64.32-2. Fund established. -- (a) There is hereby established within the Rhode Island

commerce corporation the air service development fund (the "fund") to be administered by the

commerce corporation as set forth in this chapter. The fund shall consist of money appropriated

by the general assembly and deposited into the fund, and any other money made available to the

fund from any other source; provided that any revenue deemed to be airport revenue shall not be

included in the fund.

42-64.32-3. Air service development council. -- (a) The Rhode Island commerce

corporation shall establish an air service development council (the "council"), that shall have the

authority and responsibility for entering into agreements with scheduled air carriers and/or cargo

carriers to provide direct financial incentives, revenue guarantees, and/or other support to

incentivize air service to T. F. Green state airport.

(b) The air service development council shall consist of the secretary of commerce, or his

or her designee, who shall serve as chair of the council, and four members appointed by the board

of the Rhode Island commerce corporation, at least one of whom shall have airport management

or air carrier experience, at least one of whom shall be a representative from a chamber of

commerce, and at least one of whom shall represent a business with more than one hundred (100)

employees located in Rhode Island. No member of the council shall be a director or employee of

the Rhode Island airport corporation. Members shall serve at the pleasure of the board of the

commerce corporation. The members shall not receive a salary but shall be reimbursed for any

necessary expenses incurred in the performance of their duties.

enter into contracts providing for incentives, guarantees, and/or other support for new or

additional flights to T. F. Green state airport by scheduled air carriers or cargo carriers, provided

that such contracts have been previously approved by the air service development council. Such

incentives, guarantees, and other support shall be financed only with proceeds from the air service

development fund established pursuant to §42-64.32-2, and not with any airport revenue, subject

to regulation pursuant to the policies or regulations of the federal aviation administration.

(d) The air service development council shall publish the criteria that it will use in

evaluating proposals or arrangements that further the purposes of this chapter. Such criteria shall

require, at a minimum, that to qualify for incentives a scheduled air carrier or cargo carrier must

commit to new or additional flights for an agreed-upon duration that represent an increase in

service.

(e) The air service development council may, at its discretion, provide incentives to

service to one scheduled air carrier or cargo carrier without offering identical incentives to other

scheduled air carriers or cargo carriers if doing so furthers the purposes of this chapter.

42-64.32-4. Program integrity. -- Program integrity being of paramount importance, the

Rhode Island commerce corporation shall establish procedures to ensure ongoing compliance

with the terms and conditions of the program established herein, including procedures to

safeguard the expenditure of public funds and to ensure that the funds further the purposes of the

program.

42-64.32-5. Reporting requirements. -- No later than sixty (60) days after the end of the

fiscal year, the Rhode Island commerce corporation shall submit an annual report to the governor,

the speaker of the house, and the president of the senate detailing any incentives provided for

under this chapter and such other information as the commerce corporation deems necessary.

SECTION 4. Section 42-64.24-3 of the General Laws in Chapter 42-64.24 entitled "I-195

Redevelopment Project Fund" is hereby amended to read as follows:

42-64.24-3. Definitions. -- As used in this act:

(1) "Applicant" means a developer or occupant applying for a loan or conditional loan

under this chapter.

(2) "Business" means a corporation as defined in general laws § 44-11-1(4), or is a

partnership, an S corporation, a non-profit corporation, sole proprietorship, or a limited liability

corporation.

(3) "Capital investment" in a redevelopment project means costs or expenses by a

business or any affiliate of the business incurred after application for:

(i) Site preparation and construction, repair, renovation, improvement, equipping, or

furnishing on real property or of a building, structure, facility, or improvement to real property;

(ii) Obtaining and installing furnishings and machinery, apparatus, or equipment,

including, but not limited to, material goods for the operation of a business on real property or in

a building, structure, facility, or improvement to real property.

(4) "Commission" means the I-195 district commission.

(5) "Developer" means a person, firm, corporation, partnership, association, political

subdivision, or other entity that proposes to divide, divides, or causes to be divided real property

into a subdivision or proposes to build, or builds a building or buildings or otherwise improves

land or existing structures, which division, building, or improvement of land qualifies for benefits

under this chapter.

(6) "I-195 land" means the surplus land within the city of Providence owned by the I-195

district commission and the area within a one-quarter mile radius of the outermost boundary of

said surplus land as further delineated by regulation of the commission. any other property any

portion of which abuts, is located across the street from, or is within five hundred feet (500') of

said surplus land.

(7) "Occupant" means a business as a tenant, owner, or joint venture partner, occupying

space pursuant to a lease or other occupancy agreement on the I-195 land or a project developed

on such land.

(8) "Personal property" means furniture, fixtures, and equipment, except automobiles,

trucks, or other motor vehicles, or materials that otherwise are depreciable and have a useful life

of one year or more, that are utilized for the redevelopment project for any given phase of the

redevelopment project inclusive of a period not to exceed six (6) months after receipt of a

certificate of occupancy for the given phase of the development.

(9) "Project cost" means the costs incurred in connection with a project by an applicant

until the issuance of a permanent certificate of occupancy, or until such other time specified by

the commerce corporation.

(10) "Project financing gap" means:

(i) tThe part of the total project cost that remains to be financed after all other sources of

capital have been accounted for (such sources will include, but not be limited to, developer-

contributed capital), which shall be defined through rules and regulations promulgated by the

commerce corporation; or

(ii) tThe amount of funds that the state may invest in a project to gain a competitive

advantage over a viable and comparable location in another state by means described in this

chapter.

SECTION 5. This article shall take effect upon passage.