Introduced By: Senators Enos, Gibbs and Algiere
Date Introduced : February 10, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Section 42-64.3-6 of the General Laws in Chapter 42-64.3 entitled "Enterprise Zones" is hereby amended to read as follows:
42-64.3-6. Business tax credits. -- (1) A qualified business in an enterprise zone shall be allowed a credit against the tax imposed pursuant to chapters 11, 13 [except the taxation of tangible personal property under section 44-13-13], 14, 17 and 30 of title 44 as hereinafter provided:
(a) A credit equal to fifty percent (50%) of the total amount of wages as are paid to those enterprise job employees comprising the five percent (5%) new jobs referenced in section 42-64.3-3(d). The wages subject to the credit shall be reduced by any direct state or federal wage assistance paid to employers for such employee(s) in the taxable year. The maximum credit allowed per taxable year under the provisions of this subsection shall be ten thousand dollars ($10,000), per employee. A taxpayer who takes this business tax credit shall not be eligible for the resident business owner modification pursuant to section 42-64.3-7.
{ADD (2)(a) A credit equal to seventy five percent (75%) of the total amount of wages as are paid to those enterprise job employees who are domiciliaries of an enterprise zone comprising the five percent (5%) new jobs referenced in section 42-64.3-3(d). 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 subsection shall be fifteen thousand dollars ($15,000) per employee. A taxpayer who takes this business tax credit shall not be eligible for the resident business owner modification. The council shall promulgate appropriate rules to certify that such enterprise job employees are domiciliaries of an enterprise zone and shall advise the qualified business and the tax administrator of the same. A credit taken for employees pursuant to this subsection (b) shall not be entitled to a credit pursuant to subsection (a) hereof for said employees. ADD}
(b) Any tax credit as hereinbefore provided in subdivision (a), shall not offset any tax liability in taxable years other than the year in which the taxpayer qualifies for the credit. The credit 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.
(c) In the case of a corporation, the credit allowed under this section shall only be 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.
(d) In the case of multiple business owners, the credit hereinbefore provided in subdivision (a) shall be apportioned according to the ownership interests of the qualified business.
SECTION 2. This act shall take effect upon passage and become effective with the 1999 certification year.
