Introduced By: Senators Lenihan and Irons
Date Introduced : January 29, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Section 44-43.1-1 of the General Laws in Chapter 44-43.1 entitled "Small Business Tax Credit" is hereby amended to read as follows:
44-43.1-1. Small business tax credit. -- (a) For the purposes of this section, a "small business" means any corporation, partnership, sole proprietorship or other business entity qualifying as "small" under the standards contained in 13 C.F.R. section 121.
(b) Every small business formed under the laws of the state of
Rhode Island and operating within the state of Rhode Island shall
be entitled to claim as a credit against the tax imposed by chapters
11, 17 and 30 of this title any amount paid to the U.S. small
business administration (SBA) as a guaranty fee pursuant to the
obtaining of SBA guaranteed financing. This credit {DEL shall
be applicable only to the tax year in which the guaranty fee was
paid DEL} {ADD may be applied to the tax year in which the guaranty
fee was paid and any unused credit may be carried forward and
applied by the taxpayer for a maximum of four (4) subsequent tax
years ADD}; provided, however, the credit shall not reduce the
tax {ADD in any such tax year ADD} below the minimum tax where a
minimum tax is provided under this title, and shall be claimable
only by the small business which is the primary obligor in the
financing transaction and which actually paid the guaranty fee.
SECTION 2. This act shall take effect upon passage and will apply to the tax years beginning after December 31, 1997.
