2003 -- S 0013

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LC00179

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2003

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A N A C T

RELATING TO TAXATION

     Introduced By: Senators Tassoni, Lanzi, Ciccone, and Badeau

     Date Introduced: January 14, 2003

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Title 44 of the General Laws entitled "Taxation" is hereby amended by

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adding thereto the following chapter:

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     CHAPTER 46.1

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SCHOOL -TO - CAREER PROGRAM TAX CREDIT

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     44-46.1-1. Short title. - - This chapter shall be known and may be cited as the “Rhode

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Island School-to-Career Program Tax Credit Act of 2003.”

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     44-46.1-2. Legislative findings. - - The state of Rhode Island recognizes that businesses

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need a highly skilled, educated, and motivated work force to maintain a strong economy.

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Therefore, the state encourages private investment into programs which will facilitate a

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comprehensive school-to-career program. The program will integrate traditional classroom

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education with industry skill training. It is the intent of the legislature to create a partnership

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between private business and public education, which will create opportunities for students in

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tomorrow’s work force.

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     44-46.1-3. Definitions as used in this chapter. -- (a) “Qualified investment” means

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money directly expended for wages, workers’ compensation insurance, unemployment insurance,

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and training expenses to employ a student or teacher to work or to allow a student or teacher to

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participate in an internship, externship or apprenticeship through a qualified school-to-career

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program.

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     (b) “Qualified School-to-Career program” means a program that integrates school

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curriculum with industry skill training, that encourage placement of students or teachers in jobs,

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apprenticeships, internships, externships or post secondary training that will teach them new skills

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and techniques to improve their performance, and that have been approved by:

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     (1) The school committee of the school district in which the program is operational; or

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     (2) The Rhode Island department of education; or

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     (3) The Rhode Island department of labor; or

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     (4) The Rhode Island department of higher education.

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     (c)“Qualified employer” means an employer who incurs qualified expenses in a qualified

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school-to-career program.

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     44-46.1-4. Credits. -- (a) For income tax years beginning on or after January 1, 2003, an

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employer shall be allowed a credit equal to ten percent (10%) of the total qualified expenses made

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in a qualified school-to-career program. The maximum amount of credit per qualified employer

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shall not exceed two hundred dollars ($200) per tax year.

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     (b) If the amount of the credit provided for pursuant to subsection (a) of this section

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exceeds the amount of taxes due in the tax year for which the credit is being claimed, the amount

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of the credit not used shall not be refunded but may be carried forward as a credit against

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subsequent years’ tax liability for a period not exceeding three (3) years and shall be applied first

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to the earliest tax years possible. Any amount of credit that is not used during said period shall

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not be refundable to the taxpayer.

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     (c) Limitation -- The credit allowed pursuant to this chapter shall not reduce the liability

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of the employer for the tax imposed by chapters 11, 13, 14, 17 and 30 of title 44, in any year

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below the minimum tax where a minimum tax is provided under this title.

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     44-46.1-5. Administration. -- The tax administrator shall make available suitable forms

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with instructions for claiming the credit. The claim shall be in such form as the tax administrator

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may prescribe. The tax administrator may prescribe rules and regulations, not inconsistent with

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law, to carry into effect the provisions of this chapter.

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     44-46.1-6. Accounting. -- An itemized accounting of the costs and an affidavit attesting

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to the facts thereof shall be furnished by the claimant taxpayer to the division of taxation.

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     SECTION 2. This act shall take effect upon passage.

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LC00179

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION

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     This act would provide a tax credit of ten percent (10%) of the expenses, up to two

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hundred dollars ($200) to private businesses which participate in a “Qualified School-to-Career

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Program.”

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     This act would take effect upon passage.

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LC00179

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