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:
{ADD CHAPTER 43.1
SMALL BUSINESS TAX CREDIT ADD}
{ADD 44-43.1-1. Small business tax credit. -- ADD} {ADD For the purposes of this section, a "small business" is defined as any corporation, partnership, sole proprietorship or other business entity qualifying as "small" under the standards contained in title 13, code of federal regulations, section 121.
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 shall be applicable only to the tax year in which the guaranty fee was paid provided, however, the credit shall not reduce the tax 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. ADD}
SECTION 2. This act shall take effect upon passage.