It is enacted by the General Assembly as follows

SECTION 1. Sections 44-46-1, 44-46-3, and 44-46-7 of the General Laws in Chapter 44-46 entitled "Adult Education Tax Credit" are hereby amended to read as follows:

44-46-1. Adult education tax credit. -- Effective January 1, 1997. -- A taxpayer who is an employer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by chapters 11, 13, 14, 15, 17 and 30 of this title. The amount of the credit shall be twenty-five percent (25%) {ADD fifty percent (50%) ADD} of the costs incurred solely and directly for nonworksite or worksite-based adult education programs as hereinafter defined.

44-46-3. Credits. Effective January 1, 1997. -- An employer shall be allowed a credit as provided in section 44-46-1 above up to a maximum credit of two hundred dollars ($200.00) {ADD three hundred dollars ($300) ADD} against taxes otherwise due under provisions of chapters 11, 13, 14, 15, 17 and 30 of this title per paid employee. The employee must remain in the employ of the business for a minimum period of thirteen (13) consecutive weeks, and a minimum of four hundred and fifty-five (455) hours of paid employment before the employer can become eligible for the income credit. The credit shall not reduce the tax under chapter 44-11 to less than one hundred dollars ($100.00). The credit is not refundable. Any amount of credit not deductible in that taxable year may not be carried over to the following year. In the event that the employer is a partnership, joint venture or small business corporation, the credit shall be divided in the same manner as income. This credit may not be applied against the tax until all other credits available to this taxpayer for the taxable year has been applied.

44-46-7. Limit. Effective January 1, 1997. -- The maximum credit per calendar year per employer allowable under this chapter is one thousand dollars ($1,000) {ADD five thousand dollars ($5,000) ADD} .

SECTION 2. This act shall take effect January 1, 1998.