Introduced By: Senators Enos, Algiere and Gibbs
Date Introduced : February 9, 1999
It is enacted by the General Assembly as follows:
SECTION 1. Sections 42-64.3-6 and 42-64.3-10 of the General Laws in Chapter 42-64.3 entitled "Distressed Areas Economic Revitalization Act" are hereby amended to read as follows:
42-64.3-6. Business tax credits. -- A qualified business in an enterprise zone is allowed a credit against the tax imposed pursuant to chapters 11, 13 (except the taxation of tangible personal property under section44-13-13), 14, 17, and 30 of title 44:
(1) A credit equal to fifty percent (50%) of the total amount
of wages paid to those enterprise job employees comprising the
five percent (5%) new jobs referenced in section {DEL 42-64.3-3(d) DEL}
{ADD 42-64.3-3(4)(i)(A) ADD}. The wages subject to the credit shall
be reduced by any direct state or federal wage assistance paid
to employers for the 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.
(2) A credit equal to seventy five percent (75%) of the total
amount of wages paid to those enterprise job employees who are
domiciliaries of an enterprise zone comprising the five percent
(5%) new jobs referenced in section {DEL 42-64.3-3(d) DEL}
{ADD 42-64.3-3(4)(i)(A) ADD}. 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 is not eligible for the resident business owner modification.
The council shall promulgate appropriate rules to certify that
the enterprise job employees are domiciliaries of an enterprise
zone and shall advise the qualified business and the tax administrator.
A taxpayer taking a credit for employees pursuant to {DEL this DEL}
subsection {DEL (b) DEL} {ADD (2) ADD} shall not be entitled
to a credit pursuant to subsection {DEL (a) DEL} {ADD (1) ADD}
for the employees.
(3) {DEL Any tax credit provided in subdivision (1) shall
not offset any tax liability in taxable years other than the year
in which the taxpayer qualifies for the credit. The DEL} {ADD Any
tax ADD} credit {ADD as hereinbefore provided in subsection (1) or
(2) ADD} 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.
(4) In the case of a corporation, the credit allowed under this section is only 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.
(5) In the case of multiple business owners, the credit provided
in {DEL subdivision (1) DEL} {ADD subsection (1) or (2) ADD}
is apportioned according to the ownership interests of the qualified
business.
{ADD (6) The tax credits established pursuant to this section may be carried forward for a period of three (3) years if in each of the three (3) calendar years a business which has qualified for tax credits hereunder (a) does not reduce the number of its employees from the last Effective Date of Certification; (b) obtains certificates of good standing from the Rhode Island Division of Taxation, the corporations division of the Rhode Island Secretary of State and the appropriate municipal tax collector; (c) provides the Council an affidavit stating under oath that such business has not within the preceding twelve (12) months changed its legal status for the purpose of gaining favorable treatment under the provisions of chapter 64.3 of this title; and (d) meets any other requirements as may be established by the Council in its rules and regulations. ADD}
42-64.3-10. Additional rules and regulations. --
The state tax administrator {DEL of the state DEL} shall
promulgate appropriate rules or regulations to insure the proper
administration of the taxation provisions of this chapter. The
council shall promulgate appropriate rules or regulations to certify
qualified businesses and {DEL annually establish income requirements
to certify workers DEL} {ADD to determine that a business is
entitled to carry forward tax credits as provided in section 42-64.3-6
ADD}and shall advise the tax administrator {DEL of the same DEL}
{ADD and taxpayers ADD} of these rules and regulations and shall
promulgate any other rules and regulations that may be necessary
to carry out the provisions of this chapter.
SECTION 2. This act shall take effect upon passage and becomes effective with credits from the 2000 certification year.
