It is enacted by the General Assembly as follows:
SECTION 1. Sections 44-46-1, 44-46-2 and 44-46-3 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. -- A taxpayer who
is an employer shall be allowed a credit, to be computed as
hereinafter provided, against the tax imposed by chapters 11{ADD ,
13, 14, 15, 17 ADD} and 30 of this title. The amount of the credit
shall be ten percent (10%) {ADD twenty-five percent (25%) ADD} of
the costs incurred solely and directly for non-worksite or
worksite-based adult education programs as hereinafter defined.
44-46-2. Definitions. -- (a) As used in this chapter, "worksite-based" means a physical location in this state at which the taxpayer conducts his or her normal trade or business {ADD and "nonworksite" means other than "worksite-based" ADD} .
(b) Adult education programs shall be limited to:
(1) Basic education, which shall consist of efforts to alleviate illiteracy and provide opportunities for academic achievement up to grade twelve (12) and which shall include instruction in reading, writing, arithmetic, literature, social studies, science, pre-vocational subjects, and other knowledge and skills necessary to cope in contemporary life; courses in Americanization and citizenship for immigrants; teaching English to persons with no or limited ability with the language; and preparation for the demonstration of competencies to qualify for the adult high school diploma or for examinations to earn the general educational development or high school equivalency diploma; and
(2) Vocational training, which shall consist of the imparting of knowledge and skills necessary to become gainfully employed, at least at entry level, in a recognized occupation, and thus attain economic self-sufficiency, and which shall be conveyed by classroom instruction, on-the-job training, and apprenticeships.
(c) An employer means a person, corporation, partnership, estate, or trust subject to the provisions of section 44-30-71.
{ADD (d) Paid employment shall mean a period of time during which an employee has been hired by a business and is receiving wages for his or her services. ADD}
44-46-3. Credits. -- 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) against taxes otherwise due under provisions of chapters 11{ADD , 13, 14, 15, 17 ADD} and 30 of this title {ADD per paid employee ADD}. {ADD 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. ADD} 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 the 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.
SECTION 2. Chapter 44-46 of the General Laws entitled "Adult Education Tax Credit" is hereby amended by adding thereto the following sections:
{ADD 44-46-7. Limit. -- ADD} {ADD The maximum credit per calendar year per employer allowable under this chapter is one thousand dollars ($1,000). ADD}
{ADD 44-46-8. Certificates. -- ADD} {ADD A business shall not be allowed a credit under this chapter for any taxable year unless the business obtains a written certificate from the division of taxation. ADD}
SECTION 3. This act shall take effect January 1, 1997.
