Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 20 - TAX CREDITS/DEDUCTIONS
Part 12 - Elective Deduction for New Research and Development Facilities (280-RICR-20-20-12)
Section 280-RICR-20-20-12.1 - General

Universal Citation: 280 RI Code of Rules 20 20 12.1

Current through March 20, 2024

A. For taxable years beginning on or after July 1, 1974, at the election of a taxpayer who is subject to the income tax imposed by R.I. Gen. Laws Chapter 44-11 or 44-30, there shall be deducted from the portion of its entire net income allocated within this state, a one-year write-off of new research and development facilities, as described in R.I. Gen. Laws § 44-31-2, in lieu of depreciation or investment tax credit. The research and development deduction shall be allowed on all qualifying depreciable tangible property including buildings constructed, reconstructed, erected or acquired during the taxable year, provided, however, that a research and development deduction will be allowed against the entire net income of only that corporation, included in a consolidated Rhode Island tax return, that qualifies for the research and development deduction and will not be allowed against the entire net income of other corporations that may join in the filing of a consolidated Rhode Island tax return with such corporation.

B. In order to qualify for this deduction from allocated net income, the property must:

1. be new property (not used);

2. be depreciable pursuant to 26 U.S.C. § 179(d);

3. be acquired by purchase as defined in 26 U.S.C. § 179(d);

4. have a situs in this state;

5. be used or acquired for use by the taxpayer in Rhode Island in its trade or business for the purposes of research and development in the experimental or laboratory sense;

6. not have been allowed an election for amortization of air or water pollution control facilities;

7. not have been allowed an investment tax credit;

8. not be leased to or by the taxpayer.

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