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-20-20-12.7 - Recomputation

Universal Citation: 280 RI Code of Rules 20 20 12.7

Current through September 18, 2024

A. A recomputation of a portion of the research and development deduction is required where property on which such deduction has been allowed is used for purposes other than research and development to a greater extent than originally reported, except where the property was in qualified use in Rhode Island for its entire useful life. As used in R.I. Gen. Laws § 44-32-1(1)(a) and this paragraph, the phrase "purposes other than research and development" includes any change in use of the property in whole or in part from that which originally qualified the property for the research and development deduction. For the purpose of this paragraph, the useful life of the property shall be the same as the taxpayer uses for depreciation purposes when computing the federal tax liability.

B. The following are examples of events that may require a recomputation of the research and development deduction:

1. Liquidation or legal dissolution;

2. Exchange of property;

3. Foreclosure of a security interest;

4. Retirement prior to expiration of useful life;

5. Involuntary conversion arising from fire, storm, shipwreck, or other casualty, or from theft;

6. Leasing property;

7. Removal of property from Rhode Island;

8. Termination of ownership interest;

9. Reduction or cessation of qualified use;

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