Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 20 - TAX CREDITS/DEDUCTIONS
Part 13 - Daycare Assistance and Development Tax Credit (280-RICR-20-20-13)
Section 280-RICR-20-20-13.7 - Miscellaneous

A. In the case of a business corporation filing a consolidated return under the provisions of R.I. Gen. Laws Chapter 44-11, a credit will be allowed against the tax of only that corporation which qualifies for the credit and will not be allowed against the tax of other corporations that may join in the filing of the consolidated Rhode Island return.

B. The maximum annual credit for purchased daycare is $30,000 and the credit cannot reduce the tax payable to less than its applicable minimum. The balance of unused credit may not be carried forward to any subsequent year.

C. The maximum annual credit for daycare establishment and operation and for amounts foregone is $30,000 and the amounts of unused credits may be carried forward to the next 5 succeeding tax years.

D. The maximum total credit a taxpayer may apply against its taxes during any one tax year cannot exceed $30,000 regardless of the composition of the types of daycare items claimed.

E. Credits carried over to succeeding tax years may not be used if, during that time, the facility was operated for less than six months.

F. Calculations for sums expended, realty or tangible personalty, or for rentals/leases foregone for the purposes of claiming the Rhode Island credit DO NOT require recapture or recalculation of those items for federal income tax purposes except as provided federally.

G. If the employer or commercial landlord is a partnership, joint venture or small business corporation having an election in effect under subchapter S of the internal revenue code, the credit must be divided in the same manner as income.