Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 20 - TAX CREDITS/DEDUCTIONS
Part 7 - Rules and Regulations for the Anchor Institution Tax Credit
Rule 5 - Definitions

(1)

"Act" means Chapter 64.30 of Title 42 of the General Laws known as the Anchor Institution Tax Credit Act.

(2)

"Affiliate" means an entity that directly or indirectly controls, is under common control with, or is controlled by a Business. Control exists in all cases in which the entity is a member of a controlled group of corporations as defined pursuant to section 1563 of the Internal Revenue Code of 1986 (26 U.S.C. § 1563) or the entity is an organization in a group of organizations under common control as defined pursuant to subsection (b) or (c) of section 414 of the Internal Revenue Code of 1986 (26 U.S.C. § 414). A Business may establish by clear and convincing evidence, as determined by the Corporation, that control exists in situations involving lesser percentages of ownership than required by those statutes.

(3) "Anchor Institution Tax Credit Fund" means the fund established pursuant to Section 42-64.30-8 of the General Laws.

(4) "Applicant" means a Business located in this State applying for a Tax Credit under the Act and these Rules.

(5) "Assignee" means an entity to whom a Tax Credit Certificate is assigned pursuant to these Rules.

(6) "Assignor" means a holder of a Tax Credit Certificate who assigns such Tax Credit Certificate to an Assignee.

(7) "Board" means the board of directors of the Corporation.

(8) "Business" means a corporation, state bank, federal savings bank, trust company, national banking association, bank holding company, loan and investment company, mutual savings bank, credit union, building and loan association, insurance company, investment company, broker-dealer company or surety company, limited liability company, partnership or other entity.

(9) "Certification" means the document issued to an Applicant by the Corporation certifying to the Tax Division the amount of the Tax Credit and taxable year in which such Tax Credit may be claimed, and such other information deemed appropriate by the Corporation.

(10) "Corporation" means the Rhode Island Commerce Corporation established pursuant to Chapter 64 of Title 42 of the General Laws.

(11) "Eligibility Period" means the period in which an Applicant may claim a Tax Credit under the Act, beginning with the tax period in which the Corporation accepts certification by the Applicant that it has played a substantial role in the decision of a Qualified Business to relocate to the State and extending thereafter for a term of five (5) years.

(12) "Final Application" means the application, promulgated by the Corporation, which must be completed and submitted by an Applicant, pursuant to the requirements of the Act and these Rules, in order for the Applicant to qualify for a Tax Credit under the Act.

(13) "Full-time Employee" means a natural person who is employed by a Business for consideration for at least thirty-five (35) hours a week, or who is employed by a professional employer organization pursuant to an employee leasing agreement between the Business and the professional employer organization for at least thirty-five (35) hours a week, and whose wages are subject to Rhode Island income tax withholding.

(14) "Hope Community" means a municipality for which the five (5) year average percentage of families with income below the federal poverty level exceeds the State five (5) year average percentage, both most recently reported by the U.S. Department of Commerce, Bureau of the Census.

(15) "Incentive Agreement" means the incentive agreement entered into between an Applicant and the Corporation pursuant to the Act.

(16) "Letter of Good Standing" means a letter from the Division of Taxation certifying that the taxpayer is in good standing for purposes of these Rules; a taxpayer shall be entitled to a letter of good standing so long as (1) the taxpayer is current on all outstanding filings and declared tax liabilities subject to audit; (2) the taxpayer and the Division of Taxation have a workout payment agreement or other settlement with respect to any known delinquent tax liability and the taxpayer is current on that workout payment agreement or settlement; or (3) the taxpayer has timely commenced or is engaged in an administrative or judicial proceeding concerning a tax liability the status of which would otherwise preclude the issuance of a letter of good standing.

(17) "New Facility" means the facility in the State where the Qualified Business adds the New Full-time Jobs required under sections 42-64.30-5(a)(1) and (2) of the General Laws.

(18) "New Full-time Job" means a position created by the Qualified Business that did not previously exist in the State. The term "New Full-time Job" does not include a position that is the result of an acquisition of an existing company located in the State by purchase, merger, or otherwise; or a position that is or was already located in the State regardless of the taxpayer for whom the individual performed services. For the purposes of determining the number of New Full-Time Jobs, the positions of an Affiliate of the Qualified Business shall be considered positions of the Qualified Business.

(19) "Notification of Assignment" means the notification filed with the Division of Taxation of the assignment of all or a portion of the Tax Credit.

(20) "Preliminary Application" means the application, promulgated by the Corporation, which must be completed and submitted by an Applicant.

(21) "Qualified Business" means a Business that supplies goods or services to an Applicant or is a material service provider or a material customer of an Applicant, or is an Affiliate of such supplier, service provider, or customer.

(22) "Qualifying Relocation" means a Qualified Business with the minimum number of employees as set forth in Section 42-64.30-5(a)(1) and (2) of the General Laws, which moves an existing facility to the State, moves into an existing facility in the State, or constructs a new facility in the State to supply goods or services to a Rhode Island Business. A Qualifying Relocation shall not include a Qualified Business's expansion in this State of a line of business that the Qualified Business or its Affiliate already operated in this State in the 12 months prior to the date of the Application.

(23) "Redevelopment Area" means an area designated as a redevelopment area in accordance with Section 45-32-4 of the General Laws.

(24) "Relocation Search" means the engagement by a business or its agent of a broker to identify a site or sites where the business could locate operations in the State, or the business or its agent initiating negotiations with persons who control a site or sites in this State about acquiring, leasing, or otherwise relocating to said site or sites, or an equivalent formal act taken by the business to identify such a site or sites.

(25) "Rhode Island Business" means a Business physically located in, and authorized to do business in the State.

(26) "State" means the State of Rhode Island and Providence Plantations.

(27) "Targeted Industry" means any advanced, promising or otherwise prioritized industry identified in the economic development vision and policy promulgated pursuant section 42-64.17-1 of the General Laws or, until such time as any such economic development vision and policy is promulgated, as identified by the Corporation from time-to-time and published on the Corporation's website.

(28) "Tax Credit" means a tax credit granted under the Act.

(29) "Tax Credit Certificate" or "Certificate" means a certificate issued by the Tax Division to an Applicant who has received a Certification from the Corporation substantiating compliance with an Incentive Agreement and entitlement to the issuance of Tax Credits under the Act.

(30) "Tax Division" means the Rhode Island Division of Taxation.