Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 70 - Sales and Use Tax
Part 59 - Qualifying Research and Development Firms (280-RICR-20-70-59)
Section 280-RICR-20-70-59.7 - Certificate

Universal Citation: 280 RI Code of Rules 20 70 59.7

Current through September 18, 2024

A. A qualifying firm may purchase equipment for the purpose of being used for research and development tax free by furnishing its suppliers with a research and development exemption certificate in the format attached. Provided, however;

1. If the equipment purchased partially qualifies for exemption and the qualifying firm knows the extent of the partial exemption, the qualifying firm shall give the vendor a Research and Development Exemption Certificate and file a use tax return with the Division of Taxation and pay a use tax based on the percentage of the nonexempt use of the equipment, or

2. If the equipment purchased partially qualifies for exemption and the qualifying firm does not know the extent of the partial exemption, it shall give the vendor a Research and Development

B. Exemption Certificate and file a use tax return with the Division of Taxation and pay use tax on the entire cost of the equipment.

C. If a qualifying firm files a use tax return under the provisions of §§ 59.7(A) or (B) of this Part above, it shall, twenty-four months thereafter, analyze the equipment usage to determine the actual exempt usage for that equipment. This shall be compared to the original estimate made and any balance due or credit due the qualifying firm must be reported on the next month's use tax return. Any balance due or credit due shall bear interest from time of original purchase.

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