R.I. Gen. Laws § 44-48.3-8 — Carry forward, transfer or redemption of tax credits, redemption fund

(a) If the amount of the tax credit allowed under this chapter exceeds the taxpayer’s
total tax liability for the year in which the credit is allowed, the amount of such
credit that exceeds the taxpayer’s tax liability may be carried forward and applied
against the taxes imposed for the succeeding four (4) years, or until the full credit
is used, whichever occurs first. Credits allowed to a partnership, a limited liability
company taxed as a partnership, or multiple owners of property shall be passed through
to the persons designated as partners, members or owners respectively pro rata or
pursuant to an executed agreement among such persons designated as partners, members
or owners documenting an alternate distribution method without regard to their sharing
of other tax or economic attributes of such entity.
(b) The commerce corporation shall establish, by regulation, the process for the assignment,
transfer or conveyance of tax credits.
(c) For purposes of this chapter, any assignment or sales proceeds received by the taxpayer
for its assignment or sale of the tax credits allowed pursuant to this section shall
be exempt from taxation under title 44. If a tax credit is subsequently revoked or
adjusted, the seller’s tax calculation for the year of revocation or adjustment shall
be increased by the total amount of the sales proceeds, without proration, as a modification
under chapter 30 of title 44. In the event that the seller is not a natural person, the seller’s tax calculation
under chapters 11, 13, 14, or 17 of title 44, as applicable, for the year of revocation,
or adjustment, shall be increased by including the total amount of the sales proceeds
without proration.
(d) The tax credit allowed under this chapter may be used as a credit against corporate
income taxes imposed under chapters 11, 13, 14, or 17 of title 44, or as determined
by the commerce corporation may be used as a credit against personal income taxes
imposed under chapter 30 of title 44. No more than the amount of tax credits equal to the total credit amount divided
by the duration of the eligibility period in years may be taken in any tax period.
(e) Prior to assignment or transfer of a tax credit granted under this chapter, the division
of taxation shall, at the request of the business, redeem such credit in whole or
in part for ninety percent (90%) of the value of the tax credit with monies in the
jobs tax credit redemption fund created under subsection (f) of this section. The
division of taxation shall establish by regulation a redemption process for tax credits.
(f) The division of taxation is hereby authorized and empowered to segregate taxes collected
as a result of the creation of new full-time jobs under this chapter and transfer
such amounts to the general treasurer for deposit in a restricted account known as
the jobs tax credit redemption fund. The jobs tax credit redemption fund shall be
used solely to pay for the redemption of tax credits granted under this chapter. The
director of the department of revenue shall annually determine if a surplus exists
in the job tax credit redemption fund over amounts necessary to redeem tax credits
in a fiscal year and may authorize the general treasurer to transfer any surplus to
the general fund.
(g) The unexpended balance of such sum of money received and appropriated for the jobs
tax credit redemption fund remaining in the treasury at the close of each fiscal year,
shall be continued to and is hereby annually appropriated for the same account for
the ensuing year.
(h) The commerce corporation shall have no obligation to make any award or grant any benefits
under this chapter.