Rhode Island 2023 Regular Session

Rhode Island House Bill H5804 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 5804
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7	7	LC001310
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
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13	13
14	14	A N A C T
15	15	RELATING TO TAXATION -- TAX CREDITS FOR CONTRIBUTIONS TO SCHOLARSHIP
16	16	ORGANIZATIONS
17	17	Introduced By: Representatives Rea, Hull, J. Brien, Casey, Edwards, Quattrocchi,
18	18	Newberry, Place, Nardone, and Chippendale
19	19	Date Introduced: February 22, 2023
20	20	Referred To: House Finance
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23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Sections 44-62-3 and 44-62-6 of the General Laws in Chapter 44-62 entitled 1
25	25	"Tax Credits for Contributions to Scholarship Organizations" are hereby amended to read as 2
26	26	follows: 3
27	27	44-62-3. Application for the tax credit program. 4
28	28	(a) Prior to the contribution, a business entity shall apply in writing to the division of 5
29	29	taxation. The application shall contain such information and certification as the tax administrator 6
30	30	deems necessary for the proper administration of this chapter. A business entity shall be approved 7
31	31	if it meets the criteria of this chapter; the dollar amount of the applied for tax credit is no greater 8
32	32	than one hundred thousand dollars ($100,000) in any tax year, and the scholarship organization that 9
33	33	is to receive the contribution has qualified under § 44-62-2. 10
34	34	(b) Approvals for contributions under this section shall be made available by the division 11
35	35	of taxation on a first-come-first-serve basis consistent with § 44-62-3(f). The total aggregate 12
36	36	amount of all tax credits approved shall not exceed one million five hundred thousand dollars 13
37	37	($1,500,000) in a fiscal year; provided that, the total aggregate amount of all tax credits approved 14
38	38	shall not exceed five million dollars ($5,000,000) in fiscal year 2024 and shall thereafter increase 15
39	39	by fifteen percent (15%) following any fiscal year in which applications by eligible business entities 16
40	40	exceed approved contributions by ten percent (10%). 17
41	41	(c) The division of taxation shall notify the business entity in writing within thirty (30) 18
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45	45	days of the receipt of application of the division’s approval or rejection of the application. 1
46	46	(d) Unless the contribution is part of a two-year plan, the actual cash contribution by the 2
47	47	business entity to a qualified scholarship organization must be made no later than one hundred 3
48	48	twenty (120) days following the approval of its application. If the contribution is part of a two-year 4
49	49	plan, the first year’s contribution follows the general rule and the second year’s contribution must 5
50	50	be made in the subsequent calendar year by the same date. 6
51	51	(e) The contributions must be those charitable contributions made in cash as set forth in 7
52	52	the Internal Revenue Code. 8
53	53	(f) Approvals shall be made available first to applications for the continued participation 9
54	54	of eligible students already attending qualified schools through the scholarship program described 10
55	55	in this section, provided that the division of taxation may treat any contribution amount from a 11
56	56	single business entity to support additional scholarships as a separate application. 12
57	57	44-62-6. Definitions. 13
58	58	The following words and phrases used in this chapter shall have the meanings given to 14
59	59	them in this section unless the context clearly indicates otherwise: 15
60	60	(1) “Business entity” means an entity authorized to do business in this state and subject to 16
61	61	taxes imposed under chapters 44-11, 44-13, 44-14, 44-15 and 44-17 of the general laws. Business 17
62	62	entities also include Subchapter S Corporations, Limited Liability Partnerships, and Limited 18
63	63	Liability Corporations. 19
64	64	(2) “Division of taxation” means the Rhode Island division of taxation. 20
65	65	(3) "Eligible business entity" means any business entity whose application to make a 21
66	66	contribution to the program created by this section would be approved if said approval would not 22
67	67	exceed the limit described in § 44-62-3(b). 23
68	68	SECTION 2. This act shall take effect upon passage. 24
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75	75	EXPLANATION
76	76	BY THE LEGISLATIVE COUNCIL
77	77	OF
78	78	A N A C T
79	79	RELATING TO TAXATION -- TAX CREDITS FOR CONTRIBUTIONS TO SCHOLARSHIP
80	80	ORGANIZATIONS
81	81	***
82	82	This act would increase the total aggregate amount of tax credits for contributions to 1
83	83	scholarship organizations by a business entity meeting the requisite criteria to five million dollars 2
84	84	($5,000,000) in fiscal year 2024. This act would also include a new definition for an "eligible 3
85	85	business entity". 4
86	86	This act would take effect upon passage. 5
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