2023 -- H 5808
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LC001744
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO TAXATION -- RHODE ISLAND WOMEN'S EQUITY INCENTIVE ACT OF
2023
Introduced By: Representatives Donovan, Kazarian, Speakman, Alzate, Fenton-Fung,
Casimiro, Carson, Caldwell, Tanzi, and Messier
Date Introduced: February 22, 2023
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by 1
adding thereto the following chapter: 2
CHAPTER 48.4 3
RHODE ISLAND WOMEN'S EQUITY INCENTIVE ACT OF 2023 4
44-48.4-1. Short title. 5
This chapter shall be known and may be cited as the “Rhode Island Women’s Equity 6
Incentive Act of 2023.” 7
44-48.4-2. Findings and declaration. 8
(a) It is hereby found and declared that Rhode Island women continue to experience barriers 9
and challenges to economic security and prosperity despite their critical role in society and the 10
economy. Generally, they are paid less than men, are overrepresented in low-paying jobs and are 11
more likely to live in poverty. Without purposeful action, economic disparities can and will simply 12
reproduce themselves. 13
(b) Economic recovery depends on addressing longstanding discrimination and barriers 14
that have hampered women including women of color from fully participating in the labor force. 15
Persistent inequities in access to executive tracked careers and in innovation and STEM industries 16
prevent our economy from reaching its full potential. Our economy and our state is better off when 17
women are better off. 18
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(c) Through the establishment of the women’s equity incentive program, Rhode Island can 1
take steps to stimulate business expansion and attraction, create well-paying jobs for traditionally 2
underrepresented members of our workforce, and generate revenues for necessary state and local 3
governmental services. 4
44-48.4-3. Definitions. 5
As used in this chapter, unless the context clearly indicates otherwise, the following words 6
and phrases shall have the following meanings: 7
(1) “Business” means an applicant that is a corporation, state bank, federal savings bank, 8
trust company, national banking association, bank holding company, loan and investment 9
company, mutual savings bank, credit union, building and loan association, insurance company, 10
investment company, broker-dealer company or surety company, limited liability company, 11
partnership, or sole proprietorship. 12
(2) “Eligibility period” means the period in which a business may claim a tax credit under 13
the program, which shall be a calendar year. 14
(3) “Eligible position” or “full-time job” means a full-time position in a business which has 15
been filled with a full-time employee who earns no less than the median hourly wage as reported 16
by the United States Bureau of Labor Statistics for the State of Rhode Island. 17
(4) “Full-time employee” means a person who is employed by a business for consideration 18
for at least thirty-five (35) hours a week and whose wages are subject to withholding. 19
(5) “Targeted industry” means any industry identified in the economic development vision 20
and policy promulgated under § 42-64.17-1 or, until such time as any economic development vision 21
and policy is promulgated, as identified by the commerce corporation. 22
44-48.4-4. Rhode Island women's equity program. 23
(a) The Rhode Island women’s equity program is hereby established as a program under 24
the jurisdiction of and shall be administered by the division of taxation. The program shall provide 25
tax credits to eligible businesses for an eligibility period. 26
(b) An eligible business under the program shall be entitled to a credit against taxes 27
imposed pursuant to chapters 11, 13, 14, 17 or 30 of title 44 as further provided under this chapter. 28
(c) In the event that the attestation by the chief executive officer of the business, or 29
equivalent officer, required under subsection (d) of this section is found to be willfully false, the 30
division of taxation may revoke any award of tax credits in their entirety, which revocation shall 31
be in addition to any other criminal or civil penalties that the business and/or the officer may be 32
subject to under applicable law. Additionally, the division of taxation may revoke any award of tax 33
credits in its entirety if the eligible business is convicted of bribery, fraud, theft, embezzlement, 34
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misappropriation, and/or extortion involving the state, any state agency or political subdivision of 1
the state. 2
(d) The chief executive officer of the business shall provide a written attestation that the 3
documents and financial information provided by the business is true and accurate to the best of 4
their knowledge and belief. 5
44-48.4-5. Total amount of tax credit for eligible business. 6
The base amount of the tax credit for an eligible business for each new full-time job shall 7
be up to two thousand five hundred dollars ($2,500), annually. 8
44-48.4-6. Documentation. 9
(a) A business shall maintain documentation indicating that it has met the employment 10
requirements for the tax credit amount set forth in § 44-48.4-7. 11
(b) Full-time employment for an accounting or privilege period shall be determined as the 12
average of the monthly full-time employment for the period. 13
44-48.4-7. Credit for qualified women's equity program expenses. 14
(a) “Qualified expenses” and “base period expenses” have the same meaning as defined in 15
26 U.S.C. § 41; provided that, the expenses have been incurred in this state after July 1, 2023. 16
(b) The credit allowed under this section shall only be allowed against the tax of that 17
corporation included in a consolidated return that qualifies for the credit and not against the tax of 18
other corporations that may join in the filing of a consolidated return. 19
(c) In the event the taxpayer is a partnership, joint venture or small business corporation, 20
the credit is divided in the same manner as income. 21
44-48.4-8. Transfer or redemption of tax credits. 22
The division of taxation shall establish, by regulation, the process for the assignment, 23
transfer or conveyance of tax credits. 24
44-48.4-9. Administration. 25
The division of taxation shall adopt rules and regulations as are necessary to implement 26
this chapter. 27
44-48.4-10. Program integrity. 28
Program integrity being of paramount importance, the division of taxation shall establish 29
procedures to ensure ongoing compliance with the terms and conditions of the program established 30
herein, including procedures to safeguard the expenditure of public funds and to ensure that the 31
funds further the objectives of the program. 32
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SECTION 2. This act shall take effect upon passage. 1
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- RHODE ISLAND WOMEN'S EQUITY INCENTIVE ACT OF
2023
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This act would create the Rhode Island Women’s Equity Incentive Act of 2023 to address 1
the inequalities experienced by women in the workforce by offering tax credits up to two thousand 2
five hundred dollars ($2,500) per year to eligible businesses which create full-time jobs for women. 3
This act would take effect upon passage. 4
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