2023 -- H 5963
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LC002160
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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 -- TAX CREDIT BENEFIT VERIFICATION
Introduced By: Representatives Lima, Cardillo, and P. Morgan
Date Introduced: March 01, 2023
Referred To: House State Government & Elections
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 71 3
TAX CREDIT BENEFIT VERIFICATION 4
44-71-1. Benefit of tax credits to the State of Rhode Island to be verified. 5
Any business applying for a tax credit pursuant to title 42 or title 44 shall comply with the 6
provisions of this chapter relating to the nature of the tax credit benefits to the State of Rhode Island 7
deriving from the issuance of tax credits to businesses. Any business applying for a tax credit shall 8
provide the division of taxation with: 9
(1) A waiver of confidentiality providing the division of taxation access to any and all 10
business or financial records necessary to verify the benefit to the State of Rhode Island from the 11
issuance of the tax credit to the business. 12
(2) A signed affidavit indicating that the business shall turn over all financial records which 13
are relevant to determine what the benefit to the State of Rhode Island is as a result of the issuance 14
of the tax credit to the business. 15
44-71-2. Benefit of tax credits to the State of Rhode Island to be verified - Existing 16
recipient's requirements. 17
(a) Any business currently receiving a tax credit pursuant to title 42 or title 44 shall comply 18
with the provisions of ยง44-71-1 by providing the division of taxation with a waiver of 19
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confidentiality and an affidavit indicating that the business will provide all relevant business 1
records necessary to verify benefits to the State of Rhode Island resulting from the issuance of the 2
tax credit to the business. 3
(b) Any business which fails to comply with the provisions of this chapter shall return to 4
the State of Rhode Island an amount equal to the tax credit already given. 5
44-71-3. Rules and regulations. 6
The tax administrator is authorized and empowered to promulgate rules and regulations 7
necessary for the proper administration, implementation and enforcement of this chapter. 8
SECTION 2. This act shall take effect upon passage. 9
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LC002160
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- TAX CREDIT BENEFIT VERIFICATION
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This act would require business tax credit recipients to provide the state with financial 1
business records to document any benefit to the state from the issuance of the tax credit. 2
This act would take effect upon passage. 3
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LC002160
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