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| 4 | 4 | | |
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| 5 | 5 | | 2023 -- H 5963 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC002160 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S TATE OF RHODE IS LAND |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2023 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO TAXATION -- TAX CREDIT BENEFIT VERIFICATION |
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| 16 | 16 | | Introduced By: Representatives Lima, Cardillo, and P. Morgan |
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| 17 | 17 | | Date Introduced: March 01, 2023 |
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| 18 | 18 | | Referred To: House State Government & Elections |
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| 19 | 19 | | |
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| 20 | 20 | | |
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| 21 | 21 | | It is enacted by the General Assembly as follows: |
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| 22 | 22 | | SECTION 1. Title 44 of the General Laws entitled "TAXATION" is hereby amended by 1 |
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| 23 | 23 | | adding thereto the following chapter: 2 |
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| 24 | 24 | | CHAPTER 71 3 |
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| 25 | 25 | | TAX CREDIT BENEFIT VERIFICATION 4 |
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| 26 | 26 | | 44-71-1. Benefit of tax credits to the State of Rhode Island to be verified. 5 |
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| 27 | 27 | | Any business applying for a tax credit pursuant to title 42 or title 44 shall comply with the 6 |
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| 28 | 28 | | provisions of this chapter relating to the nature of the tax credit benefits to the State of Rhode Island 7 |
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| 29 | 29 | | deriving from the issuance of tax credits to businesses. Any business applying for a tax credit shall 8 |
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| 30 | 30 | | provide the division of taxation with: 9 |
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| 31 | 31 | | (1) A waiver of confidentiality providing the division of taxation access to any and all 10 |
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| 32 | 32 | | business or financial records necessary to verify the benefit to the State of Rhode Island from the 11 |
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| 33 | 33 | | issuance of the tax credit to the business. 12 |
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| 34 | 34 | | (2) A signed affidavit indicating that the business shall turn over all financial records which 13 |
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| 35 | 35 | | are relevant to determine what the benefit to the State of Rhode Island is as a result of the issuance 14 |
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| 36 | 36 | | of the tax credit to the business. 15 |
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| 37 | 37 | | 44-71-2. Benefit of tax credits to the State of Rhode Island to be verified - Existing 16 |
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| 38 | 38 | | recipient's requirements. 17 |
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| 39 | 39 | | (a) Any business currently receiving a tax credit pursuant to title 42 or title 44 shall comply 18 |
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| 40 | 40 | | with the provisions of ยง44-71-1 by providing the division of taxation with a waiver of 19 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC002160 - Page 2 of 3 |
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| 44 | 44 | | confidentiality and an affidavit indicating that the business will provide all relevant business 1 |
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| 45 | 45 | | records necessary to verify benefits to the State of Rhode Island resulting from the issuance of the 2 |
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| 46 | 46 | | tax credit to the business. 3 |
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| 47 | 47 | | (b) Any business which fails to comply with the provisions of this chapter shall return to 4 |
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| 48 | 48 | | the State of Rhode Island an amount equal to the tax credit already given. 5 |
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| 49 | 49 | | 44-71-3. Rules and regulations. 6 |
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| 50 | 50 | | The tax administrator is authorized and empowered to promulgate rules and regulations 7 |
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| 51 | 51 | | necessary for the proper administration, implementation and enforcement of this chapter. 8 |
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| 52 | 52 | | SECTION 2. This act shall take effect upon passage. 9 |
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| 53 | 53 | | ======== |
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| 54 | 54 | | LC002160 |
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| 55 | 55 | | ======== |
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| 56 | 56 | | |
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| 57 | 57 | | |
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| 58 | 58 | | LC002160 - Page 3 of 3 |
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| 59 | 59 | | EXPLANATION |
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| 60 | 60 | | BY THE LEGISLATIVE COUNCIL |
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| 61 | 61 | | OF |
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| 62 | 62 | | A N A C T |
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| 63 | 63 | | RELATING TO TAXATION -- TAX CREDIT BENEFIT VERIFICATION |
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| 64 | 64 | | *** |
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| 65 | 65 | | This act would require business tax credit recipients to provide the state with financial 1 |
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| 66 | 66 | | business records to document any benefit to the state from the issuance of the tax credit. 2 |
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| 67 | 67 | | This act would take effect upon passage. 3 |
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| 68 | 68 | | ======== |
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| 69 | 69 | | LC002160 |
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| 70 | 70 | | ======== |
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