(a)  In computing his or her annual tax liability pursuant to the provisions of chapter 11 or 30 of title 44, a domiciliary of an enterprise zone who owns and operates a qualified business facility in that zone and which business is not required to file under chapter 11, 13, 14 or 17 of title 44 may:

(1)  For the first three (3) years after certification, whether or not consecutive, deduct fifty thousand dollars ($50,000) per year as a modification reducing federal adjusted gross income; and

(2)  For the fourth and fifth years after certification, whether or not consecutive, deduct twenty-five thousand dollars ($25,000) per year as a modification reducing federal adjusted gross income.

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Terms Used In Rhode Island General Laws 42-64.3-7

  • business facility: means any business corporation, sole proprietorship, partnership, or limited partnership or limited liability company which:

    (A)  After the date of its original application for membership in the enterprise zone program or the date annual membership is renewed creates and hires a minimum of five percent (5%) new or additional enterprise jobs or in the case of a company having twenty (20) employees or less, this requirement shall be that the company create and hire one new or additional enterprise job, in the respective zone during the same certification year; and

    (B)  Whose total Rhode Island wages including those Rhode Island wages for additional enterprise jobs, exceeds the total Rhode Island wages paid to its employees in the prior calendar year; and

    (C)  Obtains certificates of good standing from the Rhode Island division of taxation, the corporations division of the Rhode Island secretary of state and the appropriate municipal authority at the time of certification; and

    (D)  Provides the council with an affidavit stating under oath that the entity seeking certification as a qualified business has not within the preceding twelve (12) months from the date of application for certification changed its legal status for the purpose of gaining favorable treatment under the provisions of chapter 64. See Rhode Island General Laws 42-64.3-3

  • zone: means an economically distressed United States bureau of the census division or delineation in need of expansion of business and industry, and the creation of jobs, which is designated to be eligible for the benefits of this chapter. See Rhode Island General Laws 42-64.3-3

(b)  Any modification provided in subdivisions (1) and (2) of subsection (a) shall not be available in taxable years other than the year in which the taxpayer qualifies for tax modification.

(c)  In the case of multiple business owners, the modifications provided in subdivisions (1) and (2) of subsection (a) shall be apportioned according to the ownership interests of the domiciliary owners of the qualified business.

(d)  A taxpayer who elects this modification shall not be eligible for the business tax credits under § 42-64.3-6.

History of Section.
P.L. 1982, ch. 396, § 1; P.L. 1991, ch. 340, § 1; P.L. 1994, ch. 176, § 1; P.L. 1997, ch. 68, § 1.