(a) A taxpayer is allowed a ten percent (10%) credit against taxes due under the provisions of chapter 11, 13, 14, 17, or 30 of title 44 for interest earned and paid on loans made to eligible businesses as defined in § 42-64.9-4 of this chapter, solely and exclusively for expenditures within the certified building.
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Terms Used In Rhode Island General Laws 42-64.9-9
- Certified building: means a building with respect to which the council has issued a written notice of final designation as a certified building pursuant to the provisions of Rhode Island General Laws 42-64.9-4
- Certified building owner: means an individual, partnership, corporation, limited liability company or other entity which is listed in the appropriate municipal records of land evidence as the owner of a certified building, and may include one or more successors in title to the owner of the building at the time the building received written notice of final designation as a certified building pursuant to Rhode Island General Laws 42-64.9-4
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Substantial rehabilitation: means rehabilitation or reconstruction costs of a certified building in a dollar amount that equals or exceeds twenty percent (20%) of the market value of the certified building prior to rehabilitation or reconstruction, as said prior market value is determined by a Rhode Island licensed and certified appraiser who is independent of the certified building owner or owners and their affiliated corporations, and/or any tenants of the certified building and their affiliated corporations. See Rhode Island General Laws 42-64.9-4
(b) The taxpayer is further allowed a one hundred percent (100%) credit against taxes due under chapter 11, 13, 14, 17, or 30 of title 44 for interest earned on loans made solely and exclusively for the purposes of substantial rehabilitation as defined in § 42-64.9-4(13).
(c) Any tax credit herein provided shall not offset any tax liability in taxable years other than the year in which the taxpayer qualifies for the credit. The credit shall not reduce the tax below the minimum, and, in the case of a corporation, shall only be allowed against the tax of that corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return.
(d) The taxpayer is allowed a maximum credit of ten thousand dollars ($10,000) per taxable year under subsection (a) of this section. The taxpayer is allowed a maximum credit of twenty thousand dollars ($20,000) per taxable year under subsection (b).
(e) In the event a certified building owner is also a qualified business under chapter 64.3 of this title, the lender/taxpayer must elect to treat the loan described in subsection (a) and its related interest payments as pertaining to the interest credit provided in this section.
History of Section.
P.L. 2004, ch. 277, § 1; P.L. 2004, ch. 284, § 1; P.L. 2005, ch. 410, § 22.
