870-RICR — Commerce Corporation

Chapter 10 General

Subchapter 00

870-RICR-10-00-1 Rules and Regulations for the Expedited Permit Process

870-RICR-10-00-1 § 1.1 Purpose

The State of Rhode Island and Providence Plantations, in an effort to create new high wage job opportunities in Rhode Island, to create new or renovated office, research and manufacturing space capacity in Rhode Island, to promote a vigorous and growing economy, to prevent economic stagnation, to encourage the creation of new job opportunities, to reduce the level of public assistance, and to increase revenues to the State and its municipalities, has developed an expedited permit review process, as set forth in R.I. Gen. Laws § 42-117-1 et seq., for projects of critical economic concern. The purpose of these rules and regulations is to implement the requirements of R.I. Gen. Laws Chapter 42-117 to provide a mechanism for business and industry to secure any necessary licenses or permits in an expeditious manner without waiving the lawful conditions of said licenses or permits.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.2 Legal Authority

These rules and regulations are promulgated pursuant to the requirements and provisions of the Expedited Permit Process Act, R.I. Gen. Laws § 42-117-1 et seq., and the Administrative Procedures Act, R.I. Gen. Laws § 42-35-1 et seq.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.3 Definitions

A.For the purposes of these regulations, the following terms shall have the following meanings:

1.“Authorization for expedited permit review” or “Authorization” means an authorization issued by the Rhode Island Commerce Corporation (or “Corporation”) as set forth in R.I. Gen. Laws § 42-117-4.

2.“Board of directors of the Rhode Island Commerce Corporation” or “Board” means the board of directors of the Corporation established pursuant to R.I. Gen. Laws § 42-117-4 et. seq.

3.“Governor” means the Governor of the State of Rhode Island and Providence Plantations (or “State”).

4.“High wage full time employee” or “High wage employee” means any employee of a person or an employee of a contractor of such person as certified pursuant to these regulations who:

a.was not previously working full time in Rhode Island for the Project’s applicant and will work a minimum of thirty (30) hours per week at the Project; and

b.will earn no less than One Hundred Five Percent (105%) of the average annual income in Rhode Island.

5.“Operational stage” means the point at which the project is implemented and the Project’s effect is realized.

6.“Person” means any natural person, company, corporation, quasi-public corporation, partnership, or any business entity.

7.“Project of critical economic concern” or “Project” means an undertaking designated by the Board to be significant, in its Operational Stage, by its ability to enhance, promote and encourage business, commerce and manufacturing in Rhode Island and stimulate jobs and relieve underemployment and unemployment in Rhode Island pursuant to R.I. Gen. Laws § 42-117-3 and to create new high wage job opportunities in Rhode Island or to create new or renovated office, research and manufacturing capacity in Rhode Island. In order to qualify as a Project, the applicant shall demonstrate to the Corporation’s satisfaction that:

a.In addition to any construction jobs at the Project,

(1)at least One Hundred (100) new full times jobs shall be created by the Project; and

(2)the average annual income for all of the new full time jobs created by the Project shall be no less than One Hundred Five Percent (105%) of the State’s average annual income; and

(3)no less than Fifty Percent (50%) of the new full time jobs created by the Project shall be comprised of High Wage Employees; or

b.the Project shall be comprised of the construction or rehabilitation of no less than Fifty Thousand (50,000) Square Feet of space that is used for office, research or manufacturing uses and such office, research, industrial or manufacturing uses shall comprise no less than Fifty Percent (50%) of the total Project; and

c.The municipality (ies) in which the Project is located have demonstrated support for the Project and have utilized their municipal powers to coordinate permitting of the Project to the maximum extent reasonably allowed by law.

8.“State agency” means any office, department, board, commission, bureau, division, authority, public corporation, agency or instrumentality of the State.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.4 Request for Authorization for Expedited Permit Review

A.All requests for an Authorization shall be submitted to the Corporation, on application forms that may be obtained from the Corporation. Requests shall describe how the proposed Project will enhance, promote and encourage business, commerce and industry, stimulate jobs and relieve underemployment and unemployment in Rhode Island.

B.Each request for an Authorization shall be accompanied by

1.a completed application for a state agency permit;

2.a certification from such person applying for an Authorization and/or its tenant(s) reflecting the employment or development requirements set forth in these Regulations and evidence reasonably satisfactory to the Corporation that such requirements are reasonably anticipated to be achieved by the Project; and

3.plans reflecting the Project’s conformance with § 1.3(A)(7) of this Part.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.5 Procedure for Review

A.The Board shall review the request for an Authorization at a regularly scheduled meeting, provided a completed application is received at least two weeks prior to a meeting, enabling the Expedited Permit Process Review Committee to review it and prepare a recommendation to the Board. The Expedited Permit Process Review Committee shall consist of:

1.A Deputy Director of the Rhode Island Commerce Corporation

2.A designated Rhode Island Commerce Corporation Project Manager

3.Rhode Island Commerce Corporation Corporate Counsel

B.Pursuant to R.I. Gen. Laws § 42-117-4, the Board shall issue a written decision within forty-five (45) days of its receipt of a complete request. If the Board finds the proposed project to be a Project of Critical Economic Concern, the Corporation shall issue an Authorization. If not, the Authorization shall be denied.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.6 No Right to Review

A review for an Authorization shall not constitute a “contested case” under the Administrative Procedures Act, R.I. Gen. Laws § 42-35-9. No opportunity to object to a request shall be afforded, nor shall judicial review be available from a decision rendered by the Board.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.7 Reconsideration of Board Decision

A.Any affected person may request in writing reconsideration of the Board’s decision. Requests for reconsideration will be granted only where it can be demonstrated that there have been:

1.significant changes in the proposed project’s ability to meet the criteria as set forth in § 1.3(A)(7) of this Part, or

2.significant changes in factors or circumstances relied upon by the Board in reaching its decision.

B.The Board shall consider the request for reconsideration at its next regularly scheduled meeting.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.8 Validity of Authorization

An Authorization shall be valid as to each and every state agency by which the Project must be licensed or permitted until the Project reaches its Operation stage, or two (2) years from the date of issuance, unless extended for an additional period of up two (2) years at the discretion of the Corporation’s Executive Director. Upon written request to the Executive Director, the Corporation may, at its discretion, reissue a valid Authorization to a successor in interest, upon an affirmative finding by the Executive Director that the project continues to meet the criteria for authorization.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.9 Rescission of Authorization

A.The Corporation may, by majority vote of the Board, revoke any Authorization upon finding that:

1.The Project has been significantly altered in size, scope or impact since the Corporation’s issuance of the Authorization; or

2.A state agency permit application has not been filed within three (3) months of the date of the Authorization’s issuance.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.10 Action by State Agency

An Authorization may be filed with each and every state agency with licensing or permitting authority over a Project. The state agency shall give priority to the Project in the handling and processing of the application in accordance with R.I. Gen. Laws § 42-117-6 so that within three (3) months of submission of a substantially complete application, the state agency must render a written report on the status of the application. The report shall contain information, which will enable the person to make a sound business decision as to whether to proceed with the application. The report shall be delivered to the applicant and the Corporation. If the applicant is not granted, then the state agency shall on the fourth, fifth, and sixth months of the anniversary of the submission render a written report on the status of the application. If at the end of the sixth month, a decision has not been rendered on the application, then, in addition to the applicant and the Corporation, a copy of the written report shall be delivered by the agency monthly thereafter to the Governor until a decision to accept or reject the application has been made.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.11 Liberal Application

The terms and provisions of these rules and regulations shall be liberally construed to allow the Board and Corporation to effectuate the purposes of state laws, goals, and policies.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.12 Performance

An entity which has been granted a Certificate of Critical Economic Concern shall provide a report to the Rhode Island Commerce Corporation certifying that it has met the job projections, tax generation, and other provisions stated in the application which justified the approval of the Certificate, in accordance with the timeframe specified in the application. This report shall be made at the time of completion of the project, or, for phased projects, at the completion of each phase.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.13 Penalties

An entity failing to meet the jobs projections, tax generation, and other provisions state in the application that justified the approval of the Certificate shall be subject to a revocation of the Certificate and any other penalties permitted by law.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

870-RICR-10-00-1 § 1.14 Severability

If a court of competent jurisdiction invalidates any provision of these rules and regulations, or their application to any local government unit or circumstance, the remaining rules and regulations will not be affected. The invalidity of any selection or sections, or parts of any section or sections, shall not affect the validity of the remainder of these rules and regulations.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2008-05-22 to 01/04/2022
Technical Revision — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2008-05-22 to 05/22/2008
Amendment — effective from 2004-11-08 to 05/22/2008
Amendment — effective from 2002-03-21 to 11/08/2004
Periodic Refile — effective from 2002-01-02 to 03/21/2002

Chapter 20 Loans and Grants

Subchapter 00

870-RICR-20-00-1 Rules and Regulations for the Renewable Energy Development Fund Programs

870-RICR-20-00-1 § 1.1 Authority

These Rules and Regulations are promulgated and adopted pursuant to the requirements and provisions of R.I. Gen. Laws §§ 42-64-13.2; 39-2-1.2; and R.I. Gen. Laws Chapter 39-26.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2019-02-21 to 01/04/2022
Technical Revision — effective from 2017-01-26 to 02/21/2019
Amendment — effective from 2017-01-26 to 01/26/2017
Technical Revision — effective from 2014-01-09 to 01/26/2017
Adoption — effective from 2014-01-09 to 01/09/2014

870-RICR-20-00-1 § 1.2 Purpose, Scope and Applicability

A.The purpose and scope of the Renewable Energy Development Fund as set forth in R.I. Gen. Laws Chapter 42-64 are as follows:

1.To develop an integrated organizational structure to secure for the State of Rhode Island and its people the full benefits of cost-effective renewable energy development from diverse sources.

2.The Rhode Island Commerce Corporation ("RICC") shall, in the furtherance of its responsibilities to promote and encourage economic development, establish and administer a Renewable Energy Development Fund as provided for in R.I. Gen. Laws § 39-26-7, may exercise the powers set forth in that chapter, as necessary or convenient to accomplish this purpose, and shall provide such administrative support as may be needed for the coordinated administration of the renewable energy standard as provided for in R.I. Gen. Laws Chapter 39-26 and the renewable energy program established by R.I. Gen. Laws § 39-2-1.2.

3.The Corporation seeks to fulfill its legal obligations by providing and administering programs in seven (7) areas as part of the renewable energy fund:

a.Small-scale Solar

b.Commercial Scale

c.Community Renewables

d.Pre-development Feasibility Studies

e.Early Stage Commercialization

f. Workforce Development

g. Brownfields Solar

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2019-02-21 to 01/04/2022
Technical Revision — effective from 2017-01-26 to 02/21/2019
Amendment — effective from 2017-01-26 to 01/26/2017
Technical Revision — effective from 2014-01-09 to 01/26/2017
Adoption — effective from 2014-01-09 to 01/09/2014

870-RICR-20-00-1 § 1.3 Key Definitions

A.For the purposes of these regulations, the following terms shall have the following meanings:

1.“Add-on systems” means adding solar panels to an existing solar photovoltaic or solar hot water system.

2.“Affordable housing” means any affordable housing or low and moderate income housing as defined in R.I. Gen. Laws Chapters 42-128 or 45-53, or such other superseding statutes as may be implemented by the State of Rhode Island from time to time.

“Brownfield” means a property with which the expansion, redevelopment, or reuse may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.
“Clean energy” means the renewable energy resources defined in R.I. Gen. Laws Chapter 39-26.
“Clean energy internship program” means the internship program created in partnership with RICC and the Rhode Island Office of Energy Resources that matches interns with clean energy companies and provides reimbursement to the company for the period of the internship.

6.“Community renewables” or “Community solar” or “Community remote net metering system” means a facility, owned by the primary electrical account holder or a third party, generating electricity using an eligible net-metering resource which allocates net metering credits to a minimum of one eligible credit recipient account for systems associated with low or moderate income housing, or three (3) eligible credit recipient accounts for other systems.

7.“Corporation” and “RICC” mean the Rhode Island Commerce Corporation or any successor corporation or new corporation empowered to perform the functions currently served by the Rhode Island Commerce Corporation.

8.“Department of Environmental Management” or “DEM” means the entity established in the executive branch of State government pursuant to R.I. Gen. Laws § 42-17.1-1;

9.“Early stage commercialization” means an innovative renewable energy technology or innovative business model with the ability to transform the renewable energy business sector. Technologies have completed or have nearly completed early research stages.

10.“Emerging technology” means new technologies in renewable energy that will come to market within the next two (2) – five (5) years which have the ability to transform the renewable energy business sector.

11.“Innovative business model” means a novel business structure with the ability to help commercialize an emerging or existing renewable energy technology.

“Internship period” means the Spring, Summer, or Fall semester months of the Clean Energy Internship program.

13.“Microgrid” means a local energy grid with control capability allowing it to disconnect from the traditional grid and operate autonomously.

14.“Rhode Island Office of Energy Resources” or “OER” means the office created and established pursuant to R.I. Gen. Laws § 42-140-2.

15.“One-line electrical drawing” means a diagram showing the number of photovoltaic panels with voltage and kilowatt output, all disconnects, all combiners, all inverters with input and output ratings, the size of the main electrical panel bussing in amperes, the size of the main service disconnect, the size of the PV circuit breaker in amperes, size and type of all raceways and the size and type of all conductors.

16.“Pre-development feasibility study” means the completion of project tasks prior to construction of a renewable energy project. These tasks shall not include initial feasibility assessments. Pre-development activities occur after a project is deemed worthy of development and before construction takes place. Examples of Pre-Development Activities include but are not limited to:

a.Local and State Permitting.

b.Structural and Electrical Engineering.

c.National Grid Interconnection Studies.

d.National Grid Impact Studies.

e.Detailed Financial Analyses.

f.Request for Proposal (RFP) Preparations.

17.“Renewable energy fund” and “REF” means the Renewable Energy Development Fund.

18.“R.I. Gen. Laws” means the Rhode Island General Laws.

19.“ROI” means Return on Investment.

“Solar plus storage” means solar photovoltaic plus battery storage.

21.“Solar water heaters or solar domestic hot water” or “SDHW” means a system that includes storage tanks and solar collectors, while using the sun's thermal energy to heat water.

22.“Training” means providing additional skills, knowledge, or experience to clean energy workers.

23.“Workforce development” means activities related to providing training and career development opportunities to facilitate clean energy job growth and support a more qualified clean energy workforce.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2019-02-21 to 01/04/2022
Technical Revision — effective from 2017-01-26 to 02/21/2019
Amendment — effective from 2017-01-26 to 01/26/2017
Technical Revision — effective from 2014-01-09 to 01/26/2017
Adoption — effective from 2014-01-09 to 01/09/2014

870-RICR-20-00-1 § 1.4 Funding

A.All Funds will be awarded and disbursed through solicitations except for workforce development, issued by the Corporation in the Program areas under § 1.2 of this Part above. Workforce development funds will be awarded and disbursed through reimbursement funding after the completion period. Approximate release dates for each solicitation will be available on the Corporation’s website at the start of each calendar year. All dates are subject to change depending on availability of funds and demand for each program. Each solicitation will specify the specific incentive level, detailed instructions on how to apply, program requirements, and the deadlines to apply.

B.In each calendar year, a maximum funding level cap of the REF’s income will be available to eligible projects in each Program area. The Corporation, at its discretion, may choose to contribute more money to a particular program based on demand for a particular program, available funds, or other factors. The maximum funding level cap for the REF can be found on the RICC website under the REF section.

C.If the maximum funding level cap for all programs is not awarded during the calendar year, funds will roll over into the following calendar year.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2019-02-21 to 01/04/2022
Technical Revision — effective from 2017-01-26 to 02/21/2019
Amendment — effective from 2017-01-26 to 01/26/2017
Technical Revision — effective from 2014-01-09 to 01/26/2017
Adoption — effective from 2014-01-09 to 01/09/2014

870-RICR-20-00-1 § 1.5 General Requirements

A.Entities eligible to apply for REF programs shall submit a complete REF application. Applications shall be found on the Corporations website. Information for those programs that are established and implemented in partnership with the OER or other state agencies shall be found on the websites of the agencies involved.

B.Applications for programs listed under § 1.2 of this Part will only be accepted during open solicitation periods. Solicitations and schedules for future solicitations can be found on the Corporation’s website.

C.Incomplete applications will be returned to the applicant and will not be considered for approval until the Corporation receives a complete version.

D.All applicants seeking funding through the REF for renewable energy projects must install projects in Rhode Island and generate electricity for use in Rhode Island. Companies must also be registered to do business in Rhode Island to be eligible.

E.All applications must be for new projects. No projects underway or complete at the time of applying shall be eligible for funding unless approved otherwise. “Add-on systems” to an existing interconnected project which received REF funding since January 2013 on the same meter will not be allowed.

F.Projects participating in the National Grid Renewable Energy Growth Program will not be eligible for the REF programs.

G. REF funding may be combined with Regional Greenhouse Gas Initiative (RGGI) funding programs and/or renewable energy funding programs administered by the Federal Government.

H.Award Process (excluding workforce development)

1.The Corporation board of directors may approve projects. The board may also delegate approval to the Corporation staff to the greatest extent permissible by law.

2.Award letters shall be sent to applicants after approval.

3.Contracts in a form acceptable to the Corporation shall be executed between the Corporation and the Applicant

4.Work may begin on Projects after the contract has been executed

5.All grants for construction projects will be paid in full after successful completion and inspection of the Project.

6.All loan disbursements will be made in manner that is mutually acceptable to the Corporation and the borrower as agreed to in the loan agreement.

7.The Corporation in its sole discretion may cancel an award if mutually agreeable terms cannot be met.

I.If an applicant fails to provide and/or complete requested documentation within 60 days of the award letter being issued, the award shall be cancelled.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2019-02-21 to 01/04/2022
Technical Revision — effective from 2017-01-26 to 02/21/2019
Amendment — effective from 2017-01-26 to 01/26/2017
Technical Revision — effective from 2014-01-09 to 01/26/2017
Adoption — effective from 2014-01-09 to 01/09/2014

870-RICR-20-00-1 § 1.6 Small-Scale Solar

A.Solicitations for funding:

1.Solicitations shall include all project requirements which are subject to change between funding periods.

2.Solicitations shall include all deadlines for application submission.

3.Funding will be issued in the form of grants

B.Eligible Sectors:

1.Residential.

2.Businesses.

3.Affordable housing.

4.Non-profits.

5.State Facilities.

6.Municipalities.

C.Eligible Technologies:

1.Solar Photovoltaic (PV).

2.Solar Domestic Hot Water (SDHW).

3.Solar plus storage.

D.Minimum Submission Requirements:

1.The following requirements, at a minimum, shall be evaluated:

a.One-line electrical drawing (for PV only),

b.Layout drawing including location of all major components,

c.Executed turnkey contract.

E.Minimum Evaluation Criteria:

1.The following criteria, at a minimum, shall be evaluated:

a.Technical Feasibility.

b.Financial Feasibility,

c.Adherence to the Minimum Technical Requirements that are periodically updated on the RICC website under the REF section.

d.The REF has the discretion to prohibit installer companies from participating in the REF programs where such companies have had a serious life safety report or have unresolved inspection deficiency issues.

F.A complete list of updated program application requirements can be found on the RICC website under the REF section.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2019-02-21 to 01/04/2022
Technical Revision — effective from 2017-01-26 to 02/21/2019
Amendment — effective from 2017-01-26 to 01/26/2017
Technical Revision — effective from 2014-01-09 to 01/26/2017
Adoption — effective from 2014-01-09 to 01/09/2014

870-RICR-20-00-1 § 1.7 Commercial Scale

A.Solicitations for funding:

1.Solicitations shall include all project requirements, which are subject to change between funding periods.

2.Solicitations shall include all deadlines for application submission.

3.Funding will be issued in the form of grants.

B.Eligible Sectors:

1.Businesses.

2.Institutions.

3.Non-profits.

4.Municipalities.

5.State Facilities.

C.Eligible Technologies:

1.Those technologies set forth in R.I. Gen. Laws § 39-26-5.

2.Projects that have the ability to generate electricity or aid in electricity usage.

3.Solar Water Heaters or Solar Domestic Hot Water (SDHW).

D.Minimum Submission Requirements:

1.The following requirements, at a minimum, shall be evaluated:

a.One-line electrical drawing.

b.Layout drawing including location of all major components.

c.Executed turnkey contract.

E.Minimum Evaluation Criteria:

1.The following criteria, at a minimum, shall be evaluated:

a.Technical Feasibility.

b.Financial Feasibility.

c.Minimum technical requirements that are periodically updated on the RICC website under the REF section.

F.A complete list of updated program application requirements can be found on the RICC website under the REF section.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2019-02-21 to 01/04/2022
Technical Revision — effective from 2017-01-26 to 02/21/2019
Amendment — effective from 2017-01-26 to 01/26/2017
Technical Revision — effective from 2014-01-09 to 01/26/2017
Adoption — effective from 2014-01-09 to 01/09/2014

870-RICR-20-00-1 § 1.8 Community Renewables

A.Solicitations for funding:

1.All program requirements shall be available on the Corporation’s website.

2.Funding will be issued in the form of grants.

B.Eligible sectors

1.National Grid customers with an A60 or A16 rate code

2.All other sectors must be approved by REF staff.

C.Eligible Technologies:

1.Solar Photovoltaic (PV).

2.All other innovative technologies must be approved administratively by the REF staff pursuant to R.I. Gen. Laws § 39-26-7.

D.Minimum Submission Requirements:

1.The following requirements, at a minimum, shall be evaluated:

a.Executed agreement/contract

b.Subscriber Electricity Bill

c.A Submitted interconnection application

E.Minimum Evaluation Criteria:

1.The following criteria, at a minimum, shall be evaluated:

a.Technical Feasibility.

b.Financial Feasibility.

c.Adherence to the Minimum Technical Requirements that are periodically updated on the RICC website under the REF section.

d. The REF has the discretion to prohibit installer companies from participating in the REF programs where such companies have had a serious life safety report or have unresolved inspection deficiency issues.

F.A complete list of updated program application requirements can be found on the RICC website under the REF section.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2019-02-21 to 01/04/2022
Technical Revision — effective from 2017-01-26 to 02/21/2019
Amendment — effective from 2017-01-26 to 01/26/2017
Technical Revision — effective from 2014-01-09 to 01/26/2017
Adoption — effective from 2014-01-09 to 01/09/2014

870-RICR-20-00-1 § 1.9 Pre-Development Feasibility Studies

A.Solicitations for Funding:

1.All program requirements shall be available on the Corporation’s website.

2.All awards will be funded as low-interest loans contingent upon the ability for the project to be successful.

B.Eligible Sectors:

1.Businesses.

2.Institutions.

3.Non-profits.

4.Municipalities.

5.State Facilities.

C.Eligible Technologies:

1.Those technologies set forth in R.I. Gen. Laws § 39-26-5.

2.Technologies being studied must have the ability to generate electricity or provide a direct benefit to the electric grid, or aid in electricity usage.

3.Microgrids with demonstrated study requirements associated with necessary control systems or projects with new applications with necessary control systems that are designed to generate electricity or aid in electricity usage.

4.Solar Photovoltaic (PV) and Solar Domestic Hot Water (SDHW) are not eligible, unless approved otherwise.

5.All other innovative technologies must be approved administratively by the REF staff pursuant to R.I. Gen. Laws § 39-26-7.

D.Minimum Submission Requirements:

1.The following requirements, at a minimum, shall be evaluated:

a.For Municipal Projects:

(1)Any municipality applying for a pre-development feasibility study must include evidence of a Town/City Council vote in favor of the proposed project.

(2)The applicant must have evidence of its legal ability to borrow money on behalf of the municipality.

b.Detailed scope of work.

c.Detailed project budget.

d.Contracts with all major subcontractors working on the Study,

e.Clear evidence of cost-sharing specific to the Study, and

f.The municipality must have an ordinance in place allowing development of the proposed project.

E.Eligibility Requirements:

1.The following criteria, at a minimum, shall be evaluated:

a.Technical Feasibility

b.Financial Feasibility

c.Cost per kWh of energy produced.

d.Experience of Project Team.

F.A complete list of updated program application requirements can be found on the RICC website under the REF section.

G.The Corporation may choose to fund all, part, or none of a Predevelopment Feasibility Study based on the likelihood of development.

H.Loans will be repaid upon completion of the project.

I.If the project is found to be technically and economically feasible but the project is not commenced or completed within specified time frame, as per application requirement for the project, the loan must be repaid to the Corporation.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2019-02-21 to 01/04/2022
Technical Revision — effective from 2017-01-26 to 02/21/2019
Amendment — effective from 2017-01-26 to 01/26/2017
Technical Revision — effective from 2014-01-09 to 01/26/2017
Adoption — effective from 2014-01-09 to 01/09/2014

870-RICR-20-00-1 § 1.10 Early Stage Commercialization

A.Solicitation for Funding:

1.All program requirements shall be available on the Corporation’s website.

2.All awards will be funded as low-interest loans contingent upon the ability for the project to be successful.

B.Eligible Sectors

1.Businesses

2.Institutions

C.Eligible Technologies:

1.Those technologies set forth in R.I. Gen. Laws § 39-26-5.

2.Projects may qualify for funding as an emerging technology or an Innovative business model.

3.All other innovative technologies must be approved administratively by the REF staff pursuant to R.I. Gen. Laws § 39-26-7.

D.General Requirements:

1.The following requirements, at a minimum, shall be evaluated:

a.Applicant must have other investments secured or be actively pursuing other forms of investment.

b.Applicant must submit a business plan.

E.Evaluation Criteria:

1.The following criteria, at a minimum, shall be evaluated:

a.Other funds leveraged.

b.Technical Merit / Feasibility.

c.Market Potential.

d.Economic Impact for the State of Rhode Island,

e.Team credentials and experience.

f.Scope of Work/Project Budget.

F.A complete list of updated program application requirements can be found on the RICC website under the REF section.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2019-02-21 to 01/04/2022
Technical Revision — effective from 2017-01-26 to 02/21/2019
Amendment — effective from 2017-01-26 to 01/26/2017
Technical Revision — effective from 2014-01-09 to 01/26/2017
Adoption — effective from 2014-01-09 to 01/09/2014

870-RICR-20-00-1 § 1.11 Brownfields Solar PV Program

A.Solicitations for funding:

1.Solicitations shall include all project requirements, which are subject to change between funding periods.

2.Funding will be issued in the form of grants.

B.Eligible Sectors:

1.Businesses.

2.Institutions.

3.Non-profits.

4.Municipalities.

5.State Facilities.

C.Eligible Technologies:

1.Solar PV

D.Minimum Submission Requirements:

1.The following requirements, at a minimum, shall be evaluated:

a.Project location meets the definition of Brownfield per these Rules and Regulations.

b.Project site location approval from DEM.

c.One-line electrical drawing.

d.Layout drawing including location of all major components.

e.Executed turnkey contract.

E.Minimum Evaluation Criteria:

1.The following criteria, at a minimum, shall be evaluated:

a.Technical Feasibility.

b.Adherence to the Minimum Technical Requirements that are periodically updated on the RICC website under the REF section.

F.A complete list of updated program application requirements can be found on the RICC website under the REF section.

G.The REF has the discretion to prohibit installer companies from participating in the REF programs where such companies have had a serious life safety report or have unresolved inspection deficiency issues.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2019-02-21 to 01/04/2022
Technical Revision — effective from 2017-01-26 to 02/21/2019
Amendment — effective from 2017-01-26 to 01/26/2017
Technical Revision — effective from 2014-01-09 to 01/26/2017
Adoption — effective from 2014-01-09 to 01/09/2014

870-RICR-20-00-1 § 1.12 Workforce Development

A.Clean Energy Internship Program

1.Intern eligibility:

a.The following eligibility, at a minimum, shall be evaluated:

(1)Students need to demonstrate that they are currently enrolled at a college or university located in Rhode Island or if the college or university is located outside of Rhode, can demonstrate proof of residency.

(2)Students must have completed or will complete at least their freshman year of college (24 credits) the semester before the internship.

(3)If a student attends a community college (or 2-year associate program) the student must have completed at least 24 credits.

(4)Graduate students must be currently enrolled in a Master’s Degree program.

2.Internship Company eligibility:

a.The following eligibility, at a minimum, shall be evaluated:

(1)Must be registered to do business with the Rhode Island Secretary of State.

(2)Can hire up to two interns per internship period.

(3)Providing a meaningful internship with a clear job description.

B.Training

1.RICC, in partnership with OER, may periodically design, market, and offer trainings to clean energy workers based on funding and need.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2019-02-21 to 01/04/2022
Technical Revision — effective from 2017-01-26 to 02/21/2019
Amendment — effective from 2017-01-26 to 01/26/2017
Technical Revision — effective from 2014-01-09 to 01/26/2017
Adoption — effective from 2014-01-09 to 01/09/2014

870-RICR-20-00-2 Rules and Regulations for the First Wave Closing Fund

870-RICR-20-00-2 § 2.1 Purpose

These rules and regulations (the “Rules” or “Part”) are promulgated to set forth the principles, policies and practices of the Rhode Island Commerce Corporation in implementing and administering R.I. Gen. Laws Chapter 42-64.23, the First Wave Closing Fund Act (the “Act”).

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.2 Authority

These Rules are promulgated pursuant to R.I. Gen. Laws Chapter 42-64.23. These Rules have been prepared in accordance with the requirements of the Rhode Island Administrative Procedures Act, R.I. Gen. Laws Chapter 42-35.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.3 Scope

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.4 Severability

If any provision of these Rules, or the application thereof to any person or circumstance, is held invalid by a court of competent jurisdiction, the validity of the remainder of the Rules shall not be affected thereby.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.5 Definitions

A.The following words and terms, when used in these Rules, shall have the following meanings, unless the context clearly indicates otherwise.

1.“Act” means R.I. Gen. Laws Chapter 42-64.23 known as the First Wave Closing Fund Act.

2.“Applicant” means a Business applying for First Wave Financing under the Act and these Rules.

3.“Application” means the application, promulgated by the Corporation, which must be completed and submitted by an Applicant pursuant to the requirements of the Act and these Rules.

4.“Board” means the board of directors of the Corporation.

5.“Business” means a corporation as defined in R.I. Gen. Laws § 44-11-1(4), a partnership, an S corporation, a non-profit corporation, a sole proprietorship or a limited liability company.

6.“Corporation” means the Rhode Island Commerce Corporation established pursuant to R.I. Gen. Laws Chapter 42-64.

7.“Financing agreement” means an agreement between the Corporation and an Applicant for an approved Project setting forth the terms and conditions of the provision of First Wave Financing.

8.“First wave financing” means funding for a Project from the First Wave Closing Fund established pursuant to R.I. Gen. Laws § 42-64.23-4.

9.“Full-time job” means an employment position filled by a full-time employee in this State, which is a person who is employed by a Business for consideration for a minimum of at least thirty-five (35) hours per week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, or who is employed by a professional employer organization pursuant to an employee leasing agreement between the business and the professional employer organization for a minimum of thirty-five (35) hours per week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, and whose wages are subject to State withholding.

10.“Project” means the transaction for which the Applicant seeks First Wave Financing.

11.“Project cost” means costs incurred in connection with the Project by the Applicant until such time as specified by the Corporation.

12.“Project financing gap” means:

a.the part of the total Project Cost that remains to be financed after accounting for

(1)all other sources of capital,

(2)a reasonable assumption of debt on the Project, and

(3)any other capital source that is reasonably available given the nature of the Project; or

b.the amount of funds that the State may invest in a Project to gain a competitive advantage over a viable comparable location in another state by means described in the Act and Rules.

13.“State” means the State of Rhode Island and Providence Plantations.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.6 Funding Guidelines

A.The following requirements must be met for a Project to be eligible for a First Wave Financing:

1.the Applicant must demonstrate need for First Wave Financing by showing that all other options for financing, within reason, have been exhausted;

2.the Project must be of a critical or catalytic nature in that it either:

a.will result in the creation or retention of at least twenty-five (25) Full-Time Jobs;

b.has the potential to spur further private investment or economic activity in the community in which it is located; or

c.involves infrastructure or a facility that will support or enhance development in the community in which it is located, including, but not limited to, transportation, parks, greenways, performance venues, meeting facilities, or other community facilities.

B.First Wave Financing may be used for:

1.working capital, equipment, furnishings, fixtures;

2.the construction or rehabilitation of a structure;

3.the purchase of real property;

4.as permanent financing; or

5.such other purpose as the Corporation approves.

C.First Wave Financing is available in the form of debt financing, equity financing, or grants.

D.Prior to awarding any First Wave Financing under the Act, the Corporation may, in its discretion, require any Applicant to obtain a tax stabilization agreement from the municipality in which the Project is located on such terms as the Corporation deems acceptable.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.7 Request for Authorization

A.No Application for First Wave Financing can be filed without written authorization from the Corporation.

B.The Corporation may authorize an Application for First Wave Financing:

1.to an Applicant who has applied for an economic incentive under another program administered by the Corporation; or

2.after review and approval of a Request for Authorization, in the form published by the Corporation, received from the Applicant demonstrating that the Applicant’s Project meets the criteria set forth in § 2.6 of these Rules.

C.The Corporation may from time to time set deadlines for Requests for Authorization. Such deadlines will be published on the Corporation’s web site.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.8 Application

A.Each Application made by an Applicant shall include the following information in a format prescribed by the Corporation (unless inapplicable):

1.the name, address and principal contact for the Applicant;

2.state and federal tax identification numbers;

3.the location of the Project;

4.a detailed description of the Project;

5.a demonstration that the Project satisfies at least one of the purposes set forth in § 2.6(A)(2) of this Part;

6.a detailed description of the Project’s financing, including sources and uses of funds;

7.a statement of need demonstrating why First Wave Financing in the amount sought is necessary to bring the Project to fruition in the State;

8.the amount of First Wave Financing requested, and the form (debt, equity, grant) in which the First Wave Financing is sought;

9.a schedule for the disbursement of the First Wave Financing;

10.a description of the proposed use of the First Wave Financing;

11.a list of all federal, state, and local incentives, grants, tax credits or other aid (including a tax stabilization agreement) that will or may be received or requested for the Project, and the status of the application for each;

12.an explanation of the major risks, business drivers, and financial opportunity associated with the Project;

13.a list and status of all required federal, state and/or municipal approvals and/or permits required for the Project; and

14.such other information as the Corporation deems appropriate or necessary.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.9 Fees

A.An Applicant shall be charged a one-time, non-refundable application fee by the Corporation and may be charged fees for ongoing administration in relation to the Project if approved by the Board. The Corporation shall annually publish a fee schedule on its website commencing on or before December 31, 2015.

B.An Applicant may be required to pay to the Corporation the full amount of direct fees and costs paid to third-parties by the Corporation in relation to the consideration and/or approval of the Applicant’s Project.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.10 Review Process

A.Each Application shall be reviewed to confirm compliance with the Act and these Rules, and the Corporation may reject any incomplete or deficient Application.

B.The Corporation may require the submission of additional information in connection with any Application or the revision of an Application, and may permit the resubmission of an Application rejected as being incomplete or deficient.

C.After submission of a complete Application and review by the Corporation in accordance with the requirements of the Act and these Rules, the Corporation will determine whether to recommend to the Board that it approve a First Wave Financing for the Project. In developing a recommendation, the Corporation may take into account, in consideration with other factors deemed relevant by the Corporation:

1.economic impact of the Project, including costs and benefits to the State, including the impact on private investment, employment, and state and local revenues, and overall societal impact on the State;

2.the amount of the Project Financing Gap;

3.strategic importance of the Project to the State, region, or locality, including whether the Project furthers State or municipal planning and development objectives, or both and the Project’s relationship to other Projects awarded to be awarded incentives under these Rules and the Act;

4.quality and number of jobs produced;

5.quality of industry and Project;

6.any competitive offers regarding the Project from another state or country; and

7.whether there exists an opportunity for the State or the Corporation to recoup or receive a return on all or portion of the First Wave Financing to be provided to the Applicant by virtue of a receipt of an equity stake or other interest in or return from the Project.

D.The Corporation aims to award First Wave Financing to multiple Projects in a given fiscal year. In determining whether to approve an award or awards of First Wave Financing in a given fiscal year, the Corporation shall consider:

1.the number and strength of Applications received;

2.the level of appropriations;

3.the amounts of First Wave Financing sought; and

4.such other factors it deems relevant.

E.If the Corporation determines that it will not recommend a complete Application to the Board for approval of an incentive, it shall notify the Applicant in writing of such decision.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.11 Discretion and Judicial Review

A.The Corporation shall not have any obligation to make any award or grant any benefits under the Act or these Rules.

B.A review of an Application shall not constitute a “contested case” under the Administrative Procedures Act, R.I. Gen. Laws § 42-35-9, and no opportunity to object to an Application shall be afforded, nor shall judicial review be available from a decision rendered by the Corporation or the Board in connection with any Application.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.12 Board Approval

A.Prior to Board consideration of any Project, a subcommittee of the Board shall convene to consider the Project, and no Project shall be submitted to the full Board for consideration unless and until such subcommittee has reviewed the Project.

B.In approving First Wave Financing for an Applicant, the Board may set terms and conditions on the receipt of First Wave Financing as it deems appropriate, including but not limited to approving First Wave Financing in an amount lesser than the sought in the Application.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.13 Financing Agreement

A.Upon approval of First Wave Financing for an Applicant by the Board, the Corporation and the Application will enter into a Financing Agreement prior to the issuance of any First Wave Financing to the Applicant.

B.In order to safeguard the expenditure of public funds and ensure that the disbursement of funds further the objectives of the Act, the Financing Agreement shall include, among others, the following terms:

1.the maximum amount of First Wave Financing awarded;

2.the timing of the disbursement of the First Wave Financing;

3.a provision delineating the permissible uses of the First Wave Financing provided;

4.reasonable evidence that the Applicant is in good standing with the Division of Taxation at the time of execution of the Financing Agreement, meaning that the:

a.the Applicant is current on all outstanding filings and declared tax liabilities subject to audit;

b.the Applicant and the Division of Taxation have a workout payment agreement or other settlement with respect to any known delinquent tax liability and the Applicant is current on that workout payment agreement or settlement; or

c.the Applicant has timely commenced or is engaged in an administrative or judicial proceeding concerning a tax liability the status of which would otherwise preclude the issuance of a letter of good standing from the Division of Taxation;

5.events of default and remedies including events, if any, that would trigger forfeiture, revocation and/or repayment of the First Wave Financing provided;

6.indemnification, insurance and other customary protective requirements;

7.reporting requirements including, but not limited to, any requirements under the Act;

8.the imposition of such restrictions or covenants upon the Project as may be necessary, in the Corporation’s sole determination, to ensure continued compliance with the Act, the Rules, and any terms and conditions on the provision of First Wave Financing that the Corporation deems appropriate;

9.at the Corporation’s discretion, a provision requiring the Applicant to pay the Corporation’s reasonable attorneys’ fees incurred in connection with the negotiation, execution and enforcement of the Financing Agreement; and

10.any other provisions the Corporation deems appropriate.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.14 Administration and Examination of Records

The Corporation may examine any books, papers, records or memoranda bearing upon the approval of any financing awarded under the Act, and may require the attendance of any person executing any application, report or other statement, or the attendance of any other person, and may examine such person under oath respecting any matter which the Corporation deems pertinent or material in determining eligibility for financing sought under the Act.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-2 § 2.15 Inspection Rights

The Corporation shall have the right to make an inspection and to enter upon any property that is the subject of a Request for Financing during the application process or term of any Financing Agreement to verify compliance with the Act, these Rules and such other conditions imposed in the Financing Agreement.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2016-03-01 to 01/04/2022
Adoption — effective from 2016-03-01 to 03/01/2016

870-RICR-20-00-3 Rules and Regulations for the Innovation Network Matching Grant Program

870-RICR-20-00-3 § 3.1 Purpose

A.These rules and regulations (the “Rules”) are promulgated to set forth the principles, policies, and practices of the Rhode Island Commerce Corporation (the “Corporation”) in implementing and administering the innovation network matching grant program created under R.I. Gen. Laws Chapter 42-64.28, the Innovation Initiative Act (the “Act”).

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-3 § 3.2 Authority

A.These Rules are promulgated pursuant to R.I. Gen. Laws Chapter 42-64.28. These Rules have been prepared in accordance with the requirements of the Rhode Island Administrative Procedures Act, R.I. Gen. Laws Chapter 42-35.

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-3 § 3.3 Scope

A.These Rules shall apply to any application received by the Corporation for a grant under the Act. Notwithstanding anything contained in these Rules to the contrary, the Corporation shall have and may exercise all general powers set forth in the Act that are necessary or convenient to effect its purposes and these Rules shall be liberally construed so as to permit the Corporation to effectuate the purposes of the Act and other applicable state laws and regulations. The Corporation, upon an affirmative vote of its board of directors, may provide exemption from the application of such portion of these Rules as may be warranted by extenuating circumstances arising from such application, based upon the written recommendation of the staff of the Corporation delineating the reasons for such exemption. An Applicant seeking an exemption under this provision must demonstrate extenuating circumstances by showing either:

1.that the application of a component of these Rules is inconsistent with a requirement of federal, state, or local law; or

2.that the application of a component of these Rules is not feasible or appropriate for the given project type.

B.Under no circumstances will lack of time or ability be deemed extenuating circumstances. The Corporation will only grant such exemptions as it determines are authorized by law and consistent with the safeguarding of public funds. The Corporation shall have no obligation to grant an exemption in any case, even if extenuating circumstances exist.

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-3 § 3.4 Severability

A.If any provision of these Rules, or the application thereof to any person or circumstance, is held invalid by a court of competent jurisdiction, the validity of the remainder of the Rules shall not be affected thereby.

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-3 § 3.5 Definitions

A.The following words and terms, when used in these Rules, shall have the following meanings, unless the context clearly indicates otherwise.

1.“Act” means R.I. Gen. Laws Chapter 42-64.28, known as the Innovation Initiative act.

2.“Applicant” means an entity that applies for a Grant under the Act and these Rules.

3.“Application” means the application, promulgated by the Corporation, which must be completed and submitted by an Applicant pursuant to the requirements of the Act and these Rules.

4.“Corporation” means the Rhode Island Commerce Corporation established pursuant to R.I. Gen. Laws Chapter 42-64.

5.“Employee” means a natural person who is employed in the State by a business for consideration for at least thirty-five (35) hours a week, or who is employed in the State by a professional employer organization pursuant to an employee leasing agreement between the business and the professional employer organization for at least thirty-five (35) hours a week, and whose wages are subject to withholding.

6."Employee-owned business" means any entity that is a small business and:

a.is, in whole or in part, a workers' cooperative as defined in R.I. Gen. Laws Chapter 7-6.2- 2(5); or

b.has an employee stock ownership plan, as defined in 26 U.S.C 4975(e)(7).

7.“Grant” means a monetary award to an Applicant from the Corporation granted under the Act and these Rules.

8.“Grant agreement” means a contract between the Applicant and the Corporation under which a Grant is awarded.

9.“Match” means a funding match, or in kind services provided by an Applicant or other third party.

10.“Project” means an initiative designed to assist Small Businesses through the provision of technical assistance, space on flexible terms, and/or access to capital, for which the Applicant seeks a Grant under the Act and these Rules.

11.“Small business” means a business that is resident in the State, has a business facility within the state, and has five hundred (500) or fewer Employees.

12.“State” means the State of Rhode Island and Providence Plantations.

13.“Targeted industry” means any advanced, promising or otherwise prioritized industry identified in the economic development vision and policy promulgated pursuant R.I. Gen. Laws § 42-64.17-1 or, until such time as any such economic development vision and policy is promulgated, as identified by the Corporation from time to time and published on the Corporation’s website.

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-3 § 3.6 Eligibility

A.The following conditions must be met for a Project to be eligible for a Grant under the Act:

1.the Applicant must offer technical assistance, space on flexible terms, and/or access to capital to Small Businesses located in the State;

2.the Applicant’s Project must be designed to assist Small Businesses that are:

a.in Targeted Industries, life sciences, health care, food and agriculture, clean technology, energy efficiency, cyber security, or any other industries designated from time-to-time by the Corporation; or

b.evaluating a transition to become an employee-owned business, regardless of industry.

3.the minimum Grant amount shall be $50,000; and

4.the Applicant must provide a Match.

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-3 § 3.7 Application

A.The Applicant shall file an Application in the form prescribed by the Corporation and available on the Corporation’s website. The Application shall require, at a minimum, that the Applicant provide the following information:

1.the name of the Applicant and contact information for the individual(s) primarily responsible for oversight and management of the Application;

2.the Applicant’s federal and State tax identification numbers;

3.the requested Grant amount;

4.a statement of work for the Applicant’s Project, including a detailed description of the following:

a.services to be provided to Rhode Island Small Businesses;

b.businesses to be served by growth stage and industry;

c.anticipated outcomes; and

d.the outreach and marketing approach to reach the intended audience;

5.a projected budget and budget narrative for the Project;

6.biographies of key staff members;

7.descriptions of any external organizations that the Applicant intends to partner with on the Project, including a description of the governance of any such organizations;

8.a description of the amount of the Match being contributed to the Project; for a Match of in-kind services, the Applicant shall include a valuation of the services to be provided together with a detailed explanation of the valuation method, and evidence appropriate to substantiate such valuation;

9.a description of the Applicant’s previous outcomes and effectiveness in endeavors similar to the Project, which may include third-party evaluation, information tracked by the Applicant, testimonials, and other such information;

10.a description of how the Applicant will monitor the effectiveness and impact of the Project;

11.a delineation of any other federal, State or municipal incentives, grants, tax credits, or other aid that will or may be received or requested by the Applicant in relation to the Project;

12.and such other information as the Corporation deems appropriate.

B.An Applicant may be charged a one-time, non-refundable application fee by the Corporation. The Corporation shall annually publish a fee schedule on its website commencing on or before December 31, 2015.

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-3 § 3.8 Application Review and Approval

A.Each Applicant shall be reviewed to confirm compliance with the Act and these Rules, and the Corporation may reject any incomplete or deficient Application.

C.After submission of a complete Application and review by the Corporation in accordance with the requirements of the Act and these Rules, the Corporation will determine whether to award a Grant to the Applicant. In selecting Applicants to receive Grants, the Corporation will prioritize those Applicants with larger commitments of matching funds or in-kind services contributed to the Project. In determining whether to approve a Grant, factors the Corporation may consider, include, but are not limited to, the following:

1.quality of the services to be provided by the Project;

2.quality and feasibility of the Project design;

3.whether the Project fills a gap in the Rhode Island innovation ecosystem by, for example, reaching underserved or high impact sectors or offering services that are difficult to obtain;

4.the Applicant’s demonstrated history of success in providing services of the type contemplated by the Project;

5.qualifications and experience of the personnel implementing the Project;

6.capacity for sustaining and/or growing the Project after exhaustion of the Grant and Match;

7.the strength of the Applicant’s methodology for evaluating impacts of the Project; and

8.the Project’s potential for catalytic impact including the potential to increase the number of new full-time Employees in one or more industry sectors.

D.If the Corporation determines that it will not approve a Grant for an Applicant, it shall notify the Applicant in writing of such decision.

E.The Corporation may set periodic Application deadlines that will be published on the Corporation’s web site from time to time.

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-3 § 3.9 Grant Agreement

A.Upon approval of a Grant for an Applicant, the Corporation and the Applicant will enter into a Grant Agreement before any Grant amount can be provided to the Applicant. The Corporation, in its sole discretion, may cancel an approval if mutually agreeable terms cannot be met within 30 days of notification of the approval.

B.In order to safeguard the expenditure of public funds and ensure that the disbursement of funds further the objectives of the Act, the Grant Agreement shall include, among others, the following terms;

1.the maximum Grant amount;

2.a description of the Project and a requirement that the Grant can only be used for work outlined in that description;

3.a provision that grant payments shall be made in installments upon the completion of specific milestones and the Corporation’s receipt of evidence demonstrating that such milestones have been achieved and, if applicable, evidence of actual Project costs;

4.a requirement that the Project be completed within a specified timeframe;

5.an indemnification provision;

6.reporting and program evaluation requirements;

7.a provision prohibiting transfer of the Grant; and

8.any other provisions that the Corporation determines are appropriate.

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-3 § 3.10 Revocation

A.In the event that any information provided by the Applicant in its Application is found to be willingly false, the Corporation shall deny the issuance of or revoke any Grant in whole or in part, which revocation shall be in addition to any other criminal or civil penalties that the Applicant and/or the relevant officials of the Applicant may be subject to under applicable law.

B.The Corporation shall deny the issuance of or revoke any Grant if an Applicant or its successor-in-interest is convicted of bribery, fraud, theft, embezzlement, misappropriation, and/or extortion involving the State, any state agency or political subdivision of the state.

C.The Corporation may provide for additional rights and remedies in any Grant Agreement, which will be in addition to the rights provided under this Rule.

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-3 § 3.11 Discretion and Judicial Review

A.The Corporation shall not have any obligation to issue any Grant or make any other award or grant any benefits under the Act or these Rules, and may decline to issue a Grant to any Applicant, including those who have submitted a completed Application that meets the eligibility requirements of § 3.6 of this Part.

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-3 § 3.12 Administration and Examination of Records

A.The Corporation may examine any books, paper, records or memoranda bearing upon the approval of incentives awarded under the Act, and may require the attendance of any person executing any Application, report or other statement, or of any officer or employee of any taxpayer, or the attendance of any other person, and may examine such person under oath respecting any matter which the Corporation deems pertinent or material in determining eligibility for incentives claimed under the Act.

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-3 § 3.13 Inspection Rights

A.The Corporation shall have the right at reasonable times to make an inspection and to enter upon any property that is the subject of an Application during the term of a Grant Agreement to verify compliance with the Act, the Rules and such other conditions imposed by the Corporation.

History

Amendment — effective from 2025-01-29 to current
Periodic Refile — effective from 2022-01-04 to 01/29/2025
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-20-00-4 Rules and Regulations for the Innovation Voucher Program

870-RICR-20-00-4 § 4.1 Purpose

These rules and regulations (the “Rules”) are promulgated to set forth the principles, policies, and practices of the Rhode Island Commerce Corporation (the “Corporation”) in implementing and administering the innovation voucher program created under R.I. Gen. Laws Chapter 42-64.28, the Innovation Initiative act (the “Act”).

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.2 Authority

These Rules are promulgated pursuant to R.I. Gen. Laws Chapter 42-64.28. These Rules have been prepared in accordance with the requirements of the Rhode Island Administrative Procedures Act, R.I. Gen. Laws Chapter 42-35.

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.3 Scope

A.These Rules shall apply to any application received by the Corporation for an innovation voucher under the Act. Notwithstanding anything contained in these Rules to the contrary, the Corporation shall have and may exercise all general powers set forth in the Act that are necessary or convenient to effect its purposes and these Rules shall be liberally construed so as to permit the Corporation to effectuate the purposes of the Act and other applicable state laws and regulations. The Corporation, upon an affirmative vote of its board of directors, may provide exemption from the application of such portion of these Rules as may be warranted by extenuating circumstances arising from such application, based upon the written recommendation of the staff of the Corporation delineating the reasons for such exemption. An applicant seeking an exemption under this provision must demonstrate extenuating circumstances by showing either

1.that the application of a component of these Rules is inconsistent with a requirement of federal, state, or local law; or

2.that the application of a component of these Rules is not feasible or appropriate for the given project type.

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.4 Severability

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.5 Definitions

A.The following words and terms, when used in these Rules, shall have the following meanings, unless the context clearly indicates otherwise.

1.“Act” means R.I. Gen. Laws Chapter 42-64.28, known as the Innovation Initiative.

2.“Applicant” means a Business that applies for a Voucher under the Act and these Rules.

3.“Application” means the application, promulgated by the Corporation, which must be completed and submitted by an Applicant pursuant to the requirements of the Act and these Rules.

4.“Business” means a corporation, partnership, an S corporation, a non-profit corporation, a sole proprietorship, a limited liability corporation or such other entity as approved by the Corporation in its discretion.

5.“Corporation” means the Rhode Island Commerce Corporation established pursuant to R.I. Gen. Laws Chapter 42-64.

6.“Employee” means a natural person who is employed in the State by a business for consideration for at least thirty-five (35) hours a week, or who is employed in the State by a professional employer organization pursuant to an employee leasing agreement between the Business and the professional employer organization for at least thirty-five (35) hours a week, and whose wages are subject to withholding.

7.“Innovation Project” means the project for which the Applicant seeks a Voucher under the Act.

8.“Knowledge Provider” means a Rhode Island institution of higher education or other entity located in Rhode Island that will provide services to a Voucher recipient pursuant to a Voucher Agreement; provided that Corporation may, in rare circumstances, authorize an entity located outside of Rhode Island to qualify as a Knowledge Provider or collaborate with a Rhode Island-based Knowledge Provider if an Applicant can show that no Knowledge Provider located in Rhode Island is available and able to perform all the services required for the Innovation Project.

9.“Small Business” means a Business that is resident in the State, has a business facility within the state, and has five hundred (500) or fewer Employees.

10.“State” means the State of Rhode Island.

11.“Voucher” means a certificate with a value of $5,000 to $75,000 that a successful Applicant can redeem to purchase research and development support or other forms of technical assistance and services from a Knowledge Provider and to fund research and development by and for Small Business Manufacturers.

12."Manufacturer" means any entity that:

a.Uses any premises within the state primarily for the purpose of transforming raw materials into a finished product for trade through any or all of the following operations: adapting, altering, finishing, making, processing, refining, metalworking, and ornamenting, but shall not include fabricating processes incidental to warehousing or distribution of raw materials, such as alteration of stock for the convenience of a customer; or

b.Is described in codes 31-33 of the North American Industry Classification system, as revised from time to time.

13."Small Business Manufacturer" means an entity that meets both the definition of Small Business and Manufacturer as defined in these Rules.

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.6 Voucher Uses and Amounts

A.An Applicant can receive a Voucher of $5,000 to $75,000 to pay or defray the costs of any of the following services or activities:

1.access to research or scientific expertise, including preparatory work for research and development;

2.technological development or technology exploration;

3.product, service, or market development or commercialization, including prototyping, testing, or validation trials for new or enhanced products or services; or

4.improved business practices that implement strategies to grow business and create operational efficiencies; or

B.A Small Business Manufacturer can receive a Voucher to provide funding to finance internal research and development including, but not limited to, research, technological development, product development, commercialization, market development, technology exploration, and improved business practices that implement strategies to grow business and create operational efficiencies.

C.Knowledge Providers are expected to charge on a fee for service basis and at reasonable market rates, and indirect costs charged by a Knowledge Provider shall not exceed twenty-five percent (25%).

D.Vouchers cannot be used for ordinary and necessary business expenses or any of the following:

1.any expenditure of time by in-house personnel of the Applicant unless the Applicant is seeking a Voucher for internal research and development as a Small Business Manufacturer;

2.standard training;

3.software purchases or basic software, web, or application development;

4.routine testing or maintenance;

5.general marketing or sales activities;

6.general business advice or consulting, or basic professional services;

7.costs associated with applying for grants and programs;

8.costs of internships or support for students of Knowledge Providers; or

9.entertainment or hospitality costs.

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.7 Eligibility

A.The following conditions must be met for an Applicant to be eligible for a Voucher under the Act:

1.the Applicant must be a Small Business;

2.the Applicant must be registered to do business in the State;

3.the Applicant must obtain a signed letter from a Knowledge Provider demonstrating that the Knowledge Provider is capable and willing to provide the services that will be supported by the Voucher unless the Applicant is seeking a Voucher for internal research and development as a Small Business Manufacturer; and

4.the personnel at the Knowledge Provider who are to provide services to an Applicant must be independent from the Applicant and there must be no existing commitments between the Applicant and such personnel, other than commitments facilitated by a Voucher granted under the Act.

B.An Applicant is eligible to be awarded no more than two vouchers within a 12-month period. Unused Vouchers not cancelled by the Applicant shall count for purposes of implementing this provision.

C.A business shall not be entitled to claim a tax credit provided for in R.I. Gen. Laws § 44-32-3 in relation to a project for which the applicant has received a Voucher, except:

1.A Small Business Manufacturer may claim a tax credit for the cost of a research and development project. However, a Small Business Manufacturer may only claim a credit for the amount of research and development project costs that exceed the amount of the Voucher.

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.8 Application

1.the name of the Applicant and contact information for the individual(s) primarily responsible for oversight and management of the Application;

2.the Applicant’s federal and State tax identification numbers;

3.the Applicant’s total number of Employees;

4.the requested Voucher amount;

5.a description of the technology areas in which the Applicant generally operates and the Applicant’s or its employees’ experience in the development and commercialization of innovative new products or services;

6.a description of the Innovation Project, including background on the industry and market, the opportunity to be explored, the approach that will be undertaken, identification of the Knowledge Provider, estimated costs, timeline, and deliverables;

7.a clear explanation of how the Innovation Project will address existing challenges, enhance the innovation capacity of the Applicant, and/or have a catalytic impact on the Applicant’s business;

8.a signed letter from a Knowledge Provider demonstrating that the Knowledge Provider is capable and willing to provide the services that will be supported by the Voucher unless the Applicant is seeking a Voucher for internal research and development as a Small Business Manufacturer;

9.a disclosure of any known conflicts of interest between the Applicant and the Knowledge Provider and a documentation of a plan for managing such conflicts unless the Applicant is seeking a Voucher for internal research and development as a Small Business Manufacturer;

10.a delineation of any other federal, State, or municipal incentives, grants, tax credits, or other aid that will or may be received or requested by the Applicant in relation to the Innovation Project;

11.and such other information as the Corporation deems appropriate.

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.9 Application Review and Approval

A.Each Application shall be reviewed to confirm compliance with the Act and these Rules, and the Corporation may reject any incomplete or deficient Application.

C.After submission of a complete Application and review by the Corporation in accordance with the requirements of the Act and these Rules, the Corporation will determine whether to award a Voucher to the Applicant. In determining whether to approve a Voucher, priority will be given to Innovation Projects with the greatest commercial potential. Other factors considered may include:

1.quality of the organization and design of the Innovation Project;

2.qualifications and experience of the team conducting the Innovation Project;

3.the Innovation Project’s ability to further the development or commercialization of new or enhanced innovative products or services;

4.capacity for implementing and sustaining the results and findings of the Innovation Project;

5.potential for the Innovation Project to result in the creation of new full-time jobs;

6.level of the Applicant’s own cash or in-kind investment in the Innovation Project, and the potential for additional investment;

7.the catalytic impact successful completion of the Innovation Project will have for the Applicant; and

8.potential for further collaboration between the Applicant and Knowledge Provider after the completion of the Innovation Project unless the Applicant is seeking a Voucher for internal research and development as a Small Business Manufacturer.

D.If the Corporation determines that it will not approve a Voucher for an Applicant, it shall notify the Applicant in writing of such decision.

E.The Corporation may set periodic Application deadlines that will be published on the Corporation’s web site from time to time.

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.10 Voucher Agreement

A.Upon approval of a Voucher for an Applicant, the Corporation and the Applicant will enter into a Voucher Agreement. The Corporation in its sole discretion may cancel an approval if mutually agreeable terms cannot be met within 30 days of notification of the approval.

B.In order to safeguard the expenditure of public funds and ensure that the disbursement of funds further the objectives of the Act, the Voucher Agreement shall include, among others, the following terms:

1.the maximum Voucher amount;

2.a description of the Innovation Project and a requirement that the Voucher can only be redeemed for work outlined in that description;

3.a requirement that the Voucher can only be redeemed upon completion of the Innovation Project milestones and the receipt of the Corporation of adequate proof of project expenses;

4.a requirement that the Voucher be redeemed within 12 months of the date of the execution of the Voucher Agreement, subject to any no cost extension granted by the Corporation for good cause shown;

5.an indemnification provision;

6.reporting and program evaluation requirements;

7.a provision prohibiting transfer of the Voucher; and

8.any other provisions that the Corporation determines are appropriate.

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.11 Revocation

A.In the event that any information provided by the Applicant in its Application is found to be willfully false, the Corporation shall deny the issuance of or revoke any Voucher in whole or in part, which revocation shall be in addition to any other criminal or civil penalties that the Applicant and/or the relevant officials of the Applicant may be subject to under applicable law.

B.The Corporation shall deny the issuance of or revoke any Voucher if an Applicant or its successor-in-interest is convicted of bribery, fraud, theft, embezzlement, misappropriation, and/or extortion involving the State, any state agency or political subdivision of the state.

C.The Corporation may provide for additional rights and remedies in any Voucher Agreement, which will be in addition to the rights provided under this Rule.

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.12 Discretion and Judicial Review

A.The Corporation shall not have any obligation to issue any Voucher make any award or grant any benefits under the Act or these Rules, and may decline to grant Vouchers to any Applicant, including those who have submitted a completed Application that meets the eligibility requirements of § 4.7 of this Part.

B.A review of an Application shall not constitute a “contested case” under the Administrative Procedures Act, R.I. Gen. Laws § 42-35-9 , and no opportunity to object to an Application shall be afforded, nor shall judicial review be available from a decision rendered by the Corporation in connection with any Application.

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.13 Administration and Examination of Records

The Corporation may examine any books, paper, records or memoranda bearing upon the approval of incentives awarded under the Act, and may require the attendance of any person executing any Application, report or other statement, or of any officer or employee of any taxpayer, or the attendance of any other person, and may examine such person under oath respecting any matter which the Corporation deems pertinent or material in determining eligibility for incentives claimed under the Act.

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-4 § 4.14 Inspection Rights

The Corporation shall have the right at reasonable times to make an inspection and to enter upon any property that is the subject of an Application during the term of an Incentive Agreement to verify compliance with the Act, the Rules and such other conditions imposed by the Corporation.

History

Amendment — effective from 2023-09-27 to current
Periodic Refile — effective from 2022-01-04 to 09/27/2023
Amendment — effective from 2018-02-06 to 01/04/2022
Adoption — effective from 2015-11-25 to 02/06/2018

870-RICR-20-00-6 The Main Street Rhode Island Streetscape Improvement Fund

870-RICR-20-00-6 § 6.1 Purpose

A.These Rules and Regulations (the “Rules”) are promulgated to set forth the principles, policies and practices of the Rhode Island Commerce Corporation in implementing and administering R.I. Gen. Laws Chapter 42-64.27, the Main Street Rhode Island Streetscape Improvement Fund Act (the “Act”).

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-20-00-6 § 6.2 Authority

A.These Rules are promulgated pursuant to R.I. Gen. Laws Chapter 42-64.27. These Rules have been prepared in accordance with the requirements of the Rhode Island Administrative Procedures Act, R.I. Gen. Laws Chapter 42-35.

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-20-00-6 § 6.3 Scope

A.These Rules shall apply to any application received by the Rhode Island Commerce Corporation for funding under the Act. Notwithstanding anything contained in these Rules to the contrary, the Rhode Island Commerce Corporation shall have and may exercise all general powers set forth in the Act that are necessary or convenient to effect its purposes and these Rules shall be liberally construed so as to permit the Rhode Island Commerce Corporation to effectuate the purposes of the Act, the public interest, and other applicable State laws and Regulations. The Rhode Island Commerce Corporation, upon an affirmative vote of its board of directors, may provide exemption from the application of such portion of these Rules as may be warranted by extenuating circumstances arising from such application, based upon the written recommendation of the staff of the Rhode Island Commerce Corporation delineating the reasons for such exemption.

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-20-00-6 § 6.4 Severability

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-20-00-6 § 6.5 Definitions

A.The following words and terms, when used in these Rules, shall have the following meanings, unless the context clearly indicates otherwise.

1.“Act” means R.I. Gen. Laws Chapter 42-64.27 known as the Main Street Rhode Island Streetscape Improvement Fund.

2.“Agreement” means the contract between the Applicant and the Corporation, which sets forth the terms and conditions under which the Applicant shall be eligible to receive funding under the Act.

3.“Applicant” means a municipality, a political subdivision of a municipality, or an Economic Development Organization that applies for funding under the Act and these Rules.

4.“Application” means the application, promulgated by the Corporation, which must be completed and submitted by an Applicant pursuant to the requirements of the Act and these Rules.

5.“Award” means the approval of an Application for funding under the Act by the Board.

6.“Board” means the board of directors of the Corporation.

7.“Committed match” means a match for a Streetscape Improvement Project that is committed prior to the receipt of funds pursuant to the Act. The match shall be in the form of cash or the appraised value of any real estate necessary for the project that is contributed in order to construct the project; provided that a match comprised of real estate shall require the submission of an appraisal not older than one (1) year from the date of Application. A Committed Match may include funds expended within six (6) months prior to the date of the Application for engineering, design, investigations, environmental assessment or studies, legal fees, or costs incurred in obtaining necessary municipal approvals; provided that no funds expended or obligated to be paid prior to July 1, 2015 shall qualify as part of the Committed Match. A Committed Match shall not include funds expended on general overhead, salary, or other such expenses that are not incurred directly and exclusively for the Streetscape Improvement Project.

8.“Corporation” means the Rhode Island Commerce Corporation established pursuant to R.I. Gen. Laws Chapter 42-64.

9.“Economic development organization” means a nonprofit corporation, quasi-public corporation, association of businesses, or other entity whose purpose includes the enhancement of economic conditions or quality of life within its community or the State.

10.“Political subdivision” means a separate agency or unit of local government created or established by law.

11.“Streetscape improvement project” means a technical assistance project that supports future physical improvements to a streetscape or a project that creates a physical improvement to a streetscape, such as, but not limited to, enhanced sidewalks and sidewalk amenities, new street furniture, new wayfinding signage, upgraded building facades, or improved street and public space lighting.

12.“State” means the State of Rhode Island.

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-20-00-6 § 6.6 Eligibility

A.The following conditions must be met to be eligible for an Award under the Act:

1.The Applicant must be a municipality, a political subdivision of a municipality, or an Economic Development Organization;

2.The Applicant must have a Committed Match;

3.The Streetscape Improvement Project must be located in an area that is walkable, compact mix of land uses suitable for small business development and commerce and that attracts residents and visitors to frequent the activities located in the area;

4.The requested Award must not exceed thirty percent (30%) of funds available for the fiscal year and a requested Award for a technical assistance project may be no greater than $50,000; and

5.The requested Award must only be for expenses incurred directly and exclusively for the construction of the Streetscape Improvement Project.

B.If the Applicant is other than a municipality, the Applicant must secure a letter of support for the Streetscape Improvement Project from the mayor or elected City or Town Administrator of the municipality where the project is located or, in the absence of these officials, from either the City or Town Council President or the appointed City or Town Manager.

C.Commencement of construction work on the Streetscape Improvement Project prior to the filing of the Application will result in the project being ineligible for funding; provided that a Streetscape Improvement Project that is a distant phase of a larger, multiphase project shall not be ineligible for funding by virtue of the fact that construction on a different phase of the project commenced prior to the filing of the Application.

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-20-00-6 § 6.7 Application

A.The Application promulgated by the Corporation shall require submission of the following information from each Applicant:

1.The name of the Applicant and contact information for the individual(s) primarily responsible for oversight and management of the Application;

2.If the Applicant is an Economic Development Organization, a brief description of the organization, its governance structure, its members, and its activities, as well as appropriate evidence demonstrating that the Applicant has the organizational capacity to undertake and complete the Streetscape Improvement Project;

3.A detailed description of the Streetscape Improvement Project, which shall include its specific location, a map delineating the project area, conceptual drawings, and an anticipated construction schedule;

4.A budget for the Streetscape Improvement Project supported by project cost estimates for the work to be performed on the project; such budget shall reflect compliance with the requirements of R.I. Gen. Laws Chapter 37-13 in the event such Chapter applies to the Streetscape Improvement Project;

5.A detailed schedule of the sources and uses of funds for the Streetscape Improvement Project;

6.Evidence of the Committed Match;

7.A plan for the maintenance or upkeep of the Streetscape Improvement Project after completion, including the identification of sources of funds;

8.A description of the economic benefits of the Streetscape Improvement Project, including a discussion of how the project is consistent with existing and planned economic development investment (both public and private) in the area;

9.A delineation of all approvals necessary to complete the Streetscape Improvement Project and evidence that such approvals have been obtained or the anticipated time-frame for the issuance of such approvals; and

10.Any other necessary and relevant information as determined and/or requested by the Corporation.

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-20-00-6 § 6.8 Application Review

A.The Corporation shall conduct a review of the Applications received on a rolling basis, which may include periodic deadlines that will be published on the Corporation’s web site from time to time, until such time as well as available funds under the Act have been committed, at which point the Corporation will cease reviewing Applications until such time as additional funding is available.

B.Each Application shall be reviewed to confirm compliance with the Act and these Rules, and the Corporation may reject any incomplete or deficient Application.

C.The Corporation may require the submission of additional information in connection with any Application or the revision of an Application, and may permit the resubmission of an Application rejected as being incomplete or deficient.

D.After submission of a complete Application and review by the Corporation in accordance with the requirements of the Act and these Rules, the Corporation will determine whether to recommend to the Board that it make an Award to the Applicant. Factors considered in formulation of the recommendation may include:

1.The economic conditions of the municipality where the Streetscape Improvement Project is located;

2.The economic benefits of the project;

3.Consistency with local and statewide planning;

4.Technical and financial feasibility of the project;

5.Level of the Committed Match;

6.Amount of the Committed Match allocated to direct construction costs, as opposed to soft costs;

7.Amount of the Committed Match, if any, coming from the municipality;

8.Firmness of the commitment of the funds constituting the Committed Match;

9.The capital efficiency of the project;

10.Project readiness;

11.Any benefits to public transportation and/or bicycle transportation;

12.Energy efficient of the project; and

13.Operational sustainability.

E.If the Corporation determines that it will not recommend a complete Application to the Board for approval, it shall notify the Applicant in writing of such decision.

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-20-00-6 § 6.9 Board Approval

A.The Corporation shall not make any Award without Board approval.

B.The Board approval shall indicate whether the Award is made as a grant or a loan.

C.In addition to those findings required under R.I. Gen. Laws § 42-64-10, the Board shall make a finding in connection with approval of any Award that the Streetscape Improvement Project will create an attractive environment for small business development and commerce in the area in which it is located.

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-20-00-6 § 6.10 Agreement

A.Upon approval of an Award by the Board, the Corporation and the Applicant will enter into an Agreement prior to any funding to the Applicant.

B.In order to safeguard the expenditure of public funds and ensure that the disbursement of funds further the objectives of the Act, the Agreement shall include, among others, the following terms:

1.The maximum amount of the Award;

2.The anticipated deadline for completion of the Streetscape Improvement Project;

3.A schedule and conditions for the disbursement of the Award;

4.a procedure for the certification and auditing of project costs;

5.A provision that the failure to adhere to a certain timeline or to certain conditions may result in forfeiture of the all or a portion of the Award;

6.If the Applicant is not a municipality or political subdivision thereof, representations and warranties that the Applicant is in good standing with the Secretary of State and Division of Taxation at the time of execution of the Agreement and will remain so through the duration of the Agreement; good standing with the Division of Taxation means that the Applicant is current on all taxes or that the Applicant is current on a workout agreement with the Division of Taxation;

7.Indemnification requirements;

8.Default and remedies including events other than those set forth above, if any, that would trigger forfeiture or revocation of the Award; and

9.Reporting requirements including, but not limited to, any requirements under the Act.

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-20-00-6 § 6.11 Discretion and Judicial Review

A.The Corporation shall not have any obligation to make any Award or grant any benefits under the Act or these Rules, and may decline to make Awards to any project with respect to which the Corporation has received a completed Application that meets the eligibility requirements of § 6.5 of this Part.

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-20-00-6 § 6.12 Administration and Examination of Records

A.The Corporation may examine any books, papers, records or memoranda bearing upon the approval of any grant awarded under the Act, and may require the attendance of any person executing any application, report or other statement, or the attendance of any other person, and may examine such person under oath respecting any matter which the Corporation deems pertinent or material in determining eligibility for Awards claimed under the Act.

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-20-00-6 § 6.13 Inspection Rights

A.The Corporation shall have the right at reasonable times to make an inspection and to enter upon any property that is the subject of an Application during the Application process or term of an Agreement to verify compliance with the Act, these Rules and such other conditions imposed in the Agreement or by the Corporation.

History

Amendment — effective from 2024-01-03 to current
Amendment — effective from 2022-11-07 to 01/03/2024
Periodic Refile — effective from 2022-01-04 to 11/07/2022
Technical Revision — effective from 2015-10-22 to 01/04/2022
Adoption — effective from 2015-10-22 to 10/22/2015

Chapter 30 Tax Credits and Exemptions

Subchapter 00

870-RICR-30-00-2 Rules and Regulations for the Tax Stabilization Incentive Program

870-RICR-30-00-2 § 2.1 Purpose

These rules and regulations (the “Rules”) are promulgated to set forth the principles, policies and practices of the Rhode Island Commerce Corporation (the “Corporation”) in implementing and administering R.I. Gen. Laws Chapter 42-64.22, the Tax Stabilization Incentive act (the “Act”).

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-30-00-2 § 2.2 Authority

These Rules are promulgated pursuant to R.I. Gen. Laws Chapter 42-64.22. These Rules have been prepared in accordance with the requirements of R.I. Gen. Laws Chapter 42-35, the Rhode Island Administrative Procedures Act.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-30-00-2 § 2.3 Scope

A.These Rules shall apply to any application for an incentive under the Act. Notwithstanding anything contained in these Rules to the contrary, the Corporation shall have and may exercise all general powers set forth in the Act that are necessary or convenient to effect its purposes and these Rules shall be liberally construed so as to permit the Corporation to effectuate the purposes of the Act and other applicable state laws and regulations. The Corporation, upon an affirmative vote of its board of directors, may provide exemption from the application of such portion of these Rules as may be warranted by extenuating circumstances arising from such application, based upon the written recommendation of the staff of the Corporation delineating the reasons for such exemption. An applicant seeking an exemption under this provision must demonstrate extenuating circumstances by showing either:

1.that the application of a component of these Rules is inconsistent with a requirement of federal, state, or local law; or

2.that the application of a component of these Rules is not feasible or appropriate for the given project type.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-30-00-2 § 2.4 Severability

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-30-00-2 § 2.5 Definitions

A.The following words and terms, when used in these Rules, shall have the following meanings, unless the context clearly indicates otherwise:

1.“Act” means R.I. Gen. Laws Chapter 42-64.22 known as the Tax Stabilization Incentive.

2.“Adaptive reuse” means the conversion of an existing structure from the use of which it was constructed to a new use by maintaining elements of the structure and adapting such elements to a new use.

3.“Affiliate” means an entity that directly or indirectly controls, is under common control with, or is controlled by a Business. Control exists in all cases in which the entity is a member of a controlled group of corporations as defined pursuant to § 1563 of the Internal Revenue Code of 1986 (26 U.S.C. § 1563) or the entity is an organization in a group of organizations under common control as defined pursuant to subsection (b) or (c) of § 414 of the Internal Revenue Code of 1986 (26 U.S.C. § 414). A taxpayer may establish by clear and convincing evidence, as determined by the tax administrator, that control exists in situations involving lesser percentages of ownership than required by those statues. An affiliate of a Business may contribute to meeting either the Capital Investment or Full-Time Job requirements for a grant of incentives under these Rules.

4.“Affordable housing” means housing for sale or rent with combined rental costs or combined mortgage loan debt service, property taxes, and required insurance that do not exceed thirty percent (30%) of the gross annual income of a household earning up to eighty percent (80%) of the Providence-Fall River, RI-MA metropolitan area median income, as defined annually by the United States Department of Housing and Urban Development.

5.“Applicant” means a Qualifying Community or Hope Community applying for an incentive under these Rules.

6.“Application” means the application promulgated by the Corporation, which must be completed and submitted by an Applicant pursuant to the requirements of the Act and these Rules.

7.“Business” means a corporation as defined in R.I. Gen. Laws § 44-11-1(4), or a partnership, an S corporation, a non-profit corporation, a sole proprietorship, or a limited ability corporation. A Business shall include an Affiliate of the Business if that Business applies for a tax stabilization agreement based upon any Capital Investment made by an Affiliate.

8.“Capital investment” means expenses by a Business or any Affiliate of the Business in a Qualified Development Project incurred after application for a tax stabilization agreement for:

a.site preparation and construction, repair, renovation, improvement, equipping, or furnishing on real property or of a building, structure, facility, or improvement to real property; and/or

b.obtaining and installing furnishings and machinery, apparatus, or equipment, including but not limited to material goods for the operation of a business on real property or in a building, structure, facility, or improvement to real property.

c.In addition to the foregoing, if a Business acquires or leases a Qualified Development Project, the capital investment made or acquired by the seller or owner, as the case may be, if pertaining primarily to the premises of the Qualified Development Project, shall be considered a capital investment by the Business and, if pertaining generally to the Qualified Development Project being acquired or leased, shall be allocated to the premises of the Qualified Development Project on the basis of the gross leasable area of the premises in relation to the total gross leasable area in the Qualified Development Project. The capital investment described herein may include any capital investment made or acquired within twenty-four (24) months prior to the date of Application so long as the amount of capital investment made or acquired by the Business, any Affiliate of the Business, or any owner after the date of Application equals at least fifty percent (50%) of the amount of capital investment, allocated to the premises of the Qualified Development Project being acquired or leased on the basis of the gross leasable area of such premises in relation to the total gross leasable area in the Qualified Development Project made or acquired prior to the date of Application.

9.“Certified historic structure” means a property which is located in the State and is:

a.listed individually on the national register of historic places; or

b.listed individually in the State register of historic places; or

c.located in a registered historic district and certified by either the Rhode Island Historical Preservation & Heritage Commission or Secretary of the Interior as being of historic significance to the district.

10.“Corporation” means the Rhode Island Corporation established pursuant to R.I. Gen. Laws Chapter 42-64.

11.“Commercial” means non-residential development.

12.“Developer” means a person, firm, corporation, partnership, association, political subdivision, or other entity that proposes to divide, divides, or causes to be divided real property into a subdivision or proposes to build, or builds a building or buildings or otherwise improves land or existing structures, which division, building, or improvement qualifies for benefits under this Part.

13.“Eligibility period” means the period in which a Qualifying Community and/or Hope Community may apply for reimbursement under the Act and these Rules. The eligibility period shall be subject to the term defined in the Qualifying Tax Stabilization Agreement granted by said community. The amounts subject to reimbursement shall cease upon any termination or cessation of the underlying Qualifying Tax Stabilization Agreement.

14.“Forgone tax revenue” means the amount of revenue that a municipality would have received from a Qualified Development Project had a tax stabilization agreement not been in place, less the amount of revenue the municipality would be expected to receive from that Qualified Development Project with a Qualifying Tax Stabilization Agreement in place; the Corporation shall have the sole discretion to determine the Forgone Tax Revenue for a Qualified Development Project.

15.“Full-time job” means a position for which a person is employed by a Business for consideration for a minimum of at least thirty-five (35) hours per week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, or who is employed by a professional employer organization pursuant to an employee leasing agreement between the Business and the professional employer organization for a minimum of thirty-five (35) hours per week, or who renders any other standard of service generally accepted by custom or practice as full-time employment, and whose wages are subject to withholding.

16.“Hope community” means a municipality for which the five (5) year average percentage of families with income below the federal property level exceeds the State five (5) year average percentage, both as most recently reported by the U.S. Department of Commerce, Bureau of the Census.

17.“Project cost” means the costs incurred by a Developer in connection with the Qualified Development Project until the issuance of a permanent certificate of occupancy, or until such other time specified by the Corporation including, but not limited to, costs for lands, buildings, improvements, real and personal property or any interest therein, including the site, space or air rights, acquired, owned, developed or redeveloped, constructed, reconstructed, rehabilitated or improved, and any environmental remediation costs, plus reasonable soft costs as determined by the Corporation, and ancillary infrastructure projects and infrastructure improvements, as permitted in the sole discretion of the Corporation.

18.“Recognized historical structure” means a property which is located in the State and is commonly considered to be of historic or cultural significance as determined by the Corporation in consultation with the State Historic Preservation Officer.

19.“Qualifying communities” are those municipalities within the State that are not defined as a Hope Community.

20.“Qualified development project” includes:

a.Rehabilitation of an existing structure where the total cost of the development budget exceeds fifty percent (50%) of adjusted basis in the proposed project as of the date that the Developer applied for a Qualifying Tax Stabilization Agreement; or

b.Construction of a new building wherein:

(1)the subject community has issued a tax stabilization agreement, as set forth herein and pursuant to R.I. Gen. Laws § 44-3-9 as well as other applicable rules, regulations and, procedures;

(2)construction commences within twelve (12) months of the subject tax stabilization agreement being approved; and

(3)completion of the proposed project occurs within thirty-six (36) months, subject to the approval of Qualifying or Hope Communities.

21.“Qualifying tax stabilization agreement” are those tax stabilization agreements with a minimum term of twelve (12) years, granted by a Qualifying and/or Hope Community in connection with a Qualified Development Project.

22.“State” means the State of Rhode Island and Providence Plantations.

23.“Workforce housing” means housing for sale or rent with combined rental costs or combined mortgage loan debt service, property taxes, and required insurance that do not exceed thirty percent (30%) of the gross annual income of a household earning between eighty percent (80%) and one hundred and forty percent (140%) of the Providence-Fall River, RI-MA metropolitan area median income, as defined annually by the United States Department of Housing and Urban Development.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-30-00-2 § 2.6 Eligibility

A.Subject to appropriation, a Qualifying Community may be eligible to receive an incentive of up to ten percent (10%) of the Foregone Tax Revenue for a Qualifying Tax Stabilization Agreement for a Qualified Development Project that

1.results in the creation of at least fifty (50) new Full-Time Jobs, and for which the Developer shall commit a Capital Investment of not less than Ten Million Dollars ($10,000,000.00) towards the Project Cost; or

2.involves an Adaptive Reuse of a Recognized Historical Structure; or

3.results in the creation of at least twenty (20) units of Residential housing; provided that at least twenty percent (20%) of the Residential units are for Affordable or Workforce Housing; or

4.involves an Adaptive Reuse of a Certified Historic Structure, if such project:

a.has been certified by the State Historic Preservation Officer that the Adaptive Reuse will be consistent with the standards of the Secretary of the United States Department of the Interior for rehabilitation; and

b.results in the creation of at least twenty (20) units of Residential housing; provided that at least twenty percent (20%) of the Residential units are for Affordable or Workforce Housing.

B.Subject to appropriation, a Hope Community may be eligible to receive an incentive of up to ten percent (10%) of the Foregone Tax Revenue for a Qualifying Tax Stabilization Agreement for a Qualified Development Project that

1.results in the creation of at least twenty-five (25) new Full-Time Jobs, and for which the Developer shall commit a Capital Investment of not less than Five Million Dollars ($5,000,000.00) towards the Project Cost; or

2.results in the creation of at least twenty (20) units of Residential housing.

C.An Applicant need not have entered into or approved the Qualifying Tax Stabilization Agreement prior to filing an Application for an incentive in relation to that Agreement, though approval and execution of the Qualifying Tax Stabilization Agreement is a condition to the receipt of an incentive under the Act.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-30-00-2 § 2.7 Application

A.Each Application made by an Applicant shall include, at a minimum, the following information:

1.The name, address and principal contact for the Applicant;

2.The location of the Qualified Development Project;

3.The terms of an existing or anticipated Qualifying Tax Stabilization Agreement;

4.For a Commercial or Mixed Use project, identification of prospective businesses that will occupy the project location, type of businesses, and principal products and services (if applicable or known);

5.For a Residential or Mixed Use project, a description of unit sizes/layouts projected sales/lease pricing, and affordability mix;

6.A construction schedule for the Qualified Development Project or each phase of such project;

7.A detailed itemization of the estimated Project Cost, if applicable;

8.A detailed itemization of the Capital Investment, if applicable;

9.A delineation of any other federal, State or local incentives, grants, tax credits or other aid that will or may be received or requested by the Business or an Affiliate of the Business in relation to the Project; and

10.Such other information as the Corporation deems appropriate.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-30-00-2 § 2.8 Application Review and Approval

A.Each Application shall be reviewed to confirm compliance with the Act and these Rules, and the Corporation may reject any incomplete or deficient Application.

C.After submission of a complete Application and review by the Corporation in accordance with the requirements of the Act and these Rules, the Corporation will determine whether to award an incentive to the Applicant. In approving an incentive, the Corporation shall make the following findings in connection with approval of any award of incentives under the Act and these Rules:

1.that the total amount of the award to the Applicant is not more than ten percent (10%) of the Forgone Tax Revenue in relation to the Qualified Development Project; and

2.that the award of incentives is subject to the availability of funding from annual appropriations.

D.In determining whether to approve an award of incentives under the Act, the Corporation may take into account, in consideration with other factors deemed relevant by the Corporation, the following:

1.The catalytic impact of the Qualified Development Project;

2.Whether the Qualified Development Project furthers State or municipal planning and development objectives, or both;

3.Whether the provision of an incentive under the Act is a material factor in the decision of the municipality to grant the Qualifying Tax Stabilization Agreement; and

4.Whether the Qualified Development Project maximizes the value of vacant, dilapidated, outmoded, or underutilized property.

E.If the Corporation determines that it will not award an incentive to an Applicant who has submitted a complete Application, it shall notify the Applicant in writing of such decision.

F.The Corporation may set periodic Application deadlines that will be published on the Corporation’s web site from time to time.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-30-00-2 § 2.9 Incentive Agreement

A.Upon approval of an award to an Applicant and in order to safeguard the expenditure of public funds and ensure that the disbursement of funds furthers the objectives of the Act, the Corporation and the Applicant will enter into an Incentive Agreement, which shall include, among others, the following terms:

1.The maximum amount of incentives awarded;

2.A provision that the incentives shall cease upon any termination or cessation of the Qualifying Tax Stabilization Agreement or upon exhaustion of funds appropriated for the program;

3.If applicable, a provision requiring that the receipt of the incentives for any given year be subject to the Qualified Development Project meeting any job creation requirements or any other conditions that the Corporation, in its sole discretion, shall set as a condition of its approval of an award to the Applicant;

4.Default and remedies including events, if any, that would trigger forfeiture, revocation, termination, and/or repayment of the awarded incentives;

5.Indemnification, insurance and other customary protective requirements;

6.Reporting requirements including, but not limited to, any requirements under the Act;

7.A certification procedure to insure that the Qualified Development Project meets the relevant eligibility criteria and any other criteria imposed by the Corporation in approving an award of incentives; and

8.Any other provisions that the Corporation determines are appropriate.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-30-00-2 § 2.10 Discretion and Judicial Review

A.The Corporation shall not have any obligation to make any award or grant any benefits under the Act or these Rules.

B.A review of an Application shall not constitute a “contested case” under R.I. Gen. Laws § 42-35-9, the Administrative Procedures Act, and no opportunity to object to an Application shall be afforded, nor shall judicial review be available from a decision rendered by the Corporation in connection with any Application.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2015-11-25 to 01/04/2022
Adoption — effective from 2015-11-25 to 11/25/2015

870-RICR-30-00-6 Rules and Regulations for the Rhode Island Tax Increment Financing Act

870-RICR-30-00-6 § 6.1 Purpose

These rules (the “Rules”) are promulgated to set forth the principles, policies and practices of the Rhode Island Commerce Corporation in implementing and administering Pursuant to R.I. Gen. Laws Chapter 42-64.21, the Rhode Island Tax Increment Financing Act of 2015 (“Act”).

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.2 Authority

These Rules are promulgated pursuant to R.I. Gen. Laws Chapter 42-64.21. These Rules have been prepared in accordance with the requirements of the Rhode Island Administrative Procedures Act, R.I. Gen. Laws Chapter 42-35.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.3 Scope

These Rules shall apply to any application for an incentive under the Act. Notwithstanding anything contained in these Rules to the contrary, the Rhode Island Commerce Corporation shall have and may exercise all general power set forth in the Act that are necessary or convenient to effect its purposes and these Rules shall be liberally construed so as to permit the Rhode Island Commerce Corporation to effectuate the purposes of the Act, the public interest, and other applicable state laws and regulations. The Rhode Island Commerce Corporation, upon an affirmative vote of its board of directors, may provide exemption from the application of such portion of these Rules as may be warranted by extenuating circumstances arising from such application, based upon the written recommendation of the staff of the Rhode Island Commerce Corporation delineating the reasons for such exemption.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.4 Severability

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.5 Definitions

A.The following words and terms, when used in these Rules, shall have the following meanings, unless the context clearly indicates otherwise:

1.“Act” means R.I. Gen. Laws Chapter 42-64.21 known as the Rhode Island Tax Increment Financing Act of 2015.

2.“Airport district” means the area within a one-mile radius of the outermost boundary of T.F. Green State Airport located in Warwick, Rhode Island.

3.“Annual TIF payment” means that portion of the Total TIF Payment that an Applicant receives in a given year.

4.“Applicant” means a Developer proposing to enter into a TIF Agreement.

5.“Application” means the application, promulgated by the Corporation, which must be completed and submitted by an Applicant pursuant to the requirements of the Act and these Rules.

6.“At risk business” means a business at substantial risk of moving to a viable location out-of-state as verified by the Corporation.

7.“Board” means the board of directors of the Corporation.

8.“Contiguous” means any area of land that is adjacent to the Project Area; land may be considered contiguous irrespective of property boundaries or any road, waterway, right-of-way, easement, railroad track, marshland, or utility line.

9.“Corporation” means the Rhode Island Commerce Corporation established pursuant to R.I. Gen. Laws Chapter 42-64.

10.“Corporation TIF fund” means a dedicated fund established at the Corporation for the purpose of depositing funds received from significant taxpayers as provided under R.I. Gen. Laws § 42-64.21-5(d) of the Act.

11.“Developer” means a person, firm, corporation, partnership, association, political subdivision, or other entity that proposes to divide, divides, or causes to be divided real property into a subdivision or proposes to build, or builds a building or buildings or otherwise improves land or existing structures, which division, building, or improvement qualified for benefits under the Act.

12.“Eligible revenue” means the revenues from taxes assessed and collected under R.I. Gen. Laws Chapters 44-11, 44-13, 44-14, 44-17, 44-18, 44-19, 44-30 or realized from such venue ticket sales or parking taxes as may be established and levied under state law as set forth in R.I. Gen. Laws § 43-64.21-5 of the Act.

13.“Existing revenue at substantial risk of loss” means revenue resulting from the retention of one or more At Risk Businesses located in a Qualified Development Project as determined by calculating the difference between the Revenue Increment Base of the Qualifying TIF Area with the At Risk Business(es) against that Revenue Increment Base without the At Risk Business(es) shall exclude not only the revenue generated from the At Risk Business(es) but shall also exclude the revenue generated from any business(es) that are at substantial risk of closing or leaving the State if the At Risk Business(es) close or leave the State.

14.“Hope community” means a municipality for which the five (5) year average percentage of families with income below the federal property level exceeds the state five (5) year average percentage, both most recently reported by the U.S. Department of Commerce, Bureau of the Census.

15.“Incremental revenue” means:

a.Net new revenue to the State or

b.Existing revenue at substantial risk of loss to the state.

16.“Industrial park” means a property-based venture zoned and planned for the purpose of industrial development.

17.“Letter of good standing” means a letter from the Division of Taxation certifying that the taxpayer is in good standing for purposes of these Rules; a taxpayer shall be entitled to a letter of good standing so long as

a.the tax payer is current on all outstanding filings and declared tax liabilities subject to audit

b.the taxpayer and the Division of Taxation have a workout payment agreement or other settlement with respect to any known delinquent tax liability and the taxpayer is current on that workout payment agreement or settlement, or

c.the taxpayer has timely commenced or engaged in an administrative or judicial proceeding concerning a tax liability the status of which would otherwise preclude the issuance of a letter of good standing.

18.“Net new revenue” means the actual net revenue resulting from a Qualified Development Project as determined for any given year by subtracting the Revenue Increment Base for a Qualifying TIF Area from the total net revenues generated in the Qualifying TIF Area in that given year.

19.“Placed in service” means the earlier of:

a.a determination by the Corporation that substantial construction or rehabilitation work has been completed which would allow for occupancy of an entire structure or some identifiable portion of a structure, or

b.receipt by the Developer of a certificate, permit or other authorization allowing for occupancy of the Qualified Development Project or some identifiable portion of the Qualified Development Project by the municipal or state authority having jurisdiction.

20.“Port district” means such areas that are within one mile of the Port of Davisville, Port of Providence, Port of Newport, or Port of Galilee.

21.“Project area” means land or lands under common ownership or control as certified by the Corporation.

22.“Project cost” means costs incurred in connection with the Qualified Development Project by the Applicant until the issuance of a permanent certificate of occupancy, or until such other time specified by the Corporation, including, but not limited to, lands, buildings, improvements, real and personal property or any interest therein, including the site, space or air rights, acquired, owned, developed or redeveloped, constructed, reconstructed, rehabilitated or improved, and any environmental remediation costs, plus reasonable soft costs as determined by the Corporation, and ancillary infrastructure projects and infrastructure improvements, as permitted in the sole discretion of the Corporation.

23.“Project financing gap” means:

a.The part of the total Project Cost that remains to be financed after all other sources of capital have been accounted for, including, but not limited to, applicant’s equity, a reasonable assumption of debt on the project, and any other capital source that is reasonable available given the nature of the project; or

b.The amount of funds that the State may invest in a Qualified Development Project to gain a competitive advantage over a viable comparable location in another state by means described in the Act and Rules.

24.“Qualified development project” means a specific construction project or improvement, including lands, buildings, improvements, real and personal property or any interest therein, including lands under water, riparian rights, space rights and air rights, acquired, owned, leased, developed or redeveloped, constructed, reconstructed, rehabilitated or improved, undertaken by a Developer, owner or tenant, or both, within a specific geographic area, meeting the requirements of the Act, as set forth in the Application made to the Corporation.

25.“Qualifying TIF area” means an area containing a Qualified Development Project identified by the Corporation as a priority because of its potential to generate, preserve or otherwise enhance jobs or its potential to produce, preserve or otherwise enhance housing units. The Corporation shall take into account the following factors in determining whether a Qualified Development Project is a priority:

a.General or preservation of manufacturing jobs;

b.Promotion of Targeted Industries;

c.Location in a Port District of Airport District;

d.Location in an Industrial or Research Part

e.Location in a Transit Oriented Development Area;

f.Location in a Hope Community;

g.Location in an area designated by a municipality as a Redevelopment Area;

h.Location in an area located within land approved for closure under any federal commission on base realignment and closure action.

26.“Redevelopment area” means an area designated as a redevelopment area in accordance with R.I. Gen. Laws § 45-32-4.

27.“Revenue increment base” means the amounts of all Eligible Revenue from sources within the Qualifying TIF Area in the calendar year preceding the year in which the TIF Agreement is executed, as certified by the Division of Taxation.

28.“Research park” means a property-based venture consisting of primarily research and development facilities intended to encourage technology-led economic development that is associated with one or more institutions of higher learning.

29.“Request of authorization” means a request by a Developer to the Corporation for authorization to submit an Application for a TIF Incentive.

30.“State” means the State of Rhode Island and Providence Plantations.

31.“Targeted industries” means any advanced, promising or otherwise prioritized industry identified in the economic development vision and policy promulgated pursuant R.I. Gen. Laws § 42-64.17-1 or, until such time as any such economic development vision and policy is promulgated, as identified by the Corporation from time to time and published on the Corporation’s website.

32.“TIF agreement” means an agreement between the Corporation and a Developer, under which, in exchange for the benefits of the funding derived from qualification under the Act and these Rules, the Developer agrees to perform any work or undertaking necessary for a Qualified Development Project, including the clearance, development or redevelopment, construction, or rehabilitation of any structure or improvement of commercial, industrial, or residential property; public infrastructure; preexisting municipally-owned stadium of 10,000 seats or greater; or utilities within a Qualifying TIF Area.

33.“TIF incentive” means any incentive awarded by the Corporation under the Act and these Rules.

34.“Total TIF payment” means reimbursement of all or a portion of the Project Financing Gap of a Qualified Development Project from the Division of Taxation as provided under the Act and these Rules.

35.“Transit oriented development area” means either of:

a.an area that the Corporation, after consultation with the Rhode Island Department of Transportation and the Rhode Island Public Transit Authority, designates as a Transit Oriented Development Area because it supports, or has the potential to support, development that is in close proximity to, compatible with, and supportive of public transit; such discretionary designation can occur in response to an Application for an incentive under the Act or in a request submitted by a municipality to the Corporation in a for prescribed by the Corporation on its website; or

b.an area with ready access to freight rail, air, and/or marine transportation where manufacturing, warehousing, distribution, and freight forwarding operations are or could be located.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.6 Eligibility

A.In order to be eligible for a TIF Incentive the following requirements shall be satisfied:

1.The project must be located in a Qualifying TIF Area;

2.A Project Financing Gap exists;

3.The project is:

a.a new facility and not a replacement or relocation of an existing facility already located in the State;

b.an expansion of an existing facility that will increase the number of full-time employees in the State; or

c.necessary to retain one or more At Risk Businesses;

4.The Applicant must enter into a TIF Agreement with the Corporation on or before June 30, 2020.

B.The Developer of a Qualified Development Project may be eligible for receipt of payment of a portion of the Incremental Revenues directly realized from projects or businesses operating in the Qualifying TIF Area from the taxes assessed and collected under the R.I. Gen. Laws Chapters 44-11, 44-13, 44-14, 44-17, 44-18, 44-19, 44-30 or realized from such venue ticket sales or parking taxes as may be established and levied under State law.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.7 Request for Authorization

A.No Application can be filed for a TIF Incentive without written authorization from the Corporation.

B.The Corporation may authorize Developers to file an Application for a TIF Incentive through a public request for proposal process; may authorize a Developer who has applied for an economic development incentive under another program administered by the Corporation to supplement that application by filing an Application under the TIF Incentive program; and the Corporation may authorize a Developer to apply for a TIF Incentive after review and approval of a Request for Authorization received from the Developer, in the form promulgated by the Corporation, which shall:

1.demonstrate that a TIF incentive is appropriate for the Developer’s project because no alternative method of private or public financing, including any and all federal, state, and local grants, incentives, or tax abatements, is readily available to complete the project; and/or a TIF Incentive is the optimal financing source for a project; and/or the project creates direct public benefits, such as, but not limited to, public infrastructure, utilities, and other public amenities; and

2.identify the Qualifying TIF Area for the project and the taxes to be included in the Eligible Revenues. The Corporation may request such analyses regarding taxes as may be necessary or helpful.

C.In reviewing a Request for Authorization, the Corporation may consider, among other factors, whether other financing options reasonably exist for the project and whether the project has a public interest rationale and is consistent with state and local planning and development objectives.

D.If the Corporation determines that it will not grant a Request for Authorization, it shall notify the Developer in writing of such decision.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.8 Designation of a Qualifying TIF Area

A.The Corporation may designate areas within one or more contiguous municipalities that meet the necessary criteria to become a Qualifying TIF Area.

B.The Qualifying TIF Area for a Qualified Development Project shall be no greater than the Project Area for said project, unless:

1.the Qualified Development Project includes the development of infrastructure or utilities to serve areas beyond the boundaries of the Project Area, in which case the Applicant may request that the proposed Qualifying TIF Area include, in addition to the Project Area, such additional real estate contiguous to the Project Area as will be directly or indirectly benefitted by the development of such infrastructure or utilities; or

2.the Applicant can demonstrate, to the satisfaction of the Corporation in its discretion, that the Qualified Development project will directly result in the generation of Incremental Revenue beyond the boundaries of the Project Area and can propose, provide justification for, and identify an administrable method, as determined in the sole discretion of the Corporation, for determining the portion or percentage (not greater than 75%) of the Incremental Revenue generated beyond the boundaries of the Project Area as a result of the project, in which case the Applicant may request that the proposed Qualifying TIF Area include additional real estate contiguous to the Project Area.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.9 Application

A.The Application promulgated by the Corporation shall require submission of the following information from each Applicant:

1.The name, address and principal contact for the Applicant;

2.State and Federal tax identification numbers;

3.The location of the project;

4.For a commercial project or a mixed use project, identification of prospective businesses that will occupy the project, type of businesses and principal products and services (if applicable or known);

5.For a residential project or a mixed use project, a complete description of unit sizes/layouts, projected sales/lease pricing and affordability mix;

6.The status of control of the entire Project Area shown for each plat and lot as indicated on the municipal assessor’s tax map(s);

7.A construction schedule for the project or each phase of the project;

8.A detailed itemization of the estimated Project Cost;

9.A detailed description of the financing for the project including all sources and amounts of funding, projected internal rate of return, net margin, return on investment and cash on cash yield;

10.A pro forma demonstrating that the project is likely to be realized with the provision of the TIF Incentive requested but is not likely to be accomplished in this State by private enterprise without the TIF Incentive;

11.A list and status of all required Federal, State and/or municipal approvals and/or permits required for the project;

12.A delineation of any other federal, State or local incentives, grants, tax credits or other aid that will or may be received or requested by the Developer in relation to the project;

13.Whether the Applicant has obtained a tax stabilization agreement from the municipality in which the project is located or, if applicable, the unavailability of a tax stabilization agreement despite commercially reasonable efforts by the Applicant to obtain such an agreement and a description of such efforts;

14.A detailed description of the proposed Qualifying TIF Area, which shall include a description of the boundaries of the proposed Qualifying TIF Area; a description of the existing uses and permitted uses of the land located in the Qualifying TIF Area; a description of the existing commercial activity and specific businesses in the Qualifying TIF Area; a delineation of the taxes to be included in the Eligible Revenue; and the percentage of Incremental Revenue proposed to be eligible for a TIF Incentive;

15.If the Qualifying TIF Area is greater than the boundaries of the Project Area, the Application shall also include the following additional items with respect to the portion of the proposed Qualifying TIF Area located outside of the Project Area (the “benefitted properties”):

a.A listing of each parcel by lot and block number, including for each parcel the name of the title owner, the assessed value, the local zoning designation, and whether the parcel is improved or unimproved, and a copy of any field or proposed development plan relating to such parcel;

b.For each parcel, a certification by the Applicant that it has mailed a copy of a notice of the Application, in a form to be prescribed by the Corporation, to such title owner, by certified mail to the address of the title owner on file with the local tax assessor, which notice shall advise the title owner that it may provide written comment to the Corporation within thirty (30) days following the date of mailing of the notice;

c.A description of the development expected or planned on the benefitted properties, including the identification of the developers, if any, and their contractual relationship, if any, with the Applicant;

d.If the project involves the development of infrastructure or utilities or serve areas beyond the boundaries of the Project Area, a description of the proposed infrastructure or utilities to be developed by the Applicant that will directly or indirectly benefit the benefitted properties, including the cost thereof and any proposed contributions or reimbursements expected to be made by the benefitted properties, together with an assessment of whether any additional infrastructure or utilities beyond those to be provided by the Applicant (e.g., house connections and/or connection main to link to a water or sewer project to be constructed by the Applicant) would need to be provided in order for such benefitted properties to be developed in the manner contemplated by the Application, and a description of any other known development constraints; and

e.If the project does not involve the development of infrastructure or utilities: for each tax the Applicant proposes to include in Eligible Revenue, a description, supported by data, of how the Qualified Developed Project will directly result in an increase of revenue generated from that tax on the benefitted properties; and delineation of the method by which Incremental Revenues on the benefitted properties will be calculated and by which an identified portion or percentage of thereof shall be eligible for any TIF Incentive;

16.any other necessary and relevant information as determined by the Corporation; and

17.A certification from the Applicant as to the following:

a.A Project Financing Gap exists on the project; and

b.The project meets the statutory criteria for approval by the Board as a Qualified Development Project.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.10 Fees

A.An Applicant shall be charged a one-time, non-refundable application fee by the Corporation and may be charged fees for ongoing administration in relation to the project if approved by the Board. The Corporation shall annually publish a fee schedule on its website commencing on or before December 31, 2015.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.11 Review Process

A.Each Application shall be reviewed to confirm compliance with the Act and these Rules, and the Corporation may reject any incomplete or deficient Application.

B.The Corporation may require the submission of additional information in connection with any Application, the revision of an Application, and may permit the resubmission of an Application rejected as being incomplete or deficient.

C.Prior to recommending a project to the Board for approval, the Corporation shall review each project to determine if a Project Financing Gap exists. This review shall include testing the validity of the Applicant’s financial information and assumptions through the use of financial models and, to the extent necessary, seeking input from third-party consultants.

D.After submission of a complete Application and review by the Corporation in accordance with the requirements of the Act and these Rules, the Corporation will determine whether to recommend to the Board that it approve a TIF Incentive for the Applicant. In developing a recommendation, the Corporation may take into account, in consideration with other factors deemed relevant by the Corporation:

1.The evaluation of the Applicant’s pro forma;

2.The project’s catalytic impact, impact on private investment, employment, and state and local revenues, and overall impact on the State;

3.Whether the project furthers State or municipal planning and development objectives, or both;

4.Whether the project maximizes the value of vacant, dilapidated, outmoded, or underutilized property,

5.If the Application provides for a Qualifying TIF Area that is larger than the Project Area, the Corporation shall consider the positive impact of the provision of infrastructure or utilities upon the development, or potential for development, of the benefitted properties, and shall also review any comments provided by the title owners of the benefitted properties; and

6.Whether there exists an opportunity for the State or the Corporation to recoup or receive a return on all or portion of the TIF Incentive to be issued to Applicant by virtue of a receipt of an equity stake or other interest in or return from the project.

E.If the Corporation determines that it will not recommend a complete Application to the Board for approval of a TIF Incentive, it shall notify the Applicant in writing of such decision.

F.The Corporation may set periodic Application deadlines that will be published on the Corporation’s website from time to time.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.12 Discretion and Judicial Review

A.The Corporation shall not have any obligation to make any award or grant any benefits under the Act or these Rules.

B.A review of a Request for Authorization or of an Application shall not constitute a “contested case” under the Administrative Procedures Act, R.I. Gen. Laws § 42-35-9, and no opportunity to object to a Request for Authorization or an Application shall be afforded, nor shall judicial review be available from a decision rendered by the Corporation or the Board in connection with any Request for Authorization or any Application.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.13 Board Approval

A.Prior to Board consideration for approval of any TIF Incentive the following conditions shall be satisfied:

1.The Applicant has submitted a completed Application;

2.The Chief Executive Office of the Corporation has provided written confirmation to the Board

a.that the Corporation has reviewed the Application and of any determination regarding the potential impact on the Qualified Development Project’s ability to promote the retention and expansion of existing jobs, stimulate the creation of new jobs, including good-paying jobs, attract new business and industry to the State, and stimulate growth in real estate developments and/or businesses that are prepared to make meaningful investment and foster job creation in the State; and

b.identifying the proposed boundaries of the Qualifying TIF Area, length of the TIF Agreement and the percentage of Incremental Revenues to be allocated under the TIF Agreement; and

c.The Secretary of Commerce has provided written confirmation to the Board that the recommendation provided to the Chief Executive Officer is consistent with the purposes of the Act; and

d.The Division of Taxation has provided certification of the Revenue Increment Base.

B.Within thirty (30) days after satisfaction of the requirements of § 6.13(A) of this Part, or such later date as the next meeting of the Board is convened, the Board shall undertake review and consideration of the approval of a TIF Incentive for the Qualified Development Project.

C.In addition to those findings require under R.I. Gen. Laws § 42-64-10(a), the Board shall make the following findings in connection with approval of a TIF Incentive under the Act and these Rues:

1.That there is a Project Financing Gap;

2.That the TIF Incentive is the lesser of thirty percent (30%) of the total Project Cost or the amount needed to close the Project Financing Gap; provided that if the Board chooses to exempt a project for the development of public infrastructure, a preexisting municipally-owned stadium of 10,000 seats or greater, or utilities from said 30% limit requirement pursuant to R.I. Gen. Laws § 42-64.21-6(f), the Board need only find that the TIF Incentive does not exceed the amount needed to close the Project Financing Gap;

3.That the Chief Executive has provided written confirmation required by the Act;

4.That the Secretary of Commerce has provided written confirmation required by the Act; and

5.For an Applicant qualifying as a significant taxpayer as determined by the Board, that the Incremental Revenues may be exempted up to the levels permitted by the Act and the Applicant shall be required to contribute payments in lieu of taxes, pursuant to procedures set forth in § 6.18 of this Part, into the Corporation TIF Fund equal to the amount of such Incremental Revenues as are exempted and awarded as a TIF Incentive.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.14 TIF Payments

A.The Total TIF Payment shall be paid in annual installments and shall be subject to appropriation.

B.An Annual TIF Payment shall not be allowed prior to the taxable year in which the Qualified Development Project is Placed in Service.

C.The Annual TIF Payment shall not exceed 75% of the actual Incremental Revenues for the year corresponding to the Annual TIF Payment.

D.The Total TIF Payment received by any Applicant for a given Qualified Development Project shall not exceed the lesser of

1.thirty percent of the Project Cost as provided in the Application; or

2.thirty percent of the total Project Cost as certified by the Corporation pursuant to these Rules; provided, however, that the limitation of this Subsection shall not apply to projects for public infrastructure, a preexisting municipally-owned stadium of 10,000 seats or greater, or utilities.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.15 TIF Agreement

A.Upon approval of TIF Incentive by the Board and in order to safeguard the expenditure of public funds and sure that the disbursement of funds further the objectives of the Act, the Corporation and the Applicant will enter into a TIF Agreement, which shall include, among others, the following terms:

1.A detailed description of the boundaries of the Qualifying TIF Area;

2.The period in years in which the Applicant will be eligible for Annual TIF Payments, the maximum amount of Project Cost, the maximum percentage reimbursement amount, the maximum aggregate dollar amount of the TIF Incentive to be awarded to the Applicant, the maximum annual percentage of reimbursement, the particular tax or taxes to be included in the Eligible Revenues and the order in which multiple taxes will be applied to determine the TIF Incentive grant amount;

3.The TIF Incentive shall be issued prior to the Qualified Developed Project being Placed in Service or such later date as determined by the Board in its approving resolution;

4.If applicable, a provision requiring that the receipt of TIF Payments for any year be subject to the Applicant meeting any job creation or retention requirements or any other conditions that the Corporation, it its sole discretion, shall set as a condition of its approval of TIF Incentive for the Applicant;

5.Evidence that the Applicant is in good standing with the Secretary of State and Division of Taxation at the time of execution of the TIF Agreement; a Letter of Good Standing from the Division of Taxation shall be evidence of good standing;

6.A provision indicating whether the TIF Incentive is allowed as a payment from the State subject to annual appropriation or as an exemption subject to payment to the Corporation as provided in the Act;

7.At the Corporation’s discretion, a provision requiring the Applicant to pay the Corporation’s reasonable costs, including attorneys’ fees, incurred in connection with the negotiation, execution and enforcement of the TIF Agreement;

8.Indemnification and insurance requirements;

9.Default and remedies including events, if any, that would trigger forfeiture, revocation, and/or repayment of the TIF Incentive;

10.Reporting requirements including, but not limited to, any requirements under the Act;

11.The imposition of such restrictions or covenants upon the Qualified Development Project as may be necessary to ensure continued compliance with the Act and the Rules;

12.The procedure by which the Developer may pledge and assign as security for any loan, any or all of its rights, title and interest in and to the TIF Agreement and in the TIF Incentive;

13.A certification procedure, which shall include, but not be limited to, the following:

a.Representations that the Qualified Development Project complies with all applicable laws and regulations;

b.Evidence that the Applicant is in good standing with the Secretary of State and the Division of Taxation at the time the Applicant files its certification for issuance of the TIF Incentive; a Letter of Good Standing from the Division of Taxation shall be evidence of good standing;

c.A requirement that the Applicant submit, prior to issuance of any TIF Payment, satisfactory evidence of the actual Project Cost, as certified by a certified public accountant. If the actual Project Cost is less than the estimated Project Cost forming the bases for the approval of the awarded TIF Incentive, then the awarded incentives shall be reduced based upon the actual Project Cost;

d.Evidence that the Qualified Development Project has been Placed in Service and/or meets such other criteria as imposed by the Board in its approving resolution; and

e.If applicable, evidence that the Applicant has met any additional job creation or retention requirements or any other conditions that the Corporation, in its sole discretion, set as a condition of its approval of TIF Incentive for the Applicant.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.16 Assignment of TIF Agreement

A.A Developer that has entered into a TIF Agreement with the Corporation pursuant to this section may, upon notice to and consent of the Corporation, pledge and assign as security for any loan, any or all of its right, title and interest in and to the TIF Agreement and in the TIF Payments due thereunder, and the right to receive the same, along with the rights and remedies provided to the Developer under such agreement. Any such assignment shall be an absolute assignment for all purposes, including the federal bankruptcy code.

B.Any pledge of TIF payments made by the Developer shall be valid and binding from the time when the pledge is made and filed in the records of the Corporation. The TIF Agreement and payments so pledged and thereafter received by the Developer shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding as against all parties having claims of any kind of tort, contact, or otherwise against the Developer irrespective of whether the parties have notice thereof.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.17 Certification

A.Prior to the issuance of any TIF payments, the Applicant must submit satisfactory evidence as determined in the sole discretion of the Corporation of the following:

1.actual Project Costs, as certified by a certified public accountant. If the actual Project Costs are less than the estimated Project Costs forming the bases for the approval of the TIF Incentive, then the awarded incentives shall be reduced based upon the actual Project Costs; and

2.evidence that the Qualified Development Project has been Placed in Service and/or meets such other criteria as imposed by the Board in its approving resolution.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.18 Corporation TIF Fund

A.An Applicant who is granted an exemption as a significant taxpayer under R.I. Gen. Laws § 42-64.21-5(d) shall make payments in lieu of taxes of all exempted amounts directly to the Corporation or as directed by the Corporation to a bond trustee. Except to the extent assigned to a bond trustee pursuant to § 6.18(D) of this Part, all payments in lieu of taxed collected from an Applicant shall, promptly upon receipt by the Corporation, be deposited into the Corporation TIF Fund. There shall also be deposited into the Corporation TIF Fund the proceeds of any bonds issued by the Corporation pursuant to § 6.18(D) of this Part.

B.Amounts in the Corporation TIF Fund shall be used to fund the making of TIF Payments by the Corporation to any Developer in accordance with the TIF Agreement in respect of such Developer’s Qualified Development Project. The Corporation shall establish separate accounts within the Corporation TIF Fund to account for the receipt and application of specific funds in support of each separate Qualified Development Project to be funded from the Corporation TIF Fund. Up to the amount provided in the related TIF Agreement, moneys deposited into the Corporation TIF Fund with respect to a particular Qualified Development Project shall be used only for that purpose, unless the Corporation determines that any such amount is no longer needed or eligible for payment.

C.As provided in R.I. Gen. Laws Chapter 42-64, the Corporation may issue bonds from time to time in order to fund a deposit into the Corporation TIF Fund. A resolution authorizing such bonds may either identify the particular TIF Agreement(s) and the related Qualified Development Project(s) for which TIF Payments are to be funded through the bond proceeds, or may provide that the disposition of bond proceeds shall be determined by subsequent resolution of the Corporation. Such resolution shall also specify the payments in lieu of taxes that will secure the repayment of such bonds, which may constitute all or any portion or percentage of such payments in lieu of taxes derived from all or any combination of present and/or future TIF Agreements. The debt service on the bonds shall be structured to correspond to the projected receipt of such payments in lieu of taxes.

D.If the Corporation issues bonds pursuant to § 6.18(C) of this Part, the Corporation shall pledge and assign the payments in lieu of taxes specified in the resolution authorizing such bonds directly to the bond trustee for such bonds, as payment or security for the bonds. Such pledge and assignment shall be an absolute assignment of all of the Corporation’s right, title and interest in such payments in lieu of taxes, notwithstanding the Corporation’s continuing enforcement of said payments on behalf of the bond trustee.

E.Obligations issued under the provisions of these Rules shall not constitute a debt, liability or obligation of the State or of any political subdivision of the State other than the Corporation or a pledge of the faith and credit of the State or any political subdivision other than the Corporation but shall be payable solely from the payment in lieu of taxes pledged by the Corporation. Each obligation issued by the Corporation shall contain on its face a statement to the effect that the Corporation shall not be obligated to pay the obligation or interest on the obligation except from revenues or assets pledged therefor and that neither the faith and credit nor the taking power of the State or any political subdivision of the State other than the Corporation is pledged to the payment of the principal of or the interest on the obligation.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.19 Administration and Examination of Records

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-6 § 6.20 Inspection Rights

The Corporation shall have the right at reasonable times to make an inspection and to enter upon any property that is the subject of an application for certification, whether the Qualified Development Project is ongoing, or completed, and during the term of a TIF Agreement to verify compliance with the Act, the Rules and such other conditions imposed by the Corporation.

History

Periodic Refile — effective from 2022-01-04 to current
Amendment — effective from 2018-12-19 to 01/04/2022
Technical Revision — effective from 2015-10-22 to 12/19/2018
Adoption — effective from 2015-10-22 to 10/22/2015

870-RICR-30-00-7 Rules and Regulations for Certification as a “Qualified Business Entity” or a “Certified Venture Capital Partnership”

870-RICR-30-00-7 § 7.1 Authority and Purpose

7.1.1Statutory Basis

R.I. Gen. Laws Chapter 44-43 authorizes tax incentives for certain small businesses and investors in small businesses. The Rhode Island Commerce Corporation must certify and recertify a “Qualified Business Entity” and a “Certified Venture Capital Partnership” for tax incentive eligibility.

7.1.2Purpose

This rule establishes the procedures by which The Rhode Island Commerce Corporation will certify business entities for tax incentive eligibility under R.I. Gen. Laws Chapter 44-43.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2002-01-02 to 01/04/2022
Technical Revision — effective from 2002-01-02 to 01/02/2002
Periodic Refile — effective from 2002-01-02 to 01/02/2002

870-RICR-30-00-7 § 7.2 Definitions

A.For the purposes of these regulations, the following terms shall have the following meanings:

1.“Taxable year” means the year used by the taxpayer for federal tax purposes.

2.“Department” means the Rhode Island Commerce Corporation.

3.“Date business commenced” means the date the business started operations regardless of type of business entity.

4.“Investment” means the amount expended or to be expended in a qualifying business entity in the form of equity contributions which are neither secured nor guaranteed.

5.“Expended” means actual expenditure of funds; not future expenditure of borrowed funds.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2002-01-02 to 01/04/2022
Technical Revision — effective from 2002-01-02 to 01/02/2002
Periodic Refile — effective from 2002-01-02 to 01/02/2002

870-RICR-30-00-7 § 7.3 Application for Certification and Recertification

A.Application to the Rhode Island Commerce Corporation shall be made on forms prescribed by the Corporation. Applications shall be accepted for review only if completed and signed.

B.Eligibility for certification or re-certification shall be based only on information provided in the application and its attachments.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2002-01-02 to 01/04/2022
Technical Revision — effective from 2002-01-02 to 01/02/2002
Periodic Refile — effective from 2002-01-02 to 01/02/2002

870-RICR-30-00-7 § 7.4 Decision on Eligibility

A.The Director of the Rhode Island Commerce Corporation shall make a finding of eligibility.

B.Appeals from a decision on eligibility shall be made to a three-person Board composed of one representative of the Rhode Island Commerce Corporation and two representatives of the Department of Administration, one of whom shall be from the Division of Taxation. An appeal shall be made to the Director of the Rhode Island Commerce Corporation within 10 days of receiving notification of denial of eligibility. The request for appeal should state specifically the reasons the denial of eligibility was in error and provide evidence to that effect. Within 20 days of receipt of the request for appeal, the Director of the Rhode Island Commerce Corporation shall convene the Appeals Board to hear the appeal. The Chairman of the Appeals Board shall notify the appellant of the Board’s decision within 10 days. A majority decision of the board shall prevail. Appeals from the decision of the Board shall be in accordance with R.I. Gen. Laws § 42-35-15.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2002-01-02 to 01/04/2022
Technical Revision — effective from 2002-01-02 to 01/02/2002
Periodic Refile — effective from 2002-01-02 to 01/02/2002

870-RICR-30-00-7 § 7.5 Qualifying Business Entity (QBE)

A.As defined by R.I. Gen. Laws Chapter 44-43, the following criteria will determine eligibility under the provisions of the Chapter.

1.Eligibility

a.Any corporation, partnership or other business entity or predecessor and successors of any such corporation, partnership or other business entity which meets all of the following criteria.

2.Average Annual Gross Revenue of less than two million five hundred thousand dollars ($2,500,000). Average gross revenue shall mean the simple average of the amounts received or accrued by a qualifying business entity determined on an annualized basis from the sale of goods or services prior to diminution by the cost of such sale or services; provided, however that such determination shall be limited to amounts, if any, received or accrued during the four (4) taxable years of such business entity or such lesser period as may be applicable, for the period immediately preceding the taxable year during which entity applied to the RI Commerce Corporation for certification or recertification.

3.Evidence of Revenue

a.The business entity will submit certified, audited financial statements, or fully signed copies of Internal Revenue Service forms: 1040 and attachments, 1065 and attachments, Form 1120 or 1120-A or 1120S and attachments for the applicable years. Gross revenue and average annual gross revenue are defined under § 7.5(A)(2) of this Part.

4.Operation of Business

a.Such entity, predecessor successor shall have been in operation for less than four years prior to the time of application for certification or recertification.

5.Investments

a.The business investment will be the amount expended to establish, expand or increase its operation at a regular place of business in Rhode Island, or to purchase the interest of one or more prior owners of such entity; provided, however, that in the case of a purchase of the interest, such entity shall have entered into binding commitments to expend an amount not less than the amount paid to establish, expand or increase such entity’s operations at a regular place of business in Rhode Island. The amounts expended by the business entity will be amounts which are not less than the amounts allowed as a deduction as a qualifying investments for the following purposes:

(1)A deduction for purposes of computing net income or net worth in accordance with R.I. Gen. Laws Chapter 44-11.

(2)A deduction from gross earnings for purposes of computing the public service corporation tax in accordance with R.I. Gen. Laws Chapter 44-13.

(3)A deduction for the purpose of computing net income in accordance with R.I. Gen. Laws Chapter 44-14.

(4)A deduction for the purpose of computing gross premiums in accordance with R.I. Gen. Laws Chapter 44-17.

(5)A modification reducing federal adjusted gross income in accordance with R.I. Gen. Laws Chapter 44-30.

6.Certification/Recertification

a.The business entity has received certification or recertification from Rhode Island Commerce Corporation. The initial certification by the RI Commerce Corporation shall expire on the date which is the end of the entity’s business year for tax purposes. Recertification shall be for a period of 12 months commencing with the prior certification’s expiration date.

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2002-01-02 to 01/04/2022
Technical Revision — effective from 2002-01-02 to 01/02/2002
Periodic Refile — effective from 2002-01-02 to 01/02/2002

870-RICR-30-00-7 § 7.6 Certified Venture Capital Partnership

A.Eligibility

1.Any partnership formed under the laws of Rhode Island meets the following criteria:

a.has at least three (3) partnerships each of whom has contributed at least five thousand dollars ($5,000) and who have contributed in the aggregate at least two hundred fifty thousand dollars ($250,000) to the partnership,

b.employs a professional manager who is an individual with prior experience managing venture capital funds,

c.is organized and operated to invest at least ninety percent (90%) of the amounts contributed to its capital in qualifying activities and is registered or exempt from registration under the securities laws of Rhode Island and

d.has bonded its employees to fully cover all funds received from partners.

B.Certification/Recertification

1.The partnership has filed with the Corporation such information as may be requested describing its organization, operation and programs and has received certification and annual recertification from the Corporation.

C.Qualifying Activities

1.“Qualifying activities” shall mean to provide capital:

a.to invest in one or more qualifying business entities whose principal office and the majority of whose assets are located in Rhode Island, or

b.to invest a portion of its funds, as set forth herein, in one or more qualifying business entities whose principal office is located outside of Rhode Island and who have entered into binding commitments to establish, expand or increase its operations at a regular place of business in Rhode Island, or

c.to invest a portion of its funds, as set forth herein, in research and experimental expenditures (as defined in 26 U.S.C. § 174.) conducted in Rhode Island to assist those qualifying business entities in which such partnership has or would be able to invest.

D.Limits of Investment

1.A certified venture capital partnership commencing with its first years of operation, or after there has been a forty percent (40%) change in ownership or the admission of new partners whose contributions have increased the capital of the partnership by at least sixty-five percent (65%), may invest in the aggregate up to the following total portion of its investments made during each year in the types of investments described in §§ 7.6 (C)(1)(b) and (c) of this Part.

Year

Portion

50%

40%

30%

6 and subsequent years

20%

History

Periodic Refile — effective from 2022-01-04 to current
Technical Revision — effective from 2002-01-02 to 01/04/2022
Technical Revision — effective from 2002-01-02 to 01/02/2002
Periodic Refile — effective from 2002-01-02 to 01/02/2002