§ 44-55-4.1 - Incentive provisions.
SECTION 44-55-4.1
§ 44-55-4.1 Incentive provisions. –(a) The deduction or modification is not refundable but may be used by theclaimant business for the tax against it pursuant to chapters 11, 13, 14, 15,17, and 30 of this title, not including any tax imposed under § 44-13-13or other similar provisions in the following manner:
(1) A deduction for purposes of computing net income inaccordance with chapter 11 of this title;
(2) A deduction from gross earnings for purposes of computingthe public service corporation tax in accordance with chapter 13 of this title;
(3) A deduction for the purposes of computing net income inaccordance with chapter 14 of this title;
(4) A deduction for the purposes of computing deposits inaccordance with chapter 15 of this title;
(5) A deduction for the purposes of computing gross premiumsin accordance with chapter 17 of this title; or
(6) A modification reducing federal adjusted gross income inaccordance with chapter 30 of this title.
(b) The modification allowed under this chapter for anytaxable year shall not reduce the tax due for that year to below the minimumtax imposed under the applicable chapter of this title. Any amount ofmodification not used in that taxable year may not be carried over to thefollowing year.
(c) In the event that the claimant business is electing asubchapter S corporation, limited liability company, partnership, or a jointventure, the incentive shall be divided as income.
(d) In the event that the taxpayer is liable for taxesimposed under both chapters 14 and 15 of this title, the taxpayer must electthe tax against which it wishes to claim the incentive. This election shall bemade as part of the taxpayer's filings in accordance with §§ 44-14-6and 44-15-5. The taxpayer may not divide the incentive for any year between thetwo (2) tax liabilities for which it is liable.
(e) In the event that the hiring of the employee is used toobtain any other tax incentive or tax benefit for the business, then thebusiness will not be eligible for the incentive available in this chapter.