Rhode Island Department of Revenue 

                             Division of Taxation  
 
                 Tax Credits for         Contributions             to   Scholarship Organizations                            
 
The following steps must    be  followed     in order   to ensure    the certificate   process.    Credit under       this              
program will not be allowed     on your  tax filing    unless  the original    certificate   is attached      to your return.                  
An original certificate can only   be issued      upon  completion      of these   steps. Please  read these        detailed                
instructions carefully.   
 
Application forms and    additional     information      on this   program     can be  found   on the Division       of            
Taxation’s website.  Visit      https://tax.ri.gov/tax sections/credits/scholarship‐                  credit‐    for this information.        
 
                                             Business Entity Responsibilities                 
 
Application 
     Business Entity     Information:           Enter all   the requested     information.     If you    have a different            
      address you    wish   to   use to receive   Taxation    correspondence,         enter  that address      in the mailing              
      address area.     Please   put the name     of a contact     person  from the    business    entity in this section.                   
      Use the additional    contact     section    below   for an accountant’s        or other   representative’s        name.            
     Additional Contact Information:                  Complete this     section   only  if wish   to have   someone     else, for         
      example, your      accountant,     bookkeeper        or     a representative from     one of the   scholarship                
      organizations, contact         the Division    of   Taxation regarding      your application.       Due to  confidentiality              
      reasons, the   Division      of   Taxation cannot    give  any information      on your   application      to a third             
      party without      your  authorization.      Completing       this section   authorizes      the Division   of Taxation     to        
      speak to   someone inquiring       on    your  behalf.          
     Contribution Information:                Enter the name(s)     of   the Qualified  Scholarship       Organization     to which           
      you would   like   to   make your  contribution.      Also,   enter  the amount       per year  you    wish to            
      contribute and     whether     you     wish to make   a contribution     for one   or  two   years. If all conditions                 
      are met,   a   one year‐ commitment         results in a 75%     credit, while a two year    commitment‐        results               
      in a   90% credit.   
     Tax Information:        Check off      the  applicable   tax  against    which  you will be  using      your credit.            
     Entity Member Information:                 Complete this      section   only if your   credit will be used     against           
      personal income       taxes.   Certificates    will be issued    in accordance     with the   listing   provided   with              
      your application.      
     Optional Waiver:           Complete this     waiver   to   allow the Scholarship       Organizations       qualified  under           
      this chapter   to   request from   the    Division   of Taxation,    your entity   name, contribution          amount               
      and approval   date.     This  information      is intended    to aid   the Scholarship    Organizations       with their             
      scholarship planning,        but  once   the   Division  of Taxation     releases  this information,       it will have   no           
      control over   further     release of   this information.            
 
Approval Process    
     Submit your    application     to   the Division   of Taxation    beginning     on July  1, 2022.   Any application                  
      received prior     to   July 1,   2022 will be returned  to the   applicant.               

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                             Rhode Island Department of Revenue 

                             Division of Taxation  
 
       If your business   entity   is a     pass through‐ entity  and the   credit  will be used    against personal                  
        income tax  filings,   please    complete      the worksheet      on page    2 of the     application. On the               
        worksheet list     all   members, their      complete     social security   numbers     and their    applicable     credit        
        percentages and/or        credit amounts.           
       Within 30  days    of   submittal, you    will receive    an approval     or denial   letter from   the Division    of           
        Taxation. 
       Upon approval, you       have    120  days   from   the date   of your   approval  letter to    make   your               
        contribution to   the scholarship         organization(s)       designated   in your    application.   If you    do not know           
        what this  date    is,   contact me.       
       Upon denial, you      will receive    a letter   stating  the reason    for the denial  of  your application.                 
 
Making your Contribution          
       Upon receiving a   letter approving          its   application, the entity   has 120    days  from   the date   of the            
        approval letter    to   make its   contribution.           
       The contribution        must be made         by   the approved    entity,       not by   any of   the individual    members       
        and not by       a related entity.     
       The contribution should         be sent   directly    to your   intended   scholarship      organization(s).     The           
        contribution must        be made    to   the scholarship     organization(s)    and not     to an individual    school or          
        student. 
 
       If you are approved      for  a two   year‐ contribution,       you must    contribute      at least   eighty percent              
        (80%)   of the first  year‐ contribution       for your   second    year contribution.‐      Otherwise,     the credit             
        for both the  first and   second    year     contributions      shall  be equal  to seventy     five percent‐    (75%) of           
        each year's contribution.        In   such case,   the tax administrator        shall prepare     the tax  credit             
        certificate for    the second    year     at seventy   five‐ percent    (75%).  The difference      in credit   allowable            
        for the first year [90%     – 75%   = 15%   x first   year contribution]     shall be recaptured       by adding    it to           
        the taxpayer's     tax in   that year.        
 
If you are unable to   make your    Contribution               
       If you have been   approved      to make      either   a one   year or‐ two   year contribution‐    and are unable                 
        to make   your required     contribution(s),        please   notify   the Division  of Taxation     as soon   as possible.            
       Notifying the  Division     of   Taxation, in most     cases,   allows  us to offer     the credits to an applicant              
        that was not   approved     so   that a contribution       can still be made   to  one of   the approved                   
        scholarship organizations        (SGOs).          
 
Certification Process    
       Once you   make    your  contribution,        you  must    apply to the   Division of Taxation     for your   tax credit            
        certificate(s). 
       Be sure to   request your   tax  credit    certificate    in time   to be included    with your tax filing.                
       You must   submit     certification       from an independent        Rhode   Island   certified public    accountant            
        that the cash  contribution      has      been made    to the   scholarship   organization(s)      designated       in your         
        application and    that  the   contribution       was  made     timely.         

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                             Rhode Island Department of Revenue 

                             Division of Taxation  
 
         The certification      must include the     following   information:           
                  The date of   the contribution.         
                  The amount of   the contribution.           
                  The recipient of   the contribution.          
                  The date of   the approval   letter.       
                  Certification the    payment    was  made     within  120  days     of the   date of the approval    letter.         
                  The certification must     be  accompanied        by     a copy of the   cancelled check (front &    back).          
          
        The independent Rhode         Island certified   public accountant         must   be licensed    in accordance    with         
         RIGL 5  ‐ 3.1 and cannot   be affiliated in any   way with  your  business,     the scholarship      organization              
         or this scholarship    program.    An  entity cannot   certify  its own   contribution,      nor can  an employee                
         of the entity  do so.      
        This CPA  certification    must   be sent to the   attention of the             Forms, Credits      &   Incentives Section    . 
          
Use of   credit certificate  on tax filing     
        You must    attach  the original   certificate to the   tax return   on which     you are claiming    the credit.             
        If you file your  tax return electronically,   the original  certificate      must be   sent   in to my     attention in         
         order to   receive credit.  Filing  electronically  does    not eliminate      the requirement       of submitting            
         the original certificate.      
        Certificate copies     and/or  copies  of   your application  approval       letter  cannot    be accepted   in place           
         of the original   certificate.     
        Credit under   this program    can   only be used   in the   year in which   the contribution       was made.               
        Unused credit     amounts     cannot   be carried  forward   for use      on future  tax returns.            
          
                                                   SGO's Responsibilities               
 
Certification Process        
        Upon receipt of     a contribution, the   scholarship   organization         will submit  a letter   of receipt   to the         
         attention of   the     Forms, Credits  &   Incentives Section.             
          
         The letter of   receipt     must include the     following   information:           
                  The name of   the scholarship      organization.          
                  The name of   the entity   making    the donation.          
                  The actual name      on  the check.       
                  The amount of   the contribution.           
                  The date the     contribution   was  received  (not   the check      date).           
                  The date on     the check.    
     
        On the day    a   contribution is received,   the scholarship   organization        will forward    a copy of   the          
         check via fax  at   (401) 574 8957‐ or email   at       Tax.Credits@tax.ri.gov              .
 
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                             Rhode Island Department of Revenue 

                             Division of Taxation  
 
                                          Division of   Taxation’s Responsibilities                   
     
Approval Process     
       Within 30   days   of   receipt of an   application,     the Division     of Taxation   will either approve   or deny              
        the application and         send  a letter   with the determination         to the   business entity.           
       A tracking  system     will  be   maintained      on the   Division  of Taxation’s     website   to report   the amount              
        of credit approved          and the   amount    of credit   still available  for applicants.            
       If the amount     of   credit applied      for, along with the amount        of any previously    approved   credit,             
        exceeds the     $1,500,000        fiscal year   cap, a drawing      will be held to determine    the order   of           
        approval for    applicants.        
       If a   drawing is     to be held, all applicants   in question     will be notified  in advance   of the date   of the              
        drawing along      with     an entity specific    drawing     number.      To preserve   confidentiality,    no business            
        entity names      will be   used  during     the drawing.   Drawing       results will be posted   on the Tax               
        Division’s website.          
 
Certification Process       
       Upon receipt of:    1)   the independent          Rhode    Island   certified  public  accountant’s   certification             
        issued in   accordance with         the  details  on page   2 of these     instructions, and 2) the  SGO’s   letter  of            
        receipt of   the contribution         issued  in accordance        with  the details  on page 2 of these     instructions,           
        the Division of   Taxation will       be able   to issue   the business    entity’s certificate(s).            
       Certificate(s) will    be   issued    according    to the   business    entity’s  application.         
       If multiple members          are  receiving     credit, each   member      will receive  his/her  own certificate             
        bearing their     name,     social    security  number,     credit  amount     and tax  year  in which   the certificate           
        can be used.       
       If a   business entity made       a contribution      to more     than one of  the scholarship    organizations,     the           
        entity or     its members will    receive     a certificate   for each    scholarship   organization.             
       All certificates   will be   mailed   to the   mailing   address    on the   business   entity’s  application.    If the           
        certificates are    to   mailed to   an address    other    than that listed     on the business   entity’s application               
        (accountant’s address,            etc.), I must   receive  written  authorization       from  the person  who signed              
        the initial application.         
 
If you have any questions   regarding         this process,   please   contact            Tax.Credits@tax.ri.gov   .
 
Sincerely, 

Donna Dube 
Donna Dube      
Chief Revenue   Agent      
Forms, Credits  &   Incentives Section            
Email: Tax.Credits@tax.ri.gov                                                                         
 
                                                                                                              Updated June      6,   2022  

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