Business Application Process
Business Application Process
These 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.
- Business Entity Information: Enter all the requested information. Supply the address you wish to use to receive Taxation correspondence.
- Additional Contact information: If you wish to have someone else receive your tax information, like your accountant for example, this section of the application needs to be completed.
- Contribution Information: Enter the names(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.
- Submit your application to the Division of Taxation beginning on July 1, 2015. Any application received prior to July 1, 2015 will be returned to the applicant.
- 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 organizations(s) designated in your application. If you do not know what this date is, contact the Division of Taxation at 401-574-8903
- Upon denial, you will receive a letter stating the reason for the denial of your application.
Making Your Contribution
- Upon receiving a letter approving the application, the business has 120 days from the date of the approval letter to make the contribution.
- The contribution must be made by the approved entity, not by any of the individual members.
- The contribution should be sent directly to your intended scholarship organization(s).
- Once you make your contribution, you must apply to the Division of Taxation for your tax credit certificate(s).
- 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.
- The certification must include the following information:
- The date of the Contribution
- The amount of the contribution
- The recipient of the contribution
- 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.
- 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 the Division of Taxation at the address below.
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 also be sent in to the Division of Taxation at the address below 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.
- If your original certificate is misplaced, you may request a replacement certificate. Send a letter to the Division of Taxation at the address below requesting a replacement certificate and stating the reason for the replacement request.
- 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.
For More Information, Contact:
State of Rhode Island and Providence Plantations
Department of Revenue
DIVISION OF TAXATION
One Capitol Hill
Providence, RI 02908
For the Tax Credit Application, go to: http://www.tax.ri.gov/Credits/FYE2015/CS O-2_m.pdf