Section 280-RICR-20-20-13.6 - Rentals and Leases ForgoneA. General 1. The credit for rentals and leases foregone by the owner of Rhode Island commercial realty related to the dedication of rental or lease space for daycare services is measured at 30% of the difference between the fair market value of the rental/lease and the actual rental/lease amount. The credit has a yearly maximum of $30,000.2. Effective January 1, 1995, the credit has been extended to include daycare services for dependent adults at facilities certified by the Rhode Island Department of Elderly Affairs.B. Calculation and Documentation 1. Calculation of the amounts of rentals or leases foregone for each licensed daycare facility must be made separately for each location and should be made separately from any other daycare items otherwise available to the taxpayer under R.I. Gen. Laws Chapter 44-47. Taxpayers claiming amounts for one or more locations must obtain and retain appropriate documentation for each location (including the amount foregone by the taxpayer, the name, license number and address of the Rhode Island licensed daycare facility). Any credit claimed for rentals and leases foregone must include written certification that such daycare facility agrees to also accept children whose child care services are paid in full or in part by the Rhode Island Department of Human Services. 2. The burden of proof of fair market value is upon the claimant taxpayer and such proof should include prior rental/lease of the same property. Where the property was not previously rented or leased, appraisals of the property by competent parties independent of the claimant taxpayer should be used.3. A typical claim for rentals/leases foregone might be performed as follows: a. Real Estate Corporation allowed a Rhode Island licensed daycare facility to be operated in some available space in Providence which has a prior rental history of rents of $25,000 per year. Credit = 30% x $25,000 or $7,500b. If Real Estate's tax was less than $7,600, it should have an excess credit available to be carried forward for the next 5 years. 280 R.I. Code R. § 280-RICR-20-20-13.6