FAQs

Legislative Statements of Purpose

Definitions of commonly-used terms are found in the Definitions section of this FAQ.

GENERAL

This document presents information of use to Applicants and is drawn from a variety of sources including RTPark’s charter, the Act, and guidelines adopted by the RTPark Board, but is not intended to be definitive. The applicant is encouraged to undertake its own thorough examination of the relevant legislation, operational procedures, and relevance to its own business objectives before proceeding with an application for tenancy or Protected Cell status. While RTPark believes this document accurately summarizes the information drawn from the Act and other sources as of the date of this document, to the extent any of the information contained herein conflicts with the Act or such other sources, the Act and other sources (as the case may be) will control.

WHAT IS THE RTPARK?

Operating under a mandate from the Government of the USVI, RTPark was established by the Act to assist in the development of the USVI economy and to support the mission of UVI.

Specifically, the mission of RTPark is to help develop a technology sector, create jobs for Virgin Islanders, broaden the tax base of the USVI economy, strengthen the capabilities of UVI and generate revenues.

RTPark is comprised of two entities: the University of the Virgin Islands Research and Technology Park Corporation, our principal operating unit, and our subsidiary unit the Research and Technology Park Protected Cell Corporation, or RTPark-PC, which holds and can extend to qualifying tenants and strategic partners generous corporate tax incentives aligned to guidance issued by the US Treasury Department. We offer tenants and strategic partners a variety of key commercial benefits as well: 64 West, our point of presence and collocation data center inside a fiber landing facility in the USVI; and the ability to engage RTPark, an instrumentality of the USVI government and affiliate of UVI, as a strategic partner.

RTPark provides a unique environment in which technology-based companies can undertake research, development, testing and commercialization of intellectual property, and provide e-commerce services to clients on a global basis under the protection of US intellectual property law, within a beneficial tax structure, utilizing the very high bandwidth telecommunications capacity that is available in the USVI. In return for providing these facilities and services, RTPark receives financial revenues and support for community development initiatives, and UVI engages in educational collaboration with RTPark Companies. RTPark provides an attractive near-shore alternative for technology and knowledge-based businesses that are moving to off-shore jurisdictions in search of a cost effective environment offering business incentives, reduced regulation, and cost efficiencies for the commercialization of intellectual property and the conduct of e-commerce.

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TENANCY

WHAT KINDS OF BUSINESSES ARE ELIGIBLE TO BE RTPARK TENANTS?

The Act stipulates that RTPark will have the following five categories of tenants:

Beneficiaries of the USVI EDC Program pursuant to 29 VIC Chapter 12
Beneficiaries of the Farmers, Fishermen and Consumers Assistance Program pursuant to 7 VIC Chapter 13
RTPark-PC, pursuant to 17 VIC Chapter 43
Other Knowledge-based Businesses pursuant to 17 VIC Chapter 34 428(h)
Support Businesses pursuant to 17 VIC Chapter 34 428(l).

The RTPark Board of Directors has the exclusive right and authority under the Act to negotiate with such businesses as to the terms of their leases and all other aspects of their tenancy. The specific selection criteria that apply to prospective RTPark tenants are described in documentation you can download and review from our Applications page.

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WHAT TAX INCENTIVES ARE AVAILABLE TO RTPARK TENANTS?

The tax incentives available to RTPark tenants are dependent on the type of business.

EDC Beneficiaries and beneficiaries of the Farmers, Fishermen and Consumers Assistance Program are already recipients of tax benefits, and are not eligible for additional benefits as RTPark tenants
RTPark-PC is a special entity created to enable certain types of e-commerce companies to operate under the jurisdiction of the USVI Government, and special regulations apply to it. Companies may apply to obtain a license to operate a Protected Cell through RTPark-PC, which confers certain benefits and obligations, which are described in a the section pertaining to Protected Cells below.
Under certain circumstances, Knowledge-Based Businesses may apply for EDC benefits administered by the EDA, subject to 1) a determination by RTPark that such business is not otherwise a candidate for a Protected Cell, and 2) a referral of such business by RTPark to the EDA. EDC benefits are substantially the same as the benefits offered through RTPark; however, certain terms and conditions differ. For more details on EDA and the EDC program, visit their web site.
Support Businesses are not eligible for any specific benefits by way of being RTPark tenants, although they may be eligible to apply for EDC benefits or the through the Farmers, Fishermen and Consumers Assistance Program.

In addition, any firm may be eligible for a Worker Training Tax Credit, which allows a credit of 50% against eligible training expenses if the firm provides training to five or more employees in the USVI. The maximum credit is $1,000.

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WHAT OBLIGATIONS DOES A TENANT OF RTPARK HAVE?

RTPark tenants have a number of obligations, both at the time of application and on an ongoing basis. These obligations include, but are not limited to, the following:

They must continue to adhere to the requirements set forth in the Tenant Profile and Entry Selection Criteria section of the tenant application documents.
Tenants approved as Knowledge-Based Businesses must pay an Annual Franchise Tax as follows:

	Gross Receipts	Franchise Tax Payable
	≤$1MM	$200
	$1MM≤$5MM	$2,000
	$5MM≤$10MM	$5,000
	$10MM≤$20MM	$12,500
	$20MM≤$50MM	$15,000
	$50MM≤$100MM	$20,000
	$100MM≤$250MM	$25,000
	> $250MM	At the discretion of the RTPark Board, but in no case less than $25,000

Unless they are beneficiaries of another benefits program, all tenants will be required to pay taxes as determined by the Government of the USVI to be applicable to businesses in general
Tenants will be required to obtain a business license to operate within the USVI, and to adhere to all relevant laws and regulations as determined by the Government of the USVI
RTPark is committed to maintaining an image of a reputable and prestigious University Park that is untainted by illegal business activities or questionable business dealings. Accordingly, RTPark maintains a zero tolerance policy for illegal, pornographic, money laundering, gambling or other questionable or illicit business activities and dealings;
Each tenant will be expected to comply with the RTPark’s “Know Your Customer” regulations, which require tenants to:

determine the identity of its customers;
determine normal and expected transactions for its customers;
determine its customers’ sources of funds;
identify transactions that are not normal or expected transactions for the customer; and
report suspicious transactions under existing suspicious activity reporting requirements to the appropriate governmental authorities;

At least one formal review of each tenant by RTPark management is required each year, at which time RTPark reviews with the tenant the fulfillment of responsibilities and obligations of each party under the enant Lease Agreement or as well as changes in the bylaws, structure or ownership of the tenant company.

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WHAT IS THE APPLICATION PROCEDURE FOR TENANCY IN THE RTPARK?

RTPark seeks to select those companies that are most likely to help RTPark and UVI in achieving their objective of helping to build a sustainable technology sector in the USVI, generate revenues for RTPark and UVI, and generally contributing to the economic development of the USVI. RTPark is an equal opportunity service organization, and within the context of its mission and entrance criteria guidelines, RTPark will provide equal access to qualified businesses. The application procedure can be found in documentation you can download and review from our Applications page, and is summarized as follows:

When considering an applicant for RTPark tenancy, the RTPark staff:

Conducts pre-application activities, which will include conducting an interview with the applicant in order to determine eligibility for tenancy
Requests a formal application from the prospective tenant. The applicant will be required to pay an administration fee for this process
Analyzes the company's business plan of operations together with other applicant information, and carries out other due diligence activities
Forwards its recommendations to the Board for a final admission decision
If accepted as a tenant, the company will be required to apply for the appropriate business license
If they are eligible and desire to do so, the company may then apply for benefits as a Protected Cell, or under certain circumstances including a prerequisite referral from RTPark, for EDC benefits.

Possible admission decisions include:

Acceptance for immediate admission to RTPark tenancy
Conditional acceptance
Rejection of the application

Evaluation Criteria

Clients are selected on a case-by-case basis. Evaluation criteria include but are not limited to the following:

Merits of the business plan and plan of operations
Profitability and financial viability of the business
Background and experience of the principals
Commitment to employment of USVI residents
Applicant’s commitment-both financial and personal time to workforce development and community reinvestment
Business references
Adequacy of the management team
Potential for collaboration and interaction with UVI.

UNDER WHAT CIRCUMSTANCES CAN TENANCY IN THE RTPARK BE TERMINATED?

RTPark reserves the right to rescind a company's right to participate as a tenant if the company breaches its responsibilities and obligations under its Lease Agreement. Breaches include, for example:

Engaging in activities not covered by the terms of the lease
Engaging in illegal or illicit activities
Failure to fulfill obligations, or comply with any agreements, RTPark regulations, USVI Government regulations, or USVI or federal law
Failure to remain in compliance with respect to maintaining a current business license, current in filing of tax returns, etc.
Nonpayment or non-timely payment of RTPark invoices

Depending on the severity of the breach, a company will receive written notice of intent to terminate in order to give the company an opportunity to remedy the situation. Decisions to terminate may be appealed to the Board of Directors of the RTPark, whose authority is final.

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PROTECTED CELLS

WHAT IS A PROTECTED CELL?

A Protected Cell is a legal entity that is created through RTPark-PC. It can take any form that is legal in the USVI and provides limited liability for some or all of its shareholders, members or partners, including a corporation, a limited liability company, or limited liability partnership.

Protected Cells will be expected and required to operate with a high level of transparency while demonstrating exemplary ethics and professionalism. This process begins with the Protected Cell application process.

Protected Cell status applies only to the specific entity and not to its affiliates, subsidiaries, or parent entities. Stakeholders of Protected Cells may participate in certain Protected Cell benefits to the extent those benefits are derived directly from the operations of the Protected Cell and not of the separate operations of the Stakeholder. Protected Cell status cannot be encumbered by the Applicant in any way, including (without limitation) the use of Protected Cell status as collateral for any indebtedness.

The Act stipulates that RTPark-PC, pursuant to 17 VIC Chapter 43 has the right to establish Protected Cells within the USVI.

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WHAT KINDS OF APPLICANTS ARE ELIGIBLE TO APPLY FOR THE ESTABLISHMENT OF A PROTECTED CELL?

Any individual, group of individuals, or business may apply for the establishment of a Protected Cell. In order to receive the benefits that the Protected Cell offers, the Protected Cell must:

be an “Electronic Commerce Business,” an “E-commerce Business,” or a “Knowledge-Based Business” as defined in 17 VIC Chapter 34 482;
be a tenant of RTPark; and
have RTPark-PC as an equity owner.

The RTPark Board must also provide written approval of a plan of operation with respect to the Protected Cell before tax benefits can be received by the Protected Cell. Certain elements of such plan of operation may be incorporated into the Protected Cell License/Operating Agreement.

The RTPark Board has the exclusive right and authority under the Act to negotiate with Applicants as to the terms of their leases and all other aspects of their tenancy in RTPark. The specific selection criteria that apply to prospective Protected Cell tenants of RTPark are described in documentation you can download and review from our Applications page.

Neither RTPark nor RTPark-PC will do business with organizations or individuals undertaking business in or with countries proscribed by the US Department of Treasury Office of Foreign Assets Control, or with individuals identified by the US Federal Government as Specially Designated Nationals or Blocked Persons. RTPark will also comply with any other restrictions that may from time to time be defined by the US Federal Government. Applicants must comply with these restrictions both at the time of application and as they may be amended in the future.

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WHAT TAX INCENTIVES ARE AVAILABLE TO PROTECTED CELLS?

RTPark tenants that are Protected Cells automatically qualify for certain tax benefits administered by RTPark-PC, as follows:

(Up to) a 90 percent (90%) reduction in income tax liability shown on its tax return for the taxable year on a) income from USVI sources and b) income that is “effectively connected” with the conduct of a USVI trade or business pursuant to IRC 934(b)(1);
An exemption on taxes on real property to the extent that it is utilized in one of the businesses or industries for which the Protected Cell has been established;
An exemption from gross receipts taxes on receipts from the business for which the Protected Cell has been established;
An exemption from excise taxes on building materials, tools, pipes, pumps, conveyor belts or other appliances, materials and supplies necessary for use in the construction, alteration, re-construction or extension of the physical plant or facilities of RTPark and/or the Protected Cell;
An exemption from excise taxes on raw materials and component parts brought into the USVI for the purpose of producing, creating or assembling an article, good or commodity;
An exemption from withholding tax with respect to payments of interest and a four percent (4%) withholding rate on the payments of dividends and royalties;
A reduction in customs duties to one percent (1%) on raw materials and component parts brought into the USVI by a Protected Cell to produce, create, or assemble an article, good, or commodity;
The benefits will apply to shareholders, members, partners, grantors, beneficiaries, and other direct or indirect owners of RTPark-PC or a Protected Cell who are established in the USVI or who are bona fide residents of the USVI in accordance with IRC 932(c), as amended. Such shareholders, members, partners, grantors, beneficiaries, or other owners are entitled to a ninety percent (90%) reduction on income taxes payable with respect to income derived from the dividends or distributions paid to them by RTPark-PC or a Protected Cell; and
The Protected Cell will not be subject to any otherwise applicable taxes or tax increases that may be subsequently enacted by the Government of the USVI during the period of its benefits, which is the lesser of fifteen (15) years or the period of time as a Protected Cell as set out in its plan of operation. Benefits will be renewable under rules to be developed by the RTPark Board.

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WHAT OBLIGATIONS DOES A PROTECTED CELL HAVE?

Protected Cells have a number of obligations, both at the time of application and on an ongoing basis. Applicants will be required to execute a Protected Cell License/Operating Agreement which will include a commitment to organize and manage the Protected Cell in a manner that is consistent with both the guiding principles of RTPark and the specific obligations that Protected Cells have towards RTPark and RTPark-PC. These obligations include, but are not limited to, the following:

At least one formal review of each Protected Cell by RTPark management is required each year, at which time RTPark reviews with the tenant the fulfillment of responsibilities and obligations of each party under the Protected Cell License/Operating Agreement;
RTPark is committed to maintaining an image of a reputable and prestigious University Park that is untainted by illegal business activities or questionable business dealings. Accordingly, RTPark maintains a zero tolerance policy for illegal, pornographic, money laundering, gambling or other questionable or illicit business activities and dealings;
Each Protected Cell will be expected to comply with the RTPark’s “Know Your Customer” regulations, which require each Protected Cell and tenant to:

determine the identity of its customers;
determine normal and expected transactions for its customers;
determine its customers’ sources of funds;
identify transactions that are not normal or expected transactions for the customer; and
report suspicious transactions under existing suspicious activity reporting requirements to the appropriate governmental authorities;

Each Protected Cell will be required to pay a franchise tax as shown in the following table:

	Gross Receipts	Franchise Tax Payable
	≤$1MM	$200
	$1MM≤$5MM	$2,000
	$5MM≤$10MM	$5,000
	$10MM≤$20MM	$12,500
	$20MM≤$50MM	$15,000
	$50MM≤$100MM	$20,000
	$100MM≤$250MM	$25,000
	> $250MM	At the discretion of the RTPark Board, but in no case less than $25,000

The granting of Protected Cell status allows a qualified company to engage in activities for which it is licensed, and to enjoy the tax benefits defined in the Act for the eligible business activities in which the Protected Cell engages. As a tenant of RTPark, a Protected Cell is required to:

Run all of its electronic transactions through web servers physically located within the USVI;
Perform all of its e-commerce transactions with the approved or preferred e-commerce partners;
Perform its worldwide banking with approved banking partners or financial institutions located in the USVI;
Operate its business in a legal and ethical manner;
Report periodic financial data to RTPark including providing RTPark with an annual audited financial report;
Pay RTPark invoices promptly for establishment, annual renewal fees, or other billings;
Promptly pay to RTPark pursuant to its agreement with RTPark any and all royalties payable to the RTPark;
Promptly pay to RTPark when due its annual franchise taxes payable to the USVI Department of Finance based on the worldwide gross receipts;
Provide RTPark with an annually-updated three (3)-year plan of operations together with employment projections for Virgin Islands-based employees and associated skills requirements;
Collaborate and interact with UVI in workforce development initiatives and joint research as opportunities become available;
Participate with RTPark and UVI in a Community Reinvestment Program;
Comply with all applicable RTPark and governmental regulations regarding conducting business activities in RTPark and the USVI;
Indemnify RTPark, UVI and the Government of the USVI from claims and lawsuits brought against the Protected Cell or arising out of the Protected Cell’s operations; and
Conduct an annual meeting of the company’s Board of Directors in the USVI.

Each Protected Cell will be required to a) obtain a Protected Cell Business License from the USVI Department of Licensing and Consumer Affairs and b) adhere to all relevant laws and regulations as determined by the Government of the USVI.

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WHAT IS THE APPLICATION PROCEDURE FOR THE ESTABLISHMENT OF A PROTECTED CELL?

RTPark-PC seeks to select those companies that are most likely to:

help RTPark in achieving the objective of helping to build a sustainable technology sector in the USVI;
generate revenues for RTPark; and
contribute generally to the economic development of the USVI.

The application procedure can be found in documentation you can download and review from our Applications page, and is summarized as follows:

Applicants for a Protected Cell will be required to:

Appoint a legal representative licensed to practice law in the USVI. Such legal representative shall:

evaluate and confirm certain information relating to the Applicant and the application (including legal standing as well as relevant background examinations);
disclose to RTPark any details it deems material to the nature of the Applicant, the application, and the relevance of the proposed Protected Cell to the mission and objectives of RTPark and UVI; and
render to RTPark its report in form and substance sufficiently similar to an opinion letter. Applicants are strongly cautioned to identify and elaborate, in advance, any materially adverse matters pertaining to their application, past or present operations, affiliates and principals.

Appoint a certified accounting firm authorized to provide such services in the USVI to evaluate the financial status of the Applicant. Audited financial statements for three (3) preceding years, or other financial statements certified by the Applicant and acceptable to RTPark, will be required.
Provide a business plan for the operation of the proposed Protected Cell, including future projections for a period of not less than five (5) years.

The Executive Director of RTPark will:

Review and evaluate the application once it has been fully completed and formally submitted, and confirm any details with the Applicant as deemed necessary; and
Prepare and submit to the RTPark Board for review and action a recommendation on whether approval should be given for the establishment of a Protected Cell.

The RTPark Board will:

Review and consider each application forwarded by the Executive Director;
Arrive at a decision on whether approval should be given for the establishment of a Protected Cell;
Inform each Applicant of the decision reached in a timely manner.

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UNDER WHAT CIRCUMSTANCES CAN AN ENTITY LOSE ITS PROTECTED CELL STATUS?

In the event that an entity approved to receive Protected Cell status ceases to meet any of the three preconditions described in Section 4.1 above, it will automatically lose this status, and will no longer be eligible for the various benefits that inure to a Protected Cell. Similarly, the stakeholders of the Protected Cell will no longer be eligible to receive any associated tax benefits.

In addition, the entity may lose it Protected Cell status if it ceases to fulfill any of its ongoing obligations under the Protected Cell License/Operating Agreement or any commitments made by the original Applicant in the application process.

Breaches of these commitments and obligations would include, without limitation:

Engaging in activities not covered by the terms of its USVI business license;
Engaging in illegal or illicit activities;
Failure to fulfill obligations or comply with any agreements, RTPark and/or Government regulations, or the laws of the US or the USVI;
Failure to remain in compliance with respect to maintaining a current USVI business license, timely filing of tax returns and/or payment of taxes when due, etc.;
Nonpayment of RTPark invoices.

Other than circumstances which result in immediate termination of Protected Cell status, and depending on the severity of the breach, the Protected Cell will receive written notice of termination of Protected Cell status with an opportunity to cure such breach. Terminations may be appealed to the RTPark Board whose decision shall be final.

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DEFINITIONS

Act: The enabling legislation of the Government of the USVI which established RTPark, comprising Acts 6502, modifications thereto by Act 6726, and any other relevant legislation of the Government of the USVI. This legislation is reflected in 17 VIC Chapters 34 and 43.

Applicant: A prospective applicant for the establishment of a Protected Cell through RTPark-PC.

Corporation. As used within the Act and certain other governing documents, refers to RTPark-PC.

EDA. Virgin Islands Economic Development Authority, as defined primarily in 29 VIC Chapter 21.

Electronic Commerce Business (or e-Commerce Business). Any business involving electronically based data transactions for digitally based commerce including, but not limited to business to business and business to consumer data transactions, electronic data interchange and other digital supply transactions, financial settlements, web-based marketing, advisory and transactional services, database services and products, swift payments, fed wire, online services such as telecommuting, telemedicine, education and information research, and all related data communication services, whether conducted by e-mail, document management, voice or data transmission, or otherwise. Definition from 17 VIC Chapter 34 482(e).

EDC. Economic Development Commission, a “subsidiary entity wholly administered and operated by” EDA, as defined in 29 VIC Chapter 12 Subchapter II.

EDC Incentives: Defined in 29 VIC Chapter 12 Subchapter IV; also referenced in 17 VIC Chapter 34 490B(b). Also, the raw materials excise tax exemption defined in 33 VIC Chapter 3 Section 43(d).

Guiding Principles: The “Board of Trustees Guiding Principles for the University of the Virgin Islands Research and Technology Park” approved October 12, 2002, as may be amended from time to time.

Incubator Business Tenant. A knowledge-based business in its startup phase which receives hands-on management assistance, access to financing and orchestrated exposure to critical or technical support services from Research and Technology Park tenants. Definition from 17 VIC Chapter 34 482(g).

IRC. Internal Revenue Code.

Knowledge-Based Business. Includes, but is not limited to any business that uses highly skilled/highly educated personnel and a high level of research and development to create intellectual assets and property and to be innovative in their products, services or processes as a significant source of value and competitive advantage. Knowledge-Based Businesses specifically include research businesses, information technology businesses, e-commerce businesses, electronic hosting facilities, agricultural research, and electronics businesses. This definition is applicable only to those Knowledge-Based Businesses that may reside in the Research and Technology Parks. Definition from 17 VIC Chapter 34 482(h).

Park. As used within the Act and certain other governing documents, refers to RTPark.

Protected Cell. A legal entity related to and administered by the RTPark-PC to which RTPark-PC’s various USVI tax incentives can be extended. A Protected Cell must meet the following conditions (as defined in 17 VIC Chapter 43 802(d).) at all times:

The Protected Cell must be an “Electronic Commerce Business,” an “e-Commerce Business,” or a “Knowledge-Based Business;”
The Protected Cell must be a tenant of RTPark; and
The Protected Cell must have RTPark-PC as a shareholder, partner, member, or other equity owner, to an agreed minimum percentage, of the total equity interests in the Protected Cell entity.

Protected Cell License/Operating Agreement: The agreement between RTPark-PC and any given Protected Cell which a) conveys Protected Cell benefits, and b) defines the terms and conditions under which the Protected Cell must operate in order to remain a Protected Cell and maintain those benefits.

Research and Technology Park. Real property owned or leased by UVI which has been leased to RTPark by UVI's Board of Trustees pursuant to a resolution adopted at a duly constituted meeting of the Board, which resolution, proclamation, or order shall include a detailed legal description of the area to be included in the Research and Technology Park and any real property owned by RTPark or leased from any other party. Definition from 17 VIC Chapter 34 482(j).

Research and Technology Park Project (or Project). Any building, whether or not in existence or under construction or other improvement; purchase of an existing building; refinancing of an existing building in order to facilitate substantial improvements thereto; or real estate improvements, including remodeling and refurnishing of or adding to existing property or both, and, if a part thereof, the land upon which it is located, and all real property deemed necessary to its use. Definition from 17 VIC Chapter 34 482(k).

Research and Technology Park Support Business. Accounting firms, law firms, banks, and other service providers and businesses that will complement the activities of the Research and Technology Park, but shall not include any businesses that are eligible for any tax benefits in connection with their location in the Research and Technology Park. Definition from 17 VIC Chapter 34 482(l).

Resident of the USVI. Definition from 17 VIC Chapter 34 482(m).

Any United States citizen domiciled in the USVI for one (1) year or more as verified by using the date of issuance information from a W-2 form, a voter registration card, a permanent resident card, a USVI driver's license, or such other means as shall be set forth in rules and regulations promulgated pursuant to 17 VIC Chapter 34 486(cc);
A person who has attended a school in the USVI for at least six (6) years or is a USVI high school or UVI graduate and who is registered to vote in the USVI;
Any “Native Virgin Islander” defined as any person born in the USVI, any person who is an offspring of a parent born in the USVI, or any person born outside the USVI to a Native Virgin Islands parent while that parent was studying abroad, employed abroad, or in active military service; or
The holder of an alien registration receipt card (United States Department of Justice Form No. 1–151) domiciled in the USVI for one (1) year or more.

RTP. RTPark.

RTPark. University of the Virgin Islands Research and Technology Park Corporation, as defined in 17 VIC Chapter 34. For the purposes of this document, references to RTPark shall be construed to be inclusive of RTPark-PC as well.

RTPark Board: The Board of Directors of RTPark and RTPark-PC (which while separate, are comprised of the same individuals and thus are treated interchangeably for the purposes of this document).

RTPark Companies: RTPark Tenants, RTPark-PC and Protected Cells.

RTPark Incentives: Defined in 17 VIC Chapter 43 806(b)-(g); for ease of reference, 806 is comprehensively paraphrased below:

RTPark-PC shall pay an annual franchise tax to the Department of Finance based on the worldwide gross receipts of each of the RTPark-PC's Protected Cells. Each Protected Cell with annual worldwide gross receipts less than or equal to $1,000,000 shall be subject to a franchise tax equal to $200. Each Protected Cell with annual worldwide gross receipts greater than $1,000,000 but not more than $5,000,000 shall be subject to a franchise tax equal to $2000. Each Protected Cell with annual worldwide gross receipts equal to or greater than $5,000,000 but not more than $10,000,000 shall be subject to a franchise tax equal to $5,000. Each Protected Cell with annual worldwide gross receipts greater than $10,000,000 but no greater than $20,000,000 shall be subject to a franchise tax equal to $12,500. Each Protected Cell with annual worldwide gross receipts greater than $20,000,000 but no greater than $50,000,000 shall be subject to a franchise tax equal to $15,000. Each Protected Cell with annual worldwide gross receipts greater than $50,000,000 but no greater than $100,000,000 shall be subject to a franchise tax equal to $20,000. Each Protected Cell with annual worldwide gross receipts greater than $100,000,000 but no greater than $250,000,000 shall be subject to a franchise tax equal to $25,000. Each Protected Cell with annual worldwide gross receipts greater than $250,000,000 shall be subject to a franchise tax as determined by the Board but in no event less than $25,000.

Each Protected Cell shall be exempted from the payment of the following taxes:
Each Protected Cell shall be entitled to reduce the amount of each payment of estimated income taxes by ninety percent (90%); and reduce the income tax liability shown on its income tax return for the taxable year by ninety percent (90%) on income from Virgin Islands sources and income that is effectively connected with the conduct of a Virgin Islands trade or business pursuant to IRC Sections 934(b)(1) and 937.
Taxes on real property imposed under 33 VIC Subtitle 2 to the extent that same is utilized in one of the businesses or industries for which RTPark-PC has been established.
Gross receipts taxes imposed under 33 VIC Chapter 3.
All excise taxes on building materials, tools, pipes, pumps, conveyor belts or other appliances, materials and supplies necessary for use in the construction, alteration, reconstruction or extension of the physical plant or facilities of the Research and Technology Park imposed under 33 VIC Chapter 3.
All excise taxes on raw materials and component parts brought into the Virgin islands for the purpose of producing, creating or assembling an article, good or commodity imposed under 33 VIC Chapter 3.
Notwithstanding any other law, raw materials and component parts brought into the USVI by a Protected Cell for the purpose of producing, creating or assembling an article, good or commodity shall be imported into the USVI at a customs duty rate of one percent (1%).
Exemptions from or reductions in withholding taxes
Every person who receives a payment of interest, dividends or royalties subject to the tax imposed by IRC Section 871(a)(1), 881, or 884 as applicable in the USVI from RTPark-PC or a Protected Cell shall be exempted from the payment of 100 percent of such tax on interest and shall be subject to a withholding tax of four percent on a payment of dividends or royalties.
RTPark-PC shall be exempted from the requirement to withhold tax pursuant to IRC Sections 1441 and 1442 with respect to the payments referred to in Subsection (1) of this Section to the extent that such payments are exempt from the tax described in said Subsection.
All benefits provided under Subsections 806(a) and 806(b) of this Chapter shall be applicable to any Protected Cell as defined in Section 801(a) of this Chapter.
The provisions of this section shall apply to shareholders, members, partners, grantors, beneficiaries, or other direct or indirect owners of RTPark-PC or a Protected Cell thereof as defined in Section 801(a) of this Chapter who are established in the USVI or who are bona fide residents of the USVI in accordance with IRC Section 932(c). Such shareholders, members, partners, grantors, beneficiaries, or other owners shall be entitled to a ninety percent (90%) reduction on income taxes payable with respect to income derived from the dividends or distributions paid to them by RTPark-PC or a Protected Cell thereof as defined in Section 801(a) of this Chapter.
Each Protected Cell shall receive the tax benefits provided for in this section upon the prior written approval of the RTPark Board of Directors of a plan of operation with respect to the respective Protected Cell. The Protected Cell shall not be subject to any otherwise applicable taxes or tax increases that may be subsequently enacted by the Legislature of the USVI during the period of its benefits, which is the lesser of fifteen (15) years or the period of time as a Protected Cell. Benefits shall be renewable in increments of ten years, initially, and five years thereafter under rules to be developed by the RTPark-PC Board.

RTPark-PC. The Research and Technology Park Protected Cell Corporation, as defined in 17 VIC Chapter 43, which is a wholly-owned subsidiary of RTPark.

RTPark Protected Cell Corporation. RTPark-PC.

RTPark Tenant. Defined in 17 VIC Chapter 34 490A; comprehensively paraphrased for ease of reference below:

The Research and Technology Park will have the following categories of tenants: EDC Beneficiaries pursuant to 29 VIC Chapter 12; Beneficiaries of the Farmers, Fishermen and Consumers Assistance Program pursuant to 7 VIC Chapter 13, RTPark-PC pursuant to 17 VIC Chapter 43, other Knowledge-Based Businesses as defined in 17 VIC Chapter 34 482(h), and Support Businesses as defined in 17 VIC Chapter 34 482(l). The RTPark Board of Directors shall have the exclusive right and authority to negotiate with such businesses as to the terms of their leases and all other aspects of their tenancy in a Research and Technology Park subject to the terms and conditions in the RTPark’s lease or leases from UVI and the Board of Directors.
Beneficiaries of the Virgin Islands Economic Development Program and Beneficiaries of the Farmers, Fishermen and Consumers Assistance Program shall be eligible to apply to become tenants in one of the Research and Technology Parks established pursuant to 17 VIC Chapter 34, and the RTPark Board of Directors shall have the exclusive right and authority to negotiate with the beneficiaries as to the terms of their lease and all other aspects of their tenancy in a Research and Technology Park. In determining whether a beneficiary shall be located in one of the Research and Technology Parks, RTPark shall evaluate such factors as whether the beneficiary hires or is committed to hiring students, faculty, and graduates of UVI, whether the beneficiary's existence in the Research and Technology Park will otherwise enhance UVI’s mission of teaching, research, and public service, whether the beneficiary has contributed or will contribute funds, services, or materials to UVI, and generally whether such synergies exist between the beneficiary and UVI so that the beneficiary is an appropriate tenant for a Research and Technology Park.
RTPark-PC as established in 17 VIC Chapter 43 shall provide Knowledge-Based Businesses with a Protected Cell, each a “Research and Technology Cell.” RTPark-PC shall be established and operated in accordance with the procedures set out in 17 VIC Chapter 34.
A USVI entity engaged in a Knowledge-Based Business as defined in 17 VIC Chapter 34 482(h) shall be eligible to receive the tax benefits as set out in 17 VIC Chapter 34 490B.
Incubator Businesses Tenants, as defined in 17 VIC Chapter 34 482(g), for the development or incubation of new Knowledge-Based Businesses and related businesses seeking to come to the USVI or to establish operations in the USVI, and in particular such businesses as are established by residents of the USVI, shall be eligible to receive the tax benefits as set forth in 17 VIC Chapter 34 490B.
Research and Technology Park Support Businesses as defined in 17 VIC Chapter 34 82(l) shall be eligible to apply to locate in a Research and Technology Park established pursuant to 17 VIC Chapter 34. The Research and Technology Park Support Businesses, however, shall not receive any tax benefits in connection with their location in the Research and Technology Park.
In determining whether an applicant shall be located in the Research and Technology Park under 17 VIC Chapter 34 490A(a) (3) or (4), RTPark shall evaluate whether the applicant is engaged in a Knowledge-Based Business, whether the applicant will contribute to the development of a technology sector in the USVI, whether the applicant brings synergistic new technologies or technology services to the USVI, whether synergies exist between the applicant and other tenants of the Research and Technology Park, whether the applicant employs or is committed to employing students, faculty and graduates of UVI and residents of the USVI, whether the applicant is committed to investing capital in the Research and Technology Park, whether the applicant has contributed or will contribute funds, services, intellectual capital, or materials to UVI and/or the USVI, or whether the applicant's existence in the Research and Technology Park will otherwise enhance UVI’s mission of teaching, research and public service.
Every business located in the Research and Technology Park under 17 VIC Chapter 34 490A(a)(3) or (4) shall file and maintain with RTPark a projection of employment needs, including the number and types of jobs as well as the related skills requirements for those jobs that are anticipated to become available during the projection period, and a plan of action outlining how the company will work cooperatively with RTPark and UVI to:
Develop and conduct education and training programs to prepare and qualify graduates of UVI and residents (as defined in this Act) of the Virgin Islands for anticipated jobs.
Develop Internship Programs for UVI and high school students in which students can work with businesses and then be eligible for fulltime employment upon graduation.
Develop “School to Work” programs in collaboration with the high schools and vocational schools to prepare students for employment upon graduation.
Every business shall also advertise all position vacancies with the Virgin Islands Department of Labor, RTPark-PC, UVI, and local media in order to inform qualified Residents of the Virgin Islands of employment opportunities.
Every business located in the Research and Technology Park under 17 VIC Chapter 34 490A(a)(3) or (4), in accordance with the rules and regulations of RTPark, shall agree in writing to employ or contract for services with and to purchase goods, materials and supplies from those persons, firms and corporations who are Residents of the USVI, or incorporated under the laws of the USVI, and who are duly licensed to do business in the USVI and have been so duly licensed for one year or more prior to the initial date of any such employment, contract, or purchase.

In addition, note the following beneficiary exclusions and constraints (definition from 17 VIC Chapter 43 808):

EDC Beneficiaries pursuant to 29 VIC Chapter 12, and beneficiaries of the Farmers, Fishermen and Consumers Assistance Program pursuant to 7 VIC Chapter 13, shall not be eligible to receive benefits under 17 VIC Chapter 43 (i.e., RTPark-PC) during the period of their benefits under 29 VIC or 7 VIC, respectively.
An EDC beneficiary or former beneficiary, or its predecessor, the Industrial Development Program or the Farmers, Fishermen and Consumers Assistance Program may apply for benefits under 17 VIC Chapter 43, with such benefits to commence after the expiration of benefits under 29 VIC or 7 VIC, as appropriate, or with such benefits to apply in lieu of the benefits under 29 VIC or 7 VIC, as appropriate, with the prior written permission of the respective agency that granted the benefits to the beneficiary or former beneficiary.
A beneficiary or a former beneficiary under 17 VIC Chapter 43 may apply for benefits under the EDC Program pursuant to 29 VIC Chapter 12, or under the Farmers, Fishermen and Consumers Assistance Program pursuant to 7 VIC Chapter 13, with the prior written permission of RTPark.

Single Source Solution. The adoption of policies and practices that would anticipate the needs of technology businesses for rapid response and delivery, and the creation of arrangements among public sector departments and agencies, and private sector partners and service providers which would make it possible for technology companies to have available to them, in a single place, and on a one-stop shopping basis, the services they need to carry out their business operations successfully, thereby creating and promoting a client-oriented, business-friendly, enabling environment for the development of the technology sector in the USVI. Definition from 17 VIC Chapter 34 482(o).

Tenant. Includes Incubator Business Tenant (defined above) and RTPark Tenant (defined above).

USC. United States Code.

USVI. The United States Virgin Islands, an unincorporated Territory of the United States.

UVI. The University of the Virgin Islands.

VIC. Virgin Islands Code. For ease of reference, the VIC may be browsed online at http://www.michie.com/virginislands.

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LEGISLATIVE STATEMENTS OF PURPOSE

RTPARK. Paraphrased from 17 VIC Chapter 34 480.

The purposes and objectives are declared to be the development of a technology sector in the USVI to promote the economic growth, development and diversification of the USVI and the broadening of the capabilities of UVI, including the training of UVI students through the creation and transfer of technology from campus-based research centers and their related technical and communications infrastructure to the marketplace, with the support of a research environment which combines the resources of UVI, the public sector, private industry, and the human and economic resources available in a progressive community. To this end, it is the policy and determination of the duly elected representatives of the people of the USVI that:

Certain benefits be made available for the development and expansion of business activities in one or more Research and Technology Parks established by the Government of the USVI as are determined, pursuant to this chapter, to be in the public interest of the USVI.
There be established by the Government of the USVI a University of the Virgin Islands Research and Technology Park Corporation, as a public corporation and autonomous governmental instrumentality of the Government of the USVI with the power to acquire, operate and improve one Research and Technology Park, with the initial thrust of development on the island of St. Croix, in order to provide suitable sites for the location of research businesses, technology-based businesses and agricultural research businesses in the USVI. The Research and Technology Park shall constitute optimum usage of property owned or leased by UVI and made available to RTPark, or property owned by RTPark.
RTPark shall provide facilities for the development or incubation of new, start-up, knowledge-based businesses and related businesses.
RTPark promote scientific research and development in affiliation with and related to the research and development activities of UVI and that the RTPark enhance UVI’s missions of teaching, research, and public service, and provide for the financial support of UVI under such terms and conditions as may be prescribed by the UVI Board of Trustees.
RTPark shall partner with UVI to develop and offer research and technology education, training and internships to residents of the USVI in order to qualify residents for jobs created by Park businesses.
RTPark shall contribute to the formation of a technology community which will enhance the economic development and broaden the economic base of the USVI.
RTPark shall provide an environment that will encompass commercial facilities that serve the needs of the Knowledge-Based Business in the Research and Technology Park.
RTPark may finance and refinance capital projects related to the establishment and operation of one or more Research and Technology Park sites in the USVI, including facilities that complement or encourage the complete operation thereof.
RTPark shall promote the hiring of Residents of the USVI and the purchase of goods, materials, and supplies from USVI residents, firms and corporations by businesses located in the Research and Technology Parks or Parks.
RTPark shall complement the EDC Program established under 29 VIC Chapter 12 and the Farmers, Fishermen and Consumers Assistance Program established under 7 VIC Chapter 13 and shall establish close liaison, cooperation and coordination with the EDA and the Department of Agriculture in connection therewith.
Every Electronic Business, Knowledge-Based Business, and Person, as defined in 17 VIC Chapter 34 482, and RTPark shall be subject to the laws and the Rules and Regulations of the USVI.

RTPARK-PC. Paraphrased from 17 VIC Chapter 43 800.

To provide for the creation of a protected cell corporation by the Legislature of the USVI to be owned by RTPark, defined as the “Research and Technology Park Protected Cell Corporation,” as a means to provide Hosting Services to Knowledge-Based Businesses, in the Research and Technology Park and to offer tax benefits to the Protected Cells of the Research and Technology Park Protected Cell Corporation.

The pragmatic application of the equity requirement is to secure a beneficiary’s performance under the Protected Cell License/Operating Agreement governing the Protected Cell.

Includes RTPark offices, buildings, lands, and network assets and infrastructure associated with RTPark and/or Protected Cell operations.

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FAQs

General

Tenancy

Protected Cells

Definitions

Legislative Statements of Purpose

GENERAL

WHAT IS THE RTPARK?

TENANCY

WHAT KINDS OF BUSINESSES ARE ELIGIBLE TO BE RTPARK TENANTS?

WHAT TAX INCENTIVES ARE AVAILABLE TO RTPARK TENANTS?

WHAT OBLIGATIONS DOES A TENANT OF RTPARK HAVE?

WHAT IS THE APPLICATION PROCEDURE FOR TENANCY IN THE RTPARK?

UNDER WHAT CIRCUMSTANCES CAN TENANCY IN THE RTPARK BE TERMINATED?

PROTECTED CELLS

WHAT IS A PROTECTED CELL?

WHAT KINDS OF APPLICANTS ARE ELIGIBLE TO APPLY FOR THE ESTABLISHMENT OF A PROTECTED CELL?

WHAT TAX INCENTIVES ARE AVAILABLE TO PROTECTED CELLS?

WHAT OBLIGATIONS DOES A PROTECTED CELL HAVE?

WHAT IS THE APPLICATION PROCEDURE FOR THE ESTABLISHMENT OF A PROTECTED CELL?

UNDER WHAT CIRCUMSTANCES CAN AN ENTITY LOSE ITS PROTECTED CELL STATUS?

DEFINITIONS

LEGISLATIVE STATEMENTS OF PURPOSE

RTPARK. Paraphrased from 17 VIC Chapter 34 480.

RTPARK-PC. Paraphrased from 17 VIC Chapter 43 800.