RHODE ISLAND INCENTIVES
Rhode Island shows an average deal value of $0.98 million with 94 new jobs created per deal
JOBS DEVELOPMENT ACT
The Jobs Development Act provides an incremental reduction in the corporate income tax rate (currently 9%) to companies that create new employment in Rhode Island over a three-year period.
The reduction equals:
- A quarter percentage point (0.25%) for every ten (10) new jobs created, for those companies having a baseline employment below 100; or
- A quarter percentage point (0.25%) for every fifty (50) new jobs created, for those companies having a baseline employment above 100.
The corporate income tax may be reduced to as low as 3%. The rate reduction is permanent as long as the company maintains the same level of employment that it had at the end of the third year following the company is self-selected base period. New employees must be paid at least 250% of the state minimum wage (the current state minimum wage is $8.00/ hour.) This benefit is subject to a finding of revenue neutrality and vote of the Commerce RI Board.
JOB TRAINING TAX CREDIT
Provides companies with a tax credit against the corporate income tax (or the insurance premium tax) equal to 50% of eligible training expenditures for new or existing employees. Employees must be full-time and earn at least 150% of the RI minimum wage. Training plans must be filed with the Rhode Island Human Resources Investment Council for prior written approval. The credit is capped at $5,000 per employee over a three-year period.
JOB TRAINING GRANTS
The Rhode Island Human Resources Investment Council offers a training program for business and industry funded through a job development assessment of 0.21% on the firm's taxable payroll. This pool of money is available for industry to create customized training programs tailored specifically for a company and free from income and other restrictions imposed by federally-funded programs.
MANUFACTURING INVESTMENT TAX CREDIT
A manufacturer is allowed a 4% tax credit against the Rhode Island corporate income tax on buildings and structural components, as well as machinery and equipment, which are owned or leased and are principally used in the production process (including storage). Property principally used for administration and distribution purposes is not eligible. The investment tax credit may not reduce the taxpayer is liability below the minimum business tax. Unused credits may be carried forward for up to seven (7) years.
OTHER RHODE ISLAND INCENTIVE PROGRAMS
- Motion Picture Tax Credit
- Insurance Company Retaliatory Tax Exemption
- International Investment Management Income Exemption
- Telecommunication Sales Tax Exemption
- Gross Premiums Tax Credits in Enterprise Zones
- Employer's Apprenticeship Tax Credit
- Educational Assistance and Development Credit
- High Performance Manufacturing Investment Tax Credit
- Business Income Apportionment for Manufacturers
- Apportionment Exclusion for Medical Manufacturers
- Innovation Tax Credit
- Jobs Growth Act of 2005: Income Tax Reduction on Performance-Based Income
- Child and Adult Daycare Tax Credit
- Research & Development Credits