01.12.16 |
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Rhode Island Hopeful New Tax Credit Will Bring Jobs

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Rhode Island State Rep. K. Joseph Shekarchi announced in May that he was introducing legislation aimed at creating jobs in his state by awarding tax credits to companies that either relocated to Rhode Island or created new jobs in the state, as reported by the Johnston Sunrise.[1]

This is the third straight year that Shekarchi has attempted such legislation, but supporters of the business tax credit were especially fervent this year, which led the Rhode Island House to pass a “pro-jobs” budget that included Rep. Shekarchi’s tax credits program in June.[2] This budget has since been approved by the Senate and Governor Gina Raimondo.[3]

This legislation was submitted as an amendment to expand the Rhode Island Quality Jobs Incentive Program. The expanded program will provide tax credits to qualified businesses that create new jobs through 2020 and will focus on the creation of high-quality jobs in preferred industries and areas. [4]

Shekarchi said the bill is intended to help create jobs paying an annual salary of $48,000 or more. Available tax credits will range anywhere from $2,500 to $7,500 per job created, depending upon the industry and the wages paid.[5]

The credits will be subject to rigorous accountability provisions and will be capped at the amount of state income taxes paid by a new employee or otherwise generated by the new job position. The Commerce Corporation will not release credits until the jobs are filled and the employer’s taxes are paid. The Division of Taxation will audit each tax credit annually and can impose a fine or retract the tax credit if a business does not maintain the majority of jobs created.[6]

Shekarchi stated that this tax credit plan is designed to work for large and small companies alike.

“For larger, well-established companies, the incentives outlined in this bill could provide the confidence they need to add jobs by locating new operations in Rhode Island, or expanding existing operations here,” Shekarchi said in a news release issued in May. “And for smaller businesses just starting out, this incentive could provide the additional cash flow they need to put their companies on more stable ground to grow.”[7]

 

Upcoming Webinar 1/26- Using Technology to Forcast and Capture Tax Credits

 

Learn More About ADP SmartCompliance® Tax Credits

 

To learn more about how ADP® can help businesses identify and capture tax credits for which they’re eligible, visit the ADP SmartCompliance® Tax Credits module.

 


The information provided in this blog post is for informational purposes only and not for the purpose of providing accounting, legal, or tax advice.  The information and services ADP provides should not be deemed a substitute for the advice of any such professional.  Such information is by nature subject to revision and may not be the most current information available.

[1] http://johnstonsunrise.net/stories/governor-reps-jobs-bill-one-piece-of-the-puzzle,102257

[2] http://www.providencejournal.com/article/20150616/NEWS/150619387

[3] http://openbudget.ri.gov/#!/about

[4] http://johnstonsunrise.net/stories/governor-reps-jobs-bill-one-piece-of-the-puzzle,102257

[5] http://johnstonsunrise.net/stories/governor-reps-jobs-bill-one-piece-of-the-puzzle,102257

[6] http://johnstonsunrise.net/stories/governor-reps-jobs-bill-one-piece-of-the-puzzle,102257

[7] http://www.rilin.state.ri.us/pressrelease/_layouts/RIL.PressRelease.ListStructure/Forms/DisplayForm.aspx?List=c8baae31-3c10-431c-8dcd-9dbbe21ce3e9&ID=10747&Web=2bab1515-0dcc-4176-a2f8-8d4beebdf488


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