(a)  The base amount of the tax credit for an eligible business for each new full-time job shall be up to two thousand five hundred dollars ($2,500) annually.

Terms Used In Rhode Island General Laws 44-48.3-6

  • Business: means an applicant that is a corporation, state bank, federal savings bank, trust company, national banking association, bank holding company, loan and investment company, mutual savings bank, credit union, building and loan association, insurance company, investment company, broker-dealer company or surety company, limited liability company, partnership or sole proprietorship. See Rhode Island General Laws 44-48.3-3
  • Commerce corporation: means the Rhode Island commerce corporation established pursuant to chapter 64 of Title 42. See Rhode Island General Laws 44-48.3-3
  • Commitment period: means the period of time that at a minimum is twenty percent (20%) greater than the eligibility period. See Rhode Island General Laws 44-48.3-3
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Eligibility period: means the period in which a business may claim a tax credit under the program, beginning at the end of the tax period in which the commerce corporation issues a certification for the business that it has met the employment requirements of the program and extending thereafter for a term of not more than ten (10) years. See Rhode Island General Laws 44-48.3-3
  • full-time job: means a full-time position in a business which has been filled with a full-time employee who earns no less than the median hourly wage as reported by the United States Bureau of Labor Statistics for the state of Rhode Island, provided, that for economically fragile industries such as manufacturing, the commerce corporation may reduce the wage threshold. See Rhode Island General Laws 44-48.3-3
  • Hope community: means municipalities with a percentage of families below the poverty level that is greater than the percentage of families below the poverty level for the state as a whole as determined by the United States Census Bureau's most recent American Community Survey. See Rhode Island General Laws 44-48.3-3
  • New full-time job: means an eligible position created by the business that did not previously exist in this state and which is created after approval of an application to the commerce corporation under the program. See Rhode Island General Laws 44-48.3-3
  • Targeted industry: means any industry identified in the economic development vision and policy promulgated under § 42-64. See Rhode Island General Laws 44-48.3-3
  • Transit oriented development area: means an area in proximity to mass-transit infrastructure including, but not limited to, an airport, rail or intermodal facility that will be further defined by regulation of the commerce corporation in consultation with the Rhode Island department of transportation. See Rhode Island General Laws 44-48.3-3

(b)  The total tax credit amount shall be calculated and credited to the business annually for each year of the eligibility period after the commerce corporation, in consultation with the division of taxation, has verified that the jobs covered by the tax credit have generated sufficient personal income taxes to comply with subsection (e) of this section.

(c)  In addition to the base amount of the tax credit, the amount of the tax credit to be awarded for each new full-time job may be increased, pursuant to the provisions of subsection (d) of this section, if the business meets any of the following criteria or such other additional criteria determined by the commerce corporation from time to time in response to evolving economic or market conditions:

(1)  For a business located within a hope community;

(2)  For a targeted industry;

(3)  For a business located within a transit oriented development area; and

(4)  For an out-of-state business that relocates a business unit or units or creates a significant number of new full-time jobs during the commitment period.

(d)  For any application made to the commerce corporation the tax credit for an eligible business for each new full-time job shall not exceed seven thousand five hundred dollars ($7,500) annually.

(e)  Notwithstanding the provisions of subsections (a) through (d) of this section, for each application approved by the commerce corporation prior to July 1, 2019, the amount of tax credits available to be obtained by the business annually shall not exceed the reasonable W-2 withholding received by the state for each new full-time job created by a business for applications received by the commerce corporation. For each application approved by the commerce corporation after July 1, 2019, the amount of tax credits available to be obtained by the business annually shall not exceed seventy-five percent (75%) of the reasonable W-2 withholding received by the state for each new full-time job created by a business for applications received by the commerce corporation.

(f)  The commerce corporation shall establish regulations regarding the conditions under which a business may submit more than one application for tax credits over time. The commerce corporation may place limits on repeat applications.

History of Section.
P.L. 2015, ch. 141, art. 19, § 15; P.L. 2019, ch. 88, art. 12, § 7.